Agenda reports pack
Argyll and Bute Council · 15 August 2024
Back to Policy and Resources Committee — 15 August 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 8 August 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, 15 AUGUST 2024 at 10:30 AM, or at the conclusion of the Special meeting of Argyll and Bute Council at 10.00am on the same date, whichever is the later, which you are requested to attend. Douglas Hendry Executive Director BUSINESS 1. APOLOGIES FOR ABSENCE 2. DECLARATIONS OF INTEREST (IF ANY) 3. MINUTES (Pages 5 - 10) Policy and Resources Committee held on 9 May 2024 * 4. FINANCIAL REPORTS MONITORING PACK - 30 JUNE 2024 (Pages 11 - 124) Report by Section 95 Officer 5. BUDGET OUTLOOK (a) BUDGET OUTLOOK 2025/26 TO 2029-30 (Pages 125 - 144) Report by Section 95 Officer (b) EDUCATION NETWORK TRANSFORMATION PROGRAMME (Pages 145 - 164) Report by Executive Director with responsibility for Education and Customer Support Services 6. CORPORATE DEBT RECOVERY POLICY 2024 (Pages 165 - 184) Report by Executive Director with responsibility for Financial Services Public Document Pack
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7. NATIONAL CARE SERVICE: STAGE 2 SCRUTINY: CALL FOR VIEWS (Pages 185 - 196) Report by Executive Director with responsibility for Legal and Regulatory Support 8. REDIRECTION OF CROWN ESTATES FUNDING (Pages 197 - 202) Report by Executive Director with responsibility for Development and Economic Growth 9. UPDATE: ARGYLL AND BUTE UK SHARED PROSPERITY FUND INVESTMENT PLAN INTERVENTIONS (Pages 203 - 212) Report by Executive Director with responsibility for Development and Economic Growth 10. SCOTTISH GOVERNMENT ISLANDS PROGRAMME AND CARBON NEUTRAL ISLANDS CAPITAL FUNDING (Pages 213 - 220) Report by Executive Director with responsibility for Development and Economic Growth 11. ISLANDS COST CRISIS EMERGENCY FUND 2024/25 (Pages 221 - 226) Report by Executive Director with responsibility for Development and Economic Growth 12. RURAL GROWTH DEAL - UPDATE AND DETAILED DESIGN COSTS (Pages 227 - 240) Report by Executive Director with responsibility for Development and Economic Growth 13. DATA STRATEGY AND ACTION PLAN 2024 - 2028 (Pages 241 - 266) Report by Executive Director with responsibility for Development and Economic Growth 14. COMMUNITY EMPOWERMENT (SCOTLAND) ACT 2015 - UPDATE - EXPRESSIONS OF INTEREST / ASSET TRANSFER REQUESTS / PARTICIPATION REQUESTS / REPORTING REQUIREMENTS (Pages 267 - 274) Report by Executive Director with responsibility for Commercial Services 15. COUNCIL CARBON EMISSIONS 2022/2023 (Pages 275 - 308) Report by Executive Director with responsibility for Commercial Services 16. CLIMATE CHANGE BOARD UPDATE (Pages 309 - 318) Report by Executive Director with responsibility for Commercial Services 17. SIMPLIFIED PLANNING ZONES: PROPOSED CLOSURE OF PROJECT (Pages 319 - 324) Recommendation from Planning, Protective Services and Licensing Committee held on 22 May 2024 REPORT WITH EXEMPT APPENDIX 18. OCTOBER 2023 WEATHER EVENT - UPDATE (a) Report by Executive Director with responsibility for Roads and Infrastructure Services (Pages 325 - 336) E1 (b) Appendix A (Pages 337 - 344) (c) Appendix B (Pages 345 - 346)
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EXEMPT REPORT E2 19. HELENSBURGH WATERFRONT DEVELOPMENT (COMMERCIAL AREA) - UPDATE & SELECTION OF PREFERRED DEVELOPER (Pages 347 - 380) Report by Executive Director with responsibility for Commercial Services REPORTS FOR NOTING 20. POLICY AND RESOURCES COMMITTEE WORKPLAN (Pages 381 - 384) 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 paragraphs are:- E1 Paragraph 6 Information relating to the financial or business affairs of any particular person (other than the authority). Paragraph 9 Any terms proposed or to be proposed by or to the authority in the course of negotiations for a contract for the acquisition or disposal of property or the supply of goods or services. E2 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 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, 9 MAY 2024 Present: Councillor Jim Lynch (Chair) Councillor John Armour Councillor Gordon Blair Councillor Math Campbell-Sturgess Councillor Audrey Forrest Councillor Kieron Green Councillor Reeni Kennedy-Boyle Councillor Liz McCabe Councillor Dougie McFadzean Councillor Ross Moreland Also Present: Councillor Jan Brown Councillor Luna Martin Attending: Pippa Milne, Chief Executive Douglas Hendry, Executive Director Kirsty Flanagan, Executive Director Anne Blue, Head of Financial Services Fergus Murray, Head of Development and Economic Growth Ross McLaughlin, Head of Commercial Services Jane Fowler, Head of Customer and Support Services Shona Barton, Governance Manager John Gordon, Programme Manager - CHORD 1. APOLOGIES FOR ABSENCE Apologies for absence were received from Councillors Robin Currie, Amanda Hampsey, Mark Irvine, Yvonne McNeilly and Dougie Philand. 2. DECLARATIONS OF INTEREST Councillor Jim Lynch advised in relation to item 7 of the agenda (Latest Update on the Clipper Round the World Yacht Race Oban Stopover Actions) that he had been appointed to the Oban BID Board by the Council. Having taken note of the Standards Commission Guidance in relation to declarations (issued on 7 December 2021), with specific reference to section 5.4(c), he did not consider that he had a relevant connection and as such would remain in the meeting. 3. MINUTES The Minutes of the meeting of the Policy and Resources Committee held on 15 February 2024 were approved as a correct record. * 4. BUDGET OUTLOOK The Committee gave consideration to a report summarising the Budget Outlook covering the period 2025-26 to 2029-30, taking into consideration the budget decisions taken at the Council Budget meetings on 22 February and 15 April 2024. Decision The Policy and Resources Committee noted – Page 5 Agenda Item 3
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1. the current estimated budget outlook for the period 2025-26 to 2028-29; and 2. the minor changes to fees and charges and agreed to refer them to Council for endorsement. (Reference: Report by Section 95 Officer dated 30 April 2024, submitted) * 5. CUSTOMER SERVICE STRATEGY 2024-27 The Committee gave consideration to a report presenting the new corporate Customer Service Strategy 2024-27. Decision The Policy and Resources Committee – 1. noted the outcomes of the consultations on the draft Customer Service Strategy and the changes made to it using the customer and employee insights gained contained at Appendix 2 to the submitted report; and 2. approved the revised Customer Service Strategy, Charter and Action Plan contained at Appendix 1 to the submitted report, and associated EQSEIA contained at Appendix 3 to the submitted report, to proceed to the next full Council meeting in June 2024. (Reference: Report by Executive Director with responsibility for Customer Support Services dated 9 May 2024, submitted) 6. LACER SMALL BUSINESS SUPPORT: DIGITAL REVIEWS The Committee gave consideration to a report which sought approval to scale up the provision of digital reviews for small businesses to assist their recovery and growth using the remainder of the funding allocated to business grants via the Local Authority COVID Economic Recovery (LACER) money from the Scottish Government. Decision The Policy and Resources Committee approved the use of £34,365 earmarked for business grants with existing LACER Schemes to provide additional fully funded digital reviews to assist the growth and recovery of small businesses in the area, particularly in remote rural communities. (Reference: Report by Executive Director with responsibility for Development and Economic Growth dated 9 April 2024, submitted) 7. LATEST UPDATE ON THE CLIPPER ROUND THE WORLD YACHT RACE OBAN STOPOVER ACTIONS The Committee gave consideration to a report providing an update on the progress of the Clipper 2023-2024 Round the World Yacht Race Oban Stopover Actions Plan. Decision Page 6
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The Policy and Resources Committee – 1. noted the progress on actions delivered for the Clipper 2023-2024 Round the World Yacht Race Oban Stopover contained at Table 1 within the submitted report; 2. approved up to £50k of funding to deal with additional costs linked to the event from the Council’s priority fund; and 3. noted the key Oban Stopover civic events including the Clipper Award Civic Ceremony on 16 July 2024, the Clipper Connect Business Event on 19 July 2024 and VIP Reception on the Clipper Race departure day on 21 July 2024. (Reference: Report by Executive Director with responsibility for Development and Economic Growth dated 10 April 2024, submitted) 8. LEVELLING UP PARTNERSHIP PROCESS The Committee gave consideration to a report inviting the prioritisation of a long list of projects in relation to Levelling Up Partnership Funding. Decision The Policy and Resources Committee – 1. acknowledged the work done by officers to prepare and develop the list of projects which span Argyll and Bute and which link to a variety of strategic and local priorities; 2. welcomed the ongoing engagement with the UK Government at officer level; 3. noted the process in relation to identifying the projects which would be funded through the Levelling Up Partnership, that final decisions would be made by the UK Government and, as a consequence; and 4. agreed to submit the long list of projects provided in Table 1, without prioritisation, to the UK Government for consideration and decision as part of that process. (Reference: Report by Executive Director with responsibility for Development and Economic Growth dated April 2024, submitted; and Motion by Councillor Jim Lynch, seconded by Councillor Audrey Forrest, tabled) 9. ROTHESAY PAVILION UPDATE REPORT The Committee gave consideration to a report providing an update on Rothesay Pavilion, specifically the Tender Report for the works to complete stages 2 and 3. Decision The Policy and Resources Committee - 1. noted the content of the submitted report; and Page 7
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2. agreed that a more detailed report be brought forward for consideration and decision by the Council at its meeting on 27 June 2024. (Reference: Report by Executive Director with responsibility for Commercial Services; and Executive Director with responsibility for Development and Economic Growth and Financial Services and the Councils Section 95 Officer, submitted) The Chair advised that in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973, the appendices relating to the following item of business would require the exclusion of the press and public should any Member wish to discuss the content of those appendices, on the grounds that it was likely to involve the disclosure of exempt information as defined in Paragraph 6 of Part 1 of Schedule 7A to the Local Government (Scotland) Act 1973. The Committee agreed that they wished to discuss the content of the appendices and therefore resolved to exclude the press and public for the following item of business. 10. LORN ARC TAX INCREMENTAL FINANCE PROGRAMME - OBAN AIRPORT BUSINESS PARK - OUTLINE BUSINESS CASE The Committee gave consideration to a report providing an update on the progress of the Oban Airport Business Park Project and its relationship to the wider Lorn Arc Tax Incremental Finance (TIF) Programme. Decision The Policy and Resources Committee – 1. noted that discussions were ongoing with the Scottish Government in relation to varying the TIF agreement to maximise the benefit from the scheme and that progression of this project was subject to the Scottish Government agreeing to amend the date by which works must be completed; 2. approved the submission of the Outline Business Case (OBC) to the TIF Executive seeking funding of £8.05m (including 15% fees and 10% contingency) for the development of roads, infrastructure, servicing and site works at Oban Airport Business Park; 3. subject to approval by the TIF Executive, approved the drawdown of borrowing for a total of £1.6m (20% of total cost) for the development of a Full Business Case and associated fees to progress the Oban Airport Business Park project; 4. noted the additional resources that would be required to deliver this project in the form of the establishment of a Project Management Office (PMO) with Hub North Scotland providing strategic support; and 5. noted that the Full Business Case would be reported to a future Policy and Resources Committee before moving to the implementation stage. (Reference: Report by Executive Director with responsibility for Development and Economic Growth dated 9 April 2024, submitted) Page 8
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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. (Reference: Policy and Resources Committee Workplan as at 9 May 2024, submitted) Page 9
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 15 AUGUST 2024 FINANCIAL REPORTS MONITORING PACK – 30 JUNE 2024 1. INTRODUCTION 1.1 This report provides a summary of the financial monitoring reports as at the end of June 2024. There are five detailed reports, setting out the position as at 30 June 2024, which are summarised in this Executive Summary: • Revenue Budget Monitoring Report • Monitoring of Financial Risks • Capital Plan Monitoring Report • Treasury Monitoring Report • Reserves and Balances 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 £4.658m as at the end of June 2024. The variances are: - The pressure resulting from the October 2023 weather event of £3.567m. A separate report within this pack provides Members with further information. - Within Social Work, a forecast overspend of £0.648m relating to demand for residential placements within Children and Families Services. - Within Roads and Infrastructure Services, a forecast overspend of £0.500m relating to new bus contracts for Public and Pupil Transport across Argyll and Bute. Note that since the end of June, a further pressure of £0.210m in relation to bus contracts has been identified as more contracts are renewed, therefore in the next reporting period the overspend relating to bus contracts will increase from £0.500m to £0.710m. - Within Central Budgets, a forecast overspend of £0.271m is reported in relation to the inflation on insurance being higher than estimated. - Within Funding, an over-recovery of Council Tax income on second homes of £0.328m. 2.1.3 There is a year to date overspend of £1.140m. 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 11 Agenda Item 4
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2.1.4 Total policy savings relevant to 2024-25 financial year amount to £6.467m. The table below outlines their progress as at 30 June 2024. Category No. of Options 2024-25 £000 2024- 25 FTE 2025-26 £000 2025- 26 FTE Future Years £000 Future Years FTE Delivered 4 5,371.0 0.0 5,538.0 0.0 5,538.0 0.0 On Track to be Delivered 8 965.0 14.9 846.0 14.9 846.0 14.9 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 1 100.0 0.0 150.0 0.0 150.0 0.0 Potential Shortfall 1 30.0 0.0 30.0 0.0 30.0 0.0 Delayed 0 0.0 0.0 0.0 0.0 0.0 0.0 TOTAL 15 6,466.5 14.9 6,564.5 14.9 6,564.5 14.9 2.1.5 One saving is categorised as potential shortfall and one will not be achieved. Health and Social Care Partnership (HSCP) – Financial Update 2.1.6 The forecast outturn position at the end of June is an estimated overspend of £1.176m for 2024-25 (£0.648m overspend for Social Work and £0.528m 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. 2.2.2 There are 7 Council wide revenue risks identified for 2024-25 currently amounting to £3.592m. 2.2.3 There are currently 42 departmental risks totalling £5.580m. 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. Page 12
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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. 3 750 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 2.2.6 There have been 5 changes to the departmental risks since the report as presented to the Council on 22 February 2024. These are outlined in paragraph 3.4.1 of the Financial Risks Report. 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. Page 13
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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. To date, £8.834m has been allocated to projects leaving a balance of £2.266m available for allocation as required. 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 £4.869m compared to a budget for the year to date of £4.814m giving rise to an overspend for the year to date of £0.055m (1.14%). 2.3.5 The forecast outturn for 2024-25 is a forecast net expenditure of £37.565m compared to an annual budget of £37.132m giving rise to a forecast overspend for the year of £0.433m (1.17%). 2.3.6 The forecast total net projects costs on the capital plan are £206.634m compared to a total budget for all projects of £206.634m giving rise to a forecast overspend for the overall capital plan of £0.433m (0.21%). 2.3.7 In respect of total project performance, there are 172 projects within the capital plan, 166 are complete or on target, 5 are off target and recoverable and one project is off track. 2.4 Treasury Monitoring Report 2.4.1 This report provides information on the current levels and recent transactions in relation to the capital financing limit, total borrowing, temporary borrowing and long term borrowing and investments. 2.4.2 The net movement in external borrowing for the period 1 April 2024 to 30 June 2024 was a decrease of £5.7m. 2.4.3 Borrowing is below the Capital Financing Requirement for the period to 30 June 2024, at this stage in the financial year capital expenditure is below target. 2.4.4 The levels of investments were £59.638m at 30 June 2024. The average rate of return achieved was 5.276% which is above the target SONIA (Sterling Overnight Index Average) rate for the same period of 5.200%. Page 14
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2.5 Reserves and Balances 2.5.1 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. 2.5.2 The Council has a total of £689.113m unusable reserves that are not backed with resources. They are required purely for accounting purposes. 2.5.3 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. 2.5.4 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. This results in a total in- year earmarked balance of £119.246m. 2.5.5 Of the earmarked balance of £119.246m: • £60.078m is invested or committed for major initiatives/capital projects • £28.359m is still to be drawn down in 2024-25 • £30.809m is planned to be spent in future years 2.5.6 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. (4,658) Social Work outturn adjustment Per paragraph 3.4.3 - Social Work would expect to transfer any surplus to internal IJB reserves 648 Page 15
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Sub-total – potential unallocated balance as at 31 March 2025 *If no separate action is taken regarding the weather event overspend, the unallocated general fund balance would fall below 0 (1,751) Options to pay for weather related incident Members have been presented with options to cover the pressures resulting from the weather incident 3,567 Estimated Unallocated balance as at 31 March 2025 1,816 * If Members do not agree to the options outlined in the separate report and the unallocated general fund balance falls below the amount available and moves into contingency then a recovery plan would be required to bring the contingency level back up to the agreed amount. 2.5.6 It can be seen that, after taking into consideration the current forecast outturn for 2024-25 and assuming Members agree to the proposed actions regarding the weather event, is estimated to have a £1.816m surplus over contingency. 2.6 VIREMENTS OVER £0.200m (Revenue) 2.6.1 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. 2.6.2 For the period April to June, there are no virements requiring authorisation: 2.6.3 There is one virement relating to 2023-24 that requires authorisation. This virement was completed late in the year end process therefore did not appear on the report to Council on 25 June 2024. It is: - £0.288m from Education to reserves to recognise the Capital Items Replacement Fund (the repairs and renewals fund that schools have access to). 3. RECOMMENDATIONS 3.1 It is recommended that the Policy and Resources Committee: a) Consider the revenue budget monitoring report as at 30 June 2024. Page 16
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b) Note the financial risks for 2024-25. c) Note the capital plan monitoring report as at 30 June 2024 and approve the proposed changes to the capital plan outlined in Appendix 4 of that report. d) Note the treasury monitoring report as at 30 June 2024. e) Consider the reserves and balances report as at 30 June 2024. f) Note that there were no revenue virements over £0.200m between April and June 2024. g) Recommend to Council that the revenue budget virement over £0.200m outstanding from 2023-24 is approved, per paragraph 2.6.3. 4. IMPLICATIONS 4.1 Policy – None. 4.2 Financial - Outlines the revenue and capital monitoring for 2024-25 as at 30 June 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 6 August 2024 Councillor Ross Moreland, Policy Lead for Finance and Commercial Services For further information contact Anne Blue, Head of Financial Services anne.blue@argyll-bute.gov.uk Page 17
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REVENUE BUDGET MONITORING REPORT AS AT 30 JUNE 2024 POLICY AND RESOURCES COMMITTEE 15 AUGUST 2024 2024-25 Overall Position: There is a forecast overspend of £4.658m as at the end of June 2024. The pressure relating to the October 2023 Weather Event has been quantified and is a £3.567m overspend against revenue budgets. A separate report on this agenda provides Members with further detail. Within Social Work, there is a forecast overspend of £0.648m relating to demand for residential placements within Children and Families Services. Within Executive Director Kirsty Flanagan, there is a forecast overspend of £0.500m due to the cost of new Bus Contracts for Public and Pupil Transport across Argyll and Bute. Note that since the end of June, a further pressure of £0.210m in relation to bus contracts has been identified as more contracts are renewed therefore in the next reporting period, the forecast overspend relating to bus contracts will increase from £0.500m to £0.710m. Within Central Budgets, an overspend of £0.271m is reported in relation to the inflation on insurance being higher than estimated. 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 £1.140m. 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 June 2024: • Council services are projecting an overspend of £4.658m as at 30 June 2024. It is early in the budget monitoring process and projections will be refined as the year progresses. In the separate report regarding the Weather Incident, Members have been provided with options to consider to cover the estimated overspends. • Negotiations regarding the 2024-25 pay award are ongoing therefore salary costs are currently understated and the impact on the forecast outturn position of any increase beyond the 3% already built into the budget cannot be quantified at this stage. 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 Page 18
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Key Financial Challenges: Proposed Actions to address Financial Challenges: Addressing service demand/expectation and the increasing challenges facing departments across the Council in relation to the recruitment and retention of suitably qualified and experienced staff. Engagement and monitoring of both issues with departments to assess how these challenges are affecting service capacity and capability, staff attendance, utilisation of agency staff and costs. Collaboration with services and other back-office teams to consider and develop mitigating actions. Achieving a favourable year-end position and achieving savings targets in light of council wide risks to expenditure. Robust monitoring of the financial position and delivery of savings to ensure budget issues inform the budget monitoring process. 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. 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 19
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Forecast Outturn Position There is a forecast underspend of £4.658m for 2024-25 as at 30 June 2024. Department Annual Budget £'000 Forecast Outturn £'000 Current Forecast Variance £'000 Previous Forecast Variance £000 Change £000 Explanation Chief Executive's Unit 996 996 0 0 0 Executive Director (Douglas Hendry) 145,610 145,610 0 0 0 Executive Director (Kirsty Flanagan) 56,081 56,581 (500) 0 (500) This is due to the cost of new Bus Contracts for Public and Pupil Transport across Argyll and Bute. Weather related incident ongoing costs 0 3,567 (3,567) (3,567) This is the projected revenue overspend from the October 2023 weather event. A separate report on the agenda provides Members with further detail on this. Social Work 78,466 79,114 (648) 0 (648) The projected overspend is due to demand for residential placements within Children and Families Services. Central Budgets 20,812 21,083 (271) 0 (271) The projected overspend is due to pressure on the insurances budgets due to inflation being higher than estimated. Financed By (301,965) (302,293) 328 0 328 There is a projected over recovery of income for Council tax on 2nd homes. Total 0 4,658 (4,658) 0 (4,658) Further information on the departmental forecast variances is included later on in the report. Page 20
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(4,000) (3,500) (3,000) (2,500) (2,000) (1,500) (1,000) (500) 0 500 April May June July August September October November December January February £ 000 Forecast outturn position for each Department from the start of the financial year Chief Executive's Unit Executive Director (Douglas Hendry) Executive Director (Kirsty Flanagan) Weather incident Social Work Central Budgets Underspend Overspend Page 21
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Year to Date Position The year to date position as at 30 June 2024 is an overspend of £1.140m and the main variances are noted below. Department YTD Actual £'000 YTD Budget £'000 YTD Variance £'000 Explanation Chief Executive's Unit 222 190 (32) Executive Director (Douglas Hendry) 35,169 35,417 248 Executive Director (Kirsty Flanagan) 16,484 12,717 (3,767) Social Work 2,861 2,780 (81) Central Budgets (2,484) 8 2,492 Funding (80,182) (80,182) 0 Total Net Expenditure (27,930) (29,070) (1,140) The year to date variance is largely due to profiling of budgets as opposed to geniune under or overspends. This will be rectified in the coming weeks. Page 22
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Further information on the departmental year to date variances is included later on in the report. -25% 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 23
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OBJECTIVE SUMMARY – OVERALL COUNCIL POSITION AS AT 30 JUNE 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 222 190 (32) (16.8%) 996 996 0 0.0% Executive Director (Douglas Hendry) 35,169 35,417 248 0.7% 145,610 145,610 0 0.0% Executive Director (Kirsty Flanagan) 16,484 12,717 (3,767) (29.6%) 56,081 56,581 (500) (0.9%) Weather related incident ongoing costs 0 0 0 0.0% 0 3,567 (3,567) #DIV/0! Social Work 2,861 2,780 (81) (2.9%) 78,466 79,114 (648) (0.8%) Total Departmental Budgets 54,736 51,104 (3,632) (7.1%) 281,153 285,868 (4,715) (1.7%) Central Budgets Other Operating Income and Expenditure (3,602) 303 3,905 1288.8% 1,996 1,996 0 0.0% Joint Boards 317 364 47 12.9% 1,458 1,458 0 0.0% Non-Controllable Costs 801 (659) (1,460) 221.6% 17,358 17,629 (271) (1.6%) Total Central Budgets (2,484) 8 2,492 31150.0% 20,812 21,083 (271) (1.3%) TOTAL NET EXPENDITURE 52,252 51,112 (1,140) (2.2%) 301,965 306,951 (4,986) (1.7%) Financed By Aggregate External Finance (60,201) (60,201) 0 0.0% (248,490) (248,490) 0 0.0% Local Tax Requirement (19,981) (19,981) 0 0.0% (63,278) (63,606) 328 (0.5%) Contributions to General Fund 0 0 0 0.0% 9,803 9,803 0 0.0% Earmarked Reserves 0 0 0 0.0% 0 0 0 0.0% Total Funding (80,182) (80,182) 0 0.0% (301,965) (302,293) 328 (0.1%) (Deficit)/Surplus for Period (27,930) (29,070) (1,140) 0 4,658 (4,658) CURRENT PROJECTED FINAL OUTTURNYEAR TO DATE POSITION Page 24
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SUBJECTIVE SUMMARY – OVERALL COUNCIL POSITION AS AT 30 JUNE 2024 YEAR TO DATE POSITION CURRENT PROJECTED FINAL OUTTURN YTD Actual YTD Budget YTD Variance Variance Annual Budget Forecast Outturn Forecast Variance Variance £'000 £'000 £'000 % £'000 £'000 £'000 % Subjective Category Employee Expenses 41,707 40,843 (864) (2.1%) 189,327 190,004 (677) (0.4%) Premises Related Expenditure 2,631 3,263 632 19.4% 21,349 21,316 33 0.2% Supplies and Services 7,068 6,602 (466) (7.1%) 23,887 24,074 (187) (0.8%) Transport Related Expenditure 4,116 3,075 (1,041) (33.9%) 17,775 17,774 1 0.0% Third Party Payments 36,910 37,746 836 2.2% 182,130 187,645 (5,515) (3.0%) Capital Financing 213 (1,215) (1,428) 10,626 10,626 0 0.0% TOTAL EXPENDITURE 92,645 90,314 (2,331) (2.6%) 445,094 451,439 (6,345) (1.4%) Income (120,575) (119,384) 1,191 (1.0%) (445,094) (446,781) 1,687 (0.4%) (Deficit)/Surplus for Period (27,930) (29,070) (1,140) 0 4,658 (4,658) 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 25
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CHIEF EXECUTIVE’S UNIT – AS AT 30 JUNE 2024 The department is currently forecasting spend in line with budget. The department has a year to date overspend of £0.032m (16.8%) 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 996 996 0 0 0 Totals 996 996 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 £0.013m 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 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. 0% 25% 50% 75% 100% Chief Executive Expenditure to date against the remaining budget for each Service YTD Actual £000 Remaining Budget £000 Page 26
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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 27
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CHIEF EXECUTIVE’S UNIT – OBJECTIVE SUMMARY AS AT 30 JUNE 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 88 87 (1) (1.2%) 414 414 0 0.0% Outwith reporting criteria. Community Planning & Development 134 103 (31) (30.1%) 582 582 0 0.0% Posts funded from earmarked reserves/other funding - will be corrected in July. 222 190 (32) (16.8%) 996 996 0 0.0% YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%. Page 28
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CHIEF EXECUTIVE’S UNIT – SUBJECTIVE SUMMARY AS AT 30 JUNE 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 210 173 (37) (21.4%) 838 838 0 0.0% Overspend caused by posts funded from earmarkings/other budgets - will be rectified in July Supplies and Services 10 3 (7) (233.3%) 12 12 0 0.0% Profiling issues, will be rectified in July. Transport 1 3 2 66.7% 14 14 0 0.0% Underspend on staff travel budgets. Third Party 1 15 14 93.3% 149 149 0 0.0% Profiling issues, will be rectified in July. Income 0 (4) (4) 100.0% (17) (17) 0 0.0% Profiling issues, will be rectified in July. Totals 222 190 (32) (16.8%) 996 996 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 29
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CHIEF EXECUTIVE’S UNIT – RED VARIANCES AS AT 30 JUNE 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 30
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EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – AS AT 30 JUNE 2024 The department is currently forecasting spend in line with budget. The department has a year to date (YTD) underspend of £0.248m (0.7%). The year to date underspend is mainly due to the current budget profile which will be refined through July. Forecast Outturn Position Service Annual Budget £000 Forecast Outturn £000 Current Forecast Variance £000 Previous Forecast Variance £000 Change £000 Executive Director (Douglas Hendry) 74 74 0 0 0 Head of Commercial Services 10,448 10,448 0 0 0 Head of Education 113,752 113,752 0 0 0 Head of Legal and Regulatory Support 21,336 21,336 0 0 0 Totals 145,610 145,610 0 0 0 Year to Date Position 0% 25% 50% 75% 100% Executive Director (Douglas Hendry) Head of Commercial Services Head of Education Head of Legal and Regulatory Support Expenditure to date against the remaining budget for each Service YTD Actual £000 Remaining Budget £000 Page 31
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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. Work 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 32
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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 33
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EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – OBJECTIVE SUMMARY AS AT 30 JUNE 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 80 86 6 7.0% 74 74 0 0.0% Outwith Reporting Criteria 80 86 6 7.0% 74 74 0 0.0% Head of Commercial Services Catering 75 (142) (217) 152.8% 321 321 0 0.0% The YTD overspend is largely due to timing of school meal recharges for which budgets will be reprofiled. Head of Commercial Services Central/Management Costs 287 288 1 0.4% 1,721 1,721 0 0.0% Outwith Reporting Criteria Head of Commercial Services CHORD 30 14 (16) (114.3%) 24 24 0 0.0% The YTD overspend is largely due to timing of recharges to capital projects. Head of Commercial Services Cleaning (58) 9 67 744.4% 400 400 0 0.0% The YTD underspend is largely due to timing of recharges to Education and reduced use of bank staff. Head of Commercial Services Culture, Heritage, Recreation & Sport 1,313 1,354 41 3.0% 5,669 5,669 0 0.0% Outwith Reporting Criteria Head of Commercial Services Events & Commercial Catering 36 (15) (51) 340.0% 7 7 0 0.0% The YTD overspend is due to under- recovery of income budgets within Events and Commercial Cafes. Head of Commercial Services Property Portfolio (110) (53) 57 (107.6%) (189) (189) 0 0.0% The YTD underspend is due to profiling of budgets relating to rental income from industrial sites and investment properties. Head of Commercial Services Property Services 303 337 34 10.1% 861 861 0 0.0% The YTD underspend is due to vacancies within Property Services. Page 34
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Head of Commercial Services Shared Offices 219 317 98 30.9% 1,634 1,634 0 0.0% The YTD underspend is due to profiling of CRA and rental income budgets. 2,095 2,109 14 0.7% 10,448 10,448 0 0.0% Head of Education Additional Support for Learning 2,737 2,641 (96) (3.6%) 11,788 11,788 0 0.0% The YTD overspend is largely within ASN Assistants and this will be remedied through a drawdown from Earmarked Reserves in July. Head of Education Central/Management Costs 747 296 (451) (152.4%) 1,899 1,899 0 0.0% The YTD overspend is largely due to profiling of central teaching staff budgets which have been profiled into March in error. This will be corrected in July. Head of Education Community Learning & Development 2 1 (1) (100.0%) 15 15 0 0.0% The YTD overspend is due to utilities costs within CLD premises for which budgets will be rightsized throughout the year. Head of Education COVID 15 0 (15) n/a 0 0 0 0.0% The YTD overspend will be rectified through drawdown of earmarkings. Head of Education Early Learning & Childcare 3,250 3,715 465 12.5% 17,495 17,495 0 0.0% The YTD underspend is largely due to accruals still to be recharged relating to ELC upgrade works at Rothesay Joint Campus and budget profiling within ELC Settings and Central ELC budgets. This is partially offset by a YTD overspend in 1140 which will be remedied through a drawdown from Earmarked Reserves in July. Head of Education Primary Education 9,602 9,664 62 0.6% 40,496 40,496 0 0.0% The YTD underspend relates to profiling of budgets within schools for NPDO Facilities Management recharges which have not yet been recharged for the current year, partially offset by profiling of Pupil Equity Fund grant and school meal income budgets. Page 35
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Head of Education Pupil Support 525 458 (67) (14.6%) 2,419 2,419 0 0.0% The YTD overspend is due to higher than budgeted demand for Schools Residential Placements. This will be monitored closely throughout the year. There is also an overspend in the Wellbeing budget and this will be remedied through a drawdown from Earmarked Reserves in July. Head of Education Schools - Central Services 579 603 24 4.0% 2,376 2,376 0 0.0% Outwith Reporting Criteria Head of Education Secondary Education 8,847 9,163 316 3.5% 37,264 37,264 0 0.0% The YTD underspend relates to profiling of budgets within schools for NPDO Facilities Management recharges which have not yet been recharged for the current year, partially offset by profiling of Pupil Equity Fund grant and school meal income budgets. 26,304 26,541 237 0.9% 113,752 113,752 0 0.0% Head of Legal & Regulatory Support Central/Management Costs 56 52 (4) (7.7%) 264 264 0 0.0% Outwith Reporting Criteria Head of Legal & Regulatory Support Community Safety 106 37 (69) (186.5%) 168 168 0 0.0% The YTD overspend will be partially rectified through drawdown of earmarkings and processing of prepayments at year end. Head of Legal & Regulatory Support Elections 32 31 (1) (3.2%) 37 37 0 0.0% Outwith Reporting Criteria Head of Legal & Regulatory Support Governance 83 63 (20) (31.8%) 731 731 0 0.0% The YTD overspend will be partially rectified through drawdown of earmarkings and processing of prepayments at year end. Head of Legal & Regulatory Support Governance, Risk & Safety 125 116 (9) (7.8%) 554 554 0 0.0% Outwith Reporting Criteria Head of Legal & Regulatory Support Legal Services 35 81 46 56.8% 701 701 0 0.0% The YTD underspend is due to timing of licensing income. Page 36
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Head of Legal & Regulatory Support NPDO and Hub Schools 5,873 5,946 73 1.2% 17,111 17,111 0 0.0% The YTD underspend is due to the profiling of budget for third party payments. Head of Legal & Regulatory Support Procurement, Commercial and Contract Management 227 227 0 0.0% 1,160 1,160 0 0.0% Outwith Reporting Criteria Head of Legal & Regulatory Support Trading Standards & Advice Services 153 128 (25) (19.5%) 610 610 0 0.0% The YTD overspend will be partially rectified through drawdown of earmarkings and re-profiling of grant income budgets. 6,690 6,681 (9) (0.1%) 21,336 21,336 0 0.0% 35,169 35,417 248 0.7% 145,610 145,610 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 37
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EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – SUBJECTIVE SUMMARY AS AT 30 JUNE 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 24,439 24,038 (401) (1.7%) 106,732 106,732 0 0.0% The YTD overspend is largely due to profiling of central teaching staff budgets which have been profiled in to March in error. Budget adjustments relating to new year grant awards also require to be input to offset variances. Premises 1,434 1,877 443 23.6% 8,480 8,480 0 0.0% The YTD underspend is largely due to accruals still to be recharged relating to ELC upgrade works at Rothesay Joint Campus as well as profiling of CRA budgets across all Services. Supplies and Services 3,058 3,183 125 3.9% 13,690 13,690 0 0.0% The YTD underspend relates to profiling of Pupil Equity Fund budgets and timing of recharges for school meals for the June period. Transport 100 84 (16) (19.1%) 333 333 0 0.0% The YTD overspend is due to small overspends within staff travel budgets across all Services, which are likely to be offset by underspends elsewhere. Third Party 9,069 9,815 746 7.6% 46,521 46,521 0 0.0% The YTD underspend relates to profiling of budgets within schools for NPDO Facilities Management recharges which have not yet been recharged for the current year. Income (2,931) (3,580) (649) 18.1% (30,146) (30,146) 0 0.0% The YTD overspend relates to the profiling of Pupil Equity Fund grant and school meal income budgets. Totals 35,169 35,417 248 0.7% 145,610 145,610 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 38
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EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – RED VARIANCES AS AT 30 JUNE 2024 Service Area Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation A red variance is a forecast variance which is greater than +/- £50,000. Page 39
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – AS AT 30 JUNE 2024 The department has a forecast overspend of £0.500m (0.9%). This is due to the cost of new Bus Contracts for Public and Pupil Transport across Argyll and Bute. Since the end of June a further pressure of £0.210m in relation to bus contracts has been identified as more contracts are renewed therefore in the next reporting period the forecast overspend relating to bus contracts will increase from £0.500m to £0.710m. There is also further potential overspends relating to repairs to the Belnahua Ferry (£0.250m) and TRO Income (£0.100m) which was a previously agreed saving to secure additional income that has been unachievable that have been highlighted since the end of June. This will take the departmental overspend to £1.060m. A separate report in relation to the October 2023 Weather Event is on the agenda and provides members with an update on the various flood sites, estimated overspends and proposed range of measures for Members to consider which could be used to cover the estimated overspends. The projected revenue overspend of £3.567m is presented within the Corporate Overview. The department has a year to date overspend of £3.767m (29.6%). This is mainly due to an outstanding accrual from Scottish Government for the Bellwin Claim as well as 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) (271) (271) 0 0 0 Head of Customer Support Services 8,793 8,793 0 0 0 Head of Development and Economic Growth 7,785 7,785 0 0 0 Head of Financial Services 6,756 6,756 0 0 0 Head of Roads and Infrastructure Services 33,018 33,518 (500) 0 (500) Totals 56,081 56,581 (500) 0 (500) 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 40
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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 41
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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 42
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – OBJECTIVE SUMMARY AS AT 30 JUNE 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 63 63 0 0.0% (271) (271) 0 0.0% Outwith Reporting Criteria 63 63 0 0.0% (271) (271) 0 0.0% Head of Customer Support Services Central/Management Costs 29 30 1 3.3% 167 167 0 0.0% Outwith Reporting Criteria Head of Customer Support Services Communications 67 64 (3) (4.7%) 312 312 0 0.0% Outwith Reporting Criteria Head of Customer Support Services Customer Service Centres 272 298 26 8.7% 1,616 1,616 0 0.0% Outwith Reporting Criteria Head of Customer Support Services HR 624 587 (37) (6.3%) 2,370 2,370 0 0.0% Outwith Reporting Criteria Head of Customer Support Services ICT 1,294 1,260 (34) (2.7%) 4,345 4,345 0 0.0% Outwith Reporting Criteria Head of Customer Support Services Registrars (32) (20) 12 (60.0%) (17) (17) 0 0.0% YTD variance due to over- recovery of income received for marriages due to increased activity over summer months 2,254 2,219 (35) (1.6%) 8,793 8,793 0 0.0% Head of Development & Economic Growth Airports 343 268 (75) (28.0%) 1,186 1,186 0 0.0% YTD variance due to profile of budget for Private Contactors which will be rectified over the coming months Head of Development & Economic Growth Building Control (110) (80) 30 (37.5%) (113) (113) 0 0.0% YTD variance due to over- recovery of Building Warrant income received Head of Development & Economic Growth Central/Management Costs 122 129 7 5.4% 572 572 0 0.0% Outwith Reporting Criteria Page 43
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Head of Development & Economic Growth Culture & Heritage 34 51 17 33.3% 225 225 0 0.0% YTD variance due to profile of Rothesay Pavilion which will be rectified over the coming months Head of Development & Economic Growth Development Management 126 (52) (178) 342.3% 114 114 0 0.0% YTD variance due to under- recovery of Planning Fee income received Head of Development & Economic Growth Development Policy 79 98 19 19.4% 475 475 0 0.0% YTD variance due to profile of budget for third party payments which will be rectified over the coming months Head of Development & Economic Growth Economic Development 318 299 (19) (6.4%) 1,032 1,032 0 0.0% Outwith Reporting Criteria Head of Development & Economic Growth Environmental Health 204 250 46 18.4% 1,268 1,268 0 0.0% YTD variance is due to timing of Private Landlord Registration income which will be rectified over the coming months. Head of Development & Economic Growth Environmental Initiatives 13 13 0 0.0% 104 104 0 0.0% Outwith Reporting Criteria Head of Development & Economic Growth Housing 1,577 948 (629) (66.4%) 2,695 2,695 0 0.0% YTD variance due to timing of grant claim for HEEPS with expenditure incurred in advance of income being received Head of Development & Economic Growth Private Landlords (351) (9) 342 (3800.0%) 0 0 0 0.0% YTD variance is due to timing of Short Term Let income which will be rectified over the coming months. Head of Development & Economic Growth Transportation Policy 449 50 (399) (798.0%) 227 227 0 0.0% YTD variance due to timing of grant claim for CWSS with expenditure incurred in advance of income being received 2,804 1,965 (839) (42.7%) 7,785 7,785 0 0.0% Head of Financial Services Accounting & Budgeting 508 566 58 10.3% 2,559 2,559 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 Internal Audit & Fraud 64 73 9 12.3% 332 332 0 0.0% YTD underspend caused by slippage on a vacant post. Page 44
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Head of Financial Services Revenues & Benefits 738 855 117 13.7% 3,063 3,063 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 232 159 (73) (45.9%) 802 802 0 0.0% Earmarkings requiring to be drawn down against overspends - this will be rectified in next reporting period. 1,542 1,653 111 6.7% 6,756 6,756 0 0.0% Head of Roads & Infrastructure Services Amenity 990 802 (188) (23.4%) 3,146 3,146 0 0.0% YTD variance mainly due to delay in Interment Fees in Cemeteries and budget profile of internal recharges within Public Conveniences Head of Roads & Infrastructure Services Car Parking (70) (168) (98) 58.3% (590) (590) 0 0.0% YTD variance due to delay in receiving income for Electric Vehicle usage Head of Roads & Infrastructure Services Central/Management Costs 699 636 (63) (9.9%) 2,764 2,764 0 0.0% YTD variance due to profile of internal recharge budget which will be rectified for future monitoring Head of Roads & Infrastructure Services Depots 92 (103) (195) 189.3% (313) (313) 0 0.0% YTD variance due to profile of internal recharge budget which will be rectified for future monitoring Head of Roads & Infrastructure Services Fleet & Transport 2,603 2,167 (436) (20.1%) 8,724 9,224 (500) (5.7%) YTD variance due to internal fleet maintenance costs and increased bus contracts for Public Transport and Pupil Transport. Forecast overspend reported due to increased contract costs for Public Transport. This will increase to £710k in next reporting period as further contracts are in the process of being renewed with increased costs. Page 45
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Head of Roads & Infrastructure Services Infrastructure (7) 138 145 105.1% 725 725 0 0.0% YTD variance due to outstanding accruals within Coastal Protection Head of Roads & Infrastructure Services Marine 32 (629) (661) 105.1% (3,866) (3,866) 0 0.0% YTD variance due to timing of Piers & Harbours income alongside additional costs due to Ferry maintenance Head of Roads & Infrastructure Services Network & Traffic Management 42 5 (37) (740.0%) 154 154 0 0.0% YTD variance due to shortfall in income for Traffic Regulation Orders Head of Roads & Infrastructure Services Road Safety 24 26 2 7.7% 131 131 0 0.0% Outwith Reporting Criteria Head of Roads & Infrastructure Services Roads & Lighting 4,174 1,587 (2,587) (163.0%) 7,481 7,481 0 0.0% YTD variance due to outstanding accruals from Scottish Government for Bellwin Claim alongside profile of internal recharge budget within the Roads and Lighting Holding account. Head of Roads & Infrastructure Services Waste 1,242 2,356 1,114 47.3% 14,662 14,662 0 0.0% YTD variance mainly due to the profile of the Waste PPP contract payments which will be rectified over coming months 9,821 6,817 (3,004) (44.1%) 33,018 33,518 (500) (1.5%) 16,484 12,717 (3,767) (29.6%) 56,081 56,581 (500) (0.9%) 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 30 JUNE 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 8,654 8,772 118 1.4% 42,988 42,988 0 0.0% YTD variance mainly due to vacancies within the Roads and Lighting Holding Account which are being covered by external contractors Premises 719 864 145 16.8% 3,624 3,624 0 0.0% YTD variance mainly due to the profile of the Depot internal recharges which will be profiled to rectify for next monitoring period. Supplies and Services 3,373 2,620 (753) (28.7%) 9,139 9,139 0 0.0% YTD variance mainly due to purchase of materials within Roads which will be offset against additional income over the coming months, alongside payments made against UK Shared Prosperity Fund which will be offset with grant income once received Transport 3,862 2,835 (1,027) (36.2%) 16,401 16,401 0 0.0% YTD variance due to internal fleet and ferry maintenance costs. Third Party 16,093 15,584 (509) (3.3%) 64,771 65,271 (500) (0.8%) YTD variance mainly due to grant payments within Economic Development and Transportation that either have or will be offset with grant income once received as well as an overspend on public transport and the profile of budgets across a number of cost centres. Capital Financing 0 0 0 0.0% 2,677 2,677 0 0.0% Outwith Reporting Criteria Income (16,217) (17,958) (1,741) 9.7% (83,519) (83,519) 0 0.0% YTD variance mainly due to profile of income recharges within the Roads Operational Holding Account which is partially offset with grant income received within Economic Development to cover expenditure incurred within Third party Payments Totals 16,484 12,717 (3,767) (29.6%) 56,081 56,581 (500) (0.9%) YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far. Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year. The Variance is the difference between budget and actual or forecast outturn. A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget. A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less than budget. An explanation is given for any variance which exceeds £50,000 or 10%. Page 47
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EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – RED VARIANCES AS AT 30 JUNE 2024 Service Area Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Public Transport 5,266 5,766 (500) (9.5%) New bus contracts in place for Public and Pupil Transport. This will increase to £710k in next reporting period as further contracts are in the process of being renewed with increased costs. A red variance is a forecast variance which is greater than +/- £50,000. Page 48
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SOCIAL WORK – AS AT 30 JUNE 2024 The department is currently forecasting an overspend of £0.648m (0.8%). This is due to demand for residential placements within Children and Families Services. The department has a year-to-date overspend of £0.081m (0.2%) which again is due to demand driven services within Children and Families. Forecast Outturn Position Service Annual Budget £000 Forecast Outturn £000 Current Forecast Variance £000 Previous Forecast Variance £000 Change £000 Chief Officer Integration (3,470) (3,490) 20 0 20 Head of Strategic Planning and Performance 480 478 2 0 2 Head of Health and Community Care 43,455 43,558 (103) 0 (103) Head of Acute and Complex Care 21,427 21,074 353 0 353 Head of Children and Families 16,574 17,494 (920) 0 (920) Totals 78,466 79,114 (648) 0 (648) 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 49
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Key Financial Challenges: Proposed Actions to address Financial Challenges: Deliver the outstanding savings total for 2024/25 of £1.132m (as at June 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 June 2024 of £0.996m. 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 50
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SOCIAL WORK – OBJECTIVE SUMMARY AS AT 30 JUNE 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 152 117 (35) (29.9%) 596 593 3 0.5% The YTD variance is due to front loaded payments relating to the purchase of computer software. The forecast variance is outwith reporting criteria. Chief Officer Integration Social Work Central Support (548) (545) 3 (0.6%) (4,066) (4,083) 17 (0.4%) The YTD variance is outwith the reporting criteria however the annual budget and forecast outturn are currently showing as negative due to budget drawdowns waiting to be actioned. These will be processed during July. (396) (428) (32) (30.5%) (3,470) (3,490) 20 0.1% Head of Strategic Planning & Performance Management & Central Costs 86 87 1 1.2% 448 448 0 0.0% The YTD and forecast variances are outwith the reporting criteria. Head of Strategic Planning & Performance Service Development 9 5 (4) (80.0%) 32 30 2 6.3% The YTD variance is due to timing differences on charges to health boards. The forecast variance is outwith the reporting criteria. 95 92 (3) (78.9%) 480 478 2 6.3% Head of Health and Community Care Management & Central Costs 72 45 (27) (60.0%) 582 594 (12) (2.1%) The YTD variance is due to timing differences on the charges to health boards. The forecast variance is outwith reporting criteria. Head of Health and Community Care Older People 1,680 1,783 103 5.8% 42,873 42,964 (91) (0.2%) The YTD and forecast variance are both due to known commitments on Carefirst. 1,752 1,828 76 4.2% 43,455 43,558 (103) (0.2%) Head of Acute and Complex Care Learning Disabilities (2,078) (1,981) 97 (4.9%) 15,128 14,816 312 2.1% The YTD variance is due to timing differences on charges to health boards and other income lines. The forecast underspend is based on current known commitments on Carefirst. Head of Acute and Complex Care Management & Central Costs 16 29 13 44.8% 128 115 13 10.2% The YTD and forecast underspend are based on current projected training costs and supplies and services costs which could improve as spend trend becomes clearer. Page 51
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Head of Acute and Complex Care Mental Health (210) (264) (54) 20.5% 3,063 3,395 (332) (10.8%) The YTD variance is due to known commitments. The forecast overspend is based on current known commitments on Carefirst. Head of Acute and Complex Care Physical Disability 212 268 56 20.9% 3,108 2,748 360 11.6% The YTD variance is due to known commitments. The forecast underspend is based on current known commitments on Carefirst. (2,060) (1,948) 112 81.3% 21,427 21,074 353 13.0% Head of Children & Families Child Protection 620 692 72 10.4% 3,619 3,522 97 2.7% The YTD variance is based on known commitments and some deferred income received from previous years. The forecast underspend is as a result of demand for contact and welfare services and deferred income in the area teams budget lines. Head of Children & Families Children with a Disability 274 245 (29) (11.8%) 1,065 1,077 (12) (1.1%) The YTD variance is based on known commitments. The forecast variance is outwith reporting criteria. Head of Children & Families Criminal Justice 117 3 (114) (3800.0%) 174 165 9 5.2% The YTD variance is due to timing of grant income. The forecast variance is outwith reporting criteria. Head of Children & Families Looked After Children 1,844 1,628 (216) (13.3%) 7,938 8,938 (1,000) (12.6%) The YTD variance is due to an increase in the demand in the number of residential placements. The forecast overspend relates to childrens external residential placements. We currently have 16 children in placements with a potential 6 other children being considered. This overspend is unlikely to improve as we progress through the financial year. Head of Children & Families Management & Central Costs 615 668 53 7.9% 3,778 3,792 (14) (0.4%) The YTD variance is due to increased s12 payments. The forecast variance is outwith reporting criteria. 3,470 3,236 (234) (7.2%) 16,574 17,494 (920) (5.6%) GRAND TOTAL 2,861 2,780 (81) (2.9%) 78,466 79,114 (648) (0.8%) Page 52
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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 53
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SOCIAL WORK – SUBJECTIVE SUMMARY AS AT 30 JUNE 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 7,613 7,177 (436) (6.1%) 34,715 35,120 (405) (1.2%) Both the YTD and forecast overspend is due to the use of agency staff across the HSCP partially offset by payroll underspends due to vacancies. Premises 471 522 51 9.8% 1,701 1,668 33 1.9% The YTD underspend is largely due to budget profiling and the forecast underspend is outwith the reporting criteria. Supplies & Services 470 421 (49) (11.6%) (661) (473) (188) 28.4% The YTD overspend is largely due to the timing of payments relating to the purchase of computer software and the forecast budget and outturn variances are due to the profiling of savings options not yet achieved. Transport 143 144 1 0.7% 619 618 1 0.2% The YTD variance is outwith reporting criteria. Third Party 11,321 11,306 (15) (0.1%) 66,469 67,917 (1,448) (2.2%) The YTD variance is outwith reporting criteria. The forecast overspend is due to demand for purchased care services across both Childrens and Adult Services. Income (17,157) (16,790) 367 (2.2%) (24,377) (25,736) 1,359 (5.6%) The YTD and forecast over recovery of income is mainly due to increased income from fees, charges and recharges. Totals 2,861 2,780 (81) (2.9%) 78,466 79,114 (648) (0.8%) Page 54
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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 55
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SOCIAL WORK – RED VARIANCES AS AT 30 JUNE 2024 Service Area Annual Budget £000 Forecast Outturn £000 Forecast Variance £000 % Variance Explanation Looked After Children 7,950 8,950 (1,000) (12.6%) The forecast overspend relates to childrens external residential placements. We currently have 16 children in placements with a potential 6 other children being considered. This overspend is unlikely to improve as we progress through the financial year. Child Protection 3,620 3,523 97 2.7% The forecast underspend is as a result of demand for contact and welfare services and deferred income in the area teams budget lines. Older People - Homecare 19,989 19,487 502 2.5% The forecast underspend is based on current known commitment from CareFirst system. Older People - Internal Residential 7,622 6,970 652 8.6% The forecast underspend is due to over-recovery of income. Older People - External Residential 12,385 13,483 (1,098) (8.9%) The forecast overspend reflects demand for service based on known package commitments. Older People - Other 9,690 9,837 (147) (1.5%) The forecast underspend is due to an over recovery of income. Physical Disability 3,862 3,502 360 9.3% The forecast underspend is based on current known commitments on Carefirst. Learning Disability 20,424 20,112 312 1.5% The forecast underspend is based on current known commitments on Carefirst. Mental Health 3,954 4,301 (347) (8.8%) The forecast overspend is based on current known commitments on Carefirst. A red variance is a forecast variance which is greater than +/- £50,000. Page 56
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MONITORING OF SAVINGS – AS AT 30 JUNE 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 57
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TB12b Stadiums Feb-18 Potential Shortfall - there is a risk that the original saving will not be achieved in full. Discussions had stalled with partners in the Oban and Lorn area with regard to Mossfield stadium to create a sports Hub, attract external funding to improve facilities and therefore attract additional events to the arena. The users group has now reconvened and will be reporting to the steering group. It should be noted there is generally a downturn in usage of pitches partly due to more clubs booking all weather pitches at high schools and the loss of a well-established club disbanding which will result in the loss of income. The Mossfield Sport Group have highlighted that certain clubs along with the Shinty Associations have expressed concerns with regards to the condition of the Pavilion and changing facilities and this is likely to impact on income. East King Street bookings have reduced due to the condition of the changing facilities and clubs having to play their fixtures elsewhere. £30,000 All policy saving options previously agreed are noted in the table below for information. Page 58
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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 On Track to be 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 30.00 0.0 Potential Shortfall 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 59
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ARGYLL AND BUTE COUNCIL FINANCIAL SERVICES POLICY AND RESOURCES COMMITTEE 15 AUGUST 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 £3.592m. 1.4 There are currently 42 departmental risks totalling £5.580m. 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 60
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ARGYLL AND BUTE COUNCIL FINANCIAL SERVICES POLICY AND RESOURCES COMMITTEE 15 AUGUST 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 The 2024-25 budget includes a 3% pay award assumption for all staff groups. Negotiations on the 2024-25 award are in progress and it is likely that the Trade Unions will looking to negotiate a deal at more than 3%. However, the Page 61
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affordability for Local Government has to be considered and based on future estimates, anything above a 3% pay award is deemed to be unaffordable, hence why the budget outlook has been based on 3%. This is a situation that will be kept under close review as the pay negotiations advance during the year and the assumption will be adjusted as required. For each 1% more than the 3% built in, there would be an additional cost of around £1.264m. The financial risk is recognised at £1.264m at this stage. Note that this is for SJC, Chief Officer and Teaching Staff. 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 30 June 2024, the net HSCP outturn in 2024-25 is estimated to be a £1.176m overspend (Social Work forecasting an overspend of £0.648m and an overspend of £0.528m from Health). As the IJB holds significant financial reserves, there is a nil value on the risk. Page 62
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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% 3 1,264 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 3,592 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 63
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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 6 560 9 730 3 435 0 0 20 1,745 Executive Director Kirsty Flanagan 4 285 2 140 14 3,160 2 250 0 0 22 3,835 Total 6 305 8 700 23 3,890 5 685 0 0 42 5,580 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 - Bridges, Culverts & Sea Defences Extreme localised weather may result in loss of bridge, culvert, road or sea defence. 3 750 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 Page 64
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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 Accommodatio n 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 3.4 Changes to Financial Risks since last report 3.4.1 There have been 5 changes to the departmental risks since the financial risks report was presented to Council on 22 February 2024: - A new ‘possible’ risk of £0.200m for Piers and Harbours Income to recognise that changes to ferry services may result in reduced berthing and passenger income. Page 65
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- A new ‘possible’ risk of £0.100m for Street Lighting to recognise that aging lighting stock may require greater maintenance as health and safety becomes a consideration - A new ‘possible’ risk of £0.100m for Ferry Services to recognise that the grant from Transport Scotland has not been increased for 2024-25 which could result in additional costs for the Council to fund the Ferry Services. - A new ‘possible’ risk of £0.100m for Fleet Maintenance to recognise there may be increased costs to maintain internal fleet due to inflationary increases on vehicle parts. - The risk in relation to Contract RPI for NPDO and Hub Schools was reduced from “likely” to “possible” as RPI has reduced. 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 66
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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 6 August 2024 Councillor Ross Moreland, Policy Lead for Finance and Commercial Services APPENDICES Appendix 1 – Detail of Department/Service financial risks For further information contact Anne Blue, Head of Financial Services anne.blue@argyll-bute.gov.uk Page 67
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APPENDIX 1 DEPARTMENT/SERVICE FINANCIAL RISKS AS AT 30 JUNE 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 2 100 Executive Director Douglas Hendry Commercial Services Rental Income from Properties Due to current economic climate, there may be reduced ability to recover rental income from leased properties or place suitable tenants in properties as leases come to an end. Management of leasehold properties by Estates team, any issues with debt recovery being dealt with in line with Council debt recovery policy. 2 60 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 February 2024 (Budget Setting) As at 30 June 2024 Page 68
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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. 4 100 3 100 Executive Director Douglas Hendry Legal and Regulatory Support NPDO - Increase in insurance costs within NPDO Schools Increase in insurance costs as a result of the long-term effects of Covid-19 on the insurance market and flood claims. Monitoring annual alteration to contract insurance rate and mitigation through financial forecasting and review of existing budget. 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 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 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 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 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 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 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 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 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 - Bridges, Culverts & Sea Defences Extreme localised weather may result in loss of bridge, culvert, road or sea defence. Routine inspections to deal with potential weak areas - based on a stitch in time repair regime. 3 750 3 750 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 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 Discussions ongoing with Renewi and the Council on steps forward and what element the council is responsible for. 3 164 3 164 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 Executive Director Kirsty Flanagan Roads and Infrastructure Services Street Lighting Age of lighting stock requires greater maintenance as health and safety becomes a consideration. Manage maintenance budgets to ensure that spend is prioritised to deal with safety defects. 3 100 Executive Director Kirsty Flanagan Roads and Infrastructure Services 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 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 38 5,080 42 5,580 Page 71
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ARGYLL AND BUTE COUNCIL POLICY & RESOURCES COMMITTEE FINANCIAL SERVICES 15 AUGUST 2024 CAPITAL BUDGET MONITORING REPORT – 30 JUNE 2024 1.0 EXECUTIVE SUMMARY 1.1 This report provides an update on the position of the capital budget as at 30 June 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 £4,869k compared to a budget for the year to date of £4,814k resulting in an overspend for the year to date of £55k (1.14%). Forecast Outturn for 2024-25 – forecast net expenditure for the full financial year is £37,565k compared to an annual budget of £37,132k giving rise to a forecast overspend for the year of £433k (1.17%). Total Capital Plan – forecast total net project costs on the total capital plan are £206,634k compared to a total budget for all projects of £206,201k giving rise to a forecast overspend for the overall capital plan of £433k (0.21%). 1.3 Project Delivery: Asset Sustainability – Out of 97 projects there are 96 projects (99%) on track, 1 project (1%) off track but recoverable and no projects off track (0%). Service Development - Out of 46 projects there are 42 projects (91%) on track, 3 projects (7%) off track but recoverable and 1 project (2%) off track. Strategic Change – Out of 29 projects there are 28 projects (97%) on track, 1 project (3%) are off track but recoverable and no projects (0%) off track. 1.4 The Capital Programme is funded by various income streams as detailed in Appendix 4. Additional funding has been added: Allocation of Capital Contract Increase Fund, Transport Scotland - Active Travel Funding, Scottish Government - Nature Restoration, Strategic Housing Fund Contribution, Allocation of Inward Investment Fund to Rural Growth Deal Projects and a revenue contribution from DEG. 1.5 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 72
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ARGYLL AND BUTE COUNCIL POLICY & RESOURCES COMMITTEE FINANCIAL SERVICES 15 AUGUST 2024 CAPITAL BUDGET MONITORING REPORT – 30 JUNE 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 30 June 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 requested 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: Rothesay Pavilion – despite additional funding being awarded there remains a funding gap to allow full completion of the original intended works. Harbour Investment Programme – likely to be contractual cost increases in future years (expected to be funded from increased fees and charges). Page 73
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2.8 Universal Free School Meals – delayed roll out to P6 and P7 and uncertain capital funding levels available from the Scottish Government. Bridges Fund - A scheme of bridge capital works was developed and 80% funded through the Local Bridge Maintenance Fund with £5.450m of funding approved. Increased capital contract costs from when the scheme was developed to now, has the schemes costing approximately £12m. Discussions are in place to request the original funding be approved to cover a smaller scheme with less bridges. In general, capital contracts across the programme are seeing significant price increases. 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. With £8.834m already allocated or committed this results in £2.266m of the fund remaining unallocated 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 (3.055) Balance Remaining 2.266 3.0 RECOMMENDATIONS 3.1 Note the contents of this report and the financial summaries as detailed in Appendix 6. Page 74
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4.0 CURRENT YEAR TO DATE FINANCIAL POSITION 4.1 4.2 Overall Position Actual net expenditure to date is £4,869k compared to a budget for the year to date of £4,814k resulting in an overspend for the year to date of £55k (1.14%). 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 2,426 2,427 (1) Service Development 248 302 (54) Strategic Change 2,140 2,140 0 Total 4,814 4,869 (55) Service: ICT 186 186 0 Education 538 559 (21) Live Argyll 367 367 0 Health & Social Care Partnership 514 514 0 Shared Offices 59 59 0 Roads & Infrastructure 1,929 1,963 (34) Development & Economic Growth 248 248 0 CHORD 973 973 0 Total 4,814 4,869 (55) Material variances are explained in Appendix 1 and there are a number of small variances contributing to the year to date overspend. Page 75
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5.0 FORECAST OUTTURN 2024-25 5.1 Overall Position Forecast net expenditure for the full financial year is £37,565k compared to an annual budget of £37,132k giving rise to a forecast overspend for the year of £433k (1.17%). 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 26,473 26,475 (2) Service Development 6,431 6,818 (387) Strategic Change 4,228 4,272 (44) Total 37,132 37,565 (433) Service: ICT 1,611 1,611 0 Education 7,790 7,823 (33) Live Argyll 1,125 1,125 0 Health & Social Care Partnership 2,335 2,335 0 Shared Offices 2,596 2,596 0 Roads & Infrastructure 20,976 21,332 (356) Development & Economic Growth 1,498 1,498 0 CHORD (799) (755) (44) Total 37,132 37,565 (433) Material variances are explained in Appendix 2 and there are a number of smaller variances contributing to the forecast overspend. Page 76
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6.0 TOTAL PROJECT COSTS 6.1 Overall Position Forecast total net project costs on the total capital plan are £206,634k compared to a total budget for all projects of £206,201k giving rise to a forecast overspend for the overall capital plan of £433k (0.21%). 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 52,118 52,120 (2) Service Development 28,171 28,558 (387) Strategic Change 125,912 125,956 (44) Total 206,201 206,634 (433) Service: ICT 5,934 5,934 0 Education 44,329 44,362 (33) Live Argyll 3,037 3,037 0 Health & Social Care Partnership 3,936 3,936 0 Shared Offices 22,957 22,957 0 Roads & Infrastructure 60,610 60,966 (356) Development & Economic Growth 6,408 6,408 0 CHORD 58,990 59,034 (44) Total 206,201 206,634 (433) Material variances are explained in Appendix 3 and there are a number of smaller variances leading to the forecast overspend. Page 77
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7.0 TOTAL PROJECT PERFORMANCE 7.1 Overall Position There are 172 projects within the Capital Plan, 166 are Complete or On Target, 5 are Off Target and Recoverable and 1 project is 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 96 1 0 97 Service Development 42 3 1 46 Strategic Change 28 1 0 29 Total 166 5 1 172 Service: ICT 7 0 0 7 Education 32 1 0 33 Live Argyll 21 0 0 21 Health & Social Care Partnership 20 0 0 20 Shared Offices 25 0 0 25 Roads & Infrastructure 38 3 1 42 Development & Economic Growth 18 0 0 18 CHORD 5 1 0 6 Total 166 5 1 172 Page 78
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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: 8.0 OFF TRACK PROJECTS 8.1 The Off-Track project is noted in the table below. Project Type Project What is Off Track? Explanation RIS – Service Development October 2023 Weather Incident Total Expenditure Increased costs for permanent updates to Kilmelford Bridge due to additional rock armour to protect upstream and downstream embankment. Page 79
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9.0 9.1 STRATEGIC CHANGE PROJECTS Appendix 5 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. 10.0 10.1 CHANGES TO CAPITAL PLAN At this early stage of the financial year there are no proposed changes to the Capital Plan in relation to slippages, accelerations and virements. The gross expenditure capital plan can be found in Appendix 7. 11.0 FUNDING 11.1 12.0 The Capital Programme is funded by various income streams as detailed in Appendix 4. Additional funding has been added: Allocation of Capital Contract Increase Fund, Transport Scotland - Active Travel Funding, Scottish Government - Nature Restoration, Strategic Housing Fund Contribution, Allocation of Inward Investment Fund to Rural Growth Deal Projects and a revenue contribution from DEG. 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. Page 80
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Kirsty Flanagan Executive Director / Section 95 Officer 06 August 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 – Capital Funding - Appendix 5 – Cumulative spend, completion dates and risks relating to significant capital projects. - Appendix 6 - Financial Summary – Overall - Financial Summary – Executive Director Douglas Hendry - Financial Summary – Executive Director Kirsty Flanagan - Appendix 7 - Capital Plan For further information contact: Anne Blue, Head of Financial Services anne.blue@argyll-bute.gov.uk Page 81
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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 (55) Total value of non-material variances less than +/-£50k Total (55) Page 82
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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 October 2023 Weather Incident 4,348 4,634 (286) Increased costs for permanent updates to Kilmelford Bridge due to additional rock armour to protect upstream and downstream embankment. Other variances under £50k (147) Total value of non-material variances less than +/-£50k. Total (433) Page 83
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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 October 2023 Weather Incident 4,348 4,634 (286) Increased costs for permanent updates to Kilmelford Bridge due to additional rock armour to protect upstream and downstream embankment. Other variances under £50k (147) 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 (433) Page 84
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CAPITAL PROGRAMME FUNDING Appendix 4 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 0 972 8,665 84 6,573 0 28 6,685 0 0 0 0 0 Funded by Reserves 10,061 2,342 0 0 12,403 1,412 -92 0 0 1,320 -38 0 0 0 -38 Additional Funding from Revenue 0 0 0 4 4 0 0 0 0 0 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 0 0 16,233 166 1,600 0 0 1,766 376 -803 0 0 -427 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 0 976 70,942 50,222 2,981 0 657 53,860 26,124 6,309 0 0 32,433 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 2025-26 2026-272024-25 Page 85
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Strategic Change Projects - Cumulative Spend, Start/Finish Dates and Project Risks APPENDIX 5 Strategic Change Projects Prior Years Spend £'000 Current Year 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 21,046 2,655 23,701 23,657 tbc tbc Amber 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 1,109 222 1,331 1,331 tbc 31/03/2025 Green Clean Energy - NDEEF2 0 590 1,140 1,140 tbc 31/03/2027 Green Street Lighting LED Replacement 3,279 621 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. Carbon Management Business Cases 201 0 201 201 01/02/2014 31/12/2022 Green Budget to be reprofiled pending development of new projects. Carbon Management - Group Heating Conversion Project 1,938 0 1,938 1,938 01/02/2016 31/12/2022 Green Project complete in full - no further expenditure expected. 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. NPDO Schools Solar PV Panel Installations 761 0 761 761 26/06/2014 31/12/2022 Green Budget to be reprofiled pending development of new projects. Non NPDO Schools Solar PV Panel Installations 400 0 400 400 20/03/2014 31/12/2022 Green Budget to be reprofiled pending development of new projects. Carbon Management Capital Property Works 2016/17 19 0 19 19 01/02/2016 31/12/2022 Green Budget to be reprofiled pending development of new projects. Oil to Gas Heating Conversions 182 0 182 182 01/02/2012 31/12/2022 Green Budget to be reprofiled pending development of new projects. 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. Dunoon Pier OBC 2,844 0 2,844 2,844 03/02/2012 26/02/2016 Green Project complete. Campbeltown Office Rationalisation 595 1 596 596 01/02/2015 31/03/2019 Green Project complete in full - no further expenditure expected. TIF - Oban Airport Business Park 505 85 590 590 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 6,532 25 6,557 6,557 29/09/2011 30/04/2015 Green Main contract complete. Art project proposed for 24-25. TIF - North Pier Extension 214 0 214 214 06/12/2017 06/12/2021 Green Work to date complete - on going discussions regarding future of project. TIF - Lorn/Kirk Road 2,169 1 2,170 2,170 22/01/2015 31/03/2021 Green Project complete in full - no further expenditure expected. Carbon Management Fuel Conversions 107 0 107 107 01/02/2014 31/03/2019 Green Project complete in full - no further expenditure expected. Kilmory Biomass Carbon Management 956 0 956 956 20/09/2012 31/03/2019 Green Project complete in full - no further expenditure expected. Net Zero 0 366 366 366 tbc tbc Green Strategic Change Total 147,187 33,596 240,077 240,033 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 86
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ARGYLL AND BUTE COUNCIL - CAPITAL PLAN MONITORING REPORT - OVERALL COUNCIL Appendix 6 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 1,478 1,479 (1) 13,013 13,014 (1) 22,107 22,108 (1) Executive Director Kirsty Flanagan 948 948 0 15,848 15,849 (1) 33,099 33,100 (1) Asset Sustainability Total 2,426 2,427 (1) 28,861 28,863 (2) 55,206 55,208 (2) Service Development Projects Executive Director Douglas Hendry 0 20 (20) 193 225 (32) 16,426 16,458 (32) Executive Director Kirsty Flanagan 1,678 1,712 (34) 12,650 13,005 (355) 45,075 45,430 (355) Service Development Total 1,678 1,732 (54) 12,843 13,230 (387) 61,501 61,888 (387) 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 Carbon Management - Non Education 0 0 0 21 21 0 50 50 0 Carbon Management Business Cases 0 0 0 0 0 0 201 201 0 NPDO Schools Solar PV Panel Installations 0 0 0 0 0 0 761 761 0 Non NPDO Schools Solar PV Panel Installations 0 0 0 0 0 0 400 400 0 Carbon Management Fuel Conversions 0 0 0 0 0 0 107 107 0 Carbon Management Capital Property Works 2016/17 0 0 0 0 0 0 19 19 0 Carbon Management - Group Heating Conversion Project 0 0 0 0 0 0 1,938 1,938 0 Kilmory Biomass Carbon Management 0 0 0 0 0 0 956 956 0 Oil to Gas Heating Conversions 0 0 0 0 0 0 182 182 0 Campbeltown Office Rationalisation 0 0 0 1 1 0 596 596 0 Helensburgh Office Rationalisation 0 0 0 300 300 0 11,838 11,838 0 Clean Energy - NDEEF1 0 0 0 222 222 0 1,331 1,331 0 Clean Energy - NDEEF2 0 0 0 590 590 0 1,140 1,140 0 Net Zero 0 0 0 366 366 0 366 366 0 Campbeltown Flood Scheme 1,167 1,167 0 1,780 1,780 0 15,925 15,925 0 Street Lighting LED Replacement 0 0 0 621 621 0 3,900 3,900 0 Harbour Investment Programme 1,149 1,149 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 1 0 2,170 2,170 0 TIF - North Pier Extension 0 0 0 0 0 0 214 214 0 TIF - Oban Airport Business Park 0 0 0 85 85 0 590 590 0 TIF - Halfway House Roundabout 0 0 0 287 287 0 640 640 0 CHORD - Helensburgh 0 0 0 25 25 0 6,557 6,557 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 956 956 0 2,611 2,655 (44) 23,657 23,701 (44) Helensburgh Waterfront Development 15 15 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 2 2 0 1,035 1,035 0 1,129 1,129 0 Dunoon Pier OBC 0 0 0 0 0 0 2,844 2,844 0 Strategic Change Total 3,289 3,289 0 33,586 33,630 (44) 240,383 240,427 (44) Total Expenditure 7,393 7,448 (55) 75,290 75,723 (433) 357,090 357,523 (433) 68,275 INCOME Asset Sustainability Executive Director Douglas Hendry 0 0 0 (1,570) (1,570) 0 (2,270) (2,270) 0 Executive Director Kirsty Flanagan 0 0 0 (818) (818) 0 (818) (818) 0 Asset Sustainability Total 0 0 0 (2,388) (2,388) 0 (3,088) (3,088) 0 Service Development Projects Executive Director Douglas Hendry 0 0 0 0 0 0 (7,771) (7,771) 0 Executive Director Kirsty Flanagan (1,430) (1,430) 0 (6,412) (6,412) 0 (25,559) (25,559) 0 Service Development Total (1,430) (1,430) 0 (6,412) (6,412) 0 (33,330) (33,330) 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 (1,149) (1,149) 0 (24,050) (24,050) 0 (91,292) (91,292) 0 01 TIF - Lorn/Kirk Road 0 0 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 (1,149) (1,149) 0 (29,358) (29,358) 0 (114,471) (114,471) 0 Total Income (2,579) (2,579) 0 (38,158) (38,158) 0 (150,889) (150,889) 0 Net Total 4,814 4,869 (55) 37,132 37,565 (433) 206,201 206,634 (433) Full Year This Financial Year Total Project Costs 30 June 2024 Page 87
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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 538 539 (1) 7,066 7,067 (1) 12,114 12,115 (1) Live Argyll 367 367 0 1,104 1,104 0 1,741 1,741 0 Health and Social Care Partnership 514 514 0 3,722 3,722 0 4,777 4,777 0 Shared Offices 59 59 0 1,121 1,121 0 3,475 3,475 0 Asset Sustainability Total 1,478 1,479 (1) 13,013 13,014 (1) 22,107 22,108 (1) Service Development Projects Ardrishaig Primary Pre 5 Unit 0 0 0 0 0 0 2 2 0 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 Lochgoilhead Primary School - Pre 5 Unit 0 0 0 0 0 0 391 391 0 Park Primary Extension/Pre Fives Unit 0 0 0 0 0 0 341 341 0 Sandbank Gaelic Pre Five Unit 0 0 0 0 0 0 491 491 0 Bunessan Primary School - Gaelic Medium Improvements 0 0 0 0 0 0 120 120 0 Early Learning and Childcare 0 0 0 0 0 0 850 850 0 Early Learning and Childcare - 1140 Hours 0 20 (20) (12) 20 (32) 7,762 7,794 (32) 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 0 0 0 38 38 0 38 38 0 Riverside Leisure Centre Refurbishment 0 0 0 0 0 0 1,246 1,246 0 Dunclutha Childrens Home 0 0 0 54 54 0 1,300 1,300 0 Service Development Total 0 20 (20) 193 225 (32) 16,426 16,458 (32) 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 Carbon Management - Non Education 0 0 0 21 21 0 50 50 0 Carbon Management Business Cases 0 0 0 0 0 0 201 201 0 NPDO Schools Solar PV Panel Installations 0 0 0 0 0 0 761 761 0 Non NPDO Schools Solar PV Panel Installations 0 0 0 0 0 0 400 400 0 Carbon Management Fuel Conversions 0 0 0 0 0 0 107 107 0 Carbon Management Capital Property Works 2016/17 0 0 0 0 0 0 19 19 0 Carbon Management - Group Heating Conversion Project 0 0 0 0 0 0 1,938 1,938 0 Kilmory Biomass Carbon Management 0 0 0 0 0 0 956 956 0 Oil to Gas Heating Conversions 0 0 0 0 0 0 182 182 0 Campbeltown Office Rationalisation 0 0 0 1 1 0 596 596 0 Helensburgh Office Rationalisation 0 0 0 300 300 0 11,838 11,838 0 Clean Energy - NDEEF1 0 0 0 222 222 0 1,331 1,331 0 Clean Energy - NDEEF2 0 0 0 590 590 0 1,140 1,140 0 Net Zero 0 0 0 366 366 0 366 366 0 CHORD Oban 0 0 0 500 500 0 7,905 7,905 0 CHORD Rothesay 956 956 0 2,611 2,655 (44) 23,657 23,701 (44) CHORD - Helensburgh 0 0 0 25 25 0 6,557 6,557 0 CHORD Dunoon 0 0 0 23 23 0 12,522 12,522 0 Helensburgh Waterfront Deveopment 15 15 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 2 2 0 1,035 1,035 0 1,129 1,129 0 Dunoon Pier OBC 0 0 0 0 0 0 2,844 2,844 0 Strategic Change Total 973 973 0 6,719 6,763 (44) 125,609 125,653 (44) Total Expenditure 2,451 2,472 (21) 19,925 20,002 (77) 164,142 164,219 (77) 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 (2,141) (2,141) 0 Shared Offices 0 0 0 (4) (4) 0 (4) (4) 0 Asset Sustainability Total 0 0 0 (1,570) (1,570) 0 (2,270) (2,270) 0 Service Development Projects Sandbank Gaelic Pre Five Unit 0 0 0 0 0 0 (485) (485) 0 Bunessan Primary School - Gaelic Medium Improvements 0 0 0 0 0 0 (30) (30) 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 (7,771) (7,771) 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 (30,893) (30,893) 0 Net Departmental Total 2,451 2,472 (21) 13,047 13,124 (77) 133,249 133,326 (77) 30 June 2024 Total Project CostsFull Year This Financial YearCurrent Financial Year To Date Appendix 6 FINANCIAL SUMMARY NET EXPENDITURE - EXECUTIVE DIRECTOR DOUGLAS HENDRY Page 88
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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 778 778 0 14,579 14,580 (1) 29,921 29,922 (1) Customer Support Services 170 170 0 1,269 1,269 0 3,178 3,178 0 Asset Sustainability Total 948 948 0 15,848 15,849 (1) 33,099 33,100 (1) 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 1,399 1,399 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 0 0 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 Oban Depot Development Project 0 0 0 (35) 0 (35) 2,189 2,224 (35) Lochgilphead Depot Rationalisation 15 49 (34) 15 49 (34) 169 203 (34) Jackson's Quarry Refurbishment 0 0 0 0 0 0 285 285 0 Weather Incident October 2023 0 0 0 4,348 4,634 (286) 4,348 4,634 (286) Witchburn Road Demolition 0 0 0 0 0 0 158 158 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 9 9 0 334 334 0 4,329 4,329 0 Rural Growth Deal 161 161 0 268 268 0 507 507 0 Dunoon Cycle Bothy 28 28 0 80 80 0 563 563 0 Dunoon STEM Hub 7 7 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 36 36 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 16 16 0 342 342 0 3,193 3,193 0 Service Development Total 1,678 1,712 (34) 12,650 13,005 (355) 45,075 45,430 (355) Strategic Change Projects Campbeltown Flood Scheme 1,167 1,167 0 1,780 1,780 0 15,925 15,925 0 Street Lighting LED Replacement 0 0 0 621 621 0 3,900 3,900 0 Harbour Investment Programme 1,149 1,149 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 1 0 2,170 2,170 0 TIF - North Pier Extension 0 0 0 0 0 0 214 214 0 TIF - Oban Airport Business Park 0 0 0 85 85 0 590 590 0 TIF - Halfway House Roundabout 0 0 0 287 287 0 640 640 0 Strategic Change Total 2,316 2,316 0 26,867 26,867 0 114,774 114,774 0 Total Expenditure 4,942 4,976 (34) 55,365 55,721 (356) 192,948 193,304 (356) INCOME Asset Sustainability Roads & Infrastructure Services 0 0 0 (818) (818) 0 (818) (818) 0 Asset Sustainability Total 0 0 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 0 0 0 (396) (396) 0 (507) (507) 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 (1,399) (1,399) 0 (2,152) (2,152) 0 (4,826) (4,826) 0 Fleet Management 0 0 0 0 0 0 (49) (49) 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 (1,430) (1,430) 0 (6,412) (6,412) 0 (25,559) (25,559) 0 Strategic Change Projects Campbeltown Flood 0 0 0 0 0 0 (270) (270) 0 Harbour PB (1,149) (1,149) 0 (24,050) (24,050) 0 (91,292) (91,292) 0 01 TIF - Lorn/Kirk Road 0 0 0 0 0 0 (2,057) (2,057) 0 Strategic Change Total (1,149) (1,149) 0 (24,050) (24,050) 0 (93,619) (93,619) 0 Total Income (2,579) (2,579) 0 (31,280) (31,280) 0 (119,996) (119,996) 0 Net Departmental Total 2,363 2,397 (34) 24,085 24,441 (356) 72,952 73,308 (356) 30 June 2024 Full Year This Financial Year Total Project Costs FINANCIAL SUMMARY NET EXPENDITURE - EXECUTIVE DIRECTOR KIRSTY FLANAGAN Appendix 6 Page 89
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CAPITAL PLAN 2024-25 APPENDIX 7 Overall Summary Service Previous Years £000s 2024-25 £000s 2025-26 £000s 2026-27 £000s 2027-28 £000s Total £000s Education 39,399 7,915 3,060 1,988 0 52,362 Shared Offices 17,806 2,600 2,522 382 0 23,310 ICT 2,851 1,611 1,221 688 0 6,371 RIS 38,592 48,095 44,779 28,907 0 160,373 DEG 19,604 5,659 941 0 0 26,204 HSCP 1,246 3,776 1,055 0 0 6,077 Live Argyll 1,275 1,125 169 468 0 3,037 CHORD 74,734 4,509 113 0 0 79,356 Overall Total 195,507 75,290 53,860 32,433 0 357,090 Page 90
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CAPITAL PLAN 2024-25 APPENDIX 7 Education Category Service Project Previous Years £000s 2024-25 £000s 2025-26 £000s 2026-27 £000s 2027-28 £000s Total £000s Asset Sustainability Education Asbestos Control/Removal Works 0 0 0 0 0 0 Block Allocation - Education 0 568 520 1,988 0 3,076 Digital Inclusion 20-21 0 9 0 0 0 9 Free School Meals 0 0 434 0 0 434 Primary Schools 0 3,013 1,280 0 0 4,293 Primary Schools - CFCR 0 0 0 0 0 0 School Houses - Housing Quality Standard 0 0 0 0 0 0 Secondary Schools 0 1,086 226 0 0 1,312 Asset Sustainability Total 0 7,066 3,060 1,988 0 12,114 Service Development Education Ardrishaig Primar School - Pre Five Extension 2 0 0 0 0 2 Bowmore Primary School - Gaelic Medium Grant 0 38 0 0 0 38 Bowmore Primary School - Pre Five Unit 149 0 0 0 0 149 Bunessan Primary School - Gaelic Medium Improvements 120 0 0 0 0 120 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 -12 0 0 0 7,762 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 Lochgoilhead Primary School - Pre Five Unit (600 hours funding) 391 0 0 0 0 391 Park Primary Extension and Pre Fives Unit 341 0 0 0 0 341 Sandbank Gaelic Pre Five Unit 491 0 0 0 0 491 Service Development Total 13,741 139 0 0 0 13,880 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 39,399 7,915 3,060 1,988 0 52,362 Page 91
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CAPITAL PLAN 2024-25 APPENDIX 7 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 5-7 East Clyde Street - Coastal Communities Fund 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 Carbon Management - Group Heating Conversion Project (Prudential Borrowing)1,938 0 0 0 0 1,938 Carbon Management Business Cases (FPB) 201 0 0 0 0 201 Carbon Management Capital Property Works 16/17 19 0 0 0 0 19 Carbon Management Fuel Conversions (FPB) 107 0 0 0 0 107 Clean Energy - NDEEF1 1,109 222 0 0 0 1,331 Clean Energy - NDEEF2 0 590 550 0 0 1,140 Helensburgh Office Rationalisation (FPB,REC) 11,538 300 0 0 0 11,838 Kilmory Biomass Project OBC (FPB,REV) 956 0 0 0 0 956 Net Zero 0 366 0 0 0 366 Non-NPDO Schools PV Panel Installations 400 0 0 0 0 400 NPDO Schools Solar PV Panel Installations 761 0 0 0 0 761 Oil to Gas Heating Conversions (FPB) 182 0 0 0 0 182 Strategic Change Total 17,806 1,479 550 0 0 19,835 Overall Total 17,806 2,600 2,522 382 0 23,310 Page 92
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CAPITAL PLAN 2024-25 APPENDIX 7 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 93
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CAPITAL PLAN 2024-25 APPENDIX 7 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 4,168 3,823 0 7,991 Bridge Strengthening 0 141 1,243 0 0 1,384 Bute Sea Wall Repairs 0 633 0 0 0 633 Claonaig Landslip 0 1,142 28 0 0 1,170 Coastal Change Adaptation 0 67 237 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 1,041 156 0 0 1,197 Footway Improvements 0 219 0 0 0 219 Gartbreck - Capping 0 194 0 0 0 194 Glengorm - Capping 0 0 0 0 0 0 Glengorm - Cell and Transfer Station (PB) 0 -1 0 0 0 -1 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 Local Bridge Maintenance Fund 0 230 4,760 0 0 4,990 Plant and Machinery 0 0 0 0 0 0 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 RIS - Roads Plant and Equipment - CFCR 0 0 0 0 0 0 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 14,579 11,519 3,823 0 29,921 Service Development RIS Campbeltown Old Quay 1,381 0 0 0 0 1,381 Cuan Ferry - Hitrans 0 0 0 0 0 0 Depot Rationalisation 0 0 0 0 0 0 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 15 0 0 0 169 Oban Bus Congestion - Bus Partnership Fund 50 0 0 0 0 50 Oban Depot Development 2,224 -35 0 0 0 2,189 October Weather Incident 0 4,348 0 0 0 4,348 Preliminary design for Regional Transport projects (tif) 205 16 0 0 0 221 Public Transport Operation Vehicles 0 233 0 0 0 233 Witchburn Road Demolition 158 0 0 0 0 158 Service Development Total 12,270 7,022 0 0 0 19,292 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 Harbour Investment Programme PB 9,295 24,050 33,250 24,697 0 91,292 Street Lighting LED Replacement 3,279 621 0 0 0 3,900 Strategic Change Total 26,322 26,494 33,260 25,084 0 111,160 Overall Total 38,592 48,095 44,779 28,907 0 160,373 Page 94
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CAPITAL PLAN 2024-25 APPENDIX 7 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 Ardrishaig North Active Travel 831 49 0 0 0 880 Cycleways - H&L (FSPT) 2,905 497 0 0 0 3,402 Dunoon Cycle Bothy 483 80 0 0 0 563 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 239 268 0 0 0 507 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 West Coast UAV Innovation Logistics and Training Hub 0 0 0 0 0 0 Service Development Total 16,650 5,286 654 0 0 22,590 Strategic Change DEG 01 TIF - Lorn/Kirk Road 2,169 1 0 0 0 2,170 05 TIF - North Pier Extension 214 0 0 0 0 214 09 TIF - Oban Airport Business Park 505 85 0 0 0 590 TIF - Halfway House Roundabout 66 287 287 0 0 640 Strategic Change Total 2,954 373 287 0 0 3,614 Overall Total 19,604 5,659 941 0 0 26,204 Page 95
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CAPITAL PLAN 2024-25 APPENDIX 7 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 0 0 0 55 Digitalising telecare 0 0 0 0 0 0 Eadar Glinn 0 34 0 0 0 34 East King Street Childrens Home 0 0 0 0 0 0 Glencruitten Hostel 0 301 0 0 0 301 Gortonvogie 0 0 0 0 0 0 Greenwood/Woodlands 0 1 0 0 0 1 HSCP - 102 East King Street "Jean's Bothy" - Rewire - 23-240 4 0 0 0 4 Kintyre Care Home 0 150 650 0 0 800 Rothesay Community Education Centre 0 0 0 0 0 0 Shellach View 0 2 0 0 0 2 Struan Lodge Boiler 0 700 0 0 0 700 Thomson Home Rothesay 0 270 370 0 0 640 Tigh An Rudha HFE 0 2,178 35 0 0 2,213 Tobermory Top Flat 0 0 0 0 0 0 Asset Sustainability Total 0 3,722 1,055 0 0 4,777 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 3,776 1,055 0 0 6,077 Page 96
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CAPITAL PLAN 2024-25 APPENDIX 7 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 Dunoon Community Education Centre - CFCR 0 0 0 0 0 0 Gym Equipment - CFCR 0 0 0 0 0 0 Kintyre Community Education Centre 0 6 0 0 0 6 Lochgilphead Community Ed Centre 0 411 0 0 0 411 Lochgilphead Library Relocation 0 0 0 0 0 0 Queen's Hall - Partition Wall 0 0 0 0 0 0 Riverside Leisure Centre - Spa Pool Upgrade 0 0 0 0 0 0 Rothesay Swimming Pool 0 24 65 0 0 89 The Moat Centre 0 393 0 0 0 393 The Moat Centre - Gym Store 0 0 0 0 0 0 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 97
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CAPITAL PLAN 2024-25 APPENDIX 7 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 6,532 25 0 0 0 6,557 CHORD - Oban 7,326 500 79 0 0 7,905 CHORD - Rothesay 21,046 2,611 0 0 0 23,657 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 OBC for Dunoon Pier 2,844 0 0 0 0 2,844 Strategic Change Total 74,734 4,509 113 0 0 79,356 Overall Total 74,734 4,509 113 0 0 79,356 Page 98
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 15 AUGUST 2024 TREASURY MANAGEMENT MONITORING REPORT – 30 JUNE 2024 1.0. EXECUTIVE SUMMARY 1.1. This report sets out the Council’s treasury management position for the period 1 April 2024 to 30 June 2024 and includes information on: Overall borrowing position Borrowing activity Investment activity Economic background Interest rate forecast Prudential Indicators 1.2. Estimated borrowing is below the Capital Financing Requirement for the period to 30 June 2024, at this stage in the financial year capital expenditure is below target. 1.3. The net movement in external borrowing in the period 1 April 2024 to 30 June 2024 was £5.7m. 1.4. The levels of investments were £59.638 at 30 June 2024. The rate of return achieved was 5.276% compared to the target SONIA rate which was 5.200%. 1.5. The Council has significant cash balances which are invested in accordance with its Annual Treasury Management Strategy on the basis of security first, liquidity second and then return. Page 99
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 15 AUGUST 2024 TREASURY MANAGEMENT MONITORING REPORT – 30 JUNE 2024 2.0. INTRODUCTION 2.1. This report sets out the Council’s treasury management position for the period 1 April 2024 to 30 June 2024 and includes information on: Overall borrowing position Borrowing activity Investment activity Economic background Interest rate forecast Prudential Indicators 3.0. DETAIL Overall Borrowing Position 3.1. The table below details the estimated capital financing requirement (CFR) and compares this with the estimated level of external debt at 31 March 2024. The CFR represents the underlying need for the Council to borrow to fund its fixed assets and accumulated capital expenditure. 3.2. Borrowing is below the Capital Financing Requirement for the period to 30 June 2024. The Council has delayed taking out any new long term borrowing, as rates are expected to drop towards the end of 2024 plus the Council has significant cash balances which reduces the need to borrow in the short term. 3.3. The Council’s Treasury Management Strategy states that any decision to borrow in advance will be within forward approved Capital Financing Requirement estimates. 3.4. The Council’s estimated net capital financing requirement at 30 June 2024 is £254.701m. The table below shows how this has been financed. £113.642m is funded by loans and there are substantial internal balances of £200.697m of which £59.638m are currently invested, as detailed in section 3.7, leaving a net internal Forecast Forecast Forecast 2024/25 2025/26 2026/27 £000 £000 £000 CFR at 1 April 332,394 360,485 382,575 Net Capital Expenditure 40,283 35,016 24,270 Less Loans Fund Principal Repayments -6,254 -6,691 -6,962 Less: NPDO Repayment -5,938 -6,235 -6,844 Estimated CFR 31 March 360,485 382,575 393,039 Less Funded by NPDO -105,784 -105,846 -100,611 Estimated Net CFR 31 March 254,701 276,729 292,428 Estimated External Borrowing at 31 March 190,835 209,152 227,472 Gap 63,866 67,577 64,956 Page 100
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balance of £141.059m. 3.5. During the period from 1 April 2024 to 30 June 2024, £5.8m of loans were repaid. The analysis of the movement in borrowing is shown in the table below: 3.6. The table below summarises the movement in the level and rate of temporary borrowing at the start and end of the period. Position at 31/03/24 Position at 30/06/24 £000 £000 Loans 119 114 Net Internal Balances 67 141 Total CFR 187 255 Actual £m (6) 0 Net Movement in External Borrowing (6) External Loans Repaid 1st April 2024 to 30th June 2024 Borrowing undertaken 1st April 2024 to 30th June 2024 £000 % Rate Temp borrowing at 31st March 2024 5,251 4.70% Temp borrowing at 30th June 2024 328 4.75% Page 101
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Investment Activity 3.7. The average rate of return achieved in the Council’s investments to 30 June 2024 was 5.276% compared to the SONIA (Sterling Overnight Index Average) rate for the same period of 5.200%. At 30 June 2024 the Council had £59.638m of short term investments at an average rate of 5.276%. The table below details the counterparties that the investments were placed with, the maturity date, the interest rate and the credit rating applicable for each counterparty. 3.8. All investments and deposits are in accordance with the Council’s approved list of counterparties and within the limits and parameters defined in the Treasury Management Practices. The counterparty list is constructed based on assessments by leading credit reference agencies adjusted for additional market information available in respect of counterparties. 3.9. The Council has significant cash balances which are invested in accordance with its Annual Treasury Management Strategy. Counterparty Maturity Amount £000 Interest Rate Rating S&P Clydesdale Bank Instant Access 338 5.15% Short Term A-2, Long Term A- London Borough of Croydon 10/10/2024 5,000 4.10% AA First Abu Dhabi Bank 09/08/2024 5,000 6.16% Short Term A-1+, Long Term AA- ANZ 25/07/2024 5,000 5.32% Short Term A-1+, Long Term AA- Goldman Sachs 25/10/2024 5,000 5.34% Short Term A-1, Long Term A+ Al Rayan 07/11/2024 5,000 5.35% Short Term P-1, Long Term A2 (Moody's) Al Rayan 08/11/2024 5,000 5.35% Short Term P-1, Long Term A2 (Moody's) DBS 15/08/2024 5,000 5.28% Short Term A-1+, Long Term AA- ANZ 05/09/2024 5,000 5.24% Short Term A-1+, Long Term AA- DBS 18/09/2024 5,000 5.31% Short Term A-1+, Long Term AA- Money Market Fund - BNP Paribas Call 13,300 5.26% AAA MMF - Aviva Call 1,000 0.00% AAA Total 59,638 Page 102
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Economic and Interest Rate Forecasts 3.10. The latest economic background is shown in Appendix 1 with the interest rate forecast in Appendix 2. Prudential Indicators 3.11. The prudential indicators for 2024-25 are attached in Appendix 3. 4.0. CONCLUSION 4.1 In the period from 1 April 2024 to 30 June 2024, the Council’s borrowing decreased by £5.8m, and it is currently below the Capital Financing Requirement. There are substantial internal balances, of which £59.638m is currently invested. The average rate of investment returns during the period was 5.276%. 5.0. IMPLICATIONS 5.1. Policy None 5.2. Financial Complies with Annual Treasury Strategy 5.3. Legal None 5.4. HR None 5.5. Fairer Duty Scotland: 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 None 5.8. Customer Service None 5.9 The Rights of the Child (UNCRC) None. Kirsty Flanagan Executive Director/Section 95 Officer 6 August 2024 Policy Lead for Finance and Commercial Services - Councillor Ross Moreland Appendix 1 – Economic Background Appendix 2 – Interest Rate Forecast Appendix 3 – Prudential Indicators For further information contact Anne Blue, Head of Financial Services anne.blue@argyll-bute.gov.uk Page 103
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Appendix 1 – Economics Update The first quarter of 2024/25 saw: - GDP growth flatlining in April following positive Q4 2023/24 growth figures of 0.7% q/q. - A stalling in the downward trend in wage growth, with the headline 3myy rate staying at 5.9% in April. - CPI inflation falling from 2.3% in April to 2.0% in May. - Core CPI inflation decreasing from 3.9% in April to 3.5% in May. - The Bank of England holding rates at 5.25% in May and June. - 10-year gilt yields climbing to 4.35% in April, before closing out at 4.32% in May. The news that the economy grew by 0.7% q/q in Q4 2023/24 confirmed that it moved out of its very mild technical recession that prevailed at the back end of 2023. However, data released for April and May so far shows a slight stalling in the recovery, with GDP data for April coming out at 0.0% m/m, as inclement weather weighed on activity. Moreover, the fall in the composite Purchasing Manager Index output balance from 53.0 in May to 51.7 in June confirms tepid growth. On a more positive note, the 2.9% m/m increase in retail sales volumes in May more than reversed the 1.8% m/m drop in April as rainfall returned to seasonal norms. The strength was broad-based across the retail sector, including online, (+5.9% m/m) suggesting an underlying strengthening in sales beyond weather effects. With inflation falling back to target, Bank Rate likely to be reduced soon and with consumer confidence improving, retail sales may well continue to strengthen. Stronger consumer spending, as low inflation allows households’ real incomes to strengthen and the drag from higher interest costs fades, suggests that real consumption will strengthen substantially over the next two years. However, investment will only make a modest contribution to GDP growth. With the industrial sector still 12% smaller than in 2019, excess capacity will continue to cap the need for industrial firms to invest. But improving business sentiment should raise investment by services’ firms. Further, a fall in mortgage rates should trigger a recovery in residential investment. Overall, strong consumer spending is likely to be the backbone of GDP growth, along with government consumption. Our colleagues at Capital Economics forecast that following GDP growth of 1.0% in 2024, activity will continue to surprise to the upside with GDP growth of 1.5% for both 2025 and 2026 (consensus forecasts are 1.2% and 1.4% respectively). Nonetheless, the on-going stickiness of wage growth in April will be a lingering concern for the Bank of England. The 3myy rate of average earnings growth stayed at 5.9% in April (consensus 5.7%), whilst the more timely 3m annualised rate rebounded from 5.9% to 9.3%. This stickiness partly reflected April’s 9.8% increase in the minimum wage. This leaves the Bank of England’s forecast for a fall back in regular private sector pay growth from 5.8% in April to 5.1% in June looking a challenge. Despite the stickiness of wage growth in April, sharp falls in employment and a move up in unemployment suggests that wage growth will soon be back on a downward path. The 139,000 fall in employment in the three months to April was accompanied by a rise in the unemployment rate from 4.3% to 4.4%. This was the fourth increase in a row and took it to its highest level since September 2021. The rise would have been larger were it not for the 132,000 increase in inactivity in the three months to April as the UK’s disappointing labour market participation performance since the pandemic continued. The vacancies data also paint a picture of a slowly cooling labour market. The number of job vacancies fell from an upwardly revised 908,000 to 904,000, leaving vacancies 31% below the peak in May 2022, but 11% above the pre-pandemic level. The fall in CPI inflation in May back to the Bank’s 2% target for the first time since July 2021 will have come as welcome news to the Bank. Furthermore, with CPI inflation of 3.3% in the US and 2.6% in the Euro-zone in May, the UK appears to have won the race to get CPI inflation back to Page 104
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2.0%. A further easing in food inflation from 2.8% in April to 1.6% in May played a part in the fall in overall CPI inflation and with food producer price inflation at just 0.2% in May, food price inflation will probably soon fall to zero. The core rate also fell back from 3.9% to 3.5%. Within that, core goods CPI inflation slipped below zero for the first time since October 2016. As expected, clothing/footwear, recreation/culture and restaurants/hotels categories inflation declined, reflecting base effects from big increases last May. While services inflation fell from 5.9% to 5.7%, this decline was smaller than the Bank of England expected (forecast 5.3%). And the timelier three-month annualised rate of services prices has rebounded from 8.5% to 9.2%. This suggests that the persistence in domestic inflation that the Bank is worried about is fading more slowly than it thought. Even so, there is scope for inflation to fall further. There was little chance that the Bank would cut rates at its June meeting, given upside surprises on services CPI inflation and wage growth. But several developments implied a rate cut is getting closer (August?). First, two members of the MPC, Ramsden and Dhingra voted again to reduce rates immediately to 5.00%. Second, despite the recent run of stronger inflation and activity, the minutes noted “indicators of inflation persistence had continued to moderate” and that a range of indicators suggest pay growth had continued to ease. And there was new wording that members of the MPC will consider all the information available and how this affects the assessment that the risks from inflation persistence are receding “as part of the August forecast round”. Throughout the quarter there was a degree of volatility in the gilt market and, by way of example, the 10-year gilt yield rose from 4.05% on 2nd April to finish at 4.15% on 28th June but it has exceeded 4.30% on several occasions. Overall, investors judged that interest rates will need to remain high for longer to keep inflation around the 2.0% target. Meanwhile, the FTSE 100 broke through the 8,000 mark in April for the first time since its brief three- day flutter in February last year and reached a record closing high of 8,446 on 15th May. However, by the end of the quarter, despite AI-fuelled rises in the US S&P500, it finished rather tamely and had fallen back to 8,164. Arguably, significant interest rate cuts and an on-going UK economic recovery will be required for a further resurgence to take hold. PWLB maturity Certainty Rates 1st April to 30th June 2024 Gilt yields and PWLB rates remained relatively stable between 1st April and 30th June. Having said that, the spread between the low and high points during the quarter was between 0.3% and 0.45% across the curve. The 50-year PWLB Certainty Rate target for new long-term borrowing (the low point of our forecast on a two-year timeline) started 2024/25 at 4.00% and increased to 4.20% on 28th May. As can be seen, with rates remaining elevated across the whole of the curve, it is advised to not borrow long- term unless the Authority wants certainty of rate and judges the cost to be affordable. Page 105
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MPC meetings 9th May and 20th June 2024 On 9th May, the Bank of England’s Monetary Policy Committee (MPC) voted 7-2 to keep Bank Rate at 5.25%. This outcome was repeated on 20th June. Nonetheless, with UK CPI inflation now back at 2% and set to fall further over the coming months, Ramsden and Dhingra – who voted again to reduce rates immediately to 5.00% in June – may shortly be joined by some members in the no-change camp, for whom the June decision was “finely balanced” as the upside news on services price inflation was more likely to be a reflection of one- off effects and volatile components rather than factors that would push up “medium-term inflation”. Page 106
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Appendix 2 – Interest Rate Forecast The Council has appointed Link Group as its treasury advisors and part of their service is to assist the Council to formulate a view on interest rates. The PWLB rate forecasts below are based on the Certainty Rate (the standard rate minus 20 bps) which has been accessible to most authorities since 1st November 2012. For Housing Revenue Account authorities, the lower Housing Revenue Account (HRA) PWLB rate has also been available since 15 June 2023 (standard rate minus 60 bps) but is available for HRA borrowing only. The latest forecast, updated on 28th May, sets out a view that both short and long-dated interest rates will start to fall once it is evident that the Bank of England has been successful in squeezing excess inflation out of the economy, despite a backdrop of a stubbornly robust economy and a tight labour market. Moreover, whatever the shape of domestic data, recent gilt market movements have been heavily influenced by the sentiment pertaining to US monetary policy. Again, inflation and labour data has proven sticky and the market’s expectation for rate cuts has gradually reduced throughout the course of the year, so that possibly rates may not be cut more than once, or possibly twice, before the end of 2024. In any event, even if the Bank of England starts to cut rates first, it may mean that the medium and longer parts of the curve take longer to fully reflect any such action until the US yield curve shifts lower too. Given the potential inflationary upside risk to US treasuries if Trump wins the presidential election in November (increased tariffs on imports from China for example), therein lies a further risk to yields remaining elevated for longer. Closer to home, the General Election is not expected to have a significant impact on UK monetary policy. There is minimal leeway for further tax cuts or added spending without negatively impacting market sentiment. It may even be the case that the Bank of England will steer clear of an August rate cut – should that be supported by the inflation data – in favour of weighing up fiscal policy implications and market sentiment in the aftermath of the election. Accordingly, Link’s central case is still for a rate cut before the end of September, but we are not committed to whether it will be in August or September. Thereafter, the path and speed of rate cuts is similar to that which we previously forecast, with Bank Rate eventually falling to a low of 3% by H2 2026. However, given the increased uncertainty surrounding Link’s central gilt market forecasts, and the significant issuance that will be on-going from several of the major central banks, it has marginally increased its PWLB forecasts by c20 to 30 basis points across the whole curve since the previous quarter. In summary, regarding PWLB rates, movement in the short-end of the curve is expected to reflect Link’s Bank Rate expectations to a large degree, whilst medium to longer-dated PWLB rates will remain influenced not only by the outlook for inflation, domestically and globally, but also by the market’s appetite for significant gilt issuance (£200bn+ for each of the next few years). As noted at the Link March Strategic Issues webinars, there is upside risk to that part of our forecast despite the Debt Management Office skewing its issuance to the shorter part of the curve. Page 107
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Money market yield forecasts are based on expected average earnings by local authorities for 3 to 12 months. The Link forecast for average earnings are averages i.e., rates offered by individual banks may differ significantly from these averages, reflecting their different needs for borrowing short-term cash at any one point in time. Page 108
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Appendix 3 – Prudential Indicators PRUDENTIAL INDICATOR 2024-25 2024-25 2025-26 2026-27 (1). EXTRACT FROM BUDGET Forecast Outturn Original Estimate Forecast Outturn Forecast Outturn Capital Expenditure £'000 £'000 £'000 £'000 Non - HRA 40,283 43,320 35,016 24,270 TOTAL 40,283 43,320 35,016 24,270 Ratio of financing costs to net revenue stream Non - HRA 4.54% 4.36% 4.44% 4.49% Net borrowing requirement brought forward 1 April * 332,394 320,025 360,485 382,575 carried forward 31 March * 360,485 351,041 382,575 393,039 in year borrowing requirement 28,091 31,016 22,090 10,464 In year Capital Financing Requirement Non - HRA 28,091 31,016 22,090 10,464 TOTAL 28,091 31,016 22,090 10,464 Capital Financing Requirement as at 31 March Non - HRA 360,485 351,041 382,575 393,039 TOTAL 360,485 351,041 382,575 393,039 Page 109
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PRUDENTIAL INDICATOR 2024-25 2025-26 2026-27 (2). TREASURY MANAGEMENT PRUDENTIAL INDICATORS £'M £'M £'M Authorised limit for external debt - borrowing 251 280 288 other long term liabilities 109 109 104 TOTAL 360 389 392 Operational boundary for external debt - borrowing 246 275 283 other long term liabilities 106 106 101 TOTAL 352 381 384 Upper limit for fixed interest rate exposure Principal re fixed rate borrowing 190% 190% 190% Upper limit for variable rate exposure Principal re variable rate borrowing 60% 60% 60% Upper limit for total principal sums invested for over 364 days £20m £20m £20m (per maturity date) Maturity structure of new fixed rate borrowing during 2024/25 upper limit lower limit under 12 months 30% 0% 12 months and within 24 months 30% 0% 24 months and within 5 years 30% 0% 5 years and within 10 years 40% 0% 10 years and above 100% 0% Page 110
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 15 AUGUST 2024 RESERVES AND BALANCES – UPDATE AS AT 30 JUNE 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. This results in a total in-year earmarked balance of £119.246m. 1.5 Of the earmarked balance of £119.246m: • £60.078m is invested or committed for major initiatives/capital projects • £28.359m is still to be drawn down in 2024-25 • £30.809m is planned to be spent in future years 1.6 The Council’s General Fund contingency level is set at 2% of net expenditure for 2024-25 which equates 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 assuming Members agree to the proposed actions regarding the weather event, is estimated to have a £1.816m surplus over contingency. Page 111
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 15 AUGUST 2024 RESERVES AND BALANCES - UPDATE AS AT 30 JUNE 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 112
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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 113
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amount from the revenue budget for Capital agreed at Council in February 2024, 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. 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 assuming Members agree to the proposed actions regarding the weather event, is estimated to have a £1.816m surplus over contingency. Earmarking Category Balance 31/03/2024 - per year end published report New Earmarkings in year Invested or committed for major initiatives /capital projects Drawn- down to 2024-25 Budget as at 30/06/24 Still to be drawn- down in 2024-25 Planned Spend Future Years Released to General Fund £000 £000 £000 £000 £000 £000 £000 Strategic Housing Fund 8,765 8,765 Investment in Affordable Housing 3,024 3,024 Capital Projects 37,958 37,958 Lochgilphead and Tarbert Regeneration 1,050 1,050 Support for Rural Growth Deal 541 541 Piers and Harbours Investment Fund 4,125 4,125 Scottish Government Initiatives 2,779 1,185 1,594 CHORD 409 409 DMR Schools 739 739 Energy Efficiency Fund 238 238 Unspent Grant 15,786 1,699 9,132 4,955 Unspent Third Party Contribution 454 220 234 Previous Council Decision - Other 4,140 1,470 1,232 1,438 Redundancy Provision 2,963 150 2,813 Connect for Success Fund 681 406 275 Fleet - Timing Delay 484 484 Hermitage Park 56 10 46 Priorities Investment Fund 4,742 4,742 Unspent Budget 18,509 11,803 1,446 14,563 14,303 Totals 107,443 11,803 60,078 0 28,359 30,809 0 Page 114
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3.4.2 The revenue budget position as at 30 June 2024 was estimated to be a £4.658m overspend, of which £0.648m 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 underspend that materialises would be transferred to the IJB reserves and the General Fund of the Council would not be impacted. 3.4.4 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% contingency, which amounts to £6.039m 2,259 Current Forecast Outturn for 2024-25 as at 30 June 2024 Per paragraph 3.4.2. (4,658) Social Work outturn adjustment Per paragraph 3.4.3 - Social Work would expect to transfer any surplus to internal IJB reserves 648 Sub-total – potential unallocated balance as at 31 March 2025 *If no separate action is taken regarding the weather event overspend, the unallocated general fund balance would fall below 0 (1,751) Options to pay for weather related incident Members have been presented with options to cover the pressures resulting from the weather incident 3,567 Estimated Unallocated balance as at 31 March 2025 1,816 * If Members do not agree to the options outlined in the separate report and the unallocated general fund balance falls below the amount available and moves into contingency then a recovery plan would be required to bring the contingency level back up to the agreed amount. 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. Page 115
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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 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) £3.750m allocation to capital plan (3,750) (3,750) £2m to be directed towards transformation 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. 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 30 June 2024 the estimated unallocated General Fund, after taking into consideration the current forecast outturn for 2024-25 and assuming Members agree to the proposed actions regarding the weather event, is estimated to have a £1.816m surplus over contingency. Page 116
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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. Kirsty Flanagan Executive Director/Section 95 Officer 6 August 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 For further information contact Anne Blue, Head of Financial Services anne.blue@argyll-bute.gov.uk Page 117
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APPENDIX 1 Earmarked Reserves - Unspent Budget (Including Service Concessions) As at 30 June 2024 Ref Department Service Description Opening Balance Budget Drawdown New earmarkings in year 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) 200,000 200,000 100,000 100,000 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 0 002 Chief Executive's Unit Community Planning Communities and Partnership Team 8,855 8,855 8,855 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. 8,855 0 0 003 Executive Director (Douglas Hendry) Across Services / Commercial Services Information Management (Estates Survey Work) 12,697 12,697 12,697 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. 12,697 0 0 004 Executive Director (Douglas Hendry) Across Services / Education Digital Projects (Supply Staff Booking System) 15,200 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 0 005 Executive Director (Douglas Hendry) Commercial Services Rothesay Pavilion Charity 750,000 750,000 0 750,000 Agreed at Council meeting February 2020, £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. 0 750,000 0 006 Executive Director (Douglas Hendry) Commercial Services Rothesay Pavilion Essential repairs 306,400 306,400 0 306,400 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. 0 306,400 0 007 Executive Director (Douglas Hendry) Commercial Services Commercial Investment Manager post and specialist consultant technical resource (previously Asset Management Fund) 104,000 104,000 104,000 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 0 008 Executive Director (Douglas Hendry) Commercial Services Estates - NDR Revaluation Appeals 59,938 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 0 009 Executive Director (Douglas Hendry) Commercial Services Mid Argyll Community Pool 30,000 30,000 30,000 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 0 010 Executive Director (Douglas Hendry) Commercial Services MacTaggart Leisure Islay 30,000 30,000 30,000 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 0 011 Executive Director (Douglas Hendry) Commercial Services Site Investigation Works 21,013 21,013 21,013 0 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. 21,013 0 0 Page 118
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Ref Department Service Description Opening Balance Budget Drawdown New earmarkings in year 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 012 Executive Director (Douglas Hendry) Education ASN Review 1,255,000 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 0 013 Executive Director (Douglas Hendry) Education Reduced Teacher Staffing Costs - Strike Action 800,000 800,000 800,000 0 To fund one off savings in 2024-25 from the underspend in staffing from strike action. 800,000 0 0 014 Executive Director (Douglas Hendry) Education (2023 Digital Projects) School WiFi Upgrades 166,924 166,924 166,924 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. 166,924 0 0 015 Executive Director (Douglas Hendry) Education Education Transformation Fund 144,637 144,637 0 144,637 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. 0 144,637 0 016 Executive Director (Douglas Hendry) Education MCR Pathways Pilot 80,000 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 0 017 Executive Director (Douglas Hendry) Education Gaelic Specific Grant 30,000 30,000 30,000 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 0 018 Executive Director (Douglas Hendry) Education (2023 Digital Projects) Cashless Catering 30,000 30,000 10,000 20,000 To support the ongoing implementation of the new cashless catering system during the testing and roll out phase. 10,000 0 20,000 019 Executive Director (Douglas Hendry) Education Skype for Business for Education / Digital Projects (Skype for Business) 10,000 10,000 0 10,000 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 10,000 0 020 Executive Director (Douglas Hendry) Education Education Learning Estate Condition Surveys 1,815 1,815 0 1,815 To fund the delivery of School Core Facts (SCF) compliant Condition Surveys for prioritised School Buildings. 0 0 1,815 021 Executive Director (Douglas Hendry) Legal and Regulatory Support Education Purchasing Officers 210,000 210,000 168,000 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 0 022 Executive Director (Douglas Hendry) Legal and Regulatory Support Information Management (Digitalisation of Title Deeds) 92,000 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 20,500 023 Executive Director (Douglas Hendry) Legal and Regulatory Support (2023 Digital Projects) Replacement of Council Chambers Online Meeting Equipment 50,071 50,071 5,353 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 0 024 Executive Director (Douglas Hendry) Legal and Regulatory Support Councillor IT Equipment 44,557 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 0 025 Executive Director (Douglas Hendry) Legal and Regulatory Support Digital Projects: Hybrid Council meetings 43,302 43,302 12,000 31,302 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. 12,000 0 31,302 026 Executive Director (Douglas Hendry) Legal and Regulatory Support Debt Counselling & Welfare Rights 21,452 21,452 6,000 15,452 To meet the cost of a Debt Counselling and Welfare Rights Management System. 6,000 0 15,452 Page 119
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Ref Department Service Description Opening Balance Budget Drawdown New earmarkings in year 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 027 Executive Director (Douglas Hendry) Non Departmental / Legal and Regulatory Services Community Resilience Fund 71,999 71,999 5,000 66,999 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. 5,000 0 66,999 028 Executive Director (Kirsty Flanagan) Across Services / Customer Support Services Digital Projects (Increase in Schools Bandwidth) 63,455 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 63,455 029 Executive Director (Kirsty Flanagan) Across Services / Customer Support Services Digital Projects (Replacement Learning Management System) 11,470 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 0 030 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 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 0 031 Executive Director (Kirsty Flanagan) Customer Support Services (2023 Digital Projects) iTrent Project 320,555 320,555 320,555 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 0 032 Executive Director (Kirsty Flanagan) Customer Support Services Growing our Own and Modern Apprentices 109,150 109,150 44,000 65,150 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 44,000 25,150 40,000 033 Executive Director (Kirsty Flanagan) Customer Support Services Security Operations Centre Subscription 71,188 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 0 034 Executive Director (Kirsty Flanagan) Customer Support Services (2023 Digital Projects) Resilient Website Project 60,000 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 0 035 Executive Director (Kirsty Flanagan) Customer Support Services (2023 Digital Projects) Digital Project Officer 34,121 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 0 036 Executive Director (Kirsty Flanagan) Customer Support Services Implementation of Gaelic Language Plan 30,000 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 0 037 Executive Director (Kirsty Flanagan) Customer Support Services Business Development Training 27,025 27,025 10,000 17,025 £27k budget from original Business Development Training earmarking remaining at 31/03/24. This budget is funding ongoing leadership development, coaching, action learning sets and commissioned training including Priority Management. 10,000 17,025 0 038 Executive Director (Kirsty Flanagan) Customer Support Services Learning and Development 19,436 19,436 10,000 9,436 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 10,000 9,436 0 039 Executive Director (Kirsty Flanagan) Customer Support Services (2023 Digital Projects) Digital Engagement Services Developer 15,677 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 Page 120
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Ref Department Service Description Opening Balance Budget Drawdown New earmarkings in year 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 040 Executive Director (Kirsty Flanagan) Customer Support Services Establishing HR Service Centre 13,824 13,824 13,824 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. 13,824 0 0 041 Executive Director (Kirsty Flanagan) Development & Economic Growth Planning Income 60,000 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 0 042 Executive Director (Kirsty Flanagan) Development and Economic Growth Oban TIF (Tax Incremental Financing) 214,158 214,158 214,158 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 0 043 Executive Director (Kirsty Flanagan) Development and Economic Growth Service Concessions - Priorities Investment Fund (Project Officer for Housing Emergency) 200,000 200,000 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 0 044 Executive Director (Kirsty Flanagan) Development and Economic Growth Strategic Events & Festivals 41,260 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 0 045 Executive Director (Kirsty Flanagan) Development and Economic Growth Screen Machine 28,000 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 0 046 Executive Director (Kirsty Flanagan) Development and Economic Growth International Eight Metre Association World Cup 10,000 10,000 10,000 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 0 047 Executive Director (Kirsty Flanagan) Financial Services Revenue and Benefits BPR - extra staff to implement savings targets 86,955 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 0 048 Executive Director (Kirsty Flanagan) Financial Services Scotland Loves Local 57,453 57,453 57,453 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 0 049 Executive Director (Kirsty Flanagan) Financial Services Financial Systems 33,748 33,748 30,748 3,000 The council is required to implement the IFRS16 Leases accounting standard from the 1st April 2024. 30,748 0 3,000 050 Executive Director (Kirsty Flanagan) Financial Services Accounting and Budgeting Team Resilience 47,883 47,883 8,000 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 31,883 051 Executive Director (Kirsty Flanagan) Roads & Infrastructure Waste Variation Monies 1,241,752 1,241,752 569,752 672,000 Waste Variation Monies - £1.242m balance at 31/03/24: 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. £570K in 2024-25 consisting of :- Island restoration/capping, Helensburgh transfer station and recycling improve. fund (island sites) design costs, technology trial on blue bin recycling participation, consultancy costs relating to additional monitoring data for SEPA and waste PPP site conversion. £672K 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. 569,752 672,000 0 Page 121
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Ref Department Service Description Opening Balance Budget Drawdown New earmarkings in year 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 052 Executive Director (Kirsty Flanagan) Roads & Infrastructure Service Concessions - Priorities Investment Fund (Strategic Development Framework) 450,000 450,000 225,000 225,000 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 0 053 Executive Director (Kirsty Flanagan) Roads & Infrastructure 3G pitches / Tarbert Sports Pitches 287,835 287,835 83,883 203,952 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. 83,883 203,952 0 054 Executive Director (Kirsty Flanagan) Roads & Infrastructure Green Transport Initiatives 140,000 140,000 140,000 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 0 055 Executive Director (Kirsty Flanagan) Roads & Infrastructure Climate Change 40,942 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 0 056 Executive Director (Kirsty Flanagan) Roads & Infrastructure Amenity Services introduction of management information system 28,099 28,099 0 28,099 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. 0 0 28,099 057 Executive Director (Kirsty Flanagan) Roads & Infrastructure Services (2023 Contract Inflation Adjustments) Waste PPP 223,261 223,261 223,261 0 Contract Inflation adjustments - £0.223m balance at 31/03/24. Adjustment to inflation included in the budget based on updated RPIX figures at February 2023. Based on actuals in 23-24, only £32k of this was required leaving a balance of £223k. 223,261 0 0 058 Executive Director (Kirsty Flanagan) Roads and Infrastructure Services Weather Incident costs not covered by Bellwin claim. 198,000 198,000 198,000 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 0 059 Non Departmental Non Departmental Service Concessions - Replace previous loans fund principal repayment holiday 5,400,000 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 0 060 Non Departmental Non Departmental Pay Inflation Contingency 1,700,000 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 0 061 Non Departmental Non Departmental Underwriting development of Rothesay Pavilion 1,000,000 1,000,000 1,000,000 0 Funding to meet additional costs identified as necessary for the refurbishment of Rothesay Pavilion (£1m). 1,000,000 0 0 062 Non Departmental Non Departmental Oban TIF (Tax Incremental Financing - Excess NDR) 875,651 875,651 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 0 063 Non Departmental Non Departmental Treasury Gain 294,000 294,000 294,000 0 To fund one off operational saving 202425 003 as agreed by Council when setting 2024/25 budget in February 2024. 294,000 0 0 064 Non Departmental Non Departmental Information Management (Balance of Funding) 200,469 200,469 200,469 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 Page 122
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Ref Department Service Description Opening Balance Budget Drawdown New earmarkings in year 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 065 Non Departmental Non Departmental Engagement with Hub North re provision of services for older adults and vulnerable people across Argyll and Bute 100,000 100,000 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 0 066 Non Departmental Non Departmental Spend to Save Route Optimisation Software 82,775 82,775 82,775 0 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 - Spend to save route optimisation (£0.100m) which will be spent over 2023/24 and 2024/25. 82,775 0 0 067 Non Departmental Non Departmental CHARTS 80,000 80,000 80,000 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 0 068 Non Departmental Non Departmental Council Strathclyde Pension Fund Saving 24- 25 (£2m to balance 24-25 budget) 2,000,000 2,000,000 2,000,000 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 0 069 Non Departmental Non Departmental Council Strathclyde Pension Fund Saving 24- 25 (£3.75m allocation to capital plan) 3,750,000 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 3,750,000 070 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) 1,125,000 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. 1,125,000 071 Non Departmental / Social Work Non Departmental Social Work Strathclyde Pension Fund Saving 24-25 3,053,000 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. 3,053,000 072 Non Departmental Non Departmental Capital Plan 1,875,000 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 0 11,803,000 30,312,179 15,702,691 14,609,488 15,702,691 4,483,983 10,125,505 Page 123
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APPENDIX 2 Earmarked Reserves - Service Concessions As at 30 June 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) 200,000 200,000 100,000 100,000 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 0 002 Executive Director (Kirsty Flanagan) Development and Economic Growth Service Concessions - Priorities Investment Fund (Project Officer for Housing Emergency) 200,000 200,000 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 0 003 Executive Director (Kirsty Flanagan) Roads & Infrastructure Service Concessions - Biodegradable Municipal Waste (BMW) Ban 3,500,000 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. 0 3,500,000 0 004 Executive Director (Kirsty Flanagan) Roads & Infrastructure Service Concessions - Priorities Investment Fund (Strategic Development Framework) 450,000 450,000 225,000 225,000 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 0 005 Non Departmental Non Departmental Service Concessions - Learning Estate Investment Strategy 8,000,000 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 0 006 Non Departmental Non Departmental Service Concessions - Replace previous loans fund principal repayment holiday 5,400,000 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 0 007 Non Departmental Non Departmental Service Concessions - Rothesay Pavilion 4,772,000 4,772,000 0 4,772,000 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. 0 4,772,000 0 008 Non Departmental Non Departmental Service Concessions - Priorities Investment Fund 4,742,000 4,742,000 0 4,742,000 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. 0 4,742,000 0 009 Non Departmental Non Departmental Service Concessions - Roads Investment to Capital 3,546,000 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 0 010 Non Departmental Non Departmental Service Concessions - Capital Projects Inflation Pressures 2,000,000 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 0 011 Non Departmental Non Departmental Service Concessions - Priorities Investment Fund (Capital Programme) 1,028,000 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 0 012 Non Departmental Non Departmental Service Concessions - New refuse collection vehicles 700,000 700,000 700,000 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 0 013 Non Departmental Non Departmental Service Concessions - Climate Change 640,000 640,000 0 640,000 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. 0 640,000 0 014 Non Departmental Non Departmental Service Concessions - New Jet Patcher Vehicle 250,000 250,000 250,000 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 0 015 Non Departmental Non Departmental Service Concessions - New Road Marking Vehicle 230,000 230,000 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 0 35,658,000 6,745,000 28,913,000 6,745,000 28,913,000 0 Page 124
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 15 AUGUST 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 9 May 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 on 9 May 2024 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. Although the spending review published in May 2022 had indicated that the total budget for Local Government would remain flat cash until 2027-28, our Council relies on the floor mechanism to protect our funding and the floor was set at 0.5% below the annual change in 2024-25 and is likely to continue at this level. 1.4 There are no changes to my previous assumptions around the growth in Council Tax. The Council tax base has been assumed to grow by 0.25% in the worst case scenario, 0.5% in the mid-range scenario and 0.75% in the best case. 1.5 There has been one change to the base budget since the report on 9 May 2024 which relates to the Council’s share of the Children’s Social Care Pay Uplift (£0.063m). 1.6 Assumptions in respect of employee costs for Council services are as follows: The SJC and Chief Officers pay awards for 2024-25 have still to be agreed and may have a further impact on the base budget if the pay award is higher than the 3% allowed for in the budget. Two offers have been rejected by the Trade Unions recently, the first being an increase equating to 4.24% which would have increased the budget gap in 2025-26 by £1.446m, and the second proposed an increase of 3.2% which would have increased the estimated gap by £0.233m. It is still unclear at what level the pay award will be agreed for 2024-25 and subsequently the financial impact this will have on future years but this will be kept under review as further information becomes available. The Teachers pay award for 2024-25 has already been agreed up to 31 July 2024 as part of a previous 28 month deal however any increase beyond that date is still in the negotiation stage. Page 125 Agenda Item 5a
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For future years, the mid-range scenario remains at 2% but a risk remains that it could be higher and this will be closely monitored. Increments are estimated between £0.329m and £0.605m with a mid-range of £0.605m. 1.7 For non-pay inflation, only unavoidable/inescapable inflation has been built in for the best case and mid-range scenarios with a contingency of £0.250m built into the mid-range. A further general inflationary increase has been built into the worst case scenario. 1.8 There are a number of cost and demand pressures for Council services built into each scenario. Changes to these pressures since the report on 9 May 2024 are: Amended – Bus Transport Contracts – a further contract renewal has been received which has increased the cost pressure by £0.210m. New – Education ICT Network Infrastructure – technology upgrade, improved security and reconfiguration to support in-school and at home learning (£0.295m). There is a separate report on the agenda providing Members with further detail. New – Roads and Amenity Services Charging Saving – the saving is no longer fully achievable due to lower than anticipated income generation. This will now be considered as part of the Roads and Infrastructure Review (£0.100m). New – Insurance premiums – renewal notices have been received which include inflation of 22% which is significantly higher than the inflation previously built into the budget outlook (£0.309m). 1.9 In addition to the identified cost and demand pressures an allowance for unidentified cost and demand pressures has been included in mid-range of £0.500m per year (best case scenario £0.250m per year and worst case scenario £1m per year). 1.10 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 which has now increased by £0.180m, as detailed in paragraph 4.1.2, in relation to the HSCP’s share of the Children’s Social Care Pay Uplift. The indicative allocation for 2026-27 increases further by £3.053m to account for the cessation of the one-off saving in relation to the Strathclyde Pension Fund. 1.11 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 £48.118m with a gap of £13.314m in 2025-26. 1.12 The measures to balance the budget over the next five years are as follows: Proposed increase to fees and charges of between 3% and 9% (6% mid- Page 126
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range). 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). Policy savings already agreed by Council in February 2024. Management/Operational savings already agreed by Council February 2024. 1.13 In the mid-range scenario, the budget gap estimated over the five year period 2025-26 to 2029-30 is £26.504m with a gap of £9.484m in 2025-26. 1.14 The budget gap in the best case scenario over the five years is £13.659m with a gap of £3.416m in 2025-26 and in the worst case scenario, the budget gap over the five years is £91.085m with a gap of £21.355m in 2025-26. A summary of all three scenarios is included within Appendix 1. 1.15 It is recommended that the Policy and Resources Committee consider the current estimated budget outlook position for the period 2025-26 to 2029-30. Page 127
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 15 AUGUST 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 9 May 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 consider the current estimated budget outlook position for the period 2025-26 to 2029-30. 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. In my report in May 2024 I advised that it would be prudent to assume a 0.5% reduction in future years within the mid-range scenario. Although the spending review published in May 2022 had indicated that the total budget for Local Government would remain flat cash until 2027-28, our Council relies on the floor mechanism to protect our funding and the floor was set at 0.5% below the annual change in 2024-25 and it is likely to continue at that level. The funding assumption has been set between a 1% reduction (worst case) and flat cash (best case) with a mid-range reduction of 0.5%. This will be closely monitored and updated during the year as required. 4.1.2 In respect of the Children’s Social Care pay uplift, the Scottish Government notified us in June 2024 of Argyll and Bute Councils 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 table below summarises the mid-range scenario estimates based on a 0.5% settlement reduction each year. Page 128
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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 Total Estimated SG Funding 244,900 243,677 242,460 241,249 240,044 Council Tax 4.1.4 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. 4.1.5 On 15 April 2024 it was reported to Council that an adjustment to the level of Council Tax received relating to the double charge on second homes would be prudent given the number of representations made in relation to this. As such anticipated Council Tax income was reduced by £0.261m within the budget outlook which will be monitored throughout the year. This adjustment is included within the base figure of £63.278m. 4.1.6 There are no changes to my previous assumptions around the growth in Council Tax. It has been assumed that there will be a 0.5% growth in the mid-range scenario for all years from 2025-26 (0.75% in best case and 0.25% in worst case). 4.1.7 4.1.8 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. 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 4.1.9 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. 4.1.10 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. Page 129
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4.1.11 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 244,900 243,677 242,460 241,249 240,044 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 Council Tax Base 63,278 63,278 63,278 63,278 63,278 Council Tax Growth 315 631 949 1,268 1,589 Adjustment to additional Council Tax recoveries (para 4.1.7) (149) (147) (145) (143) (143) Total Estimated Funding 300,416 309,439 306,542 305,652 304,768 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 There has been one change to the base budget since the report on 9 May 2024, as detailed at paragraph 4.1.2, relating to funding received for the Children’s Social Care Pay Uplift. The Council’s share of this was £0.063m and the budget within Education is required to be increased accordingly. 4.2.3 For future years, there are adjustments required to the base budget from decisions by Council on 22 February 2024 and other adjustments as 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 Children’s Social Care Pay Uplift 63 63 63 63 63 Revised Base Budget 303,592 303,592 303,592 303,592 303,592 4.3 Employee Cost Changes Pay Award Page 130
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4.3.1 The SJC and Chief Officers pay awards for 2024-25 have still to be agreed and may have a further impact on the base budget if the pay award is higher than the 3% allowed for in the budget. Two offers have been rejected by the Trade Unions recently, the first being an increase equating to 4.24% which would have increased the budget gap in 2025-26 by £1.446m, and the second proposed an increase of 3.2% which would have increased the estimated gap by £0.233m. It is still unclear at what level the pay award will be agreed for 2024-25 and subsequently the financial impact this will have on future years but this will be kept under review as further information becomes available. The Teachers pay award has been agreed up to 31 July 2024 as part of a previous 28 month deal and any increase beyond that date has still to be negotiated. 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 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 throughout the year if more information becomes available. Every 1% over and above what is budgeted would add an additional pressure of circa £1.7m. 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 There are no changes to my previous assumption around the cost of employee increments. It has been assumed that for future years, the best case is assumed to be half of the previous year cost, for mid-range and worst case, assumes equal to the cost in 2024-25 (£0.605m). 4.3.5 Strathclyde Pension Fund 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. Page 131
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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 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. 4.3.7 The table below summarises the employee cost movements in the mid-range scenario for Council services. The employee cost increases relating to Social Work within the Health and Social Care Partnership are summarised within paragraph 4.6.4. 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2029-30 £000 Pay Award 3,448 6,651 9,918 13,250 16,649 Pay Award – Elected Members 33 33 33 33 33 Increments 605 1,210 1,815 2,420 3,025 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 4,086 14,769 18,641 22,578 26,582 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 Page 132
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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. No contingency is included within the best case scenario. This contingency will either be required, reduced or removed to reflect changing circumstances before the 2025-26 budget is set. 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 4.6.4. Inflation Category 2025-26 Previous estimates (May 2024) £000 2025-26 Updated estimates £000 Increase/ (Decrease) £000 Utilities - Electricity, Gas, Oil, Water 192 179 (13) Street Lighting Electricity 25 23 (2) Vehicle Fuel 35 32 (3) Vehicle Charging Point Electricity 0 5 5 Central Repairs-Outside Contractors 83 76 (7) Waste PPP/Landfill Tax 206 206 0 NPDO/HUB Schools 424 391 (33) Community Pool Subsidies 34 31 (3) Residential Schools 36 33 (3) Pre-Primary Partner Providers 227 227 0 ICT 203 210 7 Catering Purchases and Milk 123 64 (59) Insurance 93 459 366 Bitumen – Roads 16 15 (1) Contribution to Joint Boards 43 38 (5) Annual External Audit Fee 10 9 (1) Public Transport 220 220 0 School Transport 153 153 0 SEPA – Waste Disposal 0 7 7 Contingency for unidentified/ insufficient inflation estimate 250 250 0 Total 2,373 2,628 255 4.4.5 The most significant movement in non-pay inflation since last reported in May 2024 relates to insurance premiums which have seen a 22% inflationary increase in renewal prices. Previously an increase of 5% had been included within estimations however given that the renewal notices have increased by substantially more than this it would seem to prudent to include an increase of Page 133
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20% 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 4,989 7,487 10,136 12,951 Total Non-Pay Inflation 4,989 7,487 10,136 12,951 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 9 May 2024 the following changes have been made to the cost and demand pressures: Amended – Bus Transport Contracts – a further contract renewal has been received which has increased the cost pressure by £0.210m. New – Education ICT Network Infrastructure – technology upgrade, improved security and reconfiguration to support in-school and at home learning (£0.295m). There is a separate report on the agenda providing Members with further detail. New – Roads and Amenity Services Charging Saving – the saving is no longer fully achievable due to lower than anticipated income generation. This will now be considered as part of the Roads and Infrastructure Review (£0.100m). New – Insurance premiums – renewal notices have been received which include inflation of 22% which is significantly higher than the inflation built into the budget outlook (£0.309m). 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. 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 SEEMiS Membership Fees 0 7 7 7 7 Page 134
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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 as a result of investment agreed at February 2024. 282 282 282 282 282 Civica Revenue and Benefits System 0 0 63 63 63 Bus Transport Contracts 710 710 710 710 710 Roads & Amenity Services Income - Saving no longer achievable 100 100 100 100 100 Insurance premium increases 309 309 309 309 309 Allowance for pressures in future years 500 1,000 1,500 2,000 2,500 Total Cost and Demand Pressures 3,260 4,528 5,698 5,888 6,428 4.5.4 The cost and demand pressures relating to Social Work within the Health and Social Care Partnership are summarised within paragraph 4.6.4. 4.6 Health and Social Care Partnership 4.6.1 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 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 increase by this amount each year. 4.6.3 In the budget outlook, I have assumed flat cash allocations across all scenarios, with the exception of the Strathclyde Pension Fund adjustment. These are only assumptions and it will be a matter for Council to consider as part of the budget process next year. 4.6.4 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 Page 135
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Pay Inflation 1,049 2,301 3,590 Pay Increments 172 344 516 Non-Pay Inflation 969 2,017 3,126 Care Services for Older People 211 426 644 Care Services for Younger Adults 59 119 180 Adult Services - Supported Living 115 230 345 Adult Services – Mental Health 61 123 187 Continuing Care for Looked After Children 323 896 1,469 Unknown Cost and Demand Pressures 500 1,000 1,500 Total Cost Increase estimates for Social Work 3,459 7,456 11,557 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 303,592 303,592 303,592 303,592 303,592 Employee Cost Changes 4,086 14,769 18,641 22,578 26,582 Non-Pay Inflation 2,628 4,989 7,487 10,136 12951 Cost and Demand Pressures 3,260 4,528 5,698 5,888 6,428 Adjustment to HSCP Payment re SPF gain 180 3,233 3,233 3,233 3,233 Adjustment to Live Argyll Payment (16) 102 101 101 100 Total Estimated Expenditure 313,730 331,213 338,752 345,528 352,886 Estimated Funding 300,416 309,439 306,542 305,652 304,768 Estimated Budget Surplus / (Gap) Cumulative (13,314) (21,774) (32,210) (39,876) (48,118) Page 136
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4.9 Measures to Balance the Budget 4.9.1 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. 4.9.2 Some of the policy options were agreed at the Council meeting on 22 February 2024 that impacted on 2025-26 and beyond. These are now factored into the budget outlook, reducing the budget gap. 4.9.3 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 on the basis that the majority of Councils increased their Council Tax by at least 5% in 2023-24 prior to the freeze in 2024-25. 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. 4.9.4 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 Fees and Charges Increase 385 771 1,156 1,541 1,927 Council Tax Increase 3,162 6,514 10,049 13,778 17,709 Previously agreed Policy Savings 248 724 1,360 1,829 1,943 Previously agreed Management/Operational Savings 35 35 35 35 35 Total Measures to Balance the Budget 3,830 8,044 12,600 17,183 21,614 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 (13,314) (21,774) (32,210) (39,876) (48,118) Savings Measures 3,830 8,044 12,600 17,183 21,614 Estimated Budget Surplus / (Gap) Cumulative (9,484) (13,730) (19,610) (22,693) (26,504) Estimated Budget Surplus / (Gap) In Year (9,484) (4,246) (5,880) (3,082) (3,811) Page 137
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4.10.2 In the mid-range scenario, the budget gap estimated over the five year period 2025-26 to 2029-30 is £26.504m with a gap of £9.484m in 2025-26. 4.10.3 The budget gap in the best case scenario over the five years is £13.659m with a gap of £3.416m in 2025-26 and in the worst case scenario, the budget gap over the five years is £91.085m with a gap of £21.355m in 2024-25. A summary of all three scenarios is included within Appendix 1. 4.10.4 The changes from the previous anticipated outlook reported to the Council on 9 May 2024 are summarised in the table below: 2025-26 £000 2026-27 £000 2027-28 £000 2028-29 £000 2028-29 £000 Previously reported budget surplus / (gap) Cumulative (8,315) (12,294) (17,800) (20,497) (23,849) Non Pay Inflation Adjustment (255) (522) (843) (1229) (1688) Adjustment to Cost Pressure relating to bus contracts (210) (210) (210) (210) (210) New Cost Pressure – Education ICT Network (295) (295) (348) (348) (348) New Cost Pressure – Roads & Amenity Services - Saving no longer achievable (100) (100) (100) (100) (100) New Cost Pressure – Increased Insurance Premiums (309) (309) (309) (309) (309) Revised Budget Surplus / (Gap) Cumulative (9,484) (13,730) (19,610) (22,693) (26,504) 5. CONCLUSION 5.1 In the mid-range scenario, the budget gap estimated over the five year period 2025-26 to 2029-30 is £26.504m with a gap of £9.484m in 2025-26. Council officers are continuing to explore savings options during 2024-25 and these will be presented to Members at a future date. 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 - Sets out the budget outlook that provides the financial envelope for policy decisions. Page 138
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6.2 Financial - Sets best, worst and mid-range scenarios in respect of the budget outlook. The medium to longer term financial strategy is being updated and the Council are actively continuing to pursue opportunities to mitigate against future budget gaps. 6.3 Legal - None directly from this report but Council will need to balance the budget. 6.4 HR - None directly from this report but there is a strong link between HR and budgets. 6.5 Fairer Scotland Duty - See below 6.5.1 Equalities None directly from this report but any proposals to address the estimated budget gap will need to consider equality issues. 6.5.2 Socio Economic Duty None directly from this report but any proposals to address the estimated budget gap will need to consider socio economic issues. 6.5.3 Islands Duty None directly from this report but any proposals to address the estimated budget gap will need to consider any island specific issues. 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 - None directly from this report but any proposals to address the estimated budget gap will need to consider risk. 6.8 6.9 Customer Service – The Rights of the Child (UNCRC) - None directly from this report but any proposals to address the estimated budget gap will need to consider customer service. None Kirsty Flanagan Executive Director/Section 95 Officer 23 July 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) For further information contact Anne Blue, Head of Financial Services anne.blue@argyll-bute.gov.uk Page 139
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BUDGET OUTLOOK 2025-26 to 2029-30 APPENDIX 1 POLICY AND RESOURCES COMMITTEE - 15 AUGUST 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 1,517 1,517 1,517 1,517 1,517 1,627 1,627 1,627 1,627 1,627 1,619 1,619 1,619 1,619 1,619 Revised Base Budget 303,482 303,482 303,482 303,482 303,482 303,592 303,592 303,592 303,592 303,592 303,584 303,584 303,584 303,584 303,584 Pay Award 3,448 6,651 9,918 13,250 16,649 3,448 6,651 9,918 13,250 16,649 11,414 22,873 34,905 47,539 60,805 Pay Award - Elected Members 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 Pay Increments 329 658 986 1,315 1,643 605 1,210 1,815 2,420 3,025 605 1,210 1,815 2,420 3,025 Adjustment to Employee Base 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) 3,810 14,217 17,812 21,473 25,200 4,086 14,769 18,641 22,578 26,582 12,052 30,991 43,628 56,867 70,738 Non-Pay Inflation - Council Services 2,068 4,097 6,240 8,511 10,919 2,628 4,989 7,487 10,136 12,951 4,789 9,085 13,544 18,182 23,017 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 7 7 7 7 0 7 7 7 7 0 7 7 7 7 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 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 2,116 925 925 925 925 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 710 710 710 710 710 710 710 710 710 710 710 710 710 710 710 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 Increase in insurance premiums 309 309 309 309 309 309 309 309 309 309 309 309 309 309 309 Allowance for Cost and Demand Pressures Future Years 250 500 750 1,000 1,250 500 1,000 1,500 2,000 2,500 1,000 2,000 3,000 4,000 5,000 Total Cost and Demand Pressures 3,010 4,028 4,899 4,862 5,152 3,260 4,528 5,698 5,888 6,428 5,414 5,528 7,292 7,962 9,002 Adjustment to Health and Social Care Partnership Payment 180 3,233 3,233 3,233 3,233 180 3,233 3,233 3,233 3,233 180 3,233 3,233 3,233 3,233 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 312,517 329,142 335,751 341,644 348,069 313,730 331,213 338,752 345,528 352,886 326,019 352,539 371,399 389,946 409,692 Scottish Government Grant 248,129 248,129 246,129 246,129 246,129 244,900 243,677 242,460 241,249 240,044 245,670 243,236 238,826 236,440 234,078 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 63,601 64,079 64,560 65,045 65,531 63,444 63,762 64,082 64,403 64,724 63,292 63,454 63,617 63,781 63,940 Total Funding 303,802 314,208 310,689 311,174 311,660 300,416 309,439 306,542 305,652 304,768 301,034 308,690 302,443 300,221 298,018 Budget Surplus / (Gap) PRIOR to measures to balance the budget (8,715) (14,934) (25,062) (30,470) (36,409) (13,314) (21,774) (32,210) (39,876) (48,118) (24,985) (43,849) (68,956) (89,725) (111,674) 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 above SG Funding 4,438 7,854 11,465 15,280 19,310 3,162 6,498 10,017 13,728 17,640 3,154 6,474 9,968 13,644 17,512 Council Tax Increase (Growth element) 0 89 157 229 306 0 16 32 50 69 0 32 65 100 136 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 Total Measures to Balance the Budget 5,299 9,280 13,595 18,529 22,750 3,830 8,044 12,600 17,183 21,614 3,630 7,650 12,006 16,379 20,589 Budget Surplus / (Gap) Cumulative AFTER measures to balance the budget (3,416) (5,654) (11,467) (11,942) (13,659) (9,484) (13,730) (19,610) (22,693) (26,504) (21,355) (36,199) (56,950) (73,346) (91,085) Budget Surplus / (Gap) In Year AFTER measures to balance the budget (3,416) (2,238) (5,813) (475) (1,718) (9,484) (4,246) (5,880) (3,082) (3,811) (21,355) (14,843) (20,751) (16,396) (17,738) Mid-Range Scenario Worst Case ScenarioBest Case Scenario Page 140
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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 May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 121,998 Council Wide Gas Based on the May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 22,187 Council Wide Heating Oils Based on the May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 10,866 Council Wide Solid Fuel Based on the May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 7,816 Council Wide Water Charges Based on the May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 15,288 Council Wide Vehicle Fuel Based on the May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 32,463 Council Wide Central Repairs - Outside Contractors Based on estimate for RPI at 2025 Q1 tracking the Bank of England forecast for CPI at May 2024, with 0.5% tolerance for best and worst case. 3.60% 76,392 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 May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 37,903 Council Wide Contingency for unidentified/insufficient inflation estimate £250k built in to mid-range and £500k built in to worst case scenario 250,000 1,034,386 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% 226,603 Education External School Placements Based on the May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 33,139 Commercial Services Catering Purchases Based on the May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 64,389 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 May 2024, with 0.5% tolerance for best and worst case. 3.60% 7,206 Legal & Regulatory Support Leisure SLA-Atlantis Based on estimate for RPI at 2025 Q1 tracking the Bank of England forecast for CPI at May 2024, with 0.5% tolerance for best and worst case. 3.60% 24,454 Legal & Regulatory Support NPDO-Variable Element Based on estimate for RPI at 2025 Q1 tracking the Bank of England forecast for CPI at May 2024, with 0.5% tolerance for best and worst case. 3.60% 314,202 Legal & Regulatory Support NPDO-Utilities Rebate Based on estimate for RPI at 2025 Q1 tracking the Bank of England forecast for CPI at May 2024, with 0.5% tolerance for best and worst case. 3.60% (11,886) Legal & Regulatory Support NPDO-Electricity Based on the May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 17,630 Legal & Regulatory Support NPDO-Gas Based on the May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 7,145 Legal & Regulatory Support NPDO-Heating Oil Based on the May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 2,801 Legal & Regulatory Support NPDO-LPG Based on the May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 2,438 Legal & Regulatory Support NPDO-Water Based on the May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 10,478 Legal & Regulatory Support HUB-Variable Element Based on estimate for RPI at 2025 Q1 tracking the Bank of England forecast for CPI at May 2024, with 0.5% tolerance for best and worst case. 3.60% 49,176 747,775 Customer and Support Services ICT Estimate added at 10% to reflect input from ICT on increasing costs. 10.00% 210,112 Financial Services Annual External Audit Fee Based on the May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 9,177 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% 219,821 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. 2.00% 149,861 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. 1.57% 55,237 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% 7,043 Roads and Infrastructure Roads - Bitumen for Road Surfacing Based on the May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 15,059 Roads and Infrastructure Electricity - Street Lighting Based on the May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 22,801 Roads and Infrastructure Electricity - Vehicle Charging Points Based on the May 2024 Bank of England Monetary Policy Committee CPI Forecast for 2025 Q1, with a 0.5% tolerance for best and worst case. 2.60% 4,604 846,277 2,628,438 Council Wide Total Executive Director Douglas Hendry - Total Executive Director Kirsty Flanagan - Total Total Non-Pay Inflation in the Mid Range Page 141
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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 The SEEMiS group, provider of the Council's Education Management Information System, recently reviewed their long term financial plan and it is anticipated there may be a small pressure from 2026-27 onwards. 0 7 7 7 7 0 7 7 7 7 0 7 7 7 7 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 Best Case Mid Range Scenario Worst Case APPENDIX 3 Page 142
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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 Best Case Mid Range Scenario Worst Case APPENDIX 3 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 2,116 925 925 925 925 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 £710k across Argyll and Bute Work ongoing on whether savings could be made by reducing services or providing services in a different manner. 710 710 710 710 710 710 710 710 710 710 710 710 710 710 710 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 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 Council Wide Council Wide General provision for unidentified Cost and Demand Pressures 250 500 750 1,000 1,250 500 1,000 1,500 2,000 2,500 1,000 2,000 3,000 4,000 5,000 TOTAL 3,010 4,028 4,899 4,862 5,152 3,260 4,528 5,698 5,888 6,428 5,414 5,528 7,292 7,962 9,002 Page 143
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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 Estimated Pay inflation reflecting a best case 2%, a mid-range of 3% for 2024/25 then 2% for 2025/26 and 2026/27 and a worst case of 5%. Adjusted for the impact of the reduction in the employer's pension contribution rate to 6.5% in 2024/25 and 2025/26 and to 17.5% in 2026/27. 699 1,526 2,369 1,049 2,301 3,590 1,748 3,583 5,802 All Social Work Estimated Pay increments, best case is that 50% of the incremental changes based on 2023/24 are absorbed and in the mid-range and worst case, the increase is in line with the increase in 2023/24. 86 172 258 172 344 516 172 344 516 All Social Work Non-pay inflation, best and worst case based on unavoidable/inescapable inflation and worst case. 777 1,606 2,476 891 1,847 2,861 1,003 2,090 3,255 All Social Work Non-pay inflation impact of payroll inflation on NHS posts which are recharged to Social Work. 63 139 217 78 170 265 93 201 312 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 0 211 426 644 423 859 1,310 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. 29 59 89 59 119 180 88 179 273 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. 31 62 93 61 123 187 92 187 285 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. 0 0 0 0 250 500 0 250 500 Children and Families Looked After Children Budget Adjustment - to reflect significant increase in demand for placements in external residential care facilities. 323 646 969 323 646 969 323 646 969 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. 115 230 345 115 230 345 115 230 345 All Social Work Allowance for unknown cost and demand pressures which could arise. The best case assumes unknown pressures totalling £250k per annum, the mid range £500k per annum and the worst case £750k per annum. 250 500 750 500 1,000 1,500 750 1,500 2,250 TOTAL UNFUNDED COST AND DEMAND PRESSURES 2,373 4,940 7,566 3,459 7,456 11,557 4,807 10,069 15,817 Worst CaseMid RangeBest Case Page 144
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE EDUCATION / CUSTOMER & SUPPORT SERVICES 15 AUGUST 2024 EDUCATION NETWORK TRANSFORMATION PROGRAMME 1. EXECUTIVE SUMMARY 1.1. Delivering the strategic vision for digital learning in Argyll and Bute and achieving the key priorities of the National Improvement Framework presents a number of major challenges for the council that will require an ambitious programme of investment in sustainable network infrastructure, cutting edge security technology and resourcing of associated technical skills. 1.2. 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. The network was designed to support learning styles applicable to a pre-pandemic in-school service only. There are increased security threats and risks to the corporate and education networks by retaining the education network in its present state. 1.3. This report details the technical and security challenges and investment required to transform and modernise the education network to improve service delivery and implement the local and national education strategies for digital learning [1], whilst mitigating the increased cyberthreats. A core objective is to create a secure and flexible network architecture to support the current and future digital learning requirements of the council’s young persons and professional skills development of our teachers. 1.4. Schools have invested significant funds in additional learning devices to supplement the council’s PC rolling replacement programme. Improved network infrastructure will sustain this investment and provide the capacity to support the outstanding commitment from the Scottish Government to ensure access to a device for every child. 1.5. Digital developments such as Artificial Intelligence [AI], augmented reality, virtual reality, Internet of Things and use of data are evolving at a rapid pace and it is vital that our network is robust and flexible enough to facilitate opportunities for all learners to develop key skills in these areas. Pedagogical approaches such as Page 145 Agenda Item 5b
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gamification can break down barriers to learning and provide multiple alternative paths to attainment and achievement for all learners. 1 1.6. Cyber attacks on education establishments are rising exponentially, with secondary schools and higher education establishments at most risk due to their high reliance on IT and digital learning platforms. These establishments may be targeted by criminals because of the sensitive nature of data that may be held or accessed by user devices, which are also vulnerable to email phishing and malware attacks without robust device management policies. 1.7. Education Network Review These priorities and challenges were posed in 2022 to Insight UK Ltd., a specialist technical consultancy, to review and recommend technology solutions to address the identified business objectives, mitigate security risks and transform the education network to be fit for the future. In summary the conclusions and recommendations are: • The network in its current configuration, along with associated security systems and device management software, is neither agile enough nor capable of supporting secure and efficient delivery of the education service’s strategic vision for digital learning. • To mitigate the increasing cyber security threats and risks to our network, and support the aspiration for hybrid learning (devices used at school and home), investment in ‘zero trust’ network security technology in conjunction with network traffic redesign and improved device management, is essential to provide the required flexibility and future proof the network. This is crucial as the council migrates towards a single MS365 tenancy supporting both the corporate and education environments. • Insight UK has considered the technical and operational aspirations and challenges, the council’s wide area network (WAN) model and the particular bandwidth restrictions across the area [note 2]. 1.8. 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. 1.9. Outline Costs Initial estimates based on medium priced Zscaler technology were provided by Insight UK in 2022 and are presented as Option1. ICT has subsequently undertaken 2 Note: National and Scottish Governments have pledged funding to deliver improved bandwidth to harder to reach areas across the UK e.g. Reaching 100 programme and Rural Gigabit Connectivity Programme. These programmes have been very slow to deliver and Argyll and Bute continues to suffer with delayed rollout schedules. Page 146
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a proof of concept exercise working with our technology partner, Cisco Solutions, based on its flagship network security solution Cisco Umbrella. Repackaged and repriced licensing make it more affordable and achievable than previously thought (option 2). Refer also to Appendix 1 for a breakdown of technology solutions proposed, and the benefits/outcomes to be realised. Two options to resource the installation and implementation have been considered: Option 1: external implementation resources using Insight UK and Zscaler technology Initial capital cost: £1,762,950 Annual revenue: £552,000 The initial capital cost includes outsourced installation and initial implementation at an additional cost of £961,500. Additional ICT engineering resource would still be required post implementation and ongoing maintenance and support. The 5 year cost projection for option 1 is forecast at £4,544,950. Option 2: in-house implementation through additionally recruited engineering resources and Cisco Umbrella. Initial capital cost: £327,050 Annual revenue year 1: £295,000 Option 2 is preferred and represents the most economic and sustainable approach. The 5 year cost projection for the education network infrastructure and security upgrade programme is estimated at £1,908,716. Refer also to Appendix 2 for 5 year cost table. 1.10. Funding Sources • ICT has identified a one-off contribution of £81,500 from the ICT capital budget allocated to replace red risk education network equipment between 2024/25 and 2025/26 as higher specification equipment would be necessary. • Education service has identified a contribution of £460,000 from earmarked reserves pertaining to covid related education fund [£310,000], underspend from Skype for Business for education [£10,000], and education transformation fund [£140,000]. • The revenue model would require an ongoing cost and demand pressure for 2 x senior engineers of £115,000; and to education services £180,000 in 2025-26 and 2026-27, rising to £233,000 from 2027-28 onwards for additional specialist software licensing to deliver the required level of secure flexibility. 2. RECOMMENDATIONS That Members: 2.1. Note the need for the Education Service to deliver service improvements in Argyll and Bute and broaden available curriculum offerings across schools Page 147
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through digital learning provision; and that Option 2 will transform and modernise the education network to deliver the same level of security, equity and flexibility to education users as corporate network users. 2.2. Note the increased security threats and business continuity risks to the education and corporate networks by retaining the education network in its present state. 2.3. Note the optimum approach is a combined use of technologies which cannot be considered in isolation, with associated ICT resources to deploy and maintain this more complex environment. There is no scope to only implement certain aspects highlighted in this paper as all are interlinked. 2.4. Note that a total of £81,500 has already been secured from the ICT capital programme for investment in the education network in 2024/25 and 2025/26, and that a further capital investment of £245,550 and annual revenue investment of £295,000 is required to fund option 2 in 2025-26 and 2026-27 rising to £348,000 from 2027-28 onwards. This represents an overall saving in year 1 of £1,692,900 against option 1. 2.5. Agree allocation of identified education earmarked reserves of £460,000 in addition to reallocation of an estimated £60,000 underspend from the school wifi improvement project fund, reducing year 1 capital and revenue requirement to £20,550. 2.6. Agree the annual revenue requirement for specialist software licensing of £180,000 in 2025-26 and 2026-27, rising to £233,000 from 2027-28 onwards, as a future cost pressure to education service. 2.7. Agree the annual revenue requirement for additional engineering resource of £115,000 as a future cost and demand pressure for ICT. Any pay uplifts associated with the new posts will be included as part of the routine salary budget setting process. Page 148
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3. INTRODUCTION 3.1. The vision for digital learning in Argyll and Bute, as defined in the council’s Digital Learning Strategy 2021-2024 (under review), is in line with Education Scotland’s Digital Learning and Teaching Strategy for Scotland. Our aspiration also takes cognisance of the six core anchors that underpin the role of the local government sector of the future as outlined in the Improvement Service publication ‘Delivering a future for Scottish local authorities’3 , particularly the ‘anchors’ of: design for people’s need, create digital, design and technology enabled transformation and tackle inequality and meet the needs of all citizens. The work that we envisage in this area provides an exciting opportunity for us to take radical action in order to open up a wide range of opportunities and benefits for the children, young people and communities of Argyll and Bute. We know that digital developments such as AI and use of data are evolving at a fast pace and therefore it is vital that our network can facilitate opportunities for all learners to develop key skills in these areas. Pedagogical approaches that rely on a robust digital network such as gamification can break down barriers to learning and provide multiple alternative paths to attainment and achievement for all learners. 3.2. The Education ICT Network in its current design can no longer support the future delivery of the education digital learning strategy. It needs a transformative technology upgrade, improved security, and reconfiguration to support in-school and at home learning. The current network was designed to support learning styles applicable to a pre-pandemic in-school service only. There are increased security threats and risks to both the corporate and education networks by retaining the network in its present state. 3.3. This report outlines the challenges and investment required to transform and modernise the education network to deliver the national and local education strategies for digital learning and improve service delivery. It sets out the key technical issues and security risks that need to be addressed to ensure excellence and equity in digital learning and deliver a flexible, secure education network fit for the future. 4.0 DETAIL 4.1. Background 4.1.1. In its present configuration, Argyll and Bute Council’s education ICT network environment does not have the capacity or flexibility to accommodate the council’s strategic plan for digital learning over the next five years, or the requirements of the Scottish Government’s vision for digital access. 4.1.2. There has been an exponential increase in the level of cyber attacks and ransomware threats targeting UK education establishments that are considered by cyber criminal organisations to present a higher level of security vulnerabilities and 3 Improvement Service: Delivering a future for Scottish local authorities: the challenges they face, the questions that need asking and a model for the future Page 149
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therefore more criminal opportunities due to general lack of cybersecurity investment, the type of personal data held locally, poor password controls, decentralised local device and network management arrangements. In 2022, the UK education sector was hit by a far greater share of ransomware attacks than many other European countries. The National Cyber Security Centre (NCSC), part of GCHQ, has issued notices that the probability of a major cyber incident in education sector is now very high, as evidenced by the increasing number of blocked threats on the education network this council has successfully defended so far. Prioritising enhanced security measures and strong access controls is therefore critical to protecting against such ransomware and malware attacks, such as that recently suffered by Western Isles Council 4.1.3. In addition, the number and variety of internet connected learning devices in schools has grown significantly in the last four years and especially emerging from the pandemic. There has been a major shift towards the use of GLOW, the national digital learning platform, and other digital learning resources requiring an ‘always-on’ connection, which impacts available bandwidth, and requires suitable device and content security protection. 4.1.4. The Scottish Government has undertaken to provide access to a device for every learner. It remains unclear what the government’s commitment will consist of or when, or indeed if, it will be delivered during the lifetime of this parliament. For this reason, cognisance is taken of this potential commitment and the next iteration of the service’s Digital Learning Strategy which anticipates requiring a next generation network. 4.2. Key Objectives and Benefits In the context of the local and national strategies, the Education Service aims to deliver enhanced learning experiences and improved outcomes for children and young people through delivery of the following objectives and benefits, which also carry risks and challenges that need to be addressed: • learning devices can be safely used in school and at home, without compromising the security of the council’s network and data; • Teaching staff have the same level of flexibility of movement across school sites and offices as corporate staff do for professional learning and leadership, without the inconvenience of reconfiguring laptops; • The widening of the curriculum is open to all learners via digital means, ensuring network performance and availability is maintained for all education network users; this would enable an increased offer of pathways and courses for example NPA games design or cyber security. • A robust network for digital learning is capable of supporting new and emerging technologies and new ways of learning such as augmented reality, virtual reality, artificial intelligence and Internet of Things; and be agile enough to adapt to the evolving digital education landscape and expectations of a digitally connected society; • Secure access to both corporate and education applications is available on demand through use of affordable and sustainable alternative technologies, Page 150
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without impacting on performance and productivity or compromising corporate security. • Creating opportunities for learners to develop a wider skill set, taking cognisance of the fact that there is an aging demographic across Argyll and Bute and therefore it is essential that our young people are equipped with up to date employability skills which will enable them to contribute to and sustain their own local industries and communities. • Enabling establishments to deliver relevant and high quality experiences that would equip learners for the future world of work, this in turn could have a positive impact on our own local industries and communities. 4.3. Key Issues 4.3.1. Argyll and Bute schools and pupils do not have the same equity of digital provision and subject choice as many other local authorities do, primarily due to the geographical spread of schools across the council area; lack of national digital infrastructure and high cost of connection; and a shortage of specialist teaching staff and accommodation in rural and island locations. 4.3.2. Recent investment in virtual learning technology and audio-visual equipment has enabled a higher level of learning choices, but puts pressure onto the network, affecting other school user’s ability to access business and education applications and other network resources. Investment in bandwidth expansion to fibre where available, and consideration of alternative connection technologies such as satellite broadband and 4g mobile broadband, are therefore necessary to ensure parity of opportunity and maintain organisational productivity levels. 4.3.3. The target minimum bandwidth forecast to support delivery of the objectives in the Digital Learning strategy is estimated at 30Mbps for schools with approximately 20 pupils or less; and otherwise an allocation of approximately 1Mbps per pupil, where technically and commercially viable. Schools with 1000 pupils or more would have bandwidth of 1Gbps. In the current climate, these targets are aspirational only, given that our suppliers cannot currently provide this level of bandwidth. Costs to increase bandwidth have been prohibitively expensive due to the lack of BT infrastructure but will be reviewed following negotiations with BT in relation to the SWAN2 contract and consideration of alternative emerging technologies . 4.3.4. It has long been this council’s aspiration for digital provision that every learner has a device that can be used both within school and at home on a completely flexible basis. As a result, every device will require to have internet filtering security software which works equally in school and at home. 4.3.5. Corporate users enjoy a level of autonomy of network access with seamless connection regardless of location. This is not yet available to teaching staff across the school estate when going to another location. A greater number of teachers and leadership staff are now working across several establishments and this arrangement is often restrictive, where seamless network access is not available. 4.3.6. Practitioners have indicated that they seek internet filtering solutions which are specifically designed for educational use – allowing differentiation between what is Page 151
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filtered in school and at home. Such software will filter internet content to ensure that devices cannot be used to access material which is inappropriate, but is required to be used in conjunction with additional and broader security infrastructure to stop other security risks such as malware and ransomware attacks. 4.3.7 Schools have invested significant sums on classroom based interactive panels. Education has an ambition to connect panels directly to the education network where compatible with security management software. An upgraded network would provide a prime opportunity to maximise the functionality of these panels and optimise investment. 4.4. Education Network Review 4.4.1. Insight UK Ltd was commissioned in April 2021 to undertake a discovery session to determine which networking changes and technologies were required to support a new, secure “post pandemic” hybrid working environment addressing the key issues and delivering the service’s aspirations for digital learning. It was subsequently expanded to look at the implications on the network, systems, and support, of allocating a device for every child should this government commitment be delivered. 4.4.2. Summary of Discovery session • The network is designed to make best use of very limited available bandwidth and it acts as a secure environment where managed devices can connect directly in school or, in limited cases, over a VPN connection from home. Devices therefore currently operate within a secure enclosed Education network. • The network in its current configuration, along with associated security systems and device management software, is currently not agile enough nor capable of supporting delivery of the education service’s strategic vision for digital learning. • To mitigate these risks to our data and protect our young persons and staff, and support the aspiration for hybrid learning (devices used at school and home), investment in ‘zero trust’ network security technology in conjunction with network traffic decentralisation and improved device management processes is necessary. • A new hybrid environment requires a considerably more flexible setup where devices can be used at school or on home networks without the limitations associated with connecting via a central on-premise based management system, but without compromising security of our data and our young persons. This increased flexibility introduces additional risk and the Insight recommendations cover three key technology recommendations on how this risk can be managed: 1. Short Term device management requirements: – the need to address immediate issues in the way devices are currently used, protected and managed 2. Medium term device management and protection: – to ensure devices can be used by a student or teacher working in any location in such a way that the device, wider network, and all stakeholders are suitably protected. 3. Next generation network: Network redesign for the long term:– the network not only needs more bandwidth, it also needs a complete redesign with improved segmentation of education internet traffic from corporate applications, and perimeter security solutions to deliver 1. and 2. above and Page 152
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to support a hybrid workstyle. Insight UK recommends redesign and investment in combined network and security cloud based traffic management solutions (SD WAN/Direct Internet Access/Secure Access Service Edge [SASE]) to make the most of the available bandwidth without impacting on performance and productivity. 4.4.3. The external implementation costs for the network redesign and segmentation project at £961.5k (£713k plus £248.5k) did not provide for the ongoing management of the new network which is expected to require two senior engineering resources. The new environment will be considerably more complex and resource intensive than the current network to maintain. However advancing recruitment of engineering resources will enable ICT to undertake all the installation, implementation and maintenance in-house. 4.4.4. ICT does not have the resource or capacity to undertake a transformation of this scale and complexity without these additional engineering resources in place from commencement of the project. It is anticipated a programme of works could take up to two years to fully deliver and therefore must be structured to prioritise the core infrastructure and security recommendations to mitigate known risks and provide sound foundations for growth. 4.5. Technology Conclusions and proposals 4.5.1. Short Term Requirements- Device Management and Protection • There is a mandatory requirement to keep all devices up-to-date with security patches and software updates. IPads and Chromebooks are the device of choice for online learning across a high percentage of schools. All schools also use Windows devices offering pupils a broad range of digital skills and device interfaces in readiness for entering the world of work, and for specialist subjects such as business studies and graphic communications. • In many secondary schools devices are not currently adequately protected and managed to the same standards as corporate devices presenting a high risk as the council moves towards a single MS365 tenancy arrangement. Whilst the longer term management issues are covered in this report, an immediate requirement is to ensure basic protection on all devices is maintained through the deployment and maintenance of an anti-virus system for Windows devices and ensuring ipads and chromebook updates are promptly installed. The latter devices are managed centrally via a Mobile Device Management solution, Jamf for ipads and Google Admin Console for Chromebooks. • A caching solution downloads the update onto a site based device which then cascades the update to individual computers across the local area network. This prevents the network from becoming saturated with updates sourced unilaterally by users from the device manufacturers. Immediate actions • A local caching solution is recommended by Apple, using a macmini device on every site using ipads. Capital spend will be in the region of £69,000, with renewal required every five years. Page 153
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• ICT provides Sophos anti virus software management across all school Windows devices. Conditional access policies will be developed to only allow Windows devices to connect to the network and MS365 tenancy where the anti virus software is up to date. • Maintaining device security requires teachers and school technicians to ensure devices are available and in a state of readiness to receive security updates, and to ensure Windows devices OS versions are kept current and anti virus software updated. • A further immediate action is to enforce strong password policies for all education staff to match that of corporate. It is an accepted risk that class accounts are used by all primary pupils on all devices for quick connection and minimising lesson disruption. 4.5.2. Longer Term Device Management and Protection: Chromebooks and iPads – Endpoint Security • A secure access service edge (SASE) is a technology used to deliver wide area network and security controls as a cloud computing service directly to the source of connection (user, device, Internet of things (IoT) device, or edge computing location) rather than a data centre. Security is based on digital identity, real-time context, and company and regulatory compliance policies. • Insight has recommended we implement a new managed SASE service. This should be a DNS (secure routing system) + VPN based SASE solution such as Cisco Umbrella or Zscaler. Such a system will secure “Content filtering” but also put a full security “Wrap” around the device much like a traditional VPN but with even greater security functionality and flexibility, allowing the device to connect to any network but always be managed and protected. In order to ensure that these products offer the flexibility required in an Education context, a further proof of concept will be piloted in one of our larger primary schools. • The practice of routing all WAN (wide area network) traffic to corporate data centres to access security systems adds network latency (a delay) when users and their applications are dispersed and working from home, rather than in- school. As the number of devices increase and the resulting network traffic continues to grow, we are seeing evidence of network bottlenecks as traffic attempts to get back to the data centres – Oban High School’s recent network issues are an example of this. A SASE service secures the end user device in such a way that the user can go direct to their required application without being redirected through the Council data centre. It is recognised as the only way devices can be as usable as they need to be whilst still properly secured such that the risks to the council’s other services are minimised. • Zscaler and Cisco Umbrella are the two leaders in the SASE field. Costs vary but we can expect to pay £275k to £600k per annum respectively depending on the system selected. Cost estimates provided in this paper for option 1 are based on Zscaler but subject to a procurement evaluation exercise and consideration of newly available license bundles. • In addition to the SASE solution, Insight agreed that Lightspeed could be considered for an education setting for additional content filtering alongside Zscaler. Lightspeed Filter software is widely used in other authority Education Page 154
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establishments but serves as a content filter only as it does not offer the required device management or security wrap. A proof of concept exercise is being investigated but would not be necessary if funding for Cisco Umbrella was secured. 4.5.3. Network Redesign for the long term: Redesign and segmentation of network; upgrade network equipment • The current Education network is not capable of supporting the digital learning aspirations and hybrid environment. It sits on a mixture of medium speed 100Mbps circuits and low speed DSL connections running at 8Mbps. The network is limited by the availability of superfast broadband across Argyll and Bute. As the telecoms suppliers make fibre services available, bandwidth upgrades are considered. • Bandwidth upgrades alone are not enough to support the new hybrid environment. Insight has recommended the replacement of existing WAN/LAN hardware in all schools as it found the existing WAN/LAN hardware does not have the required specification to accomplish the security objectives. ICT has long term plans to upgrade networking equipment but these would need to be accelerated through the capital programme to meet the required specification for the new network. • Estimated costs for upgraded network equipment capable of supporting layer 3 segmentation is estimated at £724,500 purchase cost plus £248,500 installation and deployment. Insight has additionally indicated the following actions are required to deliver network user flexibility and improved security: • Implement improved wireless security in schools through 802.1x authentication (pre preparation is underway for wired devices in schools but work and equipment required for wireless) • Development of a segmentation policy • Implement network segmentation at layer 2/ Layer 3 level (Secure the traditional Windows “domain” from non “domain devices”) 4.5.4. Recent changes to Cisco Umbrella SASE solution product packaging and pricing has allowed ICT networks to undertake a proof of concept exercise on this market leading technology. Testing in selected education environments indicates Cisco offers a robust and more economically sustainable option requiring less equipment, licensing and engineering resources than option 1 and Option 2.is the preferred technology solution. A successful test has taken place on Ipads and Chromebooks and a further test with Cisco has been arranged where we will install Umbrella across a larger primary and test against the Lightspeed requirements/criteria. 4.6. Outline Costs Initial estimates provided by Insight UK in 2022 have been adjusted for inflationary increases. Refer to Appendix 1 for a breakdown of technology solutions proposed, and the benefits/outcomes to be realised. The 5 year cost projection for the education network infrastructure and security upgrade programme based on Option 2 is estimated at £1,908,716. This comprises Page 155
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Initial capital cost: £327,050 Annual revenue: £295,000 year 1 Refer to Appendix 2 for 5 year cost table. Description OPTION 1. Based on Zscaler OPTION 2. Based on Cisco Estimated Costs Capital Revenue Capital Revenue Network redesign, segregation, equipment upgrade -Network Equipment purchase/upgrade £724,500.00 £250,000.00 -Equipment installation external £248,400.00 £0.00 -Segmentation Policy £8,050.00 £8,050.00 -Segmented network Installation work £713,000.00 £0.00 SASE solution licensing and cloud services £299,000.00 £180,000.00 Engineering resource [1] £172,500.00 £115,000.00 Specialist content filtering software £80,500.00 iPAD Caching solution (80x£800) £69,000.00 £69,000.00 TOTAL £1,762,950.00 £552,000.00 £327,050.00 £295,000.00 ICT CAPITAL PROGRAMME CONTRIBUTION [2] £81,500.00 £81,500.00 FUNDING REQUIRED [2] £245,550.00 £295.000.00 Notes 4.6.1. Resource options considered Two options have been identified to implement the infrastructure improvement programme: Option 1: Insight UK to deliver the installation, configuration and implementation work packages based on Zscaler solutions at a cost of £961,500. [1] However additional ICT engineering resources (3 x senior engineers) would still be necessary to support and maintain this more complex environment once implemented. Option 2: An opportunity exists to cover both the implementation costs and on-going staffing resource requirements by employing two new ICT Senior Engineers at a cost of £57.5k each (£115k per annum) as a day 1 requirement. This addition to the existing ICT team would mean all of the £961.5k implementation costs could be covered by an internal team and would mean the new network could continue to be managed in-house. In the first year alone the council would be saving £846,400 against the implementation cost projected by Insight. ICT has partnered with Cisco for many years and its core networks are designed around this technology. These skills synergies and shared learning reduces the resource required. Page 156
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Option 2 is therefore the recommended approach as it represents a best value and more sustainable option for ICT to directly recruit engineering resources to undertake the initial installation and implementation and retain the knowledge and skills in- house. 4.6.2. Funding Sources ICT has identified a contribution of £81,500 [2] from the ICT capital budget allocated to replace red risk education network equipment between 2024/25 and 2025/26 as higher specification equipment would be necessary. A further capital investment of £245,550 is therefore required to fund option 2 which may be wholly covered from identified education earmarked reserves. Education service has identified a contribution of £460,000 from earmarked reserves pertaining to covid related education fund [£310,000], underspend from Skype for Business for education [£10,000], and education transformation fund [£140,000]. The revenue model would require an ongoing cost and demand pressure for 2 x senior engineers of £115,000; and to education services £180,000 in 2025-26 and 2026-27, rising to £233,000 from 2027-28 onwards for additional specialist software licensing to deliver the required level of secure flexibility. 5.0 CONCLUSION 5.1. In line with national digital learning policy, Argyll and Bute Council is committed to the development of digital technologies to enhance learning experiences and improve outcomes for children and young people. It will ensure that digital technology plays a key role in ensuring the best start in life for Argyll and Bute’s children and young people, that they have equity of choices and opportunities, and that they are equipped with the skills and attributes to achieve success and fulfilment in their lives. 5.2. In Argyll and Bute, significant progress has been made towards an embedded and productive role for digital learning through the effective collaboration of ICT and Education services. 5.3. In order for us to realise our vision for digital learning and teaching in Argyll and Bute, we have identified a set of key ambitions for our network: • A network that is safe, secure, reliable and fit for the future • A network that is capable of supporting 1:1, new and emerging technologies and new ways of learning such as augmented reality, virtual reality, artificial intelligence and Internet of Things etc • Devices are able to be used securely at home and in school • Maximising functionality of interactive panels through connection to the network. • A solution to update software on iPads and Chromebooks • A seamless internet content filter that has flexibility to be specific to education needs • Teaching staff have the same level of flexibility of movement across school sites and offices as corporate staff Page 157
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5.4. Significant investment in security technologies and resources is necessary to redesign the education network. The education network in its current state cannot effectively or safely deliver the future strategic objectives for equity, achievement and opportunities that the education service has committed to, without increasing the overall security risk to the council. 6.0 IMPLICATIONS 6.1 Policy Scottish Government Strategy: Digital Learning and Teaching Strategy A&B Corporate Improvement Plan, Education Service Strategic Plan 6.2 Financial: Additional estimated capital funding of £245,550 and additional annual revenue funding of £295,000 6.3 Legal None 6.4 HR ; two additional ICT senior engineers to be recruited. 6.5 Fairer Scotland Duty: 6.5.1 Equalities - protected characteristics- none 6.5.2 Socio-economic Duty none 6.5.3 Islands: equity of curriculum choice for island schools improved through use of innovative digital learning solutions 6.6 Climate Change: none 6.7 Risk: if funding is not provided the cybersecurity risk to the councils corporate and education network remains unacceptably high, delivery of the digital learning strategy cannot be fully achieved and parity of connectivity between corporate and education for teaching staff cannot be delivered 6.8. Risk: UNCRC is now enshrined in Scottish Law, our children and young people are being educationally disadvantaged by the current limitations of the network and infrastructure. 6.9. Customer Service: none Executive Director with responsibility for Education Executive Director with responsibility for Customer Support Services Policy Lead: Councillor Audrey Forrest July 2024 For further information contact: Wendy Brownlie, Head of Education: wendy.brownlie@argyll-bute.gov.uk Gerry Wilson, ICT and Digital Manager: Gerry.wilson@argyll-bute.gov.uk Gary Clark, Digital Lead, Education. Gary.clark@argyll-bute.gov.uk Page 158
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Brendan Docherty, Education Manager Brendan.Docherty@Argyll-bute.gov.uk APPENDICES Appendix 1 Summary of Required Actions, Benefits and estimated costings Appendix 2 5 year investment profile Page 159
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EDUCATION NETWORK : ISSUES, BENEFITS AND RECOMMENDATIONS Appendix 1: Issues, Solutions and Benefits Detailed breakdown Education’s requirement is for a modern, secure and flexible network that can support its digital learning aspirations, and the Scottish Government’s 1:1 device commitment should that be delivered. • The network requires to be redesigned to provide improved security and flexibility • The network does not currently have the capacity to allow the education service to achieve the ambition of a device for every learner (1:1 deployment) • In addition to investment in bandwidth, device management and protection, there is a requirement to upgrade network hardware in all schools to efficiently manage network traffic. To future proof the network and ensure that Education can deliver on the statutory duty, there are a number of required network upgrades which are detailed below. Timescale Issues/Impact Recommendation/proposed solution Benefits Estimated cost Network re-design, segregation and equipment Based on Option 2 – All installation work carried out by ICT Short Term 12-18 months • A complete redesign of the education network is required to modernise and future proof the infrastructure. This upgrade is required to ensure that Education can deliver on their statutory duty and to introduce the ability for school devices to be used at home on the Internet. • Segregation of network traffic is recommended to separate admin data (e.g. SEEMiS) and learning and teaching data. • Networking equipment in schools is at or nearing end of life, this impacts on performance and overall user experience. This equipment must be upgraded with a higher specification of equipment (to support the new segmented network) as part of the network re-design. • Implement 802.1x authentication for improved wireless network security (Underway for wired devices in schools but work required for wireless) • Implement network segmentation at layer 2/ Layer 3 level (Secure the traditional Windows “domain” from non “domain devices”) • Capital is earmarked to replace current obsolete equipment over the next 5 years. However, this will not be sufficient to upgrade the equipment to the required • Will provide improved access to the internet and greater flexibility for learners. • Improved speed and functionality resulting in improved user experience. • Improved network security. • Improved user experience for practitioners and learners. • All network devices and the new segregated network will be fully supported by ICT • Clear support matrix in place • Support provided to practitioners and learners will be timely and will improve user experience • Minimisation of any device downtime/impact on learners. Full network re- design and segmentation project c.£8000 to develop a segmentation policy. Install by ICT Engineers 2 new ICT Senior engineers at a cost of £57.5k each - £115k per annum. £250k equipment upgrade purchase Page 160
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• New environment will be considerably more complex and resource intensive than the current network. • A substantial increase in the numbers of networked devices will have an impact on the various teams supporting them. standard to support more than double the number of devices. • Opportunity exists to cover both the implementation costs and on-going staffing resource requirements through option 2: • IT Network Engineering Resource: employing 2 new ICT Senior engineers Education currently makes an annual budget contribution of £38,000 to IT for technical support and file and print servers. SASE Solution (bandwidth mitigation) Short Term 12-18 months • Number of devices increase resulting network traffic continues to grow, we are seeing evidence of network bottlenecks as traffic attempts to get back to the data centres – Tiree and Oban High School’s recent network issues are an example of this. • This results in poor user experience, slowing pace of lessons and activities • Procure SASE solution • A SASE service secures the end user device in such a way that the user can go direct to their required application without being redirected through the Council data centre • Currently all internet traffic is sent to a Council data centre (Kilmory or John Street). A SASE solution bypasses the data centre by taking traffic directly out to the internet and improves the network connection speed. This will also improve the user experience whilst bandwidth upgrades are in progress. • It is recognised as the only way devices can be as usable whilst still properly secured such that the risks to the council’s other services are minimised. Cisco Umbrella £180k per annum Caching Solution Short- Medium Term • Requirement to keep all devices up- to-date with security patches and software updates. • Procure caching servers for each establishment or cluster with ipads • The caching solution downloads the update onto a device which then cascades the update to individual computers across the Capital spend will be in the region of £70,000, with Page 161
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network (reducing load on school bandwidth). renewal required every five years. Internet Content Filter Short Term 12-18 months • Council’s digital learning ambition includes the aspiration for every pupil to have a device, accessible both in learning establishments and at home. This will require appropriate and necessary device management and security internet content filtering software. • Current product is suitable for Windows devices but not flexible enough to provide an acceptable user experience for iPads or Chromebooks due to the repeated authentication pop ups which significantly disrupt teaching and learning, and have a negative effect on pace of learning and attainment of pupils. • Call Scotland has expressed concerns that the internet content filter is disadvantaging pupils with additional support needs due to limiting access to accessibility features and also multiple password prompts. • Procure a content filter which is learner friendly and provides a seamless experience on iPads and Chromebooks. • Improved content filter would minimise requirement for repeated authentication therefore greatly improving user experience. • A hybrid working environment will help to address digital inequity when pupils are outside of school. • A modern flexible internet content filter will provide improved access to in built device accessibility tools. • Ability to customise the Internet content filter based on age and location of learners. Internet content filter incorporated within Cisco Umbrella solution. [Option 1 proposed £80,000 per annum (Lightspeed)] Page 162
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ADDITIONAL CONSIDERATIONS Bandwidth Short term (12-18 months) • 28 schools have bandwidth connections of 10mb or less. • Increased level of online learning adds significant additional pressure on the Council’s already stretched education network connection. • Under-provision of bandwidth impacts learners’ experiences and creates issues with online content buffering and delayed loading times. This results negatively on pace of lessons and activities and therefore significantly impacts on learners’ experiences. • Network capability is limited by the availability of superfast broadband across Argyll and Bute but, as the suppliers make services available, bandwidth upgrades are considered. • Long delays from infrastructure improvements and order to delivery are typical of the industry and we should expect any longer term bandwidth upgrade project to be a slow drawn-out process. However, it is imperative that this is progressed as improvements become available. • Target minimum bandwidth forecast to support delivery of the objectives in the Digital Learning strategy is estimated at 30Mbps for schools with approximately 20 pupils or less; and otherwise an allocation of approximately 1Mbps per pupil, where technically and commercially viable. Schools with 1000 pupils or more would have bandwidth of 1Gbps. • IT has some budget available to upgrade schools to a better connection. However, it does not have sufficient budget to provide connection speeds that support Education Dept future vision and aspirations. • Alternative connection methods will be explored and tested, in conjunction with traffic management solutions for bandwidth optimisation • Provision of fast Internet connections across all education establishments to provide robust connections to online learning platforms such as GLOW (including access to all Google and Microsoft productivity tools). • Commonality of timetable approaches will ensure individual learners’ needs are met through enhanced curriculum choice and better equity of access to broader learning opportunities. • Increased personalisation and choice within learner pathways, more options in terms of subjects and levels, wider access to college, and other national courses. Subject to separate options appraisal following conclusions of negotiations with BT in relation to SWAN2 contract. Consideration of alternative technologies where commercially and technically viable e.g. Starlink satellite technology. Page 163
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Appendix 2: 5 Year investment profile. Based on Option 2 recommendation. RECOMMENDED OPTION 2 CAPITAL/ONE OFF Year 1 Year 2 Year 3 Year 4 Year 5 Total 5 years Assumption/Note Network Equipment and services Network equipment upgrade £250,000 £250,000.00 5 [tbd] year equipment replacement policy Equipment Installation Services £0.00 £0.00 Subsumed into line 16 Segregation policy £8,050.00 £8,050.00 External consultancy Caching solution -non Windows devices £69,000.00 £69,000.00 5 [tbd] year equipment replacement policy TOTAL CAPITAL EQUIPMENT AND SERVICES £327,050.00 £0.00 £0.00 £327,050.00 Less ICT Capital Contribution -£81,500.00 -£81,500 Less Education Earmarking Contribution (£460k total) -£245,550.00 -£245,550.00 Leaves balance of £214,450 Capital BALANCE REQUIRED £0.00 £0.00 REVENUE Software licensing and support SASE solution licensing and cloud services £180,000.00 £180,000.00 £180,000.00 £180,000.00 £180,000.00 £900,000.00 Based on Cisco Umbrella Subject to repricing and contract terms Network Equipment licencing £53,333 £53,333 £106,666 Engineering Resources Senior engineers x 2 £115,000.00 £115,000.00 £115,000.00 £115,000.00 £115,000.00 £575,000.00 Pay uplifts will be included as part of the routine salary budget setting process SOFTWARE AND SERVICES REVENUE £295,000.00 £295,000.00 £295,000.00 £348,333.00 £348,333.00 £1,581,666.00 Less Education Earmarking Contribution (from £214k balance) -£214,450.00 -£214,450.00 Revenue BALANCE REQUIRED £80,550.00 £295,000.00 £295,000.00 £348,333.00 £348,333.00 £1,367,216.00 TOTAL CAPITAL AND REVENUE 5 Year Cost £622,050.00 £295,000.00 £295,000.00 £348,333.00 £348,333.00 £1,908,716.00 Page 164
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 15 AUGUST 2024 CORPORATE DEBT RECOVERY POLICY 2024 1.0 EXECUTIVE SUMMARY 1.1 This report introduces an update to the Council’s Corporate Debt Recovery Policy. The existing policy was last considered in 2017 and is in need of an update as identified during a recent audit of the Sundry Debt Recovery process. 1.2 The policy applies to various types of council debt, including Council Tax, Housing Benefit Overpayments, Non-Domestic Rates, and Sundry Debtor accounts. Key objectives include fair debt recovery, early debt resolution, and support for customers facing financial difficulty. It also aims to balance effective debt collection with sensitivity to customers' financial circumstances. 1.3 The governance structure, roles, and responsibilities are clearly defined, emphasising equitable treatment and compliance with legal obligations. Plans for regular policy review ensures alignment with organisational goals and evolving needs. 1.4 Policy and Resources Committee are asked to consider this report and the updated Policy outlined in Appendix 1. They are also asked to review Appendix 2 which outlines the vulnerability and hardship protocol to be considered by Debt Recovery staff when dealing with vulnerable customers in hardship. Page 165 Agenda Item 6
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 15 AUGUST 2024 CORPORATE DEBT RECOVERY POLICY 2024 2.0 INTRODUCTION 2.1 The Corporate Debt Policy of Argyll and Bute Council represents a pivotal framework governing the billing, collection, and recovery of council debt from customers. This policy underscores the council's commitment to efficient and compassionate debt management, emphasising equitable treatment and proactive engagement with customers facing financial challenges. 3.0 RECOMMENDATIONS 3.1 It is recommended that Policy and Resources Committee approve: (a) the updated Corporate Debt Recovery Policy detailed at Appendix 1. (b) the Vulnerability and Hardship Protocol detailed at Appendix 2. 4.0 DETAIL Policy Scope 4.1 The policies in Appendix 1 and 2 encompass various aspects of debt recovery, including Council Tax, Housing Benefit overpayments, Non-Domestic Rates, and Sundry Debtor accounts. It applies across all service units of the Council, aiming to balance effective revenue collection with sensitivity to customers' financial circumstances Aims and Objectives 4.2 Aligned with the Council's vision for a successful and vibrant Argyll and Bute, the Corporate Debt Policy prioritises effective debt collection while ensuring fairness and equitability, supported by the Vulnerability and Hardship Protocol. Key objectives include fair debt recovery, early intervention to prevent arrears, and partnership with customers to agree on realistic payment plans based on individual circumstances. 4.3 Issues with performance within the recovery of Sundry Debt in particular were picked up by external consultancy during a Business Process Review in 2023 and by our Internal Audit team. Since then Legal Services and Financial Services have been working together to make improvements across Sundry Debt recovery. Page 166
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4.4 Improvements include identifying Departmental Debt Co-ordinators in areas where we have a higher value of overall arrears to assist Financial and Legal Services to recover the debt. A new, proposed Data Dashboard will be used to support the debt co-ordinators. 4.5 Two temporary staff have been engaged in proactive Sundry Debt recovery for some months now, significantly reducing the level of outstanding arrears. Since 1 October 2023, they have successfully collected over £1.233 million in debt that had been referred for recovery action. This amount represents debt that was already accounted for, not new funds available for spending. 4.6 Recovery performance in the areas of Council Tax, Non-Domestic Rates and Housing Benefit Overpayment debt is considered to be strong, however there is an understanding that more needs to be done in the area of protecting vulnerable people from the standard Council Tax recovery process in general. 4.7 We have recently entered into an arrangement with Argyll and Bute Citizens Advice Bureau (ABCAB) where we are able to cross refer potentially vulnerable people, this has gone well to date and we may roll this out to other advice agencies such as Bute Advice Centre in the future. 4.8 Our aim here is to protect in particular, people who are suffering some form of mental health vulnerability, who are not protected or covered by existing Council Tax regulations, discounts or exemptions but who need a little “breathing space” to get back on their feet and deal with their statutory obligations to pay the tax. 4.9 These individuals will be given a 3 month moratorium from standard Council Tax recovery processes where this has been identified as an issue. This gives the opportunity for advice agencies to meet with the people and support them, providing us with information to understand what sort of payment plan is realistic for them in terms of their ability to pay. This process is in line with the Improvement Services report “Collaborative Council Tax Collection” seen here. Governance: Roles and Responsibilities 4.10 The Corporate Debt Recovery policy delineates clear roles and responsibilities, with the Chief Financial Officer overseeing financial arrangements and operational debt collection, and the Head of Financial Services managing uncollected debt. Service departments are responsible for rendering accounts and resolving disputes promptly, while nominated debt co-ordinators act as single points of contact for debt management within their respective services. Equal Opportunities and Data Sharing 4.11 The Council is committed to delivering services in line with equal opportunities legislation, ensuring consistent and fair treatment of customers. Data sharing is facilitated to streamline debt recovery processes while adhering to Data Protection legislation, ensuring customers are pursued by one body for all council debts. Communications and Sanctions 4.12 The Council emphasises proactive communication with customers, providing clear information on payment obligations and available support services. Sanctions, including appropriate fees and interest charges, are employed to encourage prompt debt repayment. Page 167
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Policy Review 4.13 Regular policy review ensures alignment with organisational goals and legislative requirements, with revisions submitted to elected members for approval. Changes to detailed procedures are approved by officers in line with good practice, ensuring policy effectiveness and responsiveness to evolving needs. 5.0 CONCLUSION 5.1 The Corporate Debt Policy of Argyll and Bute Council reflects a commitment to responsible debt management, customer support, and organisational effectiveness. By adhering to the outlined principles and recommendations, the Council can ensure equitable treatment of customers, maximise debt recovery, and uphold its financial obligations while considering individual circumstances. Regular review and adaptation of the policy will be essential to address emerging challenges and align with organisational goals and legislative requirements. 6.0 IMPLICATIONS 6.1 Policy: Updated Policy for the Recovery of Corporate Debt and a Vulnerability and Hardship Protocol 6.2 Financial; Aim is to maximise income due to the Council and minimise bad and doubtful debt. 6.3 Legal: All Debt Recovery activities will be undertaken in line with current legislation under the Council Tax Administration and Enforcement Scotland Regulations 1992 as amended, the Bankruptcy and Diligence Act Scotland 2017 as amended and regulations related to debt prescription. 6.4 HR: Two temporary Sundry Debt Recovery Officers are in post for 18 months to work through the backlog of uncollected Sundry Debt and proactively recover new debt, 6.5 Fairer Scotland Duty: 6.5.1 Equalities – EqSEIA complete and available on the website at Equality and Socio-Economic Impact Assessments | Argyll and Bute Council (argyll-bute.gov.uk) 6.5.2 Socio-economic EqSEIA complete and available on the website at Equality and Socio-Economic Impact Assessments | Argyll and Bute Council (argyll-bute.gov.uk) 6.5.3 Islands, EqSEIA complete and available on the website at Equality and Socio-Economic Impact Assessments | Argyll and Bute Council (argyll- bute.gov.uk) 6.6 Climate Change: None 6.7 Risk: First time we will be proactively engaged in the recovery of Social Care debt. This will be tackled sensitively but there is a risk that some vulnerable Page 168
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citizens may be impacted. We will always seek details of support workers, power of attorney etc where appropriate and necessary. 6.8 Customer Service: More protection for vulnerable customers than in the past from standard Debt Recovery activity in relation to Council Tax through joined up working with Argyll and Bute Citizens Advice Bureau and Bute Advice Centre. 6.9 The Rights of the Child (UNCRC): None Executive Director/Section 95 Officer – Kirsty Flanagan 9 July 2024 Policy Lead for Finance and Commercial Services - Councillor Ross Moreland APPENDICES Appendix 1 – Corporate Debt Recovery Policy Appendix 2 – Argyll and Bute Council Vulnerability and Hardship For further information contact: Anne Blue, Head of Financial Services Anne.Blue@argyll-bute.gov.uk Fergus Walker, Revenues and Benefits Manager Fergus.Walker@argyll-bute.gov.uk Page 169
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APPENDIX 1 – CORPORATE DEBT RECOVERY POLICY ARGYLL AND BUTE COUNCIL CORPORATE DEBT POLICY Page 170
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Paragraph Table of Contents Page 1 Introduction 3 3 Policy Scope 3 Aims and Objectives 3 7 Policy Vision 3 8 Policy Objectives 4 Governance 9 Roles and Responsibilities 4 17 Equal Opportunities 6 19 Data Sharing 6 21 Write-offs 6 28 Communications 7 30 Sanctions 8 32 Policy Review 8 Version Control 8 Page 171
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Introduction 1. This corporate debt policy defines the principles that will be adopted when undertaking the billing, collection and recovery of council debt from customers in Argyll and Bute. It provides a framework to collect council debt effectively and efficiently, but also with sensitivity to the circumstances of our individual customers. In this respect, the policy aims to balance the conflicting priorities of delivering high levels of collection in tandem with the provision of appropriate advice and support to those who may be experiencing financial difficulty. 2. For those who can pay, we want them to be in no doubt that we will take all reasonable measures to recover what is owed. For those in financial difficulty, we want them to know that our action will always be proportionate, compassionate and where appropriate tailored to their individual income and expenditure circumstances. Policy Scope 3. Argyll and Bute Council raises charges for a wide range of services that it provides, as well as collecting local taxes. There are different systems and methods used for billing, collection and recovery of a wide range of debts. This corporate debt policy is over-arching and establishes general principles to be applied consistently in relation to debt recovery. 4. For the purposes of the corporate debt policy, council debt is defined as: • Council Tax • Housing Benefit overpayments • Non Domestic Rates • Sundry Debtor accounts (which cover all other amounts due to the Council) 5. The policy applies to all service units of the Council. It focuses on collecting the sums due. The Council’s ability to deliver services which meet the needs of our customers depends heavily on its success in collecting revenues. However, ability to pay is an important concern when undertaking debt recovery. 6. This policy is supported by separate and specific recovery procedures for each individual debt type. Aims and Objectives Policy Vision 7. Our Corporate Debt Policy is aligned to the Council’s Vision for a successful, vibrant Argyll and Bute with a growing population and a thriving economy. A place where people want to come to live, to work and to do business. In Page 172
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particular, our policy has effective and efficient debt collection at its core but alongside equitability. Policy Objectives 8. The Council has a legal duty to ensure cost effective billing, collection and recovery of all sums due to the Council. The Council is committed to delivering the highest level of customer service and supporting citizens and businesses as much as we can. Within this context, the key policy objectives that will guide the Corporate Debt Policy are: • to operate in a fair and equal way when recovering debt; • to seek to address debt issues as early as possible with a strong emphasis on arrears prevention in order to minimise overall indebtedness and improve collection rates across all debt categories; • to ensure that customers have a clear understanding of their responsibility to pay and the associated consequences of deliberate non-payment especially when they are able to pay; • to work in partnership with customers and their representatives to agree realistic payments based on their circumstances; • to ensure that all council staff and council appointed debt collection agents and sheriff officers work together efficiently and effectively and provide a single co-ordinated approach in dealing with council debtors; • to support debtors in becoming reliable payers in the future through referral to appropriate advice agencies; • to ensure that all debtor accounts are accurate • where appropriate debtors will be advised of relevant benefit entitlements or tax and business rates reductions • to ensure that all customer engagements are in accordance with the timescales within the Council’s Customer Charter. Governance Roles and Responsibilities 9. The corporate debt policy is governed by the Council’s Financial and Security Regulations and in particular regulations 7.39 to 7.47 under the heading of “Income”. This sets out the responsibilities of both the Chief Financial Officer and the Executive Director with responsibility for Legal and Regulatory Support. The former is responsible for the overall financial arrangements of the council including the operational debt collection of all taxes, billing arrangements and Page 173
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income recording. The latter is responsible for the discharge of uncollected debt. Argyll and Bute Council constitution (argyll-bute.gov.uk) . 10. The Chief Financial Officer is responsible for offering an appropriate range of payment mechanisms to the council’s customers. 11. All cashiers are responsible for ensuring that receipts are posted accurately and on a daily basis, and with the appropriate reference number so that it can be matched to the relevant council tax, non-domestic rates, housing benefit overpayment or sundry debtor liability. 12. Where debts are not paid promptly, the Chief Financial Officer is responsible for ensuring that payment is pursued promptly, and where necessary, that the debt is passed for appropriate action by the council’s in-house legal services, sheriff officers or debt collection agents. 13. As a general principle no unpaid or dormant debt will go longer than 42 days without engagement with the debtor. 14. Responsibility is delegated to service directors to render accounts for all work done, goods supplied, services provided and all other amounts due and service staff have direct access to the sundry debtors system to enable them to do this. 15. Service departments are responsible for ensuring that any disputes in relation to debts are resolved as soon as possible with relevant credit notes being authorised and processed as appropriate. Whilst disputes are unresolved, accounts will be suspended from follow-up. 16. Each service department will have a nominated debt co-ordinator who will act as single point of contact (SPOC) for their service in respect of the its debt. They will: • Be the recipient of monthly debt performance reports issued by the corporate debt team with details of all debt outstanding for their service and set against agreed performance targets • Be the first point of contact for the corporate debt team and legal services team when they require information from the service to support attempts to recover debt • Liaise with colleagues about problem debts with a view to gathering information and sharing it with legal services and the corporate debt team • Be the first point of contact and liaison point on all inter-service processes, procedures or systems issues, with a view to contributing positively to a Page 174
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high-quality, fast learning and continuously improving corporate debt management service. Equal Opportunities 17. Argyll and Bute Council is fully committed to delivering services in line with equal opportunities legislation and policy. The Council will treat customers consistently and fairly regardless of age, race, religion, gender, disability and sexual orientation. 18. Customers will be treated as individuals taking into account, wherever possible and appropriate, their known personal circumstances. Data Sharing 19. The Council will adopt a corporate approach to sharing information where a customer has multiple debts owing to the Council. This will be co-ordinated through the Corporate Debt Recovery Team paying due regard to Data Protection legislation. The information shared will only be used to ensure that the customer will, so far as is possible, only be pursued by one body in relation to all council debts. 20. The Council will optimise its debt recovery performance by participating positively in all existing and emerging cross-government data sharing initiatives. Write-offs 21. The Head of Financial Services is responsible for ensuring that all write-offs are fully compliant with our Financial Regulations. In this respect the Head of Financial Services, or their deputy should they chose one, is responsible for authorising all debts submitted for write-off to the Executive Director with responsibility for Legal and Regulatory Services. They are also responsible for ensuring that there is a clear audit trail to support all debts submitted for write-off. 22. Separate from this policy, there will be maintained detailed procedures for writing off Council Tax Debt, NDR Debt, Sundry Debt as well as debt arising from outstanding Housing Benefit Overpayments. However, it would normally be expected that debts to be written off would be: • Cumulative debts under £50, where no payment has been received within six months of sending the final demand • All debts where the Head of Financial Services or their deputy advises the debt is irrecoverable or that legal action is unlikely to be cost effective • Gone aways, unable to trace • Deceased debtors with no estate Page 175
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• Accounts in liquidation or sequestration • Prescribed debt of time barred accounts • Miscellaneous category covering any other case where there are good reasons for doing so having regard to the relative level of the debt and the prospects and costs with securing payment. 23. Once appropriate authorisation has been received, the write offs should be returned to the Corporate Debt Team, who will ensure that the relevant systems are updated and accounts adjusted for write-off. 24. The debtor remains liable to pay. Therefore, if the debt has been written off and a further instalment is received, the income must be re-credited to the appropriate income code. Bad Debt Provision 25. The provision will be calculated using historical Council data, knowledge, and experience, while considering relevant industry guidelines and Codes of Practice that support the process. 26. Specific debts may be incorporated within the Provision at the recommendation of the Revenues and Benefits Manager 27. Consideration must be given annually to the individual nature and collectability of all large debts. However, the following can be used as guidance when reviewing the necessary level of bad debt provision from year to year: • All accounts with a credit balance to be written off • All debt that has security attached to be fully provided for • The value of all accounts that are subject to any form of third party action to be fully provided for. 28. The overall provision levels must be reviewed annually by the Revenues and Benefits Manager and updated recommendations made as appropriate to the Head of Financial Services. Communications 29. Individual and business customers or their representative will be encouraged to contact the Council as soon as they encounter payment difficulties. Page 176
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30. The Council will be proactive in its communications with customers and this will be achieved as follows: • All contact information will be made clear and understandable on all outgoing communications. • All communications should be jargon free and in plain English where possible and help will also be provided where literacy issues exist. • In particular, clear information will be provided detailing the customer’s obligations to pay and the consequences of non-payment at each stage of the recovery process for each debt type. • Available payment methods will be clearly outlined to customers. • Access to money advice, debt counselling services and energy advice will be actively advertised, encouraged and facilitated. • The Council will ask for and store customer telephone numbers and email addresses securely to facilitate effective and efficient ongoing dialogue. • Services which deal with customer debt internally will work together in a joined up approach to avoid placing undue pressure on customers who are in debt. • The Council will embrace new technology to contact or remind customers of outstanding amounts where possible e.g. text messaging and e-billing. • Bills, invoices, benefit award notifications and recovery notices will be sent out promptly and in accordance with legal requirements. Sanctions 31. To encourage prompt and full payment of debts from those who can pay, the Council reserves the right to charge appropriate fees to cover the cost of administering ongoing debt collection. 32. In the case of commercial debt, the council reserves the right to charge interest and fees on appropriate debt in line with legislation Late Payment of Commercial Debts (Interest) Act 1998. Policy Review 33. This policy will be kept under regular review and in the event that there is a material change a revised version will be sent to elected members for approval. 34. For as long as any changes to the more detailed procedures do not materially affect the policy, they will simply be approved by officers in line with good practice. Page 177
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Version v0C 8th July 2024 Proposed By Fergus Walker Revs and Bens Manager Date: 8th July 2024 Back to Contents Page 178
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APPENDIX 2 – ARGYLL AND BUTE COUNCIL VULNERABILITY AND HARDSHIP PROTOCOL A Protocol for Considering Vulnerability and Hardship Version 0a Date: June 2024 Approved By: Fergus Walker Page 179
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Introduction This Hardship and Vulnerability Protocol is over-arching and outlines the general principles to be applied consistently in relation to debt recovery. The Protocol applies to all service units of the Council and all types of debt. The Council’s ability to deliver services which meet the needs of our customers depends heavily on its success in collecting revenues. However, ability to pay is an important concern when undertaking debt recovery, particularly when there may be vulnerability or hardship. In such cases we should always take a more compassionate and proportionate approach and wherever it is possible seek to agree a special repayment arrangement. Our challenge is to have a more consistent approach to considering whether or not and to what extent it is reasonable to agree a deferred or reduced recovery plan with a debtor, on the grounds that they might be vulnerable or might experience hardship with a standard repayment plan. This vulnerability and hardship protocol sets out how we intend to approach this debt recovery challenge. It will apply to all our debtors. Executive Summary We currently have no written guidance to help staff make a fair, consistent and objective judgement when negotiating with a debtor, a reasonable amount and period for repayment. Instead staff currently use their experience, common sense and personal values, which can risk inconsistency. In 2019 the UK government committed to and published guidance on giving debtors more breathing space so that they can take control of their finances and put them on a sustainable footing. Although highly informative, this guidance applies only to England and Wales. The Scottish Government is on a similar path and a Bankruptcy and Diligence (Scotland) Bill is progressing through parliament. The absence of written staff guidance and the emerging breathing space-type initiatives have combined to drive forward the development of this vulnerability and hardship protocol. Our protocol and the processes that support it are consistent with the Breathing Space approach as well as the important and clearly visible direction of travel in Scotland. They have also been influenced by our engagement and consultation with our third sector partners such as Argyll and Bute Citizen’s Advice Bureau (ABCAB) and Bute Advice Centre (BAC) as well as our Sheriff Officer partners. Given that our own money advisors and third sector partners have core specialist skills and experience in this area, they will play a key role in gathering information to help us decide a fair, proportionate and viable debt recovery rate. Page 180
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The third sector money advice approach involves the completion of a Common Financial Tool/Common Financial Statement. This approach requires the debtor to complete a questionnaire which is extremely comprehensive and detailed with a full focus on holistic debt management. The data informs an assessment of income and expenditure. For us the assessment of income and expenditure is often at the core of many debt recovery negotiations. This process can be complex and can take time, so we will only gather this information in circumstances in which the debtor may have difficulty agreeing to our preferred standard repayment amount and recovery period. Our New Approach Rather than engaging directly with the debtor on their specific income and expenditure we will instead direct them to a money advisor. The incentive for the debtor will be that where it is required and reasonable, we will allow a 3 month moratorium on recovery action for all those who positively engage in seeking money advice. We recognise that vulnerability is on a spectrum of risk. All customers are at risk of becoming vulnerable, but this risk is increased by having certain characteristics of vulnerability. These could be poor health, such as cognitive impairment, life events such as new caring responsibilities, low resilience to cope with financial or emotional shocks and low capability, such as poor literacy or numeracy skills. Considering Vulnerability There is no exhaustive or definitive list of vulnerability characteristics, but drawing on the guidance from the Financial Conduct Authority and the guidance in England and Wales given to enforcement agents, we would regard the following groups to be at some risk of vulnerability: • the elderly (difficult to define, but we will broadly regard the over 75s as elderly); • people with a disability; • the seriously ill, both mental and physical; • the recently bereaved; • some single parent families; • some pregnant women; • some recently unemployed people; and, • those who have obvious difficulty in understanding, speaking or reading English. Page 181
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We will also regard the following groups to be at some risk of vulnerability, People with: • chronic gambling problems, • chronic alcohol or drug dependency issues • significant other debts – Subject to the following Breathing Space exceptions below: o debts incurred as a result of fraudulent behaviour o fines imposed by a court, including criminal fine o confiscation order o child maintenance payments and debts that arise after an order made in family proceedings o any residual social fund loans o student loan o personal injury liabilities We will keep this definition in view and review it when further guidance emerges from the Scottish Government. Where the vulnerability is temporary, we will set a diary date to review the position. Where the vulnerability is chronic and the customer would experience real, obvious and indefinite hardship repaying their debt we will consider how it might be written off. With specific regard to Council Tax and Non-Domestic Rates (NDR), we will fully consider how liability might be exempted or reduced under the legislation. With our own money advisors as well as our third sector partners, we will have a focus on income maximisation, particularly underlying entitlement to benefits, for all presenting debtors. Considering Hardship Not all vulnerable people will experience hardship paying their debt in good time. The key to considering the issue of hardship for those customers vulnerable or otherwise, is to gather and analyse details of their income and expenditure. If we cannot agree a reasonable rate of recovery as part of an early telephone call, we will ask the customer to seek advice and guidance from our own money advisors or third sector partners at Argyll and Bute Citizens Advice Bureau. In return and where appropriate there will be a 3 month moratorium on the debt. Money advisors will work with the debtor and help them make their best repayment plan offer to us. If the customer is on a relevant DWP benefit, we will recover the debt directly from their benefits at the prescribed rate which is £4.55 per week for council tax debt and £13.65 per week for Housing Benefit Overpayments. Should a customer’s best repayment offer fall short of the recovery from ongoing benefit rate and their financial circumstances are such that there is no benefit Page 182
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entitlement, we will seek, as an absolute minimum, to set the recovery at the prescribed recovery from benefit rate, in the interest of fairness. Working Closely With Our Enforcement Partners In its collaborative Council Tax Collection publication the Improvement Service states the following about Enforcement: Enforcement action, in which diligence is a consideration, should always be proportionate, viewed as a last resort and never be batch-driven or viewed as a convenient means of cutting costs. This protocol recognises this view in principle. However one of our difficulties is a product of customers ignoring our reminder notices and avoiding engagement. In such cases we often have no knowledge of potential vulnerability or hardship. In reality there are occasions when vulnerability or hardship cases are routinely referred to the Sheriff Officer after Summary Warrant has been obtained from the sheriff court. In such cases the true status of the debtor might only become known as the Sheriff Officer goes through the diligence processes. When these situations arise we will liaise closely with the Sheriff Officer in setting the right course of action, which is likely to include the debt being returned to the council. In such cases we would wherever appropriate, seek to remove fees or charges placed on the debtor as part of the summary warrant and diligence processes. In circumstances where it is known to us that the customer is vulnerable or experiencing hardship, we will not routinely seek Summary Warrant for the recovery of tax debt and transfer these debts to the Sheriff Officer. We will work closely with our own and third sector money advisors, to find a proportionate and fair solution which maximises debt recovery and simultaneously protects the debtor from the standard recovery process, additional fees and charges. Fergus Walker Revenues and Benefits Manager June 2024 Back to Contents Page 183
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1 ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE LEGAL AND REGULATORY SUPPORT 15 AUGUST 2024 NATIONAL CARE SERVICE – STAGE 2 SCRUTINY CALL FOR VIEWS 1.0 EXECUTIVE SUMMARY 1.1 The Scottish Parliament’s Health, Social Care, and Sport Committee launched a Call for Views on 1st July as part of its Stage 2 scrutiny of the National Care Service (Scotland) Bill. 1.2 Officers have considered the 9 key questions posed as part of the Call for Views and attached at appendix 1 is the proposed response, which is due to be submitted by 30th August deadline. This response is in line with the previous submissions made by the Council. 1.3 Members are asked to:- a) Consider and agree the draft response detailed at appendix 1; and b) Agree that Officers arrange for the approved response to be submitted by 30th August 2024 deadline. Page 185 Agenda Item 7
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2 ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE LEGAL AND REGULATORY SUPPORT 15 AUGUST 2024 NATIONAL CARE SERVICE – STAGE 2 SCRUTINY CALL FOR VIEWS 2.0 INTRODUCTION 2.1 The Scottish Parliament’s Health, Social Care, and Sport Committee launched a Call for Views on 1st July as part of its Stage 2 scrutiny of the National Care Service (Scotland) Bill. 2.2 Officers have considered the 9 key questions posed as part of the Call for Views and attached at appendix 1 is the proposed response, which is due to be submitted by 30th August deadline. This response is in line with the previous submissions made by the Council. 3.0 RECOMMENDATIONS 3.1 Members are asked to:- a) Consider and agree the draft response detailed at appendix 1; and b) Agree that Officers arrange for the approved response to be submitted by 30th August 2024 deadline. 4.0 DETAIL Background/Context 4.1 The Independent Review into Adult Social Care (IRASC) recommended the establishment of a National Care Service (NCS). Subsequently, the Scottish Government launched the Consultation “A National Care Service for Scotland” on 9th August 2021 to seek views from a range of stakeholders on the creation of a NCS. The IRASC was commissioned to recommend improvements to adult social care, however this consultation extended the scope of the review to include other service areas such as children and families, community justice, alcohol and drug services, mental health services, and social work. 4.2 Taking account of discussions and feedback received from elected members, including at the Seminar held on 21st September, and at Council on 30th September 2021, Officers developed a response to the consultation, which was agreed at the Special Council meeting held on 28th October 2021. The final Page 186
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3 response was submitted in advance of the 2 November 2021 deadline and can be accessed here. 4.3 Following the National Care Service Consultation the Scottish Government introduced the National Care Service (Scotland) Bill to the Scottish Parliament on 20th June 2022. The Bill proposes to establish a National Care Service and allow the Scottish Ministers to transfer social care responsibility from local authorities to a NCS through secondary legislation. 4.4 In addition to the 2021 consultation, the Scottish Government hosted a number of NCS forums across different communities in Scotland during summer/autumn 2023. The purpose of these events was to inform work to co-design the new NCS with those who receive or deliver social care, social work and community healthcare support. The reports published by the Scottish Government on each of these themes can be found on their here. 4.5 Progress of the National Care Service (Scotland) Bill 4.5.1 The Bill establishes the National Care Service. The Bill allows Scottish Ministers to transfer social care responsibility from local authorities to a new, national service. This could include adult and children’s services, as well as areas such as justice social work. Scottish Ministers will also be able to transfer healthcare functions from the NHS to the National Care Service. Stage 1 – General Principles 4.5.2 At this stage of the process the Bill is given to a lead committee – in this instance the Health, Social Care and Sport Committee. The lead committee is responsible for examining the Bill and gathering views from a range of stakeholders including experts, organisations and members of the public. A stage 1 report is then written, usually setting out the views collated and making recommendations on whether the Parliament should support the main purpose of the Bill. The Parliament then debate the Bill and decide whether it should go to stage 2, or be rejected. 4.5.2 As part of the evidence gathering process at stage 1 a Call for Views was issued to the Council by the Health, Social Care and Sport Committee on 8th July 2022, inviting comments by 2nd September 2022. A response was coordinated by the Council’s NCS Officer Working Group, which was in line with the initial consultation response agreed by Council in October 2021, setting out our main concerns with the Bill, and the process undertaken to date. The Council’s response to the Call for Views was agreed by ELT on 30th August 2022, and a copy can be found here. The Bill passed Stage 1 (approval of general principles) on 29th February 2024. Stage 2 – Changes to Detail Page 187
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4 4.5.3 A meeting of the Health, Social Care and Sport Committee took place on 26th March 2024, where they considered the Bill (in a private session). Therein the Committee considered its approach to the scrutiny of the Bill at Stage 2 and agreed, subject to the Scottish Government providing draft versions of its Stage 2 amendments, to undertake further scrutiny of those draft amendments once they were made available. 4.5.4 The Health, Social Care and Sport Committee have now issued a call for written evidence to obtain views on the draft amendments the Scottish Government is proposing to make to the Bill at stage 2 - details of the proposed amendments, and the full suite of information provided by the Scottish Government, can be found here. 4.6 Our Response 4.6.1 Officers have considered the 9 key questions being posed as part of the Call for Views and have drafted the response detailed at appendix 1 of this report. Our response is in line with previous submissions made and is cognisant of the extensive discussions and negotiations that COSLA have been engaged in with the Scottish Government concerning a number of ongoing challenges and risks in respect of the NCS. There is growing disappointment from COSLA that these negotiations have not resulted in positive outcomes, with a number of matters remaining unresolved, including:- • Substantial delays in the detailed amendments from the Scottish Government being produced; • No formal agreement on precise responsibilities, organisational status, and accountability arrangements of the NCS National Board, including its interaction with the local system and the details of a Support and Improvement Framework; • Children’s and Justice Social Work Services (CSJSWS) – Scottish Government and COSLA have been unable to reach an effective or acceptable compromise in respect of whether CSJSWS should form part of the NCS. Despite negotiations since February, the Scottish Government remain intent in fully incorporating CJSWS, whereas COSLA are of the view that the delegation of CJSWS should remain a local decision and not fall within the scope of NCS. The latter view is in line with the comments provided by the Council in response to the NCS consultation in October 2021. • Power for Scottish Ministers to directly fund local Integration Authorities - currently, funding for Integration Authorities is routed via the local authority and NHS Board. Scottish Government continue to seek the legislative power for Scottish Ministers and/or the NCS National Board to be enabled to provide direct funding to integration authorities. There remains significant concerns over the potential implications such a power could have. • National Social Work Agency (NSWA) – no formal agreement on the structure of the agency and the detail of accountability arrangements between Local Government, Scottish Government and the NSWA. Page 188
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5 4.6.2 Officers will continue to monitor progress with the Bill and pick up any actions required from the Council, for example responding to any further calls for views and the continuation of briefings for the Leader/Chief Executive ahead of COSLA meetings. 5.0 CONCLUSION 5.1 This report invites members to consider and approve the proposed response to the call for views as part of the Stage 2 scrutiny of the National Care Service (Scotland) Bill. If agreeable, Officers will arrange for the final response to be submitted by the 30th August deadline. 6.0 IMPLICATIONS 6.1 Policy - none arising from this report 6.2 Financial – envisage significant investment will be required to deliver the proposals 6.3 Legal – new legislative requirements will be introduced if Bill is enacted 6.4 HR - Significant potential implications for Council employees working in social work and social care 6.5 Fairer Scotland Duty: none arising from this report 6.5.1 Equalities - protected characteristics 6.5.2 Socio-economic Duty 6.5.3 Islands 6.6 Climate Change - none arising from this report 6.7 Risk - none arising from this report 6.8 Customer Service - none arising from this report 6.9 The Rights of the Child (UNCRC) - none arising from this report Douglas Hendry Executive Director with responsibility for Legal and Regulatory Support Policy Lead for Care Services – Councillor Dougie McFadzean 24th July 2024 Page 189
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Appendix 1 NCS Call for Views – Stage 2 Scrutiny If you are commenting on individual Scottish Government draft amendments in your response, please identify the amendment or amendments either: • By reference to the provisions in the marked-up Bill that they would either add or remove – e.g. “the new section 1A of the Bill” or “the removal of sections 2 and 3 of the Bill”; OR • By reference to where they arise in the marked-up Bill, indicating the numbering of the provisions and the colour used (blue, red or both) – e.g. “the amendments shown in red and blue in section 1, subsection (1)(c)”; OR • By reference to the numbered list of Scottish Government draft amendments – e.g. “draft amendments PCO82, PCO95 and PCO83”. 1. What is your view of the proposed National Care Service strategy (see proposed new sections 1A to 1E)? We are generally in agreement with the provisions to review the NCS principles and regarding the NCS Strategy (including its periodic review). However it is important to note that the strategy must recognise the need to provide locally tailored solutions and should therefore be designed in a manner that has regard to the specific needs of different areas, such as rural authorities like Argyll and Bute. We would also suggest that local authorities and health boards are added to the list at Section 1A(2)(b) (those whom the Scottish Ministers must elicit the views of in reviewing the NCS principles). It would be helpful to obtain clarity on whether the NCS will be facilitating the implementation of the principles outlined, for example via additional funding. 2. What is your view of the proposal to create a National Care Service Board, and the provisions about the role and functions of the Board (see in particular new Chapter 1B of Part 1, and new schedule 2C)? The purpose of a new NCS Board to monitor progress, ensure standards and improvement at a national level is a welcome addition to the Bill, in order to further the aim in ensuring consistency of care across Scotland. In meeting this aim, there needs to be recognition of local flexibility to set standards and to determine local solutions that reflect local circumstances. As an authority we do question why the approach has been taken to establish this body via the proposed NCS Framework, as opposed to adding it into the existing 2014 Act framework that exists for integrated authorities? Page 191
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Further, there are concerns around the proposed power for Scottish Ministers to directly fund local Integration Authorities. Currently, funding for Integration Authorities is routed via the local authority and NHS Board. There remains significant concerns over the potential implications such a power could have. Having regard to the proposed membership of the NCS Board, in terms of Paragraph 17(8)(b) to the new Schedule 2C, we note that (as a minimum) there would be only one individual appointed to the Board to represent local authorities. In reality, the needs and circumstances of all local authorities across Scotland are very diverse. The challenges faced by, for example, a rural and/or island authority differ significantly from those faced by a central belt urban authority. Therefore, we would suggest that the local authority representatives on the Board should be more than one, in order to reflect the diversity of local authority areas and circumstances across the country. It is further noted, in terms of Paragraph 17(8)(c) to the new Schedule 2C, that there would be at least one individual appointed to the NCS National Board to represent health boards. This raises the question of reciprocity in membership of the relevant organisations. There is no local government representation on the NHS Scotland Board despite the current heavy focus on delayed discharge, when community care has greater pressures. 3. What is your view of the proposal to establish National Care Service local boards and to remove other integration models (see in particular Chapter 1A of Part 1, and new schedules 2A and 2B)? The proposal to remove other integration models, with the purpose of ensuring consistency across the country, is noted. However, we would question why this is being done as part of the creation of a brand new (NCS) framework. That end could have been achieved by amending the 2014 Act (as proposed) alone as that would have exactly the same effect on the existing HSCPs. In our view, that would be a far more proportionate change to make to the existing arrangements, and to build on the progress that has been made thus far in terms of integration. This reflects the views we expressed whilst this Bill was at Stage 1. 4. What is your view of the proposed new provisions on monitoring and improvement (see new sections 12K and 12L) and on commissioning (see new section 12M)? Sections 12K and 12L clearly set out how the NCS Board would monitor improvement in care across the country in our view. We would stress that an important part in effecting any improvement is working collaboratively and supportively with the local authorities and/or health boards who carry out the integrated functions in question. In relation to Section 12M (Commissioning) – no real issues with the wording of the draft section, however there are concerns about what is commissioned and how it is specified. National approaches do not tend to work for rural Page 192
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areas and there should be safeguards in place to avoid solutions that are not fit for purpose. Separately, the Council have responded to the request issued to Heads of Procurement seeking views on the amendments related to procurement, and specifically the third sector. 5. What is your view of the proposed new provisions to designate a National Chief Social Work Adviser and for the creation of a National Social Work Agency (see new section 26A)? The role of a new National Chief Social Work Adviser, and the National Social Work Agency, is outlined with the new Section 26A of the Bill. However, we would suggest that further consideration/detail is required about how the National Chief Social Work Officer would interact with Chief Social Work Officers of local authorities – who are existing statutory officers with a range of legislative duties and functions. In addition, and in line with previous comments provided as part of earlier consultations on NCS, further clarity is required on the role of the NSWA to avoid duplication of roles with existing care regulators – such as the SSSC and the Care Inspectorate. For example, concerns have been raised about the suggestion that NSWA should have a lead role in setting a national approach to terms and conditions, including pay, which could lead to equal pay issues. In respect of workforce planning, we feel that local planning should continue to reflect local needs, but the proposed NSWA does have the potential to fill a gap in creating nationally available and equitable access to learning and development for trainee social workers. It could also enhance and strengthen professional standards and provide a national pool of advisers/mentors/ supervisors and consistency of practice for all social workers. This would remove the inequities currently occurring in HSCPs/smaller councils where budgets are constrained, learning and development is restricted and trainee places are limited purely due to budget. A national agency would be able to assess national workforce requirements and skills gaps and liaise with national providers – FE/HE and funding bodies - to ensure that there are sufficient and affordable training places for social workers. They would also be able to continue to influence government spending plans for the Apprenticeship Levy, where spending currently does not reflect the needs of the public sector, particularly in this area of national workforce need. At a national level, there is a lot of work underway between SPDS, the Improvement Service and SOLACE on workforce planning in councils, with a report due to be published at the SOLACE conference in September. There is clear data/evidence showing significant shortages in Social Work and Social Care, as well as lack of consistent and clear learning pathways, and a lack of funding to support practice teachers in SW and degree students. Therefore a national approach, which could come from an NSWA, can be viewed as a positive move. 6. Amendments to the Public Bodies (Joint Working) (Scotland) Act 2014 Page 193
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The Minister’s covering letter states: “We intend to improve local delivery through reform of integration authorities. Integration authorities are existing bodies established under the Public Bodies (Joint Working) (Scotland) Act 2014. Local reform will require some new provisions in this Bill amending the 2014 Act, as well as the exercise of existing powers under that Act.” Q - What is your view of the proposed amendments to the Public Bodies (Joint Working) (Scotland) Act 2014, as set out in the marked up version of the Act? As mentioned above, it is our view that many of the outcomes sought could be achieved by amending/reviewing the 2014 Act alone, or by reviewing the current provision of services, as opposed to the creation of a new National Care Service. There are a number of improvements that can be achieved without structural change and funding for the NCS would be better directed to those service areas. In order to promote consistency across the country, the Stage 2 amendments propose to remove the alternative (lead agency) integration model. Another means by which to promote consistency could have been to review what functions may and must be delegated under the 2014 Act regime. As per our previous response whilst the Bill was at Stage 1, we feel that the desired outcomes could be achieved more proportionately by review of the 2014 Act alone, as opposed to the creation of a brand new statutory scheme. 7. Areas of further work The Minister’s covering letter states: “There remain a small number of areas where further work is needed to confirm which legislative approach would best deliver the intended changes and strengthen their future practical implementation. Those areas are: • Direct funding • Inclusion of children’s services • Inclusion of Justice Social Work • Anne’s Law “The intention of this approach is to free up COSLA and local government colleagues from further negotiation on these issues and allow them to focus specifically on the mission to reduce Delayed Discharges in the coming weeks and months.” Q - What is your view of the Scottish Government’s proposed approach to addressing the areas of further work outlined in the Minister’s covering letter? Page 194
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The areas of further work are material considerations under this Bill which could have significant impacts on local authorities, health boards, service- users and other relevant parties. As the further work is undertaken, we would suggest that clear communication and information sharing from the Scottish Government to those partners is key. We note that this has been lacking up until now despite the efforts of COSLA to engage with the Scottish Government on behalf of local authorities. COSLA have undertaken extensive discussions and negotiations with the Scottish Government concerning a number of ongoing challenges and risks in respect of the NCS. There is growing disappointment from COSLA that these negotiations have not resulted in positive outcomes, with a number of matters remaining unresolved, including fundamental disagreement on the areas detailed above (with the exception of Anne’s Law) . 8. Draft National Care Service Charter As part of the package shared with the Committee, the Scottish Government has provided an update on co-design of the NCS Charter and an initial draft of the National Care Service Charter. Q - What is your view of the initial draft of the National Care Service Charter? The current draft of the Charter appears to be an easy to read/use document for service users and all other relevant parties, which clearly sets out their rights; and the duties/roles of those who provide social work, social care, and support. It is noted that the draft is to be further developed with important details to be added. In line with comments made at stage 1, the creation of such a charter does not require wholesale structural upheaval and could be established under the existing operational arrangements. 9. Do you have any other comments on the Scottish Government’s proposed draft Stage 2 amendments to the National Care Service Bill? Argyll and Bute Council is the second largest local authority area in Scotland, with the highest number of inhabited islands (23) and 43% of the population living in remote and rural areas (NOMIS). Argyll and Bute Integrated Joint Board/Health and Social Care Partnership manages the full range of delegated services – Adult Social Work and Social Care; Children, Family and Justice Services; Acute NHS services and Hospitals; Primary Care and Community Health Services. Whilst the HSCP has NHS Highland as one of its partner bodies, all care pathways are to Greater Glasgow and Clyde. This gives Argyll and Bute a particular and unique set of challenges in delivering care, which is currently delivered by a fully integrated workforce, and a strategic leadership with links into both the Council and NHS Page 195
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Highland. In Argyll and Bute, integration is enabling community based, locality designed partnership approaches to delivering care. We are proud of our staff and our track record of managing care services across our complex area, particularly in our partnership response to Covid-19, where our staff and colleagues went the extra mile to keep our communities safe. We recognise the ambition in the NCS Bill to improve care services in Scotland and fully support that principle. However, we do not see the clear, evidence based argument that major structural change will result in that improvement. Investment in the current system of care, with locally based design and additional powers, such as IJBs becoming employers, could deliver those improvements, whilst retaining local accountability, locally based solutions, and building upon the local successes (as outlined above). Furthermore we remain concerned about the cost of services, the loss of local democracy, and running counter to the Verity House Agreement. In regard to funding and future service costs, both in terms of new investment in social care services, these have fallen behind the levels of need in terms of demography and care complexity in Argyll and Bute, and there are potential impacts on other Council services. These issue are particularly acute in Argyll and Bute given: a) the complications of delivering care and support services across such a diverse range of small urban, rural and island communities; and b) the demography of Argyll and Bute, where we are experiencing a significant increase in demand for services from an aging population whilst seeing a significant reduction in the working age population available to work in the sector and support the expanding older generation of service users. Both of these factors are driving up costs and the need for additional funding. They also require significant local flexibility to design and tailor services to meet local needs within the local workforce and financial context – this would seem to be at odds with the underlying tone of the legislation and the push to a more centrally controlled “consistent” national model. With regard to the impact on other Council services, there is both an element of joint service provision funding which could be lost (eg Children and Families and Education co-fund specialist care placements for young people from the area) and the SW GAE’s contribution to the overall funding of the Council (eg support services are funded and optimised to meet the needs of the Council as a whole from all GAE sources) at stake. Page 196
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 15 AUGUST 2024 REDIRECTION OF CROWN ESTATES FUNDING 1.0 EXECUTIVE SUMMARY 1.1 The main purpose of this report is to gain approval to redirect Crown Estates Funding (CEF), previously approved for solar powered CCTV on the island airports of Coll and Colonsay, towards the purchase of a new fire appliance vehicle. This vehicle will replace a current vehicle considered to be no longer fit for purpose and be used as back up to the island airports when routine/or unplanned maintenance to the island fire appliances takes place. 1.2 Anticipated estimate cost for the new vehicle is approximately £60k, with an option to lease for £1,500 pcm. RECOMMENDATIONS It is recommended that Policy and Resources Committee agree to redirect the Crown Estates Funding (CEF), previously awarded for the provision of solar powered CCTV at the island airports of Coll and Colonsay, towards the provision of a backup fire appliance vehicle, to meet Civil Aviation Regulations in the provision of fire cover at island licensed airports. Page 197 Agenda Item 8
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 15 AUGUST 2024 REDIRECTION OF CROWN ESTATES FUNDING 2.0 INTRODUCTION 2.1 Crown Estates Funding – Redirection of Funding Previous agreed awards to the Airports, from the Crown Estates Funding (CEF), for new infrastructure are as follows: - i). £100k – This was for fire training simulator rigs on each of the islands of Coll and Colonsay. A contract has been awarded to Minerva, at a cost of £53,700. The rest of the original allocation was to implement solar powered CCTV on each of the islands. A tender was put out for this, however had to be abandoned due to security concerns. ii). £120k – Latest allocation from CEF, for connection by Scottish and Southern Electricity Networks (SSEN), to connect Colonsay airport to the power grid. This is in hand, with Property Services pursuing SSEN on delivery. (Colonsay airport is currently powered by a generator). 3.0 RECOMMENDATIONS 3.1 It is recommended that Policy and Resources Committee agree to redirect the Crown Estates Funding (CEF), previously awarded for the provision of solar powered CCTV at the island airports of Coll and Colonsay, towards the provision of a backup fire appliance vehicle, to meet Civil Aviation Regulations in the provision of fire cover at island licensed airports. 4.0 DETAIL 4.1 Abandonment of solar powered CCTV tender 4.1.1 The Council abandoned the tender for the above, due to current conflict with some of the products currently marketed, and national guidance in their use at sensitive sites. Page 198
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4.2 Fire Appliance Vehicles 4.2.1 Argyll and Bute Council currently have two fire appliance vehicles located at Oban airport. The Oban vehicles are equipped to provide a higher level of fire cover due to the equipment and media it carries, allowing Oban to handle larger aircraft due to longer runway (1200m), which the island vehicles cannot. (Island runways of Coll and Colonsay airports are 500m in length, by comparison). 4.2.2 The second vehicle at Oban serves purely as a spare vehicle in case the main vehicle requires maintenance or develops a fault. The second vehicle at Oban, also enables the airport to conduct fire training during operational hours. 4.2.3 There is also one fire vehicle on each of the islands, to provide fire cover at Coll and Colonsay airport. These vehicles are required to meet Civil Aviation Authority regulations regarding provision of fire cover, at each of the Council’s licensed airports. 4.2.4 Argyll and Bute Council did have a fifth fire appliance vehicle, which was an original fire appliance vehicle that was retained from the islands, when the Council replaced the vehicles on each island with newer models. The requirement for this fifth appliance is twofold: - • It provides replacement fire cover for routine maintenance of the islands vehicles when they have to come back to the workshop on the mainland. • It provides replacement fire cover for all airports should any of the fire appliance vehicles have an unanticipated break down. 4.2.5 Ideally, the fifth appliance would be the same type of vehicle the island airport staff already have, as this would mean the crews would be familiar with it and all the equipment would be transferable. 4.2.6 The existing fifth fire appliance vehicle has now met its life expectancy, (to put into context this vehicle was first registered in 1999) and is no longer fit for purpose, with the Councils workshop advising it can no longer get parts to keep the vehicle operational. 4.2.7 It is therefore considered prudent to redirect the remaining CEF allocation of £46,300 (from original £100k allocation) towards the purchase of a new back up fire appliance vehicle. Anticipated estimates for the new vehicle are approximately £60k, with an option to rent for £1500 pcm. Any additional costs above the £46,300 would be met by the revenue airport maintenance budget. 4.2.8 Having a spare vehicle for the islands would provide back up in the event of a breakdown, allowing the Public Service Obligation (PSO) air services to continue operating from Oban to the islands of Coll, Colonsay and Tiree. A suitable fire appliance vehicle is required, under Civil Aviation Authority Page 199
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Regulations, to meet the necessary fire cover provision at each of the licensed airports, for the landing and take-off, of the scheduled air services. 4.2.9 It is considered that the need for a replacement backup fire engine is now a priority, and that solar powered CCTV can be pursued through available funding streams at a later date. In particular, once there is further clarity on national guidance as to appropriate products available on the market. 5.0 CONCLUSION 5.1 The main purpose of this report is to gain approval to redirect Crown Estates Funding (CEF), previously approved for solar powered CCTV on the island airports of Coll and Colonsay, towards the purchase of a new fire appliance vehicle for back up to the island airports, for routine maintenance to the island fire appliances and also as back up for any unplanned vehicle repairs. 5.2 Anticipated estimates for the new vehicle are approximately £60k, with an option to rent for £1,500 pcm. 5.3 It is therefore recommended to redirect the CEF, previously awarded for the provision of solar powered CCTV at the island airports of Coll and Colonsay towards the provision of a back-up fire appliance vehicle to meet Civil Aviation Regulations in the provision of fire cover at island airports. This is now considered a higher priority than the provision of solar lighting. 6.0 IMPLICATIONS 6.1 Policy – Argyll and Bute Council provide PSO air services to the fragile Island communities of Coll, Colonsay and Tiree. 6.2 Financial – Anticipated estimates for the new fire appliance vehicle are approximately £60k, with an option to rent for £1,500 pcm. The report recommends a redirection of Crown Estates Funding and use of existing budget to meet the costs of the new appliance. 6.3 Legal – Tenders for any new fire appliance vehicles will require to be compliant with Procurement Scotland legislation. 6.4 HR – None. 6.5 Fairer Scotland Duty: 6.5.1 Equalities - Air services provide connections to rural island communities primarily for scholars but are also used by public and private sector services e.g. NHS, ABC, and Housing Associations Page 200
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6.5.2 Socio-economic Duty - The air service supports an equitable standard of living for island residents. 6.5.3 Islands - The air service supports vulnerable island populations and is a lifeline service. There is a chance that if this service isn't provided, people won't want to live or work there as much, which could affect the SOA's goal of population growth. 6.6 Climate Change – Multiple passengers on a one-hour flight may have less of an environmental impact than those travelling by vehicle and ferry for six hour. 6.7 Risk – Risk of break in air services as a result of not meeting Civil Aviation Authority legislation in relation to fire cover at licensed airports. 6.8 Customer Service – None. 6.9 The Rights of the Child (UNCRC) – None. Kirsty Flanagan, Executive Director with responsibility for Development and Economic Growth Councillor Jim Lynch, Leader of Argyll and Bute Council July 2024 For further information contact: Fergus Murray, Head of Development and Economic Growth Fergus.Murray@argyll-bute.gov.uk Moya Ingram, Strategic Transportation and Infrastructure Manager moya.ingram@argyll-bute.gov.uk Page 201
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 15th AUGUST 2024 UPDATE: ARGYLL AND BUTE UK SHARED PROSPERITY FUND INVESTMENT PLAN INTERVENTIONS 1.0 HEADLINES 1.1 The purpose of this paper is to provide an update for members of the committee on the progress of the Argyll and Bute UK Shared Prosperity Fund (UKSPF) Investment Plan project / programme interventions that are being delivered across Argyll and Bute. 1.2 As the UKSPF is a successor to the previous EU structural funds. The overarching aim of this funding is to build pride in place and increase life chances across the UK. 1.3 As summarised in Table A1, Appendix A the project / programme activities outlined in the Argyll and Bute UKSPF Investment Plan are all aligned to three key investment priorities communities and place; supporting local business; and people and skills, where each priority has predefined interventions, outputs and outcomes. In addition to core UKSPF monies, the investment plan includes a focus on ring-fenced ‘Multiply’ funding to support the delivery of an area-based adult numeracy programme. The substantive element of this funding is being delivered by UHI Argyll further to a competitive procurement process. 1.4 The Argyll and Bute Council UKSPF allocations to support delivery over three financial years, specifically the final five months of 2022/23 and the next two financial years, 2023/24 and 2024/25, until the end of March 2025 are outlined in Table 1. At the outset it was advised that allocations should be spent in year. However, given that the 2022/23 allocation was not approved until December 2022, funding was carried over from 2022/23 into 2023/24 and likewise into the final year 2024/25. 1.5 As noted in Table 1 the largest allocation of UKSPF budget is in the final financial year 2024/25 which is challenging. Through discussions at the Scottish Local Authorities Economic Development (SLAED) Executive and Funding Group meetings, a request was sought in writing to key ministers within the previous UK Government in April 2024 to extend the UKSPF delivery timescales by one-year, complete with capacity funding to cover staffing costs, to enable all projects to complete spend and deliver, given the significant delay to approving the year one allocation. The response noted that this would be considered in the autumn spending review. However, given the new UK Government, such a request will need to be resubmitted to address this continued uncertainty. Page 203 Agenda Item 9
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2.0 RECOMMENDATIONS 2.1 Members are asked to: • Note the content of this report and progress made. • Agree officers engage with the UK Government on the requirement for some clarity on future funding streams, such as the UK Shared Prosperity Fund, in light of the recent change of the UK Government. 3.0 DETAIL 3.1 On 13th April 2022 the UK Government published the full prospectus of the UKSPF, a successor to the previous EU structural funds. The overarching aim of the UKSPF is to build pride in place and increase life chances across the UK. This encompasses four levelling up objectives and three investment priorities. The levelling up objectives are: • Boost productivity, pay, jobs and living standards by growing the private sector, especially in those places where they are lagging; • Spread opportunities and improve public services, especially in those places where they are weakest; • Restore a sense of community, local pride and belonging, especially in those places where they have been lost; and • Empower local leaders and communities, especially in those places lacking local agency. The Investment Priorities are: • Communities and place; • Supporting local business; and • People and skills. The interventions list for Scotland as a whole can be found here and the objectives, outcomes and outputs can be found here. 3.2 Immediately following the General Election results of 4th July 2024, the new UK Government signalled a move away from the use of the term ‘levelling up’ in ministerial statements, with the phrase ‘local government’ replacing the term in departmental and ministerial titles. At present, it is unclear what this may mean for any successor to the UKSPF as there has not yet been formal policy announcements, although it is thought that the broad priorities above will remain important. 3.3 A summary of the Argyll and Bute allocation (which includes a 4% administration fee for overall fund delivery) and current spend is outlined in Table 1 overleaf. The percentages of the allocation by year are given, showing the largest allocation for core UKSPF in 2024/25. It is a concern that the allocation for Multiply is 30.2% for 2022/23 did not take into account the shorter timescale for delivery. A delayed start to the programme in 2022/23 resulted in an underspend which has been carried forward into Page 204
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the current year, with a knock-on effect for 2023/24. The UK Government has permitted re-allocation of funds across activities within core UKSPF spend in 2022/23 but not in later years. 3.4 Table 1 below shows the spend to date. Six-monthly reporting to UK Government on spend for this current financial year is due in September, when an update forecast can be given. Re-allocation of spend across years and projects has allowed us to maximise delivery, and we will continue to work closely with delivery partners to do so where possible throughout the remainder of the project. However, it will remain challenging to deliver the entire allocation without an extension beyond of the end 2024/25 FY to allow projects to complete and spend. Table 1 - UK Shared Prosperity Fund Allocations and Spend 2022/23 – 2024/25 Core 2022/23 2023/24 2024/25 Total In-year allocations Core UKSPF 12% 24% 64% 100% £451,343 £902,686 £2,365,038 £3,719,067 Revised Forecast Spend (including previous year underspend) - £1,323,641 £2,620,394 - Spend £30,387 £1,068,285 - £1,098,672 Balance £420,955 £255,356 £2,620,394 £2,620,394 Multiply* 2022/23 2023/24 2024/25 Total In-year allocations Multiply 30% 35% 35% 100% £234,698 £270,806 £270,806 £776,310 Spend £4,793.80 £218,497.75 Underspend £229,904.20 £52,308.25 * Multiply is an adult numeracy programme, which will support people with no or low-level maths skills get back into work The scheme will offer free personal tutoring, digital training, and flexible courses to improve adults’ confidence and numeracy skills. Full details on Multiply can be found here . As noted in the text underspend in 2022/23 was carried over into core UKSPF activity in 2023/24 however, UK government have confirmed this is not allowable for future years. N.B. Figures subject to rounding. 3.5 A summary of projects under each of the three priorities, and spend to date is given in Table A1, Appendix A. Significant activity has been delivered against the three investment priorities as depicted in Table A1. Selected highlights are as follows. • Argyll and Bute Revenue and Benefits team, as part of their work under the Communities and Place priority, have reached 581 people, supporting 268 households to reduce the cost of living, including through measures to improve energy efficiency, and combat fuel poverty and climate change. • The Council’s Employability team offers UKSPF Training and Work Placements. Since May 2023, they have helped 45 participants undertake a wide range of training courses to provide valuable workforce skills. The UKSPF-Supported Work Placement programme proved very successful, with 13 participants since May 2023 continuing with their Work Placement host after the end of the placement. Page 205
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• Within Supporting Local Businesses, delivery partners Argyll and Bute Business Gateway had delivered 43 grants by the end of March 2024 to enterprises in the local authority and assisted five entrepreneurs to be business ready. Some testimonials (approved to share by the business) from the Business Gateway support are outlined below: Dace McLellan, Rolling Pizza - mid Argyll – UKSPF Business Start-up Grant recipient (originally posted on LinkedIn) Dace approached Business Gateway last year when the idea for the business first began. Dace converted an old horse box into a van with a wood-fired oven allowing her to cook fresh pizzas made to order from any location. With support and guidance from her local Business Gateway Adviser, Donald Melville, she accessed start-up funding through the UK Shared Prosperity Fund which helped with the initial set-up costs. Dace noted “Business Gateway was a huge support to me when setting up Rolling Pizza and has continued to be now we’re up and running. The online system has been great for encouraging people to pre-order and gives me an indication of potential earnings and I couldn’t have done that without Business Gateway. Being in a rural area can often make it more difficult to find business support, but Donald has been a fantastic help and I really appreciate his guidance.” • Delivery partners InspirAlba has supported the People and Skills priority by retraining 23 individuals in the local authority with 18 being supported to gain a qualification or complete a course. • Third Sector Interface (TSI) has supported 52 volunteering opportunities. 4.0 CONCLUSION 4.1 The purpose of this paper is to provide an update for members of the committee on the progress of the Argyll and Bute UK Shared Prosperity Fund (UKSPF) Investment Plan project / programme interventions that are being delivered across Argyll and Bute. 4.2 As noted above, spend is progressing, but it is challenging that most of the spend is allocated into this financial year, 2024/25. This is exacerbated by knock-on effects from a late start to the UKSPF resulting in further activity and spend being rolled over into the final year of the programme. Clarity is required urgently whether the new UK Government will grant a one-year extension to allow all projects and programmes to complete delivery and spend, complete with additional capacity funding to support staffing costs. Page 206
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5.0 IMPLICATIONS 5.1 Policy: this project / programme interventions aligns with the proposals set the UKSPF full prospectus. 5.2 Financial: Argyll and Bute Council has been given an allocation of just under £4.5m from the UKSPF to be spent by the end of March 2025. This is accompanied by £20k of capacity funding to assist in the development and preparation of the investment plan and the ability to use up to 4% of the allocation per annum to fund administration support for the overall delivery of the Argyll and Bute UKSPF Investment Plan. 5.3 Legal: all appropriate legal implications will be taken into consideration. 5.4 HR: given the revenue nature of this fund, staffing requirements can be built in under activity to deliver the predefined interventions, outputs and outcomes. The UK and External Policy Team, Economic Growth, is supporting the requirement to administer, monitor and evaluate the overall delivery of the Argyll and Bute UKSPF Investment Plan. 5.5 Fairer Scotland Duty: the Fairer Scotland Duty, Part 1 of the Equality Act 2010, came into force in April 2018. The duty places a legal responsibility on particular public bodies in Scotland, such as Argyll and Bute Council, to pay due regard to (actively consider) how they can reduce inequalities of outcome caused by socio-economic disadvantage when making strategic decisions and how this has been implemented. 5.5.1 Equalities: all activities will comply with all Equal Opportunities/Fairer Scotland Duty policies and obligations. 5.5.2 Socio-economic Duty: all project / programme activities will comply with the council’s socio-economic duty. 5.5.3 Islands: interventions under the UKSPF will be delivered across the Argyll and Bute area, including island communities. 5.6 Climate Change: there are a number of net zero and climate resilience interventions across all the UKSPF investment priorities. 5.7 Risk: to ensure all projects and programmes can conclude with no money returned to the UK Government, clarity is required whether the new UK Government will grant a one-year extension to allow all projects and programmes to complete delivery and spend, complete with additional capacity funding to support staffing costs. 5.8 Customer Service: none. 5.9 The Rights of the Child (UNCRC): none. Kirsty Flanagan, Executive Director responsible for Economic Growth Councillor Math Campbell-Sturgess: Policy Lead for Business Development Page 207
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1st August 2024 For further information contact: Fergus Murray, Head of Development and Economic Growth fergus.murray@argyll-bute.gov.uk Ishabel Bremner, Economic Growth Manager ishabel.bremner@argyll-bute.gov.uk Kevin Grant, Senior Development Officer, UK & External Policy Team, Economic Growth kevin.grant@argyll-bute.gov.uk APPENDICES Appendix A: Summary of Argyll and Bute UKSPF Investment Plan Projects / Programmes Page 208
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Appendix A: Summary of Argyll and Bute UKSPF Investment Plan Projects / Programmes Table A1: Summary of Argyll and Bute UKSPF Investment Plan Projects /Programmes Communities and Place Predefined Intervention Project Allocation (exc. admin) Spend to 31st March 2024 S7: Funding for the development and promotion of wider campaigns which encourage people to visit and explore local areas. Tourism Marketing Support £155,000 £78,047 S8: Funding for impactful volunteering and/or social action projects to develop social and human capital in local places. Community Planning Partnership Climate Change Working Group – community capacity building £60,000 £11,294 S9: Investment in capacity building, resilience (including climate change resilience) and infrastructure support for local civil society and community groups. Extension of Shaping Places for Wellbeing Support £6,000 £224 Vibrant and Living Spaces £304,262 £0 S10: Community measures to reduce the cost of living, including through measures to improve energy efficiency, and combat fuel poverty and climate change. Extension of Flexible Food Fund - grants, advice and skills support for people struggling with cost of living £408,000 £225,865 S12: Investment and support for digital infrastructure for local community facilities. Community Hubs £81,750 £1,577 S13: Support for linking communities together and with employment opportunities with a focus on decarbonisation. Pre-loved School Uniform Project £140,000 £0 Sub-total allocation for Communities and Place £1,155,012 £317,008 Page 209
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Supporting Local Businesses Predefined Intervention Project Allocation (exc. admin) Spend to 31st March 2024 S14: Funding for the development and promotion (both trade and consumer) of the visitor economy, such as local attractions, trails, tours and tourism products more generally. Tourism Sector Support – improved digital infrastructure for data monitoring, evaluation & visitor book ability £45,000 £21,463 S15: SME development grants and support, aligned with local and regional sectoral priorities and growth potential. The support is proven to leverage high levels of private investment into technologies that drive growth, productivity, efficiency and resilience in manufacturing. Scientific Robotics Academy £299,900 £77,380 S16: Research and development grants supporting the development of innovative products and services, with a particular focus on low carbon goods and environmental services, and climate resilience. Innovation Support Service providing expert advice and capability reviews to help SMEs create innovation plans £100,000 £1,600 S22: Support for growing the local social economy, including community businesses, cooperatives and social enterprises. Graduate Apprenticeship Opportunities in the Third Sector £71,154 £35,003 S26: Business support measures to drive employment growth, particularly in areas of higher unemployment. Graduate Placement Programme providing graduate placement grants covering staff, training and travel costs £180,000 £33,154 S29: Support for new and existing businesses and start-ups aligned with local, regional and Scottish policy. Business Development Package for local SMEs, providing enhanced start-up, recovery and growth support comprising grants, specialist advice and intensive support programmes £454,099 £105,276 Sub-total allocation for Supporting Local Businesses £1,150,153 £273,876 Page 210
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People and Skills Predefined Intervention Project Allocation (exc. admin) Spend to 31st March 2024 S31: Employment support for economically inactive people: intensive support supplemented by additional and/or specialist life and basic skills (digital, English, maths (Multiply) and ESOL) support where there are local provision gaps. Adult Literacy and Numeracy Programme £165,559 £22,336 S33: Activities such as enrichment and volunteering to improve opportunities and promote wellbeing Expansion of the Wider Achievement Programme for all secondary schools £125,000 £5,204 Pre-Employability Support Programme Work Placements £402,489 £120,779 Positive Destinations Programme, providing support for young people £137,475 £123,175 S35: Support for employability programmes and advice including alignment with the No One Left Behind agenda, Fair Start Scotland and Scottish employability pipeline. This could include tailored support to address barriers to accessing education and training courses. Pre-Employability Support Programme Training £97,765 £19,430 Supported Employment Experience in the Third Sector £336,850 £166,162 Sub-total allocation for People and Skills £1,265,138 £457,086 Overall Allocation (exc. admin) £3,570,303 £1,047,970 The above projects/programmes have been implemented using a mixture of delivery models (again predefined by the UK Government) as follows: • In-house provision; • Procurement of service provision; • Grants to public or private organisations; or • Commissioning third party organisations. Page 211
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 15 AUGUST 2024 SCOTTISH GOVERNMENT ISLANDS PROGRAMME AND CARBON NEUTRAL ISLANDS CAPITAL FUNDING 1.0 EXECUTIVE SUMMARY 1.1 The purpose of this report is to provide information on the Scottish Government’s Island Programme and Carbon Neutral Island Capital Fund. On 5 June 2024, the Scottish Government announced that £3m would be available through the Islands Programme for the 2024/25 financial year to fund capital projects on inhabited Scottish islands. A further £1m is available through the Carbon Neutral Islands Capital Fund which is available for suitable capital projects on Islay. The funds will be distributed on a competitive basis and this paper provides background to the funds and sets down the proposed projects which will form the basis of our applications to the Scottish Government. 1.2 The timescale for applying for this funding requires applications to be submitted by 30 August 2024 with a decision expected during autumn 2024. Grant drawdown must be completed by 31 March 2025. 1.3 Teams across the Council and Health and Social Care Partnership have identified potential projects for the Islands Programme which have been considered against the criteria and scoring for the fund. A similar process has taken place with Islay Energy Trust, as the key local stakeholder involved in delivery on the Islay Climate Change Action Plan. Given the need to submit applications by the 30 August 2024 deadline, work is underway in relation to the following projects which were deemed to fit most closely with the fund requirements. Islands Programme (IP) Project Name - description Project Lead IP funding request Total project value Thomson Court – increase capacity of care facility by 2 bed spaces HSCP £300,000- £400,000 £500,000 Page 213 Agenda Item 10
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Jura Ferry – concept design for new vessel Roads and Infrastructure Services £200,000 £200,000 Jura Ferry Bunkhouse – conversion of Port Askaig pier building into crew bunk house Roads and Infrastructure Services £200,000 £200,000 Carbon Neutral Islands (CNI) Capital Fund Project Name - description Project Lead CNI funding request Total project value Solar Islay – a project to install photovoltaic solar panels on community buildings IET TBC TBC Cornabus Forest Development – purchase of equipment to facilitate management and harvest Islay Development Initiative TBC TBC Electric minibuses – purchase of electric vehicles to facilitate community transport TBC TBC TBC Cornabus Orchard – the establishment of an orchard Islay Development Initiative TBC TBC 1.4 Members are asked to note that this is a competitive bidding process open to all Scottish local authorities with inhabited islands and it is considered likely that the fund will be oversubscribed. As such, it is important that projects are sufficiently developed to enable the best chance of success and to ensure that if successful the funding can be fully accessed for the benefit of these island communities. RECOMMENDATIONS It is recommended that the Policy and Resources Committee:- i). Note the process for applying to the Islands Programme and Carbon Neutral Islands Capital fund and the 30 August 2024 deadline for applications. ii). Approve the recommended projects which will be submitted to the call for applications as detailed at paragraph 4.7 and 4.10. iii). Agree to delegate authority to the Executive Director with responsibility for Development and Economic Growth in consultation with the Leader, Depute Leaders and the Leader of the largest Opposition Group, to approve the funding bids prior to submission to the Scottish Government and to manage the funding should the applications be successful. Page 214
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 15 AUGUST 2024 SCOTTISH GOVERNMENT ISLANDS PROGRAMME AND CARBON NEUTRAL ISLANDS CAPITAL FUNDING 2.0 INTRODUCTION 2.1 On 5 June 2024, the Scottish Government announced that Islands Programme funding of £3m would be available for the 2024/25 financial year to fund capital projects on inhabited Scottish islands. The fund is open to all local authorities in Scotland with inhabited islands and will be distributed on a competitive basis. The fund will be administered by Scottish Futures Trust (SFT) on behalf of the Scottish Government. They also announced a £1m fund to support the Carbon Neutral Islands in their progression towards net zero. This fund is open only to islands selected as Carbon Neutral Islands, Islay for Argyll and Bute, for capital works to support their Climate Change Action Plan. This paper provides background to the funds and sets down the proposed projects which will form the basis of our applications to the Scottish Government. 3.0 RECOMMENDATIONS It is recommended that the Policy and Resources Committee:- i). Note the process for applying to the Islands Programme and Carbon Neutral Islands Capital Fund and the 30 August 2024 deadline for applications. ii). Approve the recommended projects which will be submitted to the call for applications as detailed at paragraph 4.7 and 4.10. iii). Agree to delegate authority to the Executive Director with responsibility for Development and Economic Growth in consultation with the Leader, Depute Leaders and the Leader of the largest Opposition Group, to approve the funding bids prior to submission to the Scottish Government and to manage the funding should the applications be successful. Page 215
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4.0 DETAIL Islands Programme 4.1 The key objectives of the Islands Programme for 2024/25 are: • To sustain, enhance and develop transformational and critical infrastructure projects based on local priorities whilst supporting the National Islands Plan. • To reshape infrastructure by supporting shovel worthy projects, co-ordinating with other funded and planned initiatives on the islands to drive sustainable island growth. • To support projects which use clear Place based, Community Wealth principles to support inclusive island growth and reduce poverty while working to achieve the Scottish Government’s Net Zero Ambitions and a Just Transition. • To maximise leverage of partnership, investment, and cross policy funding. 4.2 The Council has been successful in securing £1.5m of Islands Programme funding over the last two financial years which has helped to deliver flood protection, digital infrastructure, care facilities and housing enabling infrastructure on the islands of Mull, Iona, Islay, Tiree and Coll. The 2024/25 funding pot is £3m, significantly less than in previous years - £4.5 million in 2022/23 and £4.1 million in £2023/24 - with an indication that this may be further reduced due to the Scottish Government’s financial position going forward. 4.3 In notifying the Council of the opening of the Islands Programme for 2024/25, the Scottish Government advised of the following timescale for submission and determination of applications: • Applications deadline – 30 August 2024 • Investment Panel recommendations – Mid September 2024 • Projects for 2024/25 funding announced – Autumn 2024 • Grant drawdown / project delivery - to 31 March 2025, with preference for those where a financial commitment can be made before 31 December 2024. It should be noted that the timescale for submission and drawdown of this fund is significantly shorter than in previous years and this has informed the process for identifying projects that are sufficiently developed to be eligible for this year’s programme, there is no facility for funding to be carried forward into 2025/26. 4.4 Officers from the Transformation Projects and Regeneration Team have contacted Piers and Harbours, Infrastructure Design, Commercial Services, Strategic Transportation and the Health and Social Care Partnership to identify potential projects to form the basis of applications. Due to the short timescale for submission of applications, the fact the application period falls over the summer holiday period, the limited pot of funding available and subsidy control regulations we have focused on Council and other public sector projects which we believe can meet the timescales. Page 216
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4.5 All suggested projects were considered against the advised scoring methodology for the fund • Deliverability (30%) o Demonstrating Deliverability o Viability • Need and Partnership (35%) • Project Outcomes (35%) SFT have emphasised there is a particular importance on deliverability and that this is a primary consideration for assessment as there is no ability for funding to be carried forward into the next financial year. Projects must be able to demonstrate that a financial commitment (i.e. have spent the money or have a signed contract) will be in place before 31 March 2025. Guidance from SFT highlights that any projects likely to reach the stage of a financial commitment after 31 December 2024 would likely not be prioritised for funding. This is a challenging timescale given the need to follow public procurement regulations, confirm any match funding and obtain any consents that may be necessary before contracts can be signed. 4.6 Following identification of a range of projects these were discussed with SFT and their early opinions on which fit most closely with the requirements of the fund were sought. During these discussions they highlighted a particular desire to utilise the 2024/25 funding to focus on improving living standards, reducing poverty and strengthening wellbeing. On this basis, the Bute project listed below were well received as Rothesay is considered to be an area of multiple deprivation evidenced by Scottish Index of Multiple Deprivation (SIMD). The SIMD shows Rothesay town centre being within the 10% most overall deprived datazones in Scotland. They were also keen to see projects which supported islands which have not previously received Islands Programme funding and neither Bute nor Jura have benefited to date. 4.7 Giving consideration to the guidance provided by SFT, it is recommended that the following projects are submitted as applications and, due to the timescales for submission of applications, work is already underway in preparing these applications for submission before the deadline of 30 August 2024. Project Name - description Project Lead IP funding request Total project value Thomson Court – increase capacity of care facility by 2 bed spaces HSCP £300,000 £500,000 Jura Ferry – concept design for new vessel Roads and Infrastructure Services £200,000 £200,000 Jura Ferry Bunkhouse – conversion of Port Askaig pier building into crew bunk house Roads and Infrastructure Services £200,000 £200,000 Page 217
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Carbon Neutral Islands Capital Fund 4.8 In addition to the Islands Programme, the Scottish Government is also making £1m of funding available to support the Carbon Neutral Islands (CNI) in their progression towards becoming net zero. The CNI project is a Scottish Government commitment aimed at supporting six islands to become carbon neutral by 2040. The identified island within Argyll and Bute is Islay and following selection the CNI team have been working with the local community to develop a Climate Change Action Plan. Islay Energy Trust (IET) has led this work on Islay and have been instrumental in preparing and now starting to implement the Action Plan. 4.9 We have been working with IET, who in turn have been working with other Islay based organisations, to identify potential projects which would meet the requirements of the fund. The timescale for application, decision and expenditure mirror those of the Islands Programme with a focus that outputs and outcomes should also contribute to the Climate Change Action Plan. For the CNI Capital Fund there is a minimum project value of £75,000. 4.10 At the time of writing we are seeking a meeting with SFT to discuss the applications, however at this stage it is recommended that the following projects are submitted as applications and, due to the timescales for submission of applications, work is already underway in preparing these applications for submission before the deadline of 30 August 2024. Project Name - description Project Lead CNI funding request Total project value Solar Islay – a project to install photovoltaic solar panels on community buildings IET TBC TBC Cornabus Forest Development – purchase of equipment to facilitate management and harvest Islay Development Initiative TBC TBC Electric minibuses – purchase of electric vehicles to facilitate community transport TBC TBC TBC Cornabus Orchard – the establishment of an orchard Islay Development Initiative TBC TBC 4.11 Members are asked to note that these are competitive bidding processes open to all Scottish local authorities with inhabited islands and it is considered likely that the funds will be oversubscribed. As such, it is important that projects are sufficiently developed to enable the best chance of success and to ensure that if successful the funding can be fully accessed for the benefit of these island communities. Page 218
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4.12 Once applications are submitted, the Transformation Projects and Regeneration Team will continue to liaise with SFT and the identified project lead to deliver successful projects and fulfil the monitoring and reporting requirements which will form part of the funding conditions. Project Officers within the project lead service will be identified to manage the delivery of successful projects and ensure all funding is drawn down in line with the criteria for the programme. 5.0 CONCLUSION 5.1 The Islands Programme and Carbon Neutral Islands Capital Fund offers an important source of funding to support island based infrastructure projects which can help to sustain and enhance our island communities. Despite the reduced timescale for applying for funding this financial year, we believe that there are a number of projects which meet the criteria of the programmes and will support the delivery of essential infrastructure and sustainability on our island communities. 6.0 IMPLICATIONS 6.1 Policy – all applications are required to support the Scottish Government’s National Islands Plan as well as other relevant national and local policy documents. CNI applications will also support local Climate Change Action Plans. 6.2 Financial – if successful, the projects will secure funding from the Scottish Government however the Thomson Court – HSCP project will also require match funding, where this is the case and it impacts on the Council this will be sought through other Council/HSCP approval processes. 6.3 Legal – the support of legal services will be required in relation to the grant contract, creation of standard securities and other legal requirements associated with the funding. 6.4 HR – as an applicant for the grant there is an expectation that the Council meets the Fair Work First requirements of the Scottish Government. As the council currently do not meet all requirement, HR is supporting our application for an exemption. Staff time will be required to prepare the applications, monitor and report on the applications and deliver the projects. 6.5 Fairer Scotland Duty: 6.5.1 Equalities - protected characteristics – no implications anticipated. 6.5.2 Socio-economic Duty – the Island Programme projects seek to support critical island infrastructure for the benefit of the wider community. The CNI projects seek to support community organisations or generate community wealth which can then support the local community. Page 219
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6.5.3 Islands – all projects are required to be based on an inhabited island to be able to bid for funding, the limited amount of funding available and the nature of the fund means that it isn’t possible for all island communities to benefit from this round of funding. 6.6 Climate Change – The Islands Programme projects will have varying impacts on climate change but all projects will look to minimise any negative impacts where possible. The Thompson Court project could help to minimise emission by enabling relatives to remain close to their families. The Jura Ferry projects will support a lifeline transport service and should funding be secured for the ferry replacement enable to provision of a more modern vessel with the benefits that this brings. All projects put forward for CNI Capital Finding are focused on supporting the delivery of the Islay Climate Change Action Plan and making a positive contribution toward the move to net zero. 6.7 Risk – each project will have its own risks which will be managed by the team identified as the project lead. At this stage, there is a risk that the funding applications will not be successful and significant staff resource is required in developing and submitting applications. Given the time timescale for expenditure, there is a risk that delays in project delivery could reduce the funding received. 6.8 Customer Service – no implications anticipated. 6.9 The Rights of the Child (UNCRC) – no implications anticipated. Kirsty Flanagan, Executive Director with responsibility for Development and Economic Growth Councillor Jim Lynch, Depute Policy Lead for Economic Development, Housing, Communities and Islands 15 July 2024 For further information contact: Fergus Murray, Head of Development and Economic Growth Fergus.Murray@argyll-bute.gov.uk Jonathan Welch, Rural Growth Deal Programme Manager Jonathan.Welch@argyll-bute.gov.uk Page 220
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 15 AUGUST 2024 ISLANDS COST CRISIS EMERGENCY FUND 2024/25 1.0 EXECUTIVE SUMMARY 1.1 The Islands Cost Crisis Emergency Fund (ICCEF), which aims to help island authorities take urgent action to support households through the cost of living crisis, was set up in December 2022. £1 million funding has been identified for the 2024/25 financial year. The funding will be distributed to the six Local Authorities with responsibility for islands through the 2024/25 Local Government Revenue Grant. 1.2 This funding is for 2024/25 financial year only, and will be allocated via a grant offer across the six local authorities using 100% population basis as recommended by the joint Scottish Government/COSLA settlement Distribution Group approved by the COSLA political Leaders. 1.3 The allocation to Argyll and Bute for 2023/24 was £141,000 and the funds were distributed as detailed in Table 1 below. The allocation will remain the same for 2024/25, £141,000. 1.4 Local authority decisions on where funding will be directed should be based on their local knowledge and understanding of the impacts of the cost crisis on their islands. The fund should be used to target island areas only, by providing immediate help to those who are struggling most, either through existing schemes and/or other new support where need is greatest. The outcomes of this funding are expected to have stronger focus on child poverty. 1.5 Given the critical nature of the fund it is important that the funding reaches communities as quickly as possible. In regard to this, members may be minded to support the same initiatives as were agreed last year focusing on Love Local cards, free school meal top ups and grants to four island foodbanks as detailed in Table 1. RECOMMENDATIONS It is recommended that the Policy and Resources Committee:- Page 221 Agenda Item 11
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a) Note the funding announced by the Scottish Government for 2024/25 financial year for Local Authorities with responsibility for islands. b) Agree that arrangements for the fund are the same as those initiatives agreed for 2023/24 and detailed in Table 1 to ensure that the support reaches communities as quickly and effectively as possible. Page 222
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 15 AUGUST 2024 ISLANDS COST CRISIS EMERGENCY FUND 2024/25 2.0 INTRODUCTION 2.1 On 22 May 2024, the Scottish Government announced that Islands Cost Crisis Emergency funding of £1m would be available for the 2024/25 financial year. The funding will be distributed to the six Local Authorities with responsibility for islands through the 2024/25 Local Government Revenue Grant. The fund will be administered by Scottish Futures Trust (SFT) on behalf of the Scottish Government. 2.2 This report provides the Policy and Resources Committee with an overview of proposed arrangements for the fund in 2024/25. 3.0 RECOMMENDATIONS 3.1 It is recommended that the Policy and Resources Committee:- a) Note the funding announced by the Scottish Government for 2024/25 financial year for Local Authorities with responsibility for islands. b) Agree that arrangements for the fund are the same as those initiatives agreed for 2023/24 and detailed in Table 1 to ensure that the support reaches communities as quickly and effectively as possible. 4.0 DETAIL 4.1 The Scottish Government has announced that there will be an allocation of £1 million Island Cost of Crisis Emergency funding for 24/25 and this will be distributed across the six Local Authorities with responsibility for islands. 4.2 The funding is for the 2024/25 financial year only. The fund of £141,000 to Argyll and Bute will be paid as a redetermination of the General Revenue Grant during the last 2 weeks in March 2025. 4.3 The allocation for Argyll and Bute in 23/24 was £141,000. Policy and Resources Page 223
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Committee in August 2023 agreed to delegate the arrangements for Argyll and Bute’s allocation of the 23/24 funding to the Executive Director with responsibility for Development and Economic Growth in consultation with the Leader, Depute Leader, Leader of the largest Opposition Group and the Policy Lead for Islands the allocation was agreed as detailed in Table 1 below:- 4.4 Given the critical nature of the fund it is important that the funding reaches communities as quickly as possible. In regard to this, members may be minded to support the same initiatives as were agreed last year focusing on Love Local cards, free school meal top ups and grants to 4 island foodbanks as detailed in Table 1. 4.5 It should be noted that the current mechanism for providing the school meal top up payments needs further discussion with the Education department to ensure that the payments are reaching the eligible students directly. Discussions will also be required with colleagues in Revenue and Benefits regarding the uptake of Love Local cards. 5.0 CONCLUSION 5.1 The £1 million Islands Cost Crisis Emergency Fund allocation will support those on islands facing even more significant cost of living challenges. Estimates indicate that Islands are facing around 20% to 66% higher costs of living than the UK average. High fuel costs, a colder climate and the lack of consumer choice is also intensifying the impact of the cost crisis. Argyll and Bute Council’s share of the fund is £141k based on our island population. 6.0 IMPLICATIONS 6.1 Policy – The Scottish Government’s £1 million Islands Cost Crisis Emergency allocation will support those on islands facing even more significant cost of living challenges. 6.2 Financial – Argyll and Bute’s allocation of the £1 million fund will be £141,000. Table 1 ICCEF 2023/24 Distribution Argyll and Bute Council Love Local Giftcards £100,000 Food Bank Grants £16,000 Free School Meal Top Ups £25,000 TOTAL ICCEF 23/24 £141,000 Page 224
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6.3 Legal – None. 6.4 HR – None. 6.5 Fairer Scotland Duty: 6.5.1 Equalities – None 6.5.2 Socio-Economic Duty – None 6.5.3 Islands – The Islands Cost Crisis funding announced by the Scottish Government will help support our island communities who are facing a higher cost of living than the UK average. 6.6 Climate Change – If the option to continue using Love Local cards is taken spend will be restricted to premises within Argyll and Bute. 6.7 Risk – None. 6.8 Customer Service – This funding will ensure the Council are supporting our island communities and households across Argyll and Bute. 6.9 The Rights of the Child (UNCRC) – No implications anticipated however the funding will assist in tackling the cost of living crisis which aims to improve finances for those on islands including children. Kirsty Flanagan, Executive Director with responsibility for Development and Economic Growth Councillor Jim Lynch, Depute Policy Lead for Economic Development, Housing, Communities and Islands For further information contact: Fergus Murray, Head of Development and Economic Growth Fergus.Murray@argyll-bute.gov.uk August 2024 Page 225
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 15 AUGUST 2024 RURAL GROWTH DEAL – UPDATE AND DETAILED DESIGN COSTS 1.0 EXECUTIVE SUMMARY 1.1 This report provides an update on the Rural Growth Deal (RGD). 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 Council, UK and Scottish Governments agreed the ‘Heads of Terms’ for the RGD on the 11th February 2021. The Heads of Terms Agreement sets out the general areas for investment and the Full Deal Agreement builds upon this in more detail. 1.3 Signing of the Full Deal Agreement was scheduled for 7th June 2024 however required to be postponed due to calling of the General Election. The RGD Programme Management Office (PMO) are liaising with Civil Servants at both the UK and Scottish Government level to agree a revised date for Full Deal Signing following the General Election. 1.4 The RGD PMO have procured the services of the consultancy Stantec to assist with the development of business cases for the RGD programme. All Projects have now had at least one iteration of an Outline Business Case (OBC) or Full Business Case (FBC) submitted to Government. An update on the position of RGD business cases is included in Table 1 of this report. 1.5 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 HIE and Scottish Enterprise. The Policy and Resources Committee have previously approved the release of 4 tranches of funding totalling £600k from the Inward Investment Fund 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 approved spend on RGD project development work stands at £569,358. 1.6 Where possible, the RGD PMO will seek to recoup capital costs from RGD funding allocations however, it will not be possible to submit any claims for funding until the Full Deal Agreement has been signed and Full Business Cases for projects are endorsed by Central Government. Costs associated with the Page 227 Agenda Item 12
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development of project Full Business Cases will require to be met by the Council and strategic partners at risk in advance of funding being approved by Central Government. 1.7 The Policy and Resources Committee are therefore asked to approve a further £150k of funding from the Inward Investment Fund to support the development of RGD Full Business Cases and any associated pre-construction works e.g. planning, detailed design and consultancy support. 1.8 The RGD PMO will continue to seek external match funding to support project development costs and meet funding gaps. To date, the Council and key funding partners have secured over £20m of match funding that will directly support projects within the RGD programme. Given the significant funding secured to date, throughout the lifetime of the programme it is considered likely that RGD partners will exceed the £20m match funding commitment set out in the Heads of Terms Agreement. 1.9 In advance of the completion of the Full Business Case (FBC), there remains a significant amount of project development work to be undertaken, across the majority of RGD Projects. This includes detailed design, procurement, site investigation works and statutory consents. 1.10 The development of detailed design for projects is a key stage, however it comes at considerable expense and will bring a degree of risk to the Council and RGD Partners. The appointment of a Detailed Design team will include an Architect, Quantity Surveyor, Engineers and Project Manager support. As a general estimate, up to 10% of project capital budgets should be set aside for Detailed Design cost. 1.11 Kintyre Seasports will be the first project to receive OBC approval and this project is programmed to begin construction in Autumn 2025. There is therefore an urgent need to progress detailed design work. Tenders for this work have identified costs of circa £238k for the design, consultancy and engineering support necessary to see this project through to practical completion. These are capital costs which will be re-claimed from RGD funds following endorsement of the Full Business Case. It should however be noted, that all costs incurred in advance of FBC endorsement are at risk to the Council. RECOMMENDATIONS: • Members should note that a revised date for Full Deal Signing will be arranged once a new UK Government is formed. • Approval is sought from the Policy and Resources Committee for a further drawdown of funding from the Inward Investment Fund (up to £150k). Similar to previous arrangements, funds will only be drawn down subject to the Chief Executive and two Executive Directors of the Council being satisfied that the monies are for the purpose of delivering the Rural Growth Deal. Any further funding required in excess of the approved value will require further approval from the Policy and Resources Committee. Page 228
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• Members are asked to approve spend of up to £250k to support the next stage of project development for Kintyre Seasports, including Detailed Design works. Page 229
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 15 AUGUST 2024 RURAL GROWTH DEAL – UPDATE AND DETAILED DESIGN COSTS 2.0 INTRODUCTION 2.1 This report provides an update on the Rural Growth Deal (RGD). 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 Council, UK and Scottish Governments agreed the ‘Heads of Terms’ for the RGD on the 11th February 2021. The Heads of Terms Agreement sets out the general areas for investment and the Full Deal Agreement builds upon this in more detail. 2.3 Signing of the Full Deal Agreement was scheduled for 7th June 2024 however required to be postponed due to the UK General Election on the 4th July. The RGD PMO are liaising with Civil Servants at both the UK and Scottish Government level to agree a revised date for Full Deal Signing following the General Election. 2.4 The RGD PMO have procured the services of the consultancy Stantec to assist with the development of business cases for the RGD programme. All Projects now have at least one iteration of an OBC or FBC submitted to Central Government. An update on the position of RGD business cases is included in Table 1 of this report. 2.5 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 HIE and Scottish Enterprise. The Policy and Resources Committee have previously approved the release of 4 tranches of funding totalling £600k from the Inward Investment Fund 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 approved spend on RGD project development work stands at £569,358. 2.6 Where possible, the RGD PMO will seek to recoup capital costs from RGD funding allocations however, it will not be possible to submit any claims for funding until the Full Deal Agreement has been signed and Full Business Cases for projects are endorsed by Central Government. All costs incurred in Page 230
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advance of FBC endorsement are at the risk of the Council and project stakeholders. It should be noted that these costs are necessary in order to progress projects through to FBC endorsement. 2.8 The Policy and Resources Committee are therefore asked to approve a further £150k of funding from the Inward Investment Fund to support the development of RGD Full Business Cases and any associated pre- construction works e.g. planning, detailed design and consultancy support. 2.9 The RGD PMO will continue to seek external match funding to support project development costs and meet funding gaps. To date, the Council and key funding partners have secured over £20m of match funding that will directly support projects within the RGD programme. Given the significant funding secured to date, throughout the lifetime of the programme it is considered likely that RGD partners will exceed the £20m match funding commitment set out in the Heads of Terms Agreement. 2.10 Kintyre Seasports will be the first project to receive OBC approval and this project is programmed to begin construction in Autumn 2025. There is therefore an urgent need to progress the detailed design work necessary for the project FBC. Tenders for this work have identified costs of circa £238k for the design, consultancy and engineering support necessary to see this project through to practical completion. These are capital costs which will be re- claimed from RGD funds following endorsement of the Full Business Case. It should however be noted, that all costs incurred in advance of FBC endorsement are at risk to the Council. 3.0 RECOMMENDATIONS • Members should note that a revised date for Full Deal Signing will be arranged once a new UK Government is formed. • Approval is sought from the Policy and Resources Committee for a further drawdown of funding from the Inward Investment Fund (up to £150k). Similar to previous arrangements, funds will only be drawn down subject to the Chief Executive and two Executive Directors of the Council being satisfied that the monies are for the purpose of delivering the Rural Growth Deal. Any further funding required in excess of the approved value will require further approval from the Policy and Resources Committee. • Members are asked to approve spend of up to £250k to support the next stage of project development for Kintyre Seasports, including Detailed Design works. Page 231
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4.0 DETAIL 4.1 Business Case Progress Update 4.1.1 The Council agreed the ‘Heads of Terms’ for the RGD on the 11th February 2021. The next key milestone is the signing of the Full Deal Agreement. This was arranged for 7th June 2024, however required to be postponed due to the announcement of a General Election. A revised date for Full Deal Signing will be agreed once the new UK Government is formed and it is hoped that this milestone can be reached by September 2024. 4.1.2 Upon signing the Full Deal Agreement, the Council will enter year 1 of a 10-year programme of delivery for the RGD. It is currently anticipated that Year 1 will be 2024/25, with the Deal reaching completion in 2034/35. 4.1.3 The RGD PMO have been working with Stantec and key delivery partners to progress Business Cases for RGD projects. All projects now have at least 1 iteration of an OBC or FBC submitted to UK and Scottish Government. The RGD PMO and Project Leads have been working to address feedback received and a number of OBCs are now nearing approval. An update on Business Case Progress for each RGD Project is provided in Table 1 below:- Table 1 Business Case Tracker Project Stage Next Milestone Rothesay Pavilion 2nd iteration of FBC submitted to Government on 8th May 2024. A number of meetings have been held between Government and the Council to discuss conditions that would allow endorsement of the FBC to allow the next stage of contracts to be awarded. Conditional Endorsement of FBC Kintyre Seasports The OBC was approved by Government on 4th July 2024. Detailed Design Low Carbon Economy - Islay Government advised that they were not content to proceed with the project that was in the first Outline Business Case. Therefore the project has gone back to initial options appraisal stage. Engagement with stakeholders is ongoing to redevelop project options. Completion of options appraisal and identification of new preferred option. Page 232
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Rural Skills Accelerator Programme OBC A second iteration of the OBC was submitted to Government on 23rd May 2024. Feedback to be provided by Government. Housing – Isle of Mull Second iteration of OBC submitted on 2nd May 2024. Feedback/approval of OBC Housing – Isle of Islay Feedback received on the first iteration OBC on 29th May 2024. Project Leads are considering feedback in advance of re-engaging with Stantec. Second iteration OBC to be drafted by Stantec. Clyde Engineering & Innovation Centre Feedback on second iteration OBC was received on 24th April 2024. PMO and Stantec currently working to address outstanding comments. Third iteration to be submitted to Government. West Coast UAV 3rd iteration OBC submitted to Government on 20th May 2024. Feedback/approval of OBC Marine Aquaculture Programme – Marine Industry Training Centre Second iteration OBC submitted to Government on 26th April 2024. Feedback to be provided by Government Marine Aquaculture Programme – SAMS International Seaweed & Shellfish Industry R&D Centre Feedback received on 2nd April 2024 on second iteration OBC. SAMS/HIE currently reviewing feedback and redrafting OBC. Third iteration OBC to be submitted to Government Marine Aquaculture Programme – Marine Environmental Research Laboratory Second iteration OBC submitted to Government in June 2024. Feedback to be provided by Government. Page 233
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4.2 Full Business Case Costs 4.2.1 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 HIE and Scottish Enterprise. The Policy and Resources Committee have previously approved the release of 4 tranches of funding totalling £600k from the Inward Investment Fund 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 approved spend on RGD project development work stands at £569,358. 4.2.2 There is an Earmarked Reserve of £540,897 for the Inward Investment Fund, with £307,232 of this previously committed. Therefore there is a remaining balance of £233,665 available to support the development of the Rural Growth Deal. 4.2.3 A number of the Outline Business Cases are nearing approval and it is not expected that further funds will be required to support Outline Business Cases, with the exception of the Islay Low Carbon Economy project which is still at options appraisal stage. The RGD PMO have been scoping requirements for FBCs, and it is anticipated that the costs associated with development of the FBC for each project will be in the region of £20k-£30k. At this time, a total of 14 FBCs will be required across the programme. Some of these will be funded by RGD Partners such as HIE. 4.2.4 The RGD PMO have commissioned Stantec to undertake the FBCs for the Kintyre Seasports and Tobermory Housing projects, given these projects will be delivered in the early phases of the RGD Programme. The FBC for Rothesay Pavilion has already been completed and the Council is in the process of agreeing a conditional endorsement of £9m of RGD funding for this project. 4.2.5 The Policy and Resources Committee are asked to approve a further £150k of funding from the Inward Investment Fund to support the development of RGD FBC’s and associated pre-construction works e.g. planning, detailed design and consultancy support. Aligned with previous arrangements, funds will only be drawn down subject to the approval of the Council’s Chief Executive and two Executive Directors. Any further drawdown from the Inward Investment will require approval of the Policy and Resources Committee. 5.0 Detailed Design Costs 5.1 A significant amount of project development work is necessary in order to complete Treasury Five Case compliant FBC’s. 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); Page 234
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• Procurement – costs in the FBC should be based on a tendering exercise; • Match funding – must be identified and 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. 5.2 Pre-construction activities such as Detailed Design incur considerable expense for the Council and RGD Partners. The appointment of a Detailed Design team will include an Architect, Quantity Surveyor, Engineers and Project Manager support. As a general estimate, up to 10% of project capital budgets should allocated for Detailed Design costs. 5.3 Detailed design has to be undertaken to inform the project FBC therefore spend will be incurred at risk to the Council and project partners. The figure below details the approvals process for RGD projects in advance of funding drawdown:- 5.4 The key risk the to the Council and project partners is construction tenders being unaffordable and projects having funding gaps requiring additional match funding or a requirement to value engineer or reallocate RGD funds. In this scenario the Council and/or RGD Partners could have incurred significant abortive costs associated with project development work. 5.5 Funding of project development costs is a risk that is common across all City Region and Growth Deals in the UK. Appendix 1 includes projected timescales for detailed design development and FBC submission for the wider RGD programme. It should be noted that these are current projected timescales and that it is likely that they may change depending on project development progress. Projects are currently profiled to ensure compliance with a funding drawdown of circa £5m per annum. 5.8 Where there is a requirement to fund detailed design and project development costs upfront, a report on each project will be brought to the Policy and Resources Committee to allow Members to consider the request and associated costs and risks. 6.0 Kintyre Seasports 6.1 Kintyre Seasports received OBC approval on 4th July 2024. This project seeks to redevelop the existing Campbeltown Sailing Club facility into a modern watersports facility. The total budget available for capital works through the 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 Page 235
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Rural Growth Deal is £2m. The RGD PMO and Kintyre Seasports continue to seek other opportunities for match funding. 6.2 This project is programmed to begin construction in Autumn 2025, therefore there is a urgent need to progress the detailed design work necessary for the FBC. This project has already scoped detailed design requirements and undertaken a tender however was subsequently abandoned as the tendered costs returned were in excess of the threshold for an unregulated procurement. There was only one tender return with a value of circa £238k. The scope of works included all detailed design and support through to handover of the new facility. 6.3 Procurement activity has been undertaken on an “on behalf” of basis with Argyll and Bute Council undertaking procurement activity on behalf of Kintyre Seasports. It is proposed that Argyll and Bute Council would pay all invoices associated with works, given that Kintyre Seasports would be unable to cash flow the project themselves. 6.4 The RGD PMO and KSS are liaising with colleagues from the Council’s Procurement Team to agree next steps. The PMO are also investigating opportunities associated with a design and build contract or a reduced scope of works to try and limit financial risk to the Council and KSS. 6.5 Members are asked to approve spend of up to £250k to support the next stage of project development for Kintyre Seasports, including Detailed Design works. It is expected that the cost of this will be retrospectively claimed from the Rural Growth Deal following endorsement of the project FBC by Central Government. With the exception of Rothesay Pavilion, this is the first project within the RGD programme to reach detailed design stage. 7.0 CONCLUSION 7.1 The next key milestone in the RGD process is the signing of the Full Deal Agreement. It is anticipated that a revised date for Full Deal Signing will be agreed with Central Government following the UK General Election on the 4th July. 7.2 The RGD PMO continue to work with key stakeholders and Stantec to develop RGD projects and progress associated project business cases. To date, all projects within the RGD programme have submitted at least one iteration of their OBC or FBC to Central Government and have received feedback. It should be noted that this process can take several months. 7.3 The Policy and Resources Committee have previously approved the release of 4 tranches of funding totalling £600k 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 £569,358. Page 236
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7.4 Following signing of the Full Deal Agreement, it will be necessary to draft FBC’s for all projects. Drawdown of RGD funding is subject to endorsement of FBC’s 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 FBC’s. 7.5 The Policy and Resources Committee are asked to approve a further £150,000 draw down from the Inward Investment Fund to support the development of Full Business Cases and associated project work. 7.6 The OBC for Kintyre Seasports will shortly be approved and the Policy and Resources Committee are asked to approve spend of up to £250k on this project to support the next stages of development, including detailed design works. It is expected that these costs will be retrospectively claimed from the RGD funds following endorsement of the FBC by Central Government. 7.7 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. 8.0 IMPLICATIONS 8.1 Policy – The RGD is consistent with the Council’s Economic Strategy. 8.2 Financial – RGD Projects require a level of upfront spend at risk to allow project development to progress. Support will be required from Financial Services. There are limited remaining funds in the Inward Investment Fund to support Rural Growth Deal Development costs, however capital costs can be claimed back from RGD funds following endorsement of FBCs and at the discretion of the Section 95 Officer. 8.3 Legal – The RGD may require input from Legal Services as part of the Full Deal Signing. 8.4 HR – None at present. 8.5 Fairer Scotland Duty: Required as part of OBC process. 8.5.1 Equalities - protected characteristics - Equality Impact Assessments are required for all RGD projects. 8.5.2 Socio-economic Duty - The Rural Growth Deal will follow Scottish Government guidance on Inclusive growth including measures to address socio-economic disadvantage 8.5.3 Islands – Islands impact assessments required as part of OBC process where necessary. 8.6 Climate Change – Carbon Management Plans are required for all RGD business cases. Page 237
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8.7 Risk – Spend incurred in advance of approval of FBCs will be at risk to lead partner. 8.8 Customer Service – None at present. 8.9 The Rights of the Child (UNCRC) – None at present. Kirsty Flanagan, Executive Director with responsibility for Development and Economic Growth Councillor Jim Lynch, Leader of Argyll and Bute Council June 2024 For further information contact: Fergus Murray, Head of Development and Economic Growth Fergus.Murray@argyll-bute.gov.uk Jonathan Welch, Transformational Projects and Regeneration Manager Jonathan.Welch@argyll-bute.gov.uk APPENDICES Appendix 1 – Rural Growth Deal Projected Programme (as at July 2024) Page 238
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Appendix 1: Rural Growth Deal Projected Programme (as at July 2024) The following table shows the current projected delivery timeframe for RGD Projects. It should be noted that there may be changes to the Programme as projects progress through their development stages. Project OBC Approval Pre- Construction Phase* FBC Endorsement Projected Construction Start Rothesay Pavilion N/A Stage 1 works ongoing Conditional Endorseme nt expected July 2024 Stage 2 & 3 due to start September/ October 2024 Kintyre Seasports Received July 2024 July 2024- July 2025 Expected September 2025 October 2025 Creating a low carbon economy – Islay Project has returned to options appraisal. TBC TBC TBC RSAP - South STEM Hub (Dunoon) Rural Skills Accelerator Programme Level OBC is expected to be approved by October 2024 2024/25- 2025/26 Expected 2026/27 2026/27 RSAP - North STEM Hub (Oban) 2025/26- 2026/27 Expected 2026/27 2026/27 RSAP - UHI Argyll College Built Environment (Dunoon) 2027/28- 2028/29 Expected 2028/29 2028/29 RSAP - Business Skills N/A Expected December 2024 Delivery of Business Skills Programme to begin in 2025/26 Housing - Isle of Mull Expected August 2024 2024-2025 Expected December 2024 2025/26 Housing - Isle of Islay Expected by March 2025 2027/28 Expected 2027/28 2028/29 Clyde Engineering and Innovation Cluster Expected August 2024 2027/28- 2028/29 Expected 2029/30 2029/30 West Coast Aviation, UAV, Robotics and Compliance Hub Expected August 2024 2030/31 Expected 2031/32 2032/33 MAP - Machrihanish Innovation Campus Expected September 2024 2025/26 Expected 2025/26 2025/26 MAP - SAMS International Seaweed Expected September 2024 2026/27- 2027/28 Expected 2027/28 2027/28 Page 239
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and Shellfish Industry R&D Centre MAP - Marine Industry Training Centre Expected October 2024 2026/27- 2027/28 Expected 2027/28 2027/28 Page 240
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Page 1 of 6 ARGYLL AND BUTE COUNCIL POLICY & RESOURCES COMMITTEE CUSTOMER SUPPORT SERVICES 15th August 2024 DATA STRATEGY AND ACTION PLAN 2024-2028 1.0 EXECUTIVE SUMMARY 1.1 In accordance with the presentation to the Members’ Seminar on 21st November 2023, the council’s Data Advisory Group has prepared a new Data Strategy and Action Plan for 2024-28 which is attached. 1.2 This Data Strategy aims to achieve Argyll and Bute Council’s “Connect for Success” objective of embedding data and evidence driven decision-making at every level of the organisation. It will also advance the new mission statement stated in the data strategy of “Improving outcomes for our residents and communities through better combination and use of data”. 1.3 This Data Strategy will sit alongside Argyll and Bute Council’s existing ICT & Digital Strategy for 2021-24 and its forthcoming update for 2025-28. 1.4 Policy & Resources Committee is asked to endorse the Data Strategy and Action Plan for 2024-28, attached at Appendix 1. Page 241 Agenda Item 13
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Page 2 of 6 ARGYLL AND BUTE COUNCIL POLICY & RESOURCES COMMITTEE CUSTOMER SUPPORT SERVICES 15th August 2024 DATA STRATEGY AND ACTION PLAN 2024-2028 2.0 INTRODUCTION 2.1 In accordance with the presentation to the Members’ Seminar on 21st November 2023, the council’s Data Advisory Group has prepared a new Data Strategy and Action Plan for 2024-28 which is attached and presented for noting. 2.2 This Data Strategy aims to achieve Argyll and Bute Council’s “Connect for Success” objective of embedding data and evidence driven decision-making at every level of the organisation. It will also advance the new mission statement stated in the data strategy of “Improving outcomes for our residents and communities through better combination and use of data”. 2.3 This Data Strategy will sit alongside Argyll and Bute Council’s existing ICT & Digital Strategy for 2021-24 and its forthcoming update for 2025-28. 3.0 RECOMMENDATIONS Members are asked to: 3.1 Endorse the new Data Strategy and Action Plan for 2024-28, attached at Appendix 1. 3.2 Recognise the value and importance of data for decision-making. Page 242
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Page 3 of 6 4.0 DETAIL 4.1 Principle 4 of the council’s “Connect for Success” programme calls for the pursuit of data and evidence driven decision-making. To help make this happen, in March 2022 the council’s Data Advisory Group was established as a one-council, cross-service forum for considering data-focussed solutions to operational and strategic challenges. At the end of 2022 this group arranged for the council’s participation in cohort 2 of the Scottish Government’s Data Maturity programme within their new public sector Data Transformation Framework. 4.2 Not surprisingly, the data maturity assessment results indicated strengths in some areas but weaknesses in others, as summarised in the table below: Data Maturity Assessment Results (December 2022) Data Maturity Metric Score* Data Assets 3.8 Data Culture 3.8 Data Use 3.7 Data Skills 3.5 Data Leadership 3.4 Data Analysis 3.3 Data Tools 3.3 * Scores rated on a scale from 0 to 5. These results are comparable to those of other Scottish Local Authorities who have completed the assessment. The Data Advisory Group has used these results as a catalyst to help structure the data strategy and action plan which will build upon the strengths and address those areas with lower scores. 4.3 The objectives of the data strategy and action plan cover 12 themes grouped around People, Processes and Technology. The document recognises that all three of these areas are critical, and to focus only on one or two is unlikely to lead to success. Each of the 12 themes are described in page 4 of Appendix 1. 4.4 A key benefit of the Data Strategy and Action Plan will be to prioritise attention and resources toward the most relevant data challenges and opportunities. The document covers a 5-year period during which opportunities will arise both from within the council and from trends emerging outside the council. The strategy will provide a framework through which such opportunities can be assessed, so that new opportunities offering ways to progress objectives laid out in the strategy will have stronger justification for attention and resourcing. Page 243
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Page 4 of 6 4.5 Elected Members will have a key role in helping the Data Strategy and Action plan to succeed by: a) Endorsing the new data strategy and its objectives; b) Being advocates for open data and helping to identify opportunities to publish useful information residents will find valuable; c) Making use of the new PowerBI version of the Area Committee Scorecard report available in the Members Area of the Hub; d) Supporting new and innovative uses of data across council services and in conjunction with trusted external partners; e) Recognising the value and importance of data for decision-making. 4.6 Throughout the activities within the action plan accompanying the data strategy there is an essential role for the council’s services. The Data Advisory Group and the Data Programme will provide tools, such as the council’s new Data Platform and Microsoft’s PowerBI, and shared learning on successful implementations of these tools for other services to consider emulating. It is, however, within the services themselves that the subject matter expertise relating to their service demands and operations sits, so their active participation in the Data Advisory Group and the broader data strategy activities will be essential. 5.0 CONCLUSION 5.1 Argyll and Bute Council is recognised nationally for its innovative use of data, for example having been cited as a case study in the Scottish Government and COSLA’s Data Strategy for Health and Social Care in February 2023 for using data to deliver integrated care. The council’s new Data Strategy and Action Plan for 2024-28 will continue the focus on harnessing the value of the council’s data to improve service delivery and ultimately outcomes for our residents and communities. 6.0 IMPLICATIONS 6.1 Policy A new Data Strategy and Action Plan has been developed to cover the period from 2024 to 2028. This aligns with the ICT & Digital Strategy for 2021 to 2024 and its forthcoming update for 2025-28. Page 244
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Page 5 of 6 6.2 Financial 6.3 Legal 6.4 HR 6.5 Fairer Scotland Duty: 6.5.1 Equalities - protected characteristics 6.5.2 Socio- economic Duty 6.5.3 Islands 6.6 Climate Change 6.7 Risk Delivering the objectives of the data strategy will require the council to continue its track record of investment in: a) Microsoft licenses, with diligence identifying and maximising value-for-money; b) ICT physical assets such as the new data platform and associated infrastructure; c) Human resource through training and skills development. New opportunities to advance the strategy which can be maximised by one-off expenditure or further revenue investment will be raised through existing DMT and SMT governance channels. Aims to ensure compliance with all relevant legislation. Several of the aims of the data strategy and action plan will lead to positive outcomes for staff, including: a) learning pathways to enhance workforce data literacy and skills, b) An enhanced data culture in the organisation. c) Having more time to spend on rewarding tasks such as interpreting data to gain service insight, rather than the repetitive effort of data collection and manual processing. Better use of data will lead to positive outcomes for service users in several ways, including reduced risk of unintentional bias against service users with protected characteristics. Better use of data will allow services to be designed and delivered around a more complete understanding of the status and socio-economic needs of our residents and communities. More effective use of data will enable the council to better take account of intersectional/geographic disadvantage and tailor service delivery and resource prioritisation accordingly. Since in its first few stages the data strategy will focus on maximizing use of council ICT’s existing on- premise SQL Server infrastructure no noticeable increase in carbon cost is expected. The strategy aims to manage data protection risks by embedding strong data governance and staff Page 245
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Page 6 of 6 6.8 Customer Service 6.9 The Rights of the Child (UNCRC) awareness of their fundamental responsibility to care for the council’s data. Potential to further improve services through data driven decision making leading to positive outcomes for staff and customers. A well-implemented data strategy can help local authorities uphold these rights. For instance, the data platform will combine datasets from across local government and provide frontline professionals with better awareness of the children receiving services. Kirsty Flanagan Executive Director with responsibility for Customer Support Services Policy Lead: Mark Irvine 15th August 2024 For further information contact: Jane Fowler, Head of Customer Support Services Tel 01546-604466 or Gerry Wilson, ICT and Digital Manager Tel 01436-658936 APPENDICES Appendix 1 – Data Strategy and Action Plan 2024-28 Page 246
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Data Strategy & Action Plan 2024 - 2028 Page 247
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Data Strategy & Action Plan: 2024-2028 Page 2 of 19 Introduction Purpose The purpose of this data strategy and action plan is to introduce and advance the council’s new mission statement for data: “To improve outcomes for our residents and communities through better combination and use of data.” This mission closely aligns with two of the council’s “Connect for Success” Change Programme principles: Principle 4: data and evidence driven decision making. Principle 7: maximising opportunities from technology. The importance of data and evidence driven decision making in Principle 4 cannot be over-stated. These are unprecedented times with local authorities facing signficant, prolonged, funding challenges. The ability to focus limited resources in ways that deliver the greatest value and impact has never been more important. To do so the council must have an informed understanding of the circumstances, needs and demands of our residents and communities. This will require harnessing the data we hold, and combining it with data from the wider public sector and other sources, so as to have a more complete picture of the lived realities of those we serve. Background To achieve the objectives above, the council must lay solid foundations upon which to build a new one-council approach to data. This process began in March 2022 with the creation of the council’s new Data Advisory Group (DAG). With representation from across the council’s services, the DAG represents a one-council, service-led forum for data. Toward the end of 2022 the DAG planned and prepared the council’s participation, along with several other local authorities, in the Scottish Government’s Data Maturity Assessment programme which included a staff survey on data. The assessment gave a score for data maturity across seven metrics with results summarised in the following table… Page 248
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Data Strategy & Action Plan: 2024-2028 Page 3 of 19 Data Maturity Argyll & Bute Council Data Maturity Assessment Results (December 2022) Maturity Metric Score* Data Assets 3.8 Data Culture 3.8 Data Use 3.7 Data Skills 3.5 Data Leadership 3.4 Data Analysis 3.3 Data Tools 3.3 * Scores rated on a scale from 0 to 5. Our scores for these data maturity metrics were very similar to those of other councils. For example the high score for “Data Assets” shows that local authorities are commonly “data rich” with many and varied sets of adminstrative data collected in relation to the operation of council services. Whereas for tools and analysis all councils commonly face the challenge of having data split across multiple silos, stored in systems which do not readily interact with each other, making a one-council approach to analysing and working with data a significant challenge. Where we do score well is on “Data Culture”. This can be a difficult concept to define but a clear indicator of data culture is the quality and nature of the conversations that happen within the organisation about data, its importance, and our responsibility for it. It is likely we scored comparatively well for this theme due to the positive influence of the Data Advisory Group which at the time of the assessment had been functioning for six months and was already encouraging cross-service conversations about data. Within the Data Maturity Framework our scores were rated as “Developing” maturity and our aim is to progress through to the “Mastering” stage with improved scores between 4 and 5. This is where our data strategy and action plan will drive change. To truly succeed in our mission to improve outcomes with data, by making decisions based on reliable and timely data, we need to harness data as a one-council resource, unhindered by silos, and with a workforce empowered with the skills they need to gain valuable insights from data. Therefore this strategy and action plan will focus on twelve strategic themes below… Page 249
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Data Strategy & Action Plan: 2024-2028 Page 4 of 19 Strategic Themes Items underlined in the following summary of strategic themes relate to the maturity metrics from the Data Maturity Assessment above: People Empowering our workforce with data literacy and skills. Making available suitable learning pathways for all council staff. Defining data roles and responsibilities. Providing data leadership and nominated data owners in each service. Embedding a strong data culture. Encouraging innovation through a one-council approach. Processes Supporting service transformation. Providing clear insight and understanding of service demand and citizens’ needs. Embedding good data governance. Ensuring data quality, standards, security, ethics and compliance are maintained at all times. Supporting workflow and process automation. Reducing unnecessary effort, data duplication and manual data handling. Shifting from reactive to predictive service delivery. Through trend monitoring, forecasting & other proactive analysis. Maximising council performance and resource prioritisation. Improving collation and distribution of performance and benchmarking data. Broadening open data sharing. Making more datasets available on the council website. Technology Developing the data platform and associated data architecture. Making shared resources and data assets available to services for more effective data use. Enabling adoption of PowerBI, AI and other data tools. Creation and use of more powerful reports and processes to support operational and strategic decision making. Factoring data features into line of business systems. Working with council services and Procurement to ensure new systems have rich data capabilities. The “Action Plan by Theme” section below aligns with the strategic themes above and outlines specific, achievable activities for the five year period 2024-2028 to advance our data maturity. These activities will be coordinated within the council’s data programme… Page 250
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Data Strategy & Action Plan: 2024-2028 Page 5 of 19 The Data Programme The council’s data programme is the combination of groups and resources which together will drive forward the council’s strategic objectives for data. The key elements of the data programme are summarised below. The Data Advisory Group (DAG) Created in March 2022 and chaired by the Head of Customer and Support Services, Jane Fowler, the DAG includes representatives from across council services and works with the Executive Leadership Team to define the data requirements for strategic, data-driven, decision making. The DAG will have a crucial role to play in delivery of the data strategy action plan deliverables below and so is referred to in many of the specific activities. The Data Technical Group (DTG) Including more data-facing representatives from across council services, the DTG scopes and translates the DAG’s data requirements into technical specifications for deliverable data products, including PowerBI reports and dashboards. In practice there will be multiple short-life working groups within the DTG focussed on addressing specific requirements, sometimes across multiple services. Crucially there will always be representation in the DTG sub-groups from the services who expect to gain value from the new data product being implemented so as to bring their service-specific subject matter expertise to the solution. The Legal and Regulatory team will also be involved, especially on products where there’s any use of personally identifiable information. In some cases there may also be involvement from external third-parties who can bring a valued technical perspective, such as the Improvement Service, Public Health Scotland, etc. The Data Product Roadmap The roadmap represents the pipeline of data products with delivery dates scheduled through continuous negotiation between the DAG and DTG. Together they will agree on priority setting and securing the resources required to support the development of specific data products, e.g. where costs may be incurred with system suppliers for essential data feature development, etc. In this context data products will include not only PowerBI reports and dashboards, but also solutions for process workflow and automation where the DAG has reviewed challenge solution proposals from the nominating service(s). Microsoft PowerBI One of the products in the Microsoft 365 (M365) productivity suite, PowerBI includes some familiar aspects of Microsoft Excel but with much greater capacity to combine and visualise data from multiple sources. Since the council has a long-term plan for the adoption and utilisation of M365 it is expected that PowerBI will form a key component of the strategy’s one-council approach to data. However if during the lifetime of this strategy Page 251
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Data Strategy & Action Plan: 2024-2028 Page 6 of 19 The Future Microsoft’s commitment to PowerBI changes then there are other similar non-Microsoft products on the market which can be used instead, such as Tableau, SAP Analytics, and others. The Data Platform In effect this will be the council’s first implementation of a data warehouse or data lake. (In essence, the difference is a data warehouse is designed to apply a high degree of structure and organisation to data when it is stored, whereas a data lake is designed to accumulate large volumes of data at a more rapid pace with less focus on organising and structuring the data at the point of collection.) The Data Platform will be essential to allowing “democratised” access to data for use in PowerBI report building by services themselves, working within or along-side the DTG sub-groups. The Data Platform will also allow for access to datasets to be controlled and managed by a robust permissions framework; ensure consistent application of data quality, ethics and standards; and enable the FAIR Principles of making data Findable, Accessible, Interoperable and Re-usable. In conclusion, the data programme will orchestrate the efforts of the groups and resources above so as to ensure council priorities are met. It will also ensure the data products green-lit by the DAG are developed by the DTG sub-groups and delivered on time in accordance with the data product roadmap by leveraging PowerBI, the data platform and other suitable data tools and resources. The next five years will likely see technological change at an unimaginable pace. In June 2018, the research organisation OpenAI first introduced the concept of Generative Pre-trained Transformers (GPTs). Five years later, in March 2023, they released GPT-4 which began to fundamentally transform how we as humans interact with immense volumes of digitised data using natural language. Just as five years ago few anticipated where OpenAI’s GPT research might lead, so we expect our own data strategy and action plan will need to be a living document. As the front-line of data innovation advances we will keep this strategy and the following action plan under review, and updates will be made where necessitated by the pace of change around us. Page 252
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Data Strategy & Action Plan: 2024-2028 Page 7 of 19 Action Plan by Theme People Empowering our workforce with DATA LITERACY & SKILLS What success will look like: Everyone in the organisation will have confidence in their ability to: Understand the importance and relevance of the data they help to collect and rely on for their work. Suggest new ways in which data can be harnessed to improve service delivery and business outcomes. Apply critical thinking to data presented in reports and analysis so as to validate conclusions and recommendations in them. Everyone will have access to skills development resources and learning opportunities to progress through pathways designed to be relevant to how they use data. Decisions taken at every level of the organisation will be informed by critical thinking applied to relevant, timely, reliable data. WHAT WHY WHO BY WHEN The corporate training programme will be updated to include suitable learning opportunities around data. A key driver of success is ensuring our employees have the necessary data skills and knowledge available to them. Data Programme, HROD April 2024 Pilot adoption of some or all of the data skills development resources emerging from the Scottish Government’s public sector Data Transformation Framework programme through the work being conducted between Perth & Kinross Council, the Scottish Digital Academy (SDA) and others. A shared need to develop and embed workforce data skills emerged as a common theme from the local authorities who, like us, completed data maturity assessments. The SDA are piloting a persona-based data skills curriculum which, having learning pathways tailored to local government, could have tangible benefits for the whole council. Scottish Government’s Data Transformation Framework, SDA, Data Programme, HROD December 2024 The Data Advisory Group (DAG) will provide a route through which council services can raise challenges arising around data skills so that suitable measures to address them can be considered. The Data Programme will provide an annual report summarising these emerging requirements to HROD. A crucial role of the DAG is to act as a one- council forum for data. By services discussing skills requirements and challenges at the DAG, common themes will emerge which HROD can take as inputs for planning the skills development programme. Data Advisory Group, Data Programme, HROD April 2024 April 2025 April 2026 April 2027 April 2028 Repeat the Data Maturity Assessment from the Scottish Government’s Data Transformation Framework, after some of the above measures have been implemented. To measure progress in the data maturity skills journey against the 2022 baseline and identify the next stages of development required. Data Programme, Data Advisory Group Dec 2025 Page 253
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Data Strategy & Action Plan: 2024-2028 Page 8 of 19 People Defining DATA ROLES & RESPONSIBILITIES What success will look like: Everyone will understand the importance of data to their work, to the council’s operations, and to positive outcomes for our citizens. Everyone will understand their own personal role(s) and responsibilities for data, ranging from ensuring accuracy at point of collection, to data owners’ authorisation of re-use of data in a safe and compliant manner. Processes and procedures agreed and adopted for the compliant and ethical use and management of data will be clearly understood and consistently adhered to across the organisation. WHAT WHY WHO BY WHEN Members of the Data Advisory Group (DAG) will be provided with an updated Terms of Reference for the group. Members of the DAG play an important role in reviewing, assessing and prioritising data challenge proposals from services. Data Programme March 2024 A new Terms of Reference for the Data Technical Group (DTG) will be produced and shared with participants in the sub-groups. This will have a particular focus on the important role staff involved in DTG sub-groups play in ensuring appropriate data governance (see related “Processes” theme). DTG sub-groups are short-life working groups established to develop specific data products. Some members are fixed (Legal & Regulatory) while others will engage only as and when required, so a clear understanding of roles is especially important for these sub-groups. Data Programme Information Management Steering Group March 2024 The Argyll and Bute Manager programme will be updated to promote data and evidence-driven behaviours. Manager’s behaviours around data will be important in ensuring the positive impact of data on service delivery and outcomes. HROD, Data Programme, Data Advisory Group December 2024 Continued engagement with the Scottish Government’s public sector Data Transformation Framework programme for guidance on good practice when defining roles and responsibilities relevant to the Scottish public sector and local government in particular. The Data Programme will provide an annual report to the DAG summarising the material emerging from the framework with recommendations for action/adoption. From the local authorities who, like us, have conducted data maturity assessments a shared need emerged for everyone to understand their roles and responsibilities in relation to data. In absence of such understanding staff may sometimes assume data quality, security, compliance, etc., are someone else’s responsibility. Scottish Government’s Data Transformation Framework, Data Programme, Data Advisory Group April 2024 April 2025 April 2026 April 2027 April 2028 The council’s Data Catalogue will be instituted and will include the services’ nominated data owners for each line-of-business system. These service data owners will be involved via the DTG sub-groups when their systems are deemed relevant to a specific data product. Data Programme March 2024 Page 254
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Data Strategy & Action Plan: 2024-2028 Page 9 of 19 People Embedding a strong DATA CULTURE What success will look like: We will take a one-council approach to data, with data silos being less of a barrier to how data is used. We will work together to identify common challenges and recognise data as a key ingredient to solutions. Decision-making will improve as the organisation shifts to recognising the value of data-informed, intelligence-led, decisions. Everyone will be empowered to speak up if they see an opportunity to improve data quality, service delivery, or citizen outcomes by using data differently. Employee engagement will increase as staff perspectives on data are respected and their suggestions for using data to innovate recognised. Employee satisfaction and retention will increase as those with responsibility for data in their teams will feel less isolated and more valued as a member of a broad, supportive data community within and beyond the organisation. WHAT WHY WHO BY WHEN The Data Advisory Group (DAG) will seek to encourage attendance and participation from more service representatives. One sign of a strong data culture is the fruitful conversations that happen within the organisation and the extent to which those conversations cross service boundaries. As the council’s “data forum” the DAG will seek not only to encourage such conversations but also translate emerging themes into actions for change. Data Advisory Group Data Programme All Services All services having at least one nominated representative on the DAG: July 2024 The Data Technical Group (DTG) will democratise access to the council’s data resources, including PowerBI and the data platform. Anyone with an interest in using these tools for their service’s priorities will be encouraged to participate in a DTG sub-group where the sub-group has been tasked with the evaluation and delivery of a data product from the DAG’s roadmap relating to their service. Services don’t rely on others to build Excel spreadsheets for them, and the aim is for services to become similarly self-sufficient with PowerBI. As well as involving skills development this self- sufficiency will require hands-on experience. The DTG sub-groups will share opportunities to gain this experience while also allowing staff to contribute their personal expertise. Data Technical Group Data Programme All Services All services having had at least two representatives on data product DTG sub-groups: December 2025 The Data Culture will be extended beyond the council with officers encouraged to engage with relevant external partners. DAG will have at least two presentations per year by external partners with data expertise to share. Ideas for impactful innovation can come from many sources, including through ideas exchange with external parties on concepts which have been shown to have worked elsewhere. Data Advisory Group All Services December 2024 December 2025 December 2026 December 2027 December 2028 Page 255
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Data Strategy & Action Plan: 2024-2028 Page 10 of 19 Processes Supporting SERVICE TRANSFORMATION What success will look like: The principles of the Scottish Approach to Service Design will be enabled by, amongst other things, having access to relevant data on user needs and service demand both now and projected into the future. Collection and analysis of data about our service users and their needs will be enabled, both by easier access to survey response data, and through relevant administrative data collected by the council and other public sector agencies. Analysis of actual service usage data will allow us to recognise and address common pressure points which present persistent challenges for effective service delivery. Data-driven service transformation will lead to greater consistency across the council’s change programme, where business intelligence provides for a coherent approach toward the objectives of business process change. We will see expansion from the day-to-day operational uses of data, to the more complex analytical use of data for making evidence-led decisions to support optimised service design and delivery. WHAT WHY WHO BY WHEN The Data Advisory Group (DAG) will encourage engagement from any service contemplating service transformation or other specific business process change exercise. The DAG will support services to increase the likelihood of successful service transformation, but the drive for change must come from the services themselves. With clearly outlined objectives from the service the DAG and data programme can then engage with the service to bring data skills and resources to bear. Data Advisory Group Data Programme All Services Ongoing The Data Programme will work with HROD to establish and maintain a reference archive of case studies where council services have conducted service transformation exercises, detailing how data was used as a key ingredient for success in the transformation. Common themes often emerge from service transformation exercises: stakeholder engagement, risk mitigation, cost/benefit projections, etc. Data Programme HROD August 2024 The Data Programme will provide an annual report to the DAG summarising service transformations which concluded in the preceding year where data provided a critical ingredient for the planning and/or successful delivery of the transformation. By sharing learning from past successes, and challenges, each new transformation exercise builds on the strengths of those before. Data Advisory Group Data Programme All Services April 2024 April 2025 April 2026 April 2027 April 2028 Page 256
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Data Strategy & Action Plan: 2024-2028 Page 11 of 19 Processes Embedding good DATA GOVERNANCE What success will look like: Data quality, reliability and overall decision-making will be improved with less risk of decisions being taken based on a false representation/understanding of the situation on the ground. We will have greater confidence in the council’s legal and regulatory compliance through a better understanding of how data is being stored and used. Everyone will have a clearer understanding of how decisions are taken to use, re-use and share data, both internally and with partners. This will lead to more opportunities being taken to share and re-use data, with protocols in place to do so in a secure and compliant manner. Agreed processes and procedures for the storage and handling of data will be adhered to, including a robust and consistent approach to data standards and the ethical use of data. WHAT WHY WHO BY WHEN The Data Advisory Group will be represented on the council’s new Information Management Steering Group (IMSG). Although the IMSG has no governance role over the DAG, both groups have a common interest in good data governance, and so the DAG may sometimes escalate issues arising with data to the IMSG. Decisions made by the Data Advisory Group and the Information Management Steering Group will be mutually impactful in the context of data storage, processing and handling and as such will be taken in concert with each other to achieve optimal outcomes for the council. Data Advisory Group, IM Steering Group, Data Programme February 2024 The design and implementation of data products approved by the Data Advisory Group will be subject to robust data governance review by the Data Technical Group, with representation and expertise from the Legal & Regulatory team where necessary. While the focus of the DAG will be on using data to meet the strategic objectives of the council, the DTG sub-groups will have clearer sight on the specific data sources required to build the products and so better able to scope the data governance implications of (re)using the data. Data Technical Group Legal & Regulatory Ongoing Where the DTG discovers development of a data product approved by the DAG would be blocked, delayed, or constrained by data quality or reliability issues, these issues will be escalated to the DAG for review. The DAG may in turn escalate them for the attention of the IMSG. The DAG will receive an annual report of issues escalated to the IMSG with a summary of their current status. In many cases issues with a dataset will have been encountered before and be known to the service. By raising such issues with the IM Steering Group a decision can be taken on whether devoting resources to fix/resolve the issue is justified, or it’s more prudent to defer a solution and absorb the opportunity cost to the council of not being able to fully utilise the data. Data Advisory Group, IM Steering Group, Data Programme April 2024 April 2025 April 2026 April 2027 April 2028 Page 257
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Data Strategy & Action Plan: 2024-2028 Page 12 of 19 Processes Supporting WORKFLOW & PROCESS AUTOMATION What success will look like: Increased employee satisfaction as task automation will allow reallocation of staff time away from repetitive data input, collation of routine returns, etc., to other more interesting and rewarding activities. Business processes which are automated will see reduced incidence of errors and increased efficiency. This will include robust design and testing to ensure errors don’t become “baked in” to automated processes from the outset. Increased productivity, where staff able to leverage automated workflow tools will find they can process a larger number of cases/activities in the same amount of time. For service users, their experience of an automated workflow will often be faster and more consistent. WHAT WHY WHO BY WHEN Services will be encouraged to bring to the Data Advisory Group (DAG) use-case proposals where the service has identified opportunities for workflow and process automation. Services will know where existing processes are highly repetitive and/or labour intensive. By bringing use-cases to the DAG forum there can be discussion amongst the DAG’s service and technology specialists of possible solutions. Data Advisory Group All Services On-going Potential use-cases for implementing workflow and process automation can be treated as special cases of the data challenge proposals which the DAG reviews. A variation of the existing data challenge proposal submission process will be agreed and adopted. As with potential PowerBI reports, the potential effort and impact of use-cases for workflow and process automation will vary. That said, the proposal process must reflect the considerations for DAG to evaluate are similar but different. Data Advisory Group, Data Programme, ICT Apps Team, Digital Team April 2024 The Data Programme will establish and maintain a reference archive of case studies where council services have successfully implemented workflow and process automation projects, and how data was used as a key ingredient for success in each. By sharing learning from services’ successful implementations of workflow and process automation, each new implementation builds on the strengths of those which came before. Data Programme August 2024 Services will be made aware of the broad and evolving toolkit to which the council has access for implementing workflow and process automation. DAG will receive at least two presentations per year on the opportunities offered by, and recent successes of, the workflow and process automation toolkit. By increasing awareness of tools such as Microsoft PowerAutomate, Create-RPA (Robotic Process Automation) and similar tools which become available over the coming years, services will be better able to recognise opportunities for bringing use-cases to the DAG for consideration. Data Advisory Group Data Programme December 2024 December 2025 December 2026 December 2027 December 2028 Page 258
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Data Strategy & Action Plan: 2024-2028 Page 13 of 19 Processes Shifting from reactive to PROACTIVE SERVICE DELIVERY What success will look like: More of the council’s resources will be focussed on activities that have a proactive, pre-emptive rather than reactive, impact. A positive impact on council budgets will come from more focus on preventative maintenance and interventions rather than more costly, after-the-event, responses. Services will be offered to our citizens and communities closer to the time when they need them, rather than after an adverse event or crisis has already occurred. Greater customer satisfaction will stem from a more citizen-centric approach, with a larger proportion of customer interactions relating to requirements being met rather than missed. WHAT WHY WHO BY WHEN Council services will be encouraged to identify situations in which the focus of some aspects of their service delivery can be shifted to a more proactive approach. These will be packaged for review by the Data Advisory Group as data challenge proposals for prioritisation and resourcing. Services themselves best understand how resources are spent on service delivery, and where there are the best opportunities to shift focus to “upstream” activities to improve service delivery and outcomes. All Services Data Advisory Group On-going Making more data available to council services about service demand and service delivery; data upon which predictions can be made both at a high level and where possible for specific service users. A proactive approach to service delivery relies on being able to anticipate events, which in turn relies on trend analysis and recognising patterns in past events which may be repeating in real time, both at service level and in the needs and circumstances of individual service users. Data Programme (See themes on the “data platform” and “data tools” below.) On-going Working with partners nationally (e.g. Improvement Service, PHS, other councils, academia, the private sector, etc.) to explore opportunities to adopt predictive models locally which have been proven to be impactful. The Data Programme will provide an annual report to the DAG summarising pro-active service delivery use-cases which concluded in the preceding year, acknowledging third-party involvement where relevant. As a local authority we have limited resources but also face challenges which are shared by other councils. We will make more progress in transitioning from reactive to predictive service delivery if we seek opportunities to learn from the success of others and then share those successes internally. Data Programme Data Advisory Group April 2024 April 2025 April 2026 April 2027 April 2028 Page 259
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Data Strategy & Action Plan: 2024-2028 Page 14 of 19 Processes Maximising council PERFORMANCE & RESOURCE PRIORITISATION What success will look like: We will be able to proactively use and scrutinise past performance data to improve future performance. We will be able to bring performance datasets together and enable linkages to be made across a range of factors affecting performance. We will be able to comply with Statutory Performance Information (SPI) Direction requirements. Enhanced performance data will be used to identify demands and opportunities to focus council resources on objectives which improve performance and service outcomes in key areas. Stakeholders inside and outside of the council will obtain greater value from performance reporting arrangements, e.g. where the council’s enhanced data architecture allows for more timely or frequent performance reporting. WHAT WHY WHO BY WHEN Aligning with the Performance Excellence Project (PEP), identify new ways to provide performance data. There will be focus throughout on accuracy, consistency of template style, accessibility, and satisfying the requirements of the stakeholders who use the performance data. PowerBI and the data platform will provide new, more effective, options for collating and distributing performance data. The PEP will define the “what” and “why” of performance reporting while the Data Programme will provide the technical support and infrastructure to help deliver on the PEP’s objectives. Performance Excellence Project Data Programme August 2024 Transition from performance data collection via Excel spreadsheets to a more robust data collection framework based on data interoperability between the council’s line-of-business systems and the data platform. This may in turn lead to opportunities to increase the frequency of some performance reporting. Once established, the data platform will be the optimum data source for PowerBI reports. Transitioning performance reports from Excel to the data platform collecting data directly from relevant line-of-business systems will reduce the burden of performance reporting and potentially increase the timeliness of reporting. Performance Excellence Project Data Programme ICT Apps Team December 2025 Transition from current retrospective reporting against targets to more forward-looking actionable intelligence and analytics. Reporting of past performance is useful up to a point, but to obtain actionable insight for bringing about change we need to be able to analyse patterns and trends so as to influence future performance. Performance Excellence Project Data Programme December 2025 Page 260
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Data Strategy & Action Plan: 2024-2028 Page 15 of 19 Processes Broadening OPEN DATA Sharing What success will look like: Members of the public and other interested parties will be able to access specific council open data and information via the council website. Time spent by council staff answering questions and responding to information requests will be reduced by channelling more of these enquiries to the open data published on the website. Open data and information on the council website will be published and updated with a high degree of accuracy and minimal administrative effort through largely automated data extraction and processing directly from line-of-business systems with robust data quality checks. Our published open data inventory will compare favourably to the breadth and currency of the open data offered by other Scottish local authorities of similar size. WHAT WHY WHO BY WHEN Identify the types of data and information requests which are most frequent and/or which take the most staff effort to answer/fulfil. A key benefit of publishing open data is to reduce the burden on council staff to respond to incoming information requests. Data Advisory Group March 2024 Benchmark the open data published by other Scottish local authorities. Learning from other councils who have derived benefit from publishing specific open data. Data Programme May 2024 Create a prioritised list of the target additional open datasets to be published on the council website. Taking into account the relative ease/complexity of automating the data collection, approval process, etc. Aiming to find the optimal balance between targeting datasets for which there will be a clear demand, while also relatively easy to publish in a fully or largely automated manner. Data Advisory Group Data Programme July 2024 Proof of concept: leveraging the new Data Platform, publish one new open dataset on the council’s website, to establish the robustness of the automated data collection, quality checks and approval process. Aiming to establish a start-to-finish process for publishing the first open dataset which, if shown to be successful, can be repeated for subsequent target datasets. ICT Apps team and the relevant Service (to which the data belongs) September 2024 Achieve 50% of the open datasets from the target list being published. Measuring public access and avoided manual staff effort to handle diverted enquiries. A key milestone, although timing may shift if the target inventory of in-demand open datasets grows/changes over time. ICT Apps team and relevant Services April 2026 Achieve 80% of the open datasets from the target list being published. Measuring public access and avoided manual staff effort to handle diverted enquiries. The final 20% likely left to last because those have minimal benefit from publishing and/or would be the most difficult to automate. ICT Apps team and relevant Services April 2028 Refresh the annual benchmarking exercise against open data published by other Scottish local authorities of a similar size. So as to ensure maintenance of comparable status within that group of local authorities and provide equivalent value to our stakeholders. Data Programme Annually from May 2025 Page 261
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Data Strategy & Action Plan: 2024-2028 Page 16 of 19 Technology Delivering the DATA PLATFORM & Related Architecture What success will look like: Services wanting to solve challenges with data will have access to a corporate resource in the data platform which makes it easier for them to combine their own data with datasets shared by other council services and brought in from trusted external bodies/partners. Services wanting to use the enhanced reporting and analysis features of PowerBI but having had limited experience using it will be able to rely on some of the more complex data cleaning, modelling and transformation tasks being done for them within the data platform, making their task of creating the PowerBI reports simpler. Staff will become less dependent on pulling data out of line-of-business systems into Excel for purpose of processing and manipulating data (e.g. for repetitive returns) as the data collation and processing will happen on a fully or largely automated basis within the data platform. Overall accuracy and reliability of the council’s data will increase as quality control processes become embedded into the data platform workflows and will alert data owners when discrepancies in data are found automatically. WHAT WHY WHO BY WHEN Designing and implementing the target data model (a logical structure for organising and finding data) to be embedded in the data platform. This is a representation of the “things” within the council’s data (people, places, assets, etc.) and is essential for building data products. Data Programme, ICT Apps February 2024 Designing and implementing the robust access/permissions model to be embedded in the data platform. The data platform must simultaneously keep the council’s data secure while also making it easy for service staff to share and access. IM Steering Group, ICT Apps February 2024 Designing and implementing the “data mart”, that is the part of the data platform which report builders in the services can see to pull data into their PowerBI reports. The data platform cannot be entirely transparent, i.e. data owners in each service will choose how much or how little of their data to share via the data mart, and with whom. Data Programme, ICT Apps March 2024 Linking the data platform to council line-of-business systems through a shared data architecture. This will be done on an as-needed basis as and when the DAG approves specific service data challenge proposals. The aim is to have data arrive and update in the data platform with little or no manual effort. But the “pipes” through which data arrives must be implemented system-by-system. Data Advisory Group, Data Technical Group, ICT Apps March 2024 Update of the business case for shifting the data platform from “on premise” to “cloud” hosting. There are features of Microsoft’s “data fabric” cloud products which are recognised as potentially useful, if the significant revenue costs can be justified. Costs associated with Microsoft “data fabric” are significant and the cost/benefit business case was not proven in the September 2022 business case. Evidence to justify the shift will be reviewed and the business case updated. Data Programme, ICT Apps August 2025 Page 262
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Data Strategy & Action Plan: 2024-2028 Page 17 of 19 Technology Enabling the adoption of POWERBI, AI and other data tools. What success will look like: Services will use reports built in PowerBI to monitor operational data in near real-time, so as to be able to intervene in situations where service delivery metrics are outside of expected tolerances. Services will use data analysed and presented in PowerBI to better understand service demand and stress factors affecting service delivery. Reports traditionally produced monthly or quarterly will be shifting to more frequent reporting as PowerBI reports, leveraging the data platform and associated data architecture, will be able to update more frequently with little or no additional administrative effort. Services will use more advanced features of PowerBI, such as trend analysis and AI (artificial intelligence) “co-pilot” for plain-English queries to ask questions of data which would previously have been impossible to answer using Microsoft Excel alone. The council will maximise its use of Sharepoint Online to make compliance with retention and disposal policies more effective. The council will be able to more powerfully lobby the Scottish Government and others by using PowerBI to tell more effective stories with data using maps and other visualisations. WHAT WHY WHO BY WHEN Services will be encouraged to bring to the Data Advisory Group (DAG) data challenge proposals where the service has identified opportunities for PowerBI, data analytics, or AI to make a positive, impactful difference to service delivery and outcomes. By bringing data challenges to the DAG forum there can be an informed discussion amongst the DAG’s service and technology specialists of possible solutions. The DAG can help determine prioritisation and allocation of resource, including any software licenses when required. Data Advisory Group All Services Ongoing The Data Programme will establish and maintain a reference archive accessible to all services of case studies where council services have successfully implemented PowerBI, AI or other tools. Common themes often emerge from technology projects: risk mitigation, cost/benefit projections, etc. By sharing learning from past successes each new data product development builds on the strengths of those which came before. Data Programme March 2024 The Data Programme will present to the Data Advisory Group, at least twice per year, updates on potential uses of emerging technologies such as AI, Large- language Models, Microsoft Co-pilot, etc. Opportunities for the council to use new data- driven technologies are constantly emerging but require critical, realistic evaluation and risk assessment and cost/benefit analysis. Data Advisory Group Data Programme December 2024 December 2025 December 2026 December 2027 December 2028 Page 263
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Data Strategy & Action Plan: 2024-2028 Page 18 of 19 Technology Factoring DATA FEATURES into line-of-business systems What success will look like: While keeping our data secure, our systems will also make it easier, not harder, to harness our data to for reporting and analysis. Our systems will allow for interoperability, i.e. systems can exchange data and use common identifiers, such as Unique Property Reference Numbers, which make combining and sharing data between systems easier. Our systems will allow for recognised local government and statutory data standards to be applied consistently. Our systems will allow for portability of our data, i.e. when we change solution supplier for a given system we won’t face unreasonable hurdles to moving our data to the new system. WHAT WHY WHO BY WHEN When data products, e.g. new reports, on the data programme product roadmap are blocked, or have their functionality curtailed due to feature limitations of a line-of-business system, this will trigger a dialogue with the supplier to try and resolve the constraint. When the Data Advisory Group has tasked the Data Technical Group with building a specific data product, e.g. a PowerBI report, the success of the product will often depend on its ability to access data held in line-of-business systems. Data Advisory Group Data Technical Group ICT Ongoing Create a standard set of procurement requirements for when systems are being implemented or replaced that reflect the organisation’s need for rich data capabilities such as support for APIs (application programming interfaces), query/reporting tools for data extraction, and interoperability with the council’s data platform. Such standardised requirements will ensure: our requirements for compliance with accepted local government and statutory data standards are met, our requirements for interoperability and data extraction are met. Data Programme ICT June 2024 Engage with system suppliers in their ongoing development of business applications to encourage richer data capabilities in their product roadmaps. Engagement will be directly through customer user groups as well as through national bodies such as SOCITM and Scotland Excel. The Data Programme will provide an annual report to the DAG summarising engagement with suppliers in the preceding year, with an indication of the outcome and/or current status of each. Software suppliers operate in a competitive market. Since most of our expectations of their products are similar to those of other local authorities, collectively we have a better chance of getting fit-for-purpose systems if we press suppliers to continually improve their offerings. For example, requiring systems that support near realtime connections from PowerBI and/or the council’s data platform, use of RPA (robotic process automation) agents, etc. Data Programme ICT April 2024 April 2025 April 2026 April 2027 April 2028 Page 264
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1 ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE COMMERCIAL SERVICES 15th AUGUST 2024 COMMUNITY EMPOWERMENT (SCOTLAND) ACT 2015 – UPDATE – EXPRESSIONS OF INTEREST / ASSET TRANSFER REQUESTS / PARTICIPATION REQUESTS / REPORTING REQUIREMENTS 1. EXECUTIVE SUMMARY 1.1 The purpose of this report is to advise the Policy and Resources Committee on: • The operation of the processes in regard to formal Asset Transfer Requests (ATR) and Participation Requests in terms of the Community Empowerment (Scotland) Act 2015; • Current live informal Expressions of Interest (EOI’s) which may become subject to a formal asset transfer request or be dealt with outwith the formal asset transfer request process; • Current live ongoing or agreed Participation Requests received by the Council; and • The annual reporting requirements in respect of Asset Transfer Requests and Participation Requests set out in Section 95 and 32 of the Community Empowerment (Scotland) Act 2015 respectively. 1.2 At the Elected Members seminar on 21st March 2023 it was agreed that updates on ATRs and EOIs would be provided on a regular basis. Accordingly, this report will be circulated to all Members following the committee and a quarterly update is provided directly to all Members between the annual reporting. RECOMMENDATIONS 1.3 It is recommended that: 1.3.1 The Policy and Resources Committee consider the report. Page 267 Agenda Item 14
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2 ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE COMMERCIAL SERVICES 15th AUGUST 2024 COMMUNITY EMPOWERMENT (SCOTLAND) ACT 2015 – UPDATE – EXPRESSIONS OF INTEREST / ASSET TRANSFER REQUESTS / PARTICIPATION REQUESTS / REPORTING REQUIREMENTS 2. INTRODUCTION 2.1 The purpose of this report is to advise the Policy and Resources Committee on: • The operation of the processes in regard to formal Asset Transfer Requests and Participation Requests in terms of the Community Empowerment (Scotland) Act 2015; • Current live informal Expressions of Interest (EOI’s) which may become subject to a formal asset transfer request or be dealt with outwith the formal asset transfer request process; • Current live ongoing or agreed Participation Requests received by the Council; and • The annual reporting requirements in respect of Asset Transfer Requests and Participation Requests set out in Section 95 and 32 of the Community Empowerment (Scotland) Act 2015 respectively. 2.2 At the Elected Members seminar on 21st March 2023 it was agreed that updates on ATRs and EOIs would be provided on a regular basis. Accordingly, this report will be circulated to all Members following the committee and a quarterly update is provided directly to all Members between the annual reporting. 3. RECOMMENDATIONS 3.1 It is recommended that: 3.1.1 The Policy and Resources Committee consider the report. 4. DETAIL 4.1 The Council operates processes in compliance with parts 3 and 5 of the Community Empowerment (Scotland) Act 2015 in regard to: • Asset Transfer Requests (ATR’s) (part 5 of the Act) which came into force on 23 January 2017. ATR’s enable community bodies to make requests to all local authorities, Scottish Ministers and a range of public bodies for any land or buildings they feel they could make better use of. They can request ownership, lease or other rights as they wish. Page 268
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3 • Participation Requests (Part 3 of the Act) which came in to force on 1 April 2017. These are requests to public bodies which, if granted, enable communities to participate in decisions and processes which are aimed at improving outcomes. EXPRESSIONS OF INTEREST (EOIs) 4.2 There were twenty (20) active Expressions of Interest (EOIs) (as at 5th June 2024) and these EOI’s are listed in Appendix 1. Since the update report in August 2023, 5 EOI’s have been received. To date, since January 2017, 88 EOIs have been received of which 68 have been resolved or withdrawn. It should be noted that the Council has continued to engage with community groups who have had EOI’s active for a significant period of time and while they remain active the requesters have not yet moved them on. There are currently no significant actions outstanding for the Council in relation to these. 4.3 Further, most EOIs would not progress or develop into a formal asset transfer request. EOIs are dealt with in a way that seeks to deliver the outcome required by the community group allowing the request to progress outwith the formal asset transfer process. Some EOIs are also withdrawn for a variety of reasons such as the group changing focus of what was needed, a better option becoming available or a lack of time and resources to progress their plans. ASSET TRANSFER REQUESTS 4.4 The Council has put in place information, advice and guidance to community bodies who are interested in making a formal ATR and further information on this can be found on the Council’s website at https://www.argyll-bute.gov.uk/my-community/communities-and-partnerships/community-asset- transfer/asset-transfer-expressions. There have been 3 ATRs submitted following the implementation of the Act and as at 5th June 2024 there were no active ATRs. PARTICIPATION REQUESTS 4.5 Part 3 of the Community Empowerment (Scotland) Act 2015 provides a framework for the use of participation requests by community bodies, with the intention of enabling communities to have more influence over services and decisions which affect them. Part 3 of the Act came into force on the 1st April 2017. 4.6 In line with the requirements of the Act, the Council has put in place a procedure which allows consideration of any requests made by community bodies. The procedure and further information can be found on the Council’s website at https://www.argyll-bute.gov.uk/my-community/communities-and-partnerships/find-out-more- about-participation-requests 4.7 During the period 1 April 2023 to 31 March 2024, the Council received 2 participation requests. Page 269
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4 ASSET TRANSFER AND PARTICIPATION REQUESTS - ANNUAL REPORTING REQUIREMENTS 4.8 Section 95 of the Community Empowerment (Scotland) Act 2015 requires the Council to publish an annual report setting out the numbers of asset transfer requests received and their outcomes. 4.9 The report also requires to set out what the Council has done to 1: promote the use of asset transfer requests and 2: support community bodies to make requests and can be found on the Council’s asset transfer webpages here: https://www.argyll-bute.gov.uk/my-community/communities-and-partnerships/community-asset- transfer https://www.argyll-bute.gov.uk/asset-transfer-support 4.10 Annual reports cover each year from 1 April to 31 March and must be published by 30 June. 4.11 Section 32 of the Act also requires the Council to publish an annual report in respect of Participation Requests setting out: • The number of requests received; • The number of requests agreed and refused; • The number of requests which resulted in changes to a public service provided by, or on behalf of, the public service authority; and • Any action taken by the public service authority to promote and support the use of participation requests. 4.12 Annual reports Participation Requests cover each year from 1 April to 31 March and must be published by 30 June. The relevant report has been published on the website https://www.argyll-bute.gov.uk/my-community/communities-and-partnerships/participation- requests-annual-reports 5. CONCLUSION 5.1 This report advises the Policy and Resources Committee on the operation, of the processes in regard to Asset Transfer Requests and Participation Requests in terms of the Community Empowerment Act 2015 and updates on ATR’s, EOI’s and Participation Requests to date. 5.2 It is recommended that the Policy and Resources Committee consider the contents of the report. 6. IMPLICATIONS 6.1 Policy – In line with council policy relating to Asset Transfer and Participation Request processes. 6.2 Financial – None from annual reporting. 6.3 Legal – In line with statutory requirements of the Community Empowerment (Scotland) Act 2015 and related Regulations. Page 270
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5 6.4 HR – None. 6.5 Fairer Scotland Duty 6.5.1 Equalities – Protected characteristics – None. 6.5.2 Socio economic Duty – None. 6.5.3 Islands – None from annual reporting. 6.6 Climate change – None from annual reporting. 6.7 Risk – Failure to meet statutory requirements could have reputational implications for the council. 6.8 Customer Service – None. 6.9 The Rights of the Child (UNCRC) – None from annual reporting. Douglas Hendry - Executive Director with responsibility for Commercial Services Councillor Ross Moreland – Policy Lead, Finance and Commercial Services Date: 5th July 2024 For further information contact: Ross McLaughlin, Head of Commercial Services, 01436 658 914 David Allan, Estates and Property Development Manager, 01436 657 620 David Rennie, Partnerships Development Officer, 01700 501 371 Page 271
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6 Appendix 1 Current Active Expressions of Interest (as at 5th June 2024) It should be noted that the Council has continued to engage with community groups who have had EOI’s active for a significant period of time and while they remain active the requesters have not yet moved them on. No Organisation Asset Summary of Expression of Interest Current Status 1 Mid Argyll Rugby Club (MARC) Kilmory Pony Park show ground Request to lease the ground for development of rugby facilities. Terms agreed with MARC and approved. Vacant possession required prior to conclusion of lease and interim option at Ropework Park is progressing. 2 South Islay Development Ramsay Hall Request to lease the building to redevelop the facility and operate the services. Group are pulling together a funding package to develop the asset. 3 Rhu and Shandon Community Centre Rhu Community Centre Request for lease to assist in applying for development funding for the building Terms are under discussion but the approach requires to be consistent with other halls / community facilities. Support is being provided to the group. 4 Kilfinan Community Forest Company (KCFC) Tighnabruaic h Primary School Grazings access Request to acquire ground to formalise access. Group assisted to secure an independent valuation and are applying to the Land Fund to support the acquisition of the ground. Land Fund application has been submitted awaiting results. 5 The Dunoon Project Ltd Morag’s Fairy Glen & Bishop’s Glen, Dunoon Request to acquire the sites to support the delivery of the wider project and improve the public access and facilities. Initial investigations completed and awaiting further feedback from the group. Significant project which will take time to develop. 6 Ardrishaig King George V Community Park Association King George V Park, Ardrishaig Request to develop the facilities and maintenance arrangements of the park Group are being supported to develop their request. 7 Dunoon Youth Football League Black Park, Dunoon Request to bring back into use the green football pitch on the Black Park site working in partnership with the Council and Live Argyll Initial licence to reopen changing rooms concluded. Group are developing proposals for next phase of project. Page 272
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7 8 Dunoon Pipe Band Dunoon Pipe Band Hall, Dunoon Request for a new lease of the hall. Group are being supported to develop their request. 9 Princess Louise Hall Committee Princess Louise Hall & Howie Pavilion, Rosneath Request for new lease of hall and pavilion Terms agreed and approved. Legal Services progressing towards concluding lease. 10 Jura Development Trust Jura Roads Yard, Craighouse Pier, Isle of Jura Request to acquire yard to expand the group’s adjacent business. Depot is required operationally so would require an alternative location if closed. Group seeking alternative locations. 11 Oban Lorne RFC Glencruitten playing fields, Oban Request to lease / acquire playing fields and clubhouse and to develop new facilities Terms agreed and approved. Legal Services progressing towards concluding lease 12 Lismore Community Trust Lismore Pier, Isle of Lismore Request to acquire pier facilities and public toilets Group are working on a number of projects and are being supported to develop their request. 13 Isle of Bute Seasports Club Seasports club house / store. Request for new lease of site and clubhouse Terms are being discussed prior to seeking internal approval to proceed. 14 Balemartine Community Garden Association Balemartine Schoolhouse Playing field Request to develop vacant site into Community Garden for local residents and children’s play area Group are being supported with request, which has developed slowly. Site also being considered for housing development but may accommodate both uses. 15 Argyll and the Isles Coast and Countryside Trust Land adjacent to Kilmory Castle car park Request to relocate their base of operations into the Kilmory Estate ACT office base in Kilmory now concluded. Discussions on woodland hub are progressing. 16 Port Bannatyne Community Garden Port Bannatyne community garden Request for Licence to undertake gardening and environmental improvement programmes Terms are being discussed prior to seeking internal approval to proceed. 17 West Kintyre Community Council Tayinloan Ferry public convenience Request to acquire public convenience to allow demolition and development of new facilities Land ownership is being confirmed and terms are being discussed prior to seeking internal approval to proceed. 18 Luing Development Trust Land at Fladda, Luing Request to acquire ground for the development of affordable homes for residents and workers Land ownership is being confirmed and terms are being discussed prior to seeking internal approval to proceed. Page 273
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8 19 Helensburgh Pier Company Helensburgh Pier Request for a 50 year lease of pier to allow a phased redevelopment Land ownership is being confirmed and terms are being discussed prior to seeking internal approval to proceed. 20 Avich & Kilchrenan Community Heritables Kilchrenan Primary School Request to acquire school to develop as a community hub Schools consultation process will not end until November 2024 after which request can progress. Page 274
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE CLIMATE CHANGE BOARD 15TH August 2024 COUNCIL CARBON EMISSIONS 2022/2023 1.0 EXECUTIVE SUMMARY 1.0 Scotland has some of the most ambitious targets and progressive legislation in terms of climate change in the world. Public sector bodies, including Councils, will play a key role in meeting the Scottish Government’s 2045 Net Zero target and have statutory climate change duties under the Climate Change (Scotland) Act 2009 to: Cut greenhouse gas emissions, prepare for the impacts of climate change, and act sustainably. The most recent results from the Public Bodies Climate Change Duties Report for the financial year 2022/23 are now available online, and have been published in the Sustainable Scotland Network’s ‘Summary Analysis’ report in May 2024. 1.1 188 public bodies, including Local Authorities, NHS Boards, Educational Institutions, Transport Partnerships, and Integration Joint Boards across Scotland have reported via the 2022/23 Public Bodies Climate Change Duties. These reports include information on corporate emissions, projects, renewables, emission targets, and climate adaptation action. Total emissions reported in 2022/23 in Scotland via the Public Bodies Climate Change Duties Report is 2,786,823 tCO2e. 1.2 Argyll and Bute Council has reported a 6% decrease in its carbon emissions in 2022/23. The Council’s carbon footprint reduced by 1,705 tCO2e, from 28,217 tCO2e in 2021/22 to 26,512 tCO2e in 2022/23. Since the Council commenced reporting in 2015/16, there has been an overall 32.8% reduction in emissions. Further examination of figures shows that decreases across Scope 1, 2 and 3 emission sources have been achieved by the Council in the 2022/23 reporting period. 1.3 The Council’s key climate change document is the Decarbonisation Plan, which was adopted in December 2021, confirming the Council’s commitment to achieving net zero emissions by 2045, in line with the Scottish Government’s target. Page 275 Agenda Item 15
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2.0 RECOMMENDATIONS That the Policy and Resources Committee are asked to consider: 2.1 The publication of the Council’s 2022/23 Public Bodies Climate Change Duties report, confirming a 6% decrease in emissions reported for the year. The Council’s carbon footprint reduced by 1,705 tCO2e, from 28,217 tCO2e in 2021/22 to 26,512 tCO2e in 2022/23; and 2.2 the Full Decarbonisation Tracker update attached at Appendix A. Page 276
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ARGYLL AND BUTE COUNCIL POLICY & RESOURCES COMMITTEE CLIMATE CHANGE BOARD 15th August 2024 COUNCIL CARBON EMISSIONS 2022/2023 3.0 INTRODUCTION 3.1 The ‘Climate Change (Duties of Public Bodies; Reporting Requirements) (Scotland) Order 2015’ as amended by the Climate Change (Duties of Public Bodies: Reporting Requirements) (Scotland) Amendment Order 2020, requires public bodies to report annually on compliance with climate change duties. Mandatory reporting began in 2015/16. Argyll and Bute Council is one of these organisations required to publish annual emissions data. The most recent Public Bodies Climate Change Duties Report is now available on the Sustainable Scotland Network website, along with the 2022/23 ‘Summary Analysis’ report published in May 2024. 3.2 It is important to note that the Public Bodies Climate Change Duties Report records the corporate emissions of the Council, and does not reflect regional territorial emissions. The Argyll and Bute Community Planning Partnership is responsible for progressing the regional Climate Action Strategy. 3.3 The Climate Change Board reports progress to the Policy and Resources Committee on a regular basis. This report outlines overarching activities of the Climate Change Board to the Council, providing a snapshot of key contributors to Council emissions, progress and areas for improvement. The Council’s work on climate change continues to align with the Decarbonisation Plan, providing strategic direction on achieving net zero by 2045. 4.0 RECOMMENDATIONS That the Policy and Resources Committee are asked to consider: Page 277
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4.1 The publication of the Council’s 2022/23 Public Bodies Climate Change Duties report, confirming a 6% decrease in emissions reported for the year. The Council’s carbon footprint reduced by 1,705 tCO2e, from 28,217 tCO2e in 2021/22 to 26,512 tCO2e in 2022/23, and 4.2 the Full Decarbonisation Tracker update attached at Appendix A. 5.0 SUMMARY OF PUBLIC BODIES CLIMATE CHANGE DUTIES REPORT 5.1 Since 2015/16 Argyll and Bute Council has published data on its annual carbon emissions via the statutory Public Bodies Climate Change Duties Reporting mechanism. Consistent reporting criteria enables year on year comparison. Greenhouse gas emissions are measured in ‘tonnes of carbon dioxide equivalent’ (tCO2e), allowing comparison of different emission types. Table 1 – Annual Emissions with Baseline Reference Year Year Scope1 Scope2 Scope3 Total Units Comments Baseline carbon footprint 2015/16 10,768 11,701 16995 39,464 tCO2e Year 1 carbon footprint 2016/17 9,146 9,790 16,594 35,530 tCO2e Year 2 carbon footprint 2017/18 9,438 7,798 19,569 36,805 tCO2e Municipal waste to landfill is the Council's largest contributor to its carbon footprint; despite a reduction in municipal waste to landfill, the significant increase in the relevant carbon emissions factor has caused an upturn in scope 3 emissions. Year 3 carbon footprint 2018/19 8,937 5,862 19,938 34,737 tCO2e This represents a 12% reduction in 3 years. Year 4 carbon footprint 2019/20 8,849 4,687 15,107 28,643 tCO2e Page 278
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Year 5 carbon footprint 2020/21 8,611 4,178 13,830 26,619 tCO2e Year 6 carbon footprint 2021/22 8,905 4,236 15,076 28,218 tCO2e 6% increase Year 7 carbon footprint 2022/23 8,701 3,780 14,031 26,512 tCO2e 6% decrease 5.2 Annual carbon footprint trend from 2015/16 to 2022/23 is shown in Graph 1 below. Graph 1 – Annual Carbon Emissions 5.3 Emissions generated from all Council activities is reported, therefore it is useful to examine emissions arising from different sources across Council teams – please see Table 2 and Graph 2 below. All Council services have a responsibility to monitor and reduce carbon emissions. 39464 35530 36805 34737 28643 26619 28217 26512 20000 22000 24000 26000 28000 30000 32000 34000 36000 38000 40000 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 tCO2e Year Argyll and Bute Council - Annual Carbon Emissions Page 279
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Table 2 – Breakdown of Council Emission Sources 2022/23 Emission Source Emissions (tCO2e) Comments Municipal Waste to Landfill 12,866 ~ 48% of total emissions Natural Gas 3,829 ~ 14% of total emissions. Gas used mainly as heating source in buildings. Grid Electricity 3,445 ~ 13% of total emissions Fleet – (petrol & diesel vehicles) 2,805 ~ 11% of total emissions Gas Oil & LPG 2,067 ~ 8% – mainly for building heating Street lighting 681 ~ 3% Business Miles (unspecified fuel) 358 ~ 1% All other activities 461 ~ 2% of total carbon footprint includes collections for recycling, water treatment, tyre processing, glass / WEEE recycling Graph 2 – Breakdown of Council Emission Sources 2022/23 48% 14% 13% 11% 8% 3% 1% 2% Argyll and Bute Council Emission Sources Breakdown 2022/23 Municipal Waste to Landfill - 48% Natural Gas - 14% Grid Electricity - 13% Fleet (petrol & diesel) - 11% Gas Oil & LPG - 8% Streetlighting - 3% Business Miles - 1% All other activities - 2% Page 280
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5.4 Emissions generated by different Council activities have remained fairly consistent for a number of years, and although small variations have been reported, percentage contributions remain broadly unchanged. Municipal waste disposed to landfill is responsible for approximately half of the total Council emissions figure, however compliance with the Biodegradable Municipal Waste Landfill Ban will realise future reductions for that particular emission source. Additionally, continued decarbonisation of heat in buildings, installation of renewable technology and energy efficiency measures along with the Council’s fleet transitioning to electric and hybrid low-emission vehicles will support further reductions in Council emissions. 5.5 The Council continues to generate renewable heat and energy, with figures provided in Table 3 below. Table 3 – Generation, consumption and export of renewable energy 2022/23 Renewable Electricity Renewable Heat TECHNOLOGY Total consumed by the organisation (kWh) Total exported (kWh) Total consumed by the organisation (kWh) Total exported (kWh) Solar PV 950,000 0 Wind 15,000 135,000 Biomass 4,678,800 0 Air Source Heat Pump 130,000 0 5.6 Graph 3 below shows all 32 Scottish Local Authorities annual carbon emissions for 2022/23, with Argyll and Bute Council highlighted in red. Average emissions across all local authorities is illustrated by the dotted line. It is difficult to compare local authorities, with factors such as population, geographic area and internal processes (particularly waste treatment) all impacting reported emissions. Page 281
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Graph 3 – Scottish Local Authorities 2022/23 Annual Emissions 5.7 Looking ahead, there are anticipated changes to the data to be reported by Scotland’s public bodies in the coming years, with an increasing focus on Scope 3 emissions arising from supply chain and procurement activities 6.0 CONCLUSION 6.1 It is a requirement for our Council to publish annual carbon emissions for the Scottish Government. This report highlights our overall emissions for most recent period 2022/23. 7.0 IMPLICATIONS 7.1 Policy – Meeting obligations and commitment to Climate Change. 7.2 Financial – No direct linkage. 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 0 20000 40000 60000 80000 100000 120000 Aberdeen City Council Aberdeenshire Council Angus Council Argyll and Bute Council City of Edinburgh Council Clackmannanshire Council Comhairle nan Eilean Siar Dumfries and Galloway… Dundee City Council East Ayrshire Council East Dunbartonshire Council East Lothian Council East Renfrewshire Council Falkirk Council Fife Council Glasgow City Council Inverclyde Council Midlothian Council Moray Council North Ayrshire Council North Lanarkshire Council Orkney Islands Council Perth and Kinross Council Renfrewshire Council Scottish Borders Council Shetland Islands Council South Ayrshire Council South Lanarkshire Council Stirling Council The Highland Council West Dunbartonshire Council West Lothian Counciltonnes of CO2 equivalent (tCO2e) Local Authority Scottish Local Authorities - 2022/23 Annual Emissions Page 282
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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. Douglas Hendry Executive Director with Responsibility for Commercial Services Policy Lead for Climate Change, Renewables and Net Zero, Councillor Luna Martin 15 August 2024 For further information contact: Ross McLaughlin, Head of Commercial Services Helensburgh and Lomond Civic Centre ross.mclaughlin@argyll-bute.gov.uk APPENDICES Appendix A – Climate Change Decarbonisation Tracker – August 2024 Page 283
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Appendix A – Climate Change 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 PPP UPDATE.pdf (argyll- bute.gov.uk) Waste Update – EDI committee 1/6/2023 WASTE PPP UPDATE.pdf (argyll- bute.gov.uk) Waste Update – EDI committee 31/8/2023 WASTE UPDATE - EDI Nov 2023.pdf (argyll- bute.gov.uk) Waste Update – EDI committee 30/11/2023 WASTE UPDATE.pdf (argyll- bute.gov.uk) Waste Update – EDI committee 20/6/24 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 Page 284
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS currently purchase SUP products consider whether these products are essential or if there is a potential alternative that would meet the Service requirements, prior to orders being placed via PECOS or contacting the Procurement, Commercial and Contract Management Team (PCCMT) for a procurement process to be carried out. • Note and consider that the Sustainable Procurement Policy will be updated to reflect the Climate Change Board desire to limit SUP where possible –wording has been included in the Annual Review 2023/2024 version of the Procurement Strategy 2022/2025 as follows: “To provide procurement support to any strategic decisions taken by the Council in relation to the usage of Single Use Plastic products and their recyclability.” • Note and consider that the Commodity Sourcing Strategy templates used for Regulated Procurements Page 285
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS have been updated to include a question regarding SUP. Changes in legislation were brought into force by the Scottish Government on the 1st June 2022 restricting single-use plastic cutlery, plates, straws, drink stirrers and balloon sticks, expanded polystyrene food containers and expanded polystyrene cups and other beverage containers, as well as all 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 Page 286
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS the procurement strategy for Argyll & Bute Council Net Zero Routemap. E2 – Delivery of Non-domestic Energy Efficiency Framework (NDEEF) Projects (L) Commercial Services Evidence of delivery of projects Project development work is funded by combinations of the Scottish Government and the procured provider (costs absorbed within the tender process). Funding for project implementation will come from Council approved capital allocations: • Climate Change 20/21 - £500K • Climate Change 21/22 - £600K • Asset Sustainability – £175K Non Domestic Energy Efficiency Fund (NDEEF1) Energy Performance Contract was signed on 16 July 2021 (circa £1.25m investment with 10 year payback). The originally intended mini project list has been fully delivered. Following on from the P&R Committee report in May 2023: May PR - Climate Change -NDEEF Progress update.pdf (argyll- bute.gov.uk), four final mini projects, which were added as contract variations, remained to be implemented. Tarbert School LED lighting was installed in the 2023 school summer recess; Kilmory Nursery solar pv was installed in September 2023; the intended low carbon heating solution and pv installation at Cardross PS have been intentionally delayed whilst we try to access a recently launched funding scheme: Scotland’s Public Sector Heat Decarbonisation Fund | Salix Finance. A bid was submitted by the 5/12/23 fund deadline (value £460K with the Council needing to contribute 20% of that). Bid outcomes will be communicated February 2024. Bid was unsuccessful and subsequently £150k of funding Page 287
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS 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. 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. E3 – Delivery of additional solar installations at Council assets (L) Commercial Services Evidence of delivery of projects Consultancy work funding to be confirmed; expectation is that project implementation will be through combinations of prudential borrowing (subject to business case approvals) and/or external funding. Best solar pv opportunities are being delivered within NDEEF (Ref item E2) and advantage is also being taken to install solar pv solutions within the asset sustainability capital programme where possible e.g. as a component of roof upgrades. The potential for a large solar pv ground array at the Kilmory Estate is currently being limited due to electric grid constraints – engagement with SSEN is ongoing to try to identify solutions. The Council now has 27no solar pv installations in operation amounting to over 1.3MW capacity. DRAX have offered installation of free solar pv at Dalmally PS as part of the community benefits flowing from the Page 288
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS planned expansion of Ben Cruachan power station. Discussions have been going on from June 2024. 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 of sites and is underway. Program to introduce Water efficiency measures has commenced and will be complete 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 To date since 1st July 2023 Argyll and Bute Council has spent £1,520,315 of a £1,979,827 budget awarded by the Scottish Government’s Energy Efficient Scotland – Area Based Scheme (ABS), facilitating insulation measures on privately owned and privately rented properties in mainland and island addresses throughout Argyll and Bute. Non- means tested grants of between Page 289
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS £9,000 and £21,000 are available to all eligible households for the application of insulation, helping to significantly reduce household consumption of energy on a “Fabric First” basis contributing towards both the Council’s and Scottish Government’s carbon reduction targets. In addition, a joint project on multi-tenure properties in conjunction with Argyll Community Housing Association in Bute and Tarbert insulated 80 properties in 2023/24. 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. 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 June 2024) carbon totals – 122 tonnes. E7 – Continue support of ABRA and review Renewable Energy Strategy annually (L) Economic Development Evidence of delivery of projects Officer resource to support currently funded ABRA met in March 2024 with a further meeting being planned for the autumn. SSE Networks continue Page 290
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS upgrade works of overhead power lines to increase capacity to 275kv. The outline business case for Islay Energy System work through the Rural Growth Deal has been rejected by Government and amended proposals are being prepared. The Carbon Neutral Islands Capital Fund is expected to launch imminently with a value of £1m. 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 , expected to seek consent during the mid -2020s. ESB are progressing Malin Wind, a floating wind proposal awarded through the INTOG leasing. T1 – Develop a Fleet Replacement Strategy supportive of fuel efficient, electric and hybrid vehicles (L) Roads and Infrastructure Services Adoption of Strategy Part for current financial year The Fleet Replacement Strategy is complete but is subject to on-going change in line with legislative changes as it is an operational document. T2 – Develop a vehicle routing system that will reduce road miles for operations (L) Roads and Infrastructure Services Evidence of delivery of projects Part for current financial year This is progressing. The project has slipped slightly due to staff availability and the data gathering and cleansing stage taking longer than we might have hoped. There was a report to EDI in March which sets out the revised position and project timeline. T3 – Develop an electric vehicle infrastructure strategy (L) Roads and Infrastructure Services Evidence of delivery of projects Part for current financial year The strategy and expansion plan is in place – we cannot move forward with a delivery programme until such time Page 291
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ACTION LEAD (L) AND
PARTNERS
TARGET or
MILESTONE
FUNDING COMMENTS
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
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
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
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.
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS 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. 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. 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 cycling are lower cost travel modes and, if they are a viable option, can help households reduce their reliance on private cars, particularly multiple car households. 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 for Council by the end of 2024. The Active Travel Strategy would provide Page 293
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS 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. • 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 the overarching context for the Council to support and promote active travel across the Council area. Having an adopted and current Active Travel Strategy is increasingly becoming a pre-requirement to access Scottish 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. Page 294
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS Helensburgh – Garelochhead Cycleway (final Technical Design). - Islay, Bowmore to Bridgend Path (with Islay Community Access Group) (final Technical Design). - Jura, Craighouse to Corran Sands Active Travel Route (Concept Design). - Lochgilphead: Front Green to Crinan Canal (Concept Design)and Town Centre to Joint Campus Active Travel Routes (final Technical Design). - 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. Active Travel Plans for Towns: There are Active Travel Plans in place for the main towns in Argyll and Bute, albeit some are now quite historic. The town Active Travel Plans focus on identifying potential active travel route networks for key towns. These provide a framework for the development of new active travel routes, which will enable and encourage residents, businesses and visitors to choose to travel more actively. No funding is currently secured to enable 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 Page 295
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS would require changes to the Council’s travel policies and expenses policies. Staff Travel Plans focus on measures to make it easier and preferable for staff to choose to walk, cycle, use public transport or car share to commute to work or for work journeys, or use economical pool vehicles for work journeys. A travel plan should encourage staff to choose the most economical and least environmentally damaging travel mode. Engagement will be required with services which manage staff in buildings and/or council buildings as this is essential to creating deliverable and effective travel plans for staff. This includes Estates, HROD, SMT and building users. 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 296
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS OFF1 – Develop opportunities for environmental sustainability projects with ACT and partners (L) Climate Change Board, ACT and partners Delivery of projects Limited funding via ACT for existing projects SSEN compensatory planting – Phase 1 and 2 complete at Kilmory. ACT has completed habitat surveys in the Glenan Wood area in Cowal for a biodiversity net gain project supported by SSEN. This project would see 50 hectares of Rainforest cleared of invasive rhododendrons and form part of the landscape scale rainforest restoration project in West Cowal. The other Argyll landscape scale project ACT is involved with is Knapdale. These are 2 of the 7 focus rainforest projects in Scotland supported by the Alliance for Scotland’s Rainforest. https://savingscotlandsrainforest. org.uk/projects ACT has entered agreement with Mastercard’s Priceless Planet Coalition to plant 100,000 native trees in West Cowal over the coming 5 years. Cowal sites are confirmed, planting late ’24. This planting will offer opportunities for carbon credits for landowners. ACT have secured funding from the National Lottery Heritage Fund to establish a Rainforest Squad, and a new Farm and Croft Woodland Advisor. We also have funding for a Page 297
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS Rainforest Restoration project, and Rainforest Volunteer Co-ordinator as partners in a £6M Woodland Trust lottery bid. ACT undertaking peatland restoration on Islay, Jura and extending into mainland Argyll, supported by ScotGov’s Peatland Action and Esmee Fairbairn Foundation. There are two posts, one on Islay, one shortly to be advertised in Mid Argyll/Kintyre. We will also be offering a 1-year trainee position in 2024. Within 2024 ACT will be recruiting 6 full time and one part time new environmental jobs in Argyll. ACT is hosting the Community Planning Partnership’s Climate Action Manager to develop a Climate Action Strategy and Action Plan over a 2 year period. The CPP agreed an approach of developing an enabling strategy early in order to allow more space to focus on developing the action plan. A first draft was presented to the CPP’s Climate Working Group for review in March- April, with a request for all to send any further sources of information, contacts, comments Page 298
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS and feedback on the Strategy structure outline directly to the project manager. The project manager has also been invited to participate in the Council’s Climate Change Board. Next steps for the strategy are to issue a call for evidence while developing risk and opportunity assessments methodologies with support from Adaptation Scotland/SNIFFER, with a view to running assessments grouped by the CPP’s three outcomes of Transport, Housing and Community Wellbeing. In addition, ACT has partnered with the Third Sector Interface and Time for Change to become the ABCAN (Argyll and Bute Climate Action Network) Hub. The ABCAN project, which is Scottish Government funded, has supported 39 community groups with funding to undertake climate action so far. The Team continues to engage with local communities on climate action, climate literacy, place planning with a climate lens and working to develop the partnership network across Argyll & Bute and engaging with the strategic activity of the CPP Climate project. Page 299
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS Carbon Literacy Training – Cooler Futures schools programme and ACT Outdoors STEM subject delivery offered with the ACTNow project. ACT keen to support Argyll and Bute Council in achieving Carbon Literate Organisation silver accreditation. ACT delivering Bikes Back to the Community with the support of Smarter Choices, Smarter Places funding. ACT has two electric bikes available for groups and businesses and Councillors/Council officers to trial. ACT is the lead partner in a successful Alliance for Scotland’s Rainforest bid to the Facility for Investment Ready Nature in Scotland fund– to facilitate private finance investment into habitat restoration. Contracts to research Project Standards and Integrity Charter, an Enterprise Model and apply to a pilot area within Argyll are underway. Concludes March 2025. ACT is preparing a proposal to Argyll and Bute Council to establish a Woodland Enterprise Hub at Kilmory (adjacent to MAKI Pups site) which will be the base and training site for ACT Rainforest Squad who can offer Page 300
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS woodland management services. This project has been supported by an award from the National Heritage Lottery Fund, and DRAX who has supported ACT to establish a Tree Nursery as part of the proposal. Other actions that ACT and partners are or seek to be engaged with are W2 – Promote the Waste Hierarchy through community Education: ACT are heavily involved in delivering Carbon Literacy training which includes Waste Hierarchy E2 – Delivery of Non-domestic Energy Efficiency Framework (NDEEF) Projects: ACT: some engagement with RGD and potential to stimulate circular economy via this, and grid constraints. Also how to capture this activity to include in what is currently happening v gap analysis E4 – Delivery of Water Efficiency Audits: This will also support resilience to a changing climate where we can expect hotter, drier summers, in addition to reducing carbon footprint E5– Delivery of Energy Efficiency Scotland Programme: ACT – Housing is one of the Community Planning Page 301
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS Partnership’s overarching priorities. Keen to explore how CPP Climate Schange Strategy can complement this work, including local skills development, making homes fit for heatwaves as well as affordable warmth, and to what extent a unified voice across CPP partners can help with grid capacity E7 – Continue support of ABRA and review Renewable Energy Strategy annually: ACT note interest in the community in increasing community ownership share of renewables in order to support low carbon energy security and generate revenue E8 – Continue support for offshore development of renewables: Act as E7 above T2 – Develop a vehicle routing system that will reduce road miles for operations: ACT via CPP Climate Change Strategy project would be keen to explore how to encourage other Community Planning Partnership members to replicate under a joint climate strategy T3 – Develop an electric vehicle infrastructure strategy: As with T2 above – some CPP partners have Page 302
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS commented that this is a consideration constraining their transition to EVs T4 – Support Digital by Default theme Service Review & Recovery Plan to reduce need to travel: ACT: given the widespread nature of Argyll and Bute communities and settlements, measures that reduce need to travel are of particular strategic importance for Argyll and Bute both in terms of reducing emissions and reducing vulnerability, more so if adopted widely among CPP partners T5 – Develop new active travel plans for Council buildings and our towns: ACT: as in T4 above. This strongly supports the Community Planning Partnership’s outcome of Community Wellbeing in addition to Transport PA1 – Review Council Flooding & Coastal Protection Policy: ACT would welcome engagement with this including incorporating into a high level climate risk assessment for the regions, and also to scope opportunities to take forward elements such as enhancing community resilience pending availability of funding for complementary capital works Page 303
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS PA2 – Review Council Sustainable Procurement Policy: ACT would welcome greater engagement with this including how the CPP Climate Strategy could support implementation of the Policy in conjunction with Community Planning Partners such as under the Community Wealth Building workstream COMM1- Develop and deliver Communications Plan to support Decarbonisation Plan: ACT to feed into this where appropriate – currently via the CPP climate change signposting page Community Planning Partnership - Climate Change | Argyll and Bute Council (argyll-bute.gov.uk) COMM2 - Engage with community and partners and deliver Climate Change Directory for our region: This is not a specific work stream for ACT but the ACT NOW/ABCAN Hub network is heavily engaged in climate outreach COMM3 - Monitor the delivery of actions in the Climate Change Action Plan and review in 2024: ACT: the Decarbonisation Plan Tracker Page 304
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS provides an excellent model for monitoring progress complementing the formal public body Climate Duty reporting requirements and these should constitute the bulk of monitoring requirements for the CPP Climate Change Strategy for Argyll & Bute COMM1- Develop and deliver Communications Plan to support Decarbonisation Plan (L) Climate Change Board and Communications Team Delivery of Communications Plan Part of Communications Support External communications We continue to promote actions the council is taking, and actions that others can take, to develop climate- friendly Argyll and Bute. For example: • Promoting the Better Journeys Campaign • Rothesay travel consultation • New rapid EV chargers • Helensburgh safer walking and cycling • Tackling threat of climate change remains a priority (press release/social media) • Dunoon Active Travel • Sustainable Food Partnership • Islay High/ACT peat project • Beat the Street – encouraging people to walk • Oban active travel • Council continues to create climate friendly Argyll and Page 305
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS Bute (press release/social media) • St Columba’s Primary outdoor learning • Strone Primary Forester’s Award • Cut waste to landfill • Two separate two-week recycling campaigns • Tarbert travel consultation • Better Journeys travel apps • Did you know social media posts about bin calendars • SM post about council cutting carbon emissions • SM post about what your recycled products get made into • Rothesay pupils outdoor learning • 27 of our schools and nurseries have Eco-Schools Green Flag status • Mid Argyll travel app • How to reduce food waste • Be a great visitor campaign • Argyll’s rainforest • CGS pupil’s climate change art wins national award • Waste compliance funding • Bin review Page 306
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ACTION LEAD (L) AND PARTNERS TARGET or MILESTONE FUNDING COMMENTS COMM2 - Engage with community and partners and deliver Climate Change Directory for our region (L) Community Planning and Development Team Delivery of engagement map In place until end of financial year The CPP Climate Change signposting page is live https://www.argyll-bute.gov.uk/cpp- climate-change with further entries added as they are received. The dedicated Climate Change funding opportunities search, available through the signposting page, is conducted and an updated document produced on a regular basis. The Community Planning team established the CPP Climate Change Working Group which has developed a collaborative funding package and work to deliver a Climate Change Plan for the area. (see update on ACT and partners within this report) COMM3 - Monitor the delivery of actions in the Climate Change Action Plan and review in 2024 (L) Climate Change Board Review of this plan by December 2024 Monitored through Tracker to be submitted quarterly to Policy & Resources Committee. Completed – next review Dec 2024 Page 307
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE CLIMATE CHANGE BOARD 15TH August 2024 CLIMATE CHANGE BOARD UPDATE 1.0 EXECUTIVE SUMMARY 1.1 The Climate Change Board reports progress to the Policy and Resources Committee on a regular basis. This report outlines overarching activities of the Climate Change Board over the last quarter. The Council’s work on climate change continues to align with the Decarbonisation Plan, which is the Council’s key climate change document, adopted in December 2021, confirming the Council’s commitment to achieving net zero emissions by 2045, in line with the Scottish Government’s target. 1.2 The Council continues to progress spend plans for the Scottish Government’s Nature Restoration Fund. The Committee is asked to consider the proposal to vary allocated funding amounts to meet schools’ funding requests. 1.3 Argyll and Bute Council has responded to the public consultation on the Scottish Government’s draft Scottish National Adaptation Plan 3. The finalised Plan will be published in Autumn 2024. 1.4 Council Officers propose the use of the new Sustainable Scotland Network’s Leaders’ Climate Emergency Checklist to assess and support the Council’s climate change capabilities. 2.0 RECOMMENDATIONS That the Policy and Resources Committee are asked to: 2.1 Agree the proposal to vary / redistribute existing funding amounts allocated to three funding activities via the Scottish Government’s Nature Restoration Fund based on subscription and feedback from our schools. Page 309 Agenda Item 16
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2.2 Note the Council’s Officer-led response submitted to the Scottish Government’s draft Scottish National Adaptation Plan 3 public consultation. 2.3 Agree to implement the Sustainable Scotland Network’s Leaders’ Climate Emergency Checklist to support the Council’s assessment and development of climate change capabilities, in line with SSN Guidance. Page 310
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ARGYLL AND BUTE COUNCIL POLICY & RESOURCES COMMITTEE CLIMATE CHANGE BOARD 15th August 2024 CLIMATE CHANGE BOARD UPDATE 3.0 INTRODUCTION 3.1 The Climate Change Board reports progress to the Policy and Resources Committee on a regular basis. This report outlines overarching activities of the Climate Change Board over the last quarter. The Council’s work on climate change continues to align with the Decarbonisation Plan, which is the Council’s key climate change document, adopted in December 2021, confirming the Council’s commitment to achieving net zero emissions by 2045, in line with the Scottish Government’s target. 4.0 RECOMMENDATIONS That the Policy and Resources Committee are asked to: 4.1 Agree the proposal to vary / redistribute existing funding amounts allocated to three funding activities via the Scottish Government’s Nature Restoration Fund based on subscription and feedback from our schools. 4.2 Note the Council’s Officer-led response submitted to the Scottish Government’s draft Scottish National Adaptation Plan 3 public consultation. 4.3 Agree to implement the Sustainable Scotland Network’s Leaders’ Climate Emergency Checklist to support the Council’s assessment and development of climate change capabilities, in line with SSN Guidance. Page 311
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5.0 SUMMARY UPDATES OF CLIMATE CHANGE BOARD A – Scottish Government Nature Restoration Fund 5.1 At the previous Policy and Resources Committee meetings held on 12th October 2023 and 7th December 2023, the Committee agreed to allocate Scottish Government Nature Restoration Funding towards three different activities including the School Biodiversity Fund (£68,000), Tree Planting Fund (£75,000) and School Food Waste Composting Fund (£60,000). Commercial Services were tasked to develop spending plans for the three funding streams, with the Climate Change Board, Education Services and Finance working together to allocate this capital funding to ELCCs, primary schools and secondary schools. 5.2 At end of May 2024, 28 education establishments submitted applications requesting funds to buy equipment and materials that will enhance biodiversity and tackle school food waste, creating new opportunities for children and young people to learn and take action on nature restoration and climate change. The School Biodiversity Fund was the most popular funding stream, and was over- subscribed (£116,610 has been requested by schools, against the agreed allocation of £68,000). Fewer funding requests were made under the Tree Planting Fund and School Food Waste Composting Fund, with both underspent. 5.3 In order to meet the funding requests submitted by our schools, the Policy and Resources Committee are asked to consider the proposed changes to the agreed amounts allocated to the three funding activities: I. That £48,610 of underspent funds from the Tree Planting Fund and the School Food Waste Composting Fund be reallocated to meet the overspend of funding requested via the School Biodiversity Fund. II. That Council Officers continue to work with our Education establishments, seeking additional funding applications to allocate the remaining unspent balance of funds under both the Tree Planting Fund and the School Food Waste Composting Fund. 5.4 Both of the above recommendations will help ensure Scottish Government Nature Restoration Funds are fully allocated, whilst maximising the benefits for our children, young people, nature and climate. The identification of projects and distribution of this fund is a Council decision without recourse to Government ensuring that the project purpose meets the criteria set out by the Nature Restoration Fund. B – Argyll and Bute Council Consultation Response to Scottish Government Draft Scottish National Adaptation Plan 3 5.5 The Scottish Government published the draft Scottish National Adaptation Plan 3 for public consultation in January 2024. Once finalised, the Scottish National Adaptation Plan 3 is expected to be published in autumn 2024 and will cover a Page 312
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five year period from 2024 to 2029, replacing the current Scottish Climate Change Adaptation Programme 2 which was launched in 2019. 5.6 ELT confirmed that an Officer-led response to the public consultation was required. This was developed collaboratively, with expert input from a range of cross-Council services. Additionally, a briefing session was delivered at Climate Change Board in March 2024. The Council’s consultation response was submitted ahead of the April 2024 deadline. 5.7 The Scottish Government will publish an analysis report, summarising findings based on all consultation responses submitted. The analysis report will be published on the Scottish Government website. C - Sustainable Scotland Network Leaders’ Climate Emergency Checklist 5.8 Sustainable Scotland Network Leaders' Climate Emergency Checklist is designed to enable senior leaders in the public sector to assess their organisation's maturity and capability in tackling the climate and nature emergencies. The Sustainable Scotland Network (SSN) developed this Checklist in partnership with the SSN Steering Group, SOLACE, COSLA and the Improvement Service. 5.9 The Checklist offers a high-level assessment of where action is needed on embedding climate emergency (and nature) responses including adaptation and mitigation in public sector service planning and delivery. The checklist equips leaders to understand legislative responsibilities and align with national and local policy developments while ensuring a just transition that delivers sustainable benefits for Scotland’s people and environment. 5.10 The Checklist has seven themes: Strategy; Targets; Governance; Delivery; Finance; Performance; Skills. Three levels of gradings can be allocated against each of the seven themes: Foundation, Advanced and Exemplary. The Checklist also provides a prompt for bodies to identify ‘Improvement Actions’. 5.11 SSN Guidance indicates that the Leaders’ Climate Emergency Checklist should supplant the 2015 Climate Change Assessment Tool as a way for public sector bodies to self-assess climate capabilities and performance. 5.12 The Leader of the Council and Chief Executive recently received correspondence from Scottish Government commending the Checklist and Officers of Climate Change Board also consider it to be a valuable tool in supporting net zero ambition. The Policy and Resources Committee are asked to endorse that Officers consider and use the SSN Leaders’ Climate Emergency Checklist to support the Council’s self-assessment of climate change capabilities, in line with SSN Guidance. Further updates on the use of this Checklist will be provided at future meetings of Policy and Resources Committee. Page 313
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D – Local Heat And Energy Efficiency Strategy (LHEES) 5.13 The Scottish local authorities are obligated to develop a Local Heat and Energy Efficiency Strategy (LHEES) in compliance with the Local Heat and Energy Efficiency Strategies (Scotland) Order 2022. The process for formulating an LHEES is as follows: 5.14 Argyll and Bute Council’s LHEES draft strategy has been finalised, and the delivery plans are scheduled for completion by the end of June. These documents have been shaped through collaboration with the LHEES Focus Group, the Climate Change Board, and the Argyll and Bute Energy Efficiency Forum. Furthermore, two specialised events were organised for internal and external stakeholders to establish the LHEES priorities. The next proposed stages are: • Present the LHEES strategy and delivery plan to committee in the autumn. • Seek permission to publish a consultative draft of the strategy and delivery plan. • A one-month consultation and engagement process would follow immediately after committee. • The responses received during the consultation period will be reviewed, and the LHEES documents will be adjusted accordingly. • The revised and finalised document would go to seek approval at full Council. E - Argyll and Bute Renewables Alliance (ABRA) 5.15 ABRA met in March and received updates on three significant renewables projects. Machair Wind (www.scottishpowerrenewables.com/pages/machairwind.aspx) is a largescale offshore wind proposal being proposed by Scottish Power Renewables. The Page 314
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Machair Wind Team have been engaging with communities on Islay, Jura and Colonsay and hope to expand this to Mull and Iona shortly. Malin Sea Wind (https://malinseaoffshorewind.com/) is an innovative floating, offshore wind proposal being promoted by ESB. Community consultation events took place in June 2024 on Islay and at Campbeltown. The expansion of the Cruachan Pumped Storage Hydro Power Station (www.cruachanexpansion.com) has been granted consent and is proposed to more than double the capacity of this power station. If successful the projects could be generating power in the late 2020s and early 2030s. 5.16 An update was also provided by SSE Networks Distribution on their Whole System Energy Solution work relating to the Inner Hebrides (https://www.ssen.co.uk/about-ssen/our-works/whole-system-energy-solutions- for-the-scottish-islands/), they are currently working on a submission in January 2025 to Ofgem. If successful, this would provide funding which would enable upgrades to island grid infrastructure to support the transition to net zero and support energy security. F - Carbon Neutral Islands Programme 5.17 Following the publication of the Community Climate Action Plan for Islay, the selected island within Argyll and Bute, the government has now announced a £1m capital challenge fund aimed at supporting the objectives of the Carbon Neutral Islands work. Applications are due for submission by 30 August 2024. The Council is working with Islay Energy Trust, as the key local organisation involved in creating the Islay Community Climate Action Plan, to identify project proposals which may suitable for submission. G - 20 Minute Neighbourhood 5.18 The Council continues to support and promote the ‘Love Local’ message as supporting our local businesses can have both economic and environmental benefits. The new design Argyll and Bute Gift Card (www.argyllandbutegiftcard.com) is now available, and as well as being purchased online the cards can be bought at Keeping It Local in Campbeltown and Lochgilphead Post Office. H – Argyll Countryside Trust (ACT) Update 5.19 Argyll is one of the UK’s most afforested regions. Woodland cover accounts for over 30% of the region’s land cover and 15% of Scotland’s woodland resource. Over 71% is actively managed commercial conifer forestry which needs to adapt to climate impacts and play its part in addressing biodiversity loss. Therefore, as a region, Argyll is ideally placed to lead the shift towards a resilient style of forestry fully integrated into the native woodland landscape – Page 315
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this will require a workforce and communities with the skills and capacity to realise that ambition. 5.20 ACT’s rainforest 2045 targets will require a significant step change in availability of skilled woodland and herbivore managers working in Argyll’s rainforest and forestry sector. There simply are not enough woodland contractors, land managers with capacity, and student, trainee and volunteering opportunities to restore rainforest sites. A Hub for woodland workforce development and growth is a crucial first step in ACT’s rainforest strategy. The Hub will provide a base for: • ACT Rainforest Squad which will ensure that there will be Argyll based contractors and volunteers with the skills, knowledge and qualifications to take Argyll’s Rainforest Strategy forward. • A Native Tree Nursery. Through ACT’s native woodland creation during 2021/22/23 and planning for 2024 seasons, there is an identified and significant need for native trees with west coast provenance. The establishment of ACT Seed Collection Programme and Native Tree Nursery will enable ACT to meet demand from its own planting projects plus when scaled up, to provide stock for other land managers in the area. 5.21 ACT Rainforest Hub will be focussed around Kilmory Walled Gardens and Kilmory Castle, where ACT already provide the MAKI Pups outdoor nursery for 3-5 year olds, and ACT's staff base within Kilmory Castle. The Hub will also provide a site for ACTNow's recycle project which saves bikes from landfill, repairs them and gifts them back to the community. 5.22 ACT's nature restoration projects have attracted funding to allow ACT to provide one new part-time and six new full time jobs in Argyll in 2024. I - Argyll and Bute Climate Action - Community Planning Partnership Climate Change Strategy 5.23 The purpose of this project is to undertake a climate risk assessment for Argyll and Bute as a whole and to develop a Climate Change Strategy and Action Plan comprising an integrated set of adaptation, mitigation and engagement actions for the region. Argyll and Bute Council with other Community Planning Partnership partners have provided funding for a Project Manager for two years, employed by ACT, with a Steering Group drawn from the Climate Working Group of the Community Planning Partnership. 5.24 The project is working closely with ABCAN (Argyll & Bute Climate Action Network) Hub, funded by the Scottish Government and also employed by ACT, taking a collaborative approach to predominantly grassroots climate change mitigation, adaptation and engagement in Argyll and Bute. Page 316
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5.25 The Climate Change Working Group agreed that the emphasis should be on early production of an enabling strategy in order to allow more time to concentrate on development of the action plan with partners, following which the group approved a draft produced in spring as a working document, in support of the vision that “We make Argyll and Bute climate ready by acting together to understand and adapt to our changing climate”. 5.26 Key principles agreed include: • The strategy is to support partners to identify or create opportunities appropriate to Argyll and Bute’s geography and resources, especially through partnership working, to complement action that they are already taking individually. • The strategy can support partners to meet duties: it does not replace existing duties and does not have a mandate to create new duties. • Outcomes from key national climate strategies and local partners have been mapped and aligned with the three CPP Transport, Housing and Community Wellbeing outcomes. • Use of existing reporting mechanisms, principally the Public Body Climate Duty reporting requirements, where possible. • Recognise and work within the limits of the areas where CPP partners have control and where they can seek to influence. Notably, private sector emissions may be outwith the scope of influence for the CPP, but it remains important that businesses can be supported to reduce emissions as well as enhance their resilience. • The proposed national adaptation strategy places high expectations on the role of communities as part of an overall resilience response. • Engagement has been predominantly with institutions and key contacts but working closely with the grassroots engagement programme of the Climate Action Network Hub work funded by Scottish Government which has greatly extended reach. The strategy project is also adding value to the Hub work. • The project is also collaborating with the CPP and Council workstream developing Area Plans (working name). 5.27 Immediate next steps are: Ongoing engagement, including a call for evidence, and noting the importance of engaging with young people; Gap analysis, and risk and opportunity assessment methodologies aligned wherever possible with Council and other CPP partner methodologies and supported by Adaptation Scotland; Risk and opportunity assessment workshops, with the proposal to group these by CPP Outcomes. Page 317
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6.0 CONCLUSION 6.1 This report provides various updates in relation to the Council’s activities in relation to Climate Change. 7.0 IMPLICATIONS 7.1 Policy – Meeting obligations and commitment to Climate Change. 7.2 Financial – No direct linkage. 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: 8.5.1 Equalities - protected characteristics - None 8.5.2 Socio-economic Duty - None 8.5.3 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. Douglas Hendry Executive Director with Responsibility for Commercial Services Policy Lead for Climate Change, Renewables and Net Zero, Councillor Luna Martin 15 August 2024 For further information contact: Ross McLaughlin, Head of Commercial Services Helensburgh and Lomond Civic Centre ross.mclaughlin@argyll-bute.gov.uk Page 318
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ARGYLL & BUTE COUNCIL POLICY AND RESOURCES COMMITTEE LEGAL AND REGULATORY SUPPORT 15 AUGUST 2024 EXTRACT OF MINUTE OF PLANNING, PROTECTIVE SERVICES AND LICENSING COMMITTEE HELD ON 22 MAY 2024 *4. SIMPLIFIED PLANNING ZONES: PROPOSED CLOSURE OF PROJECT A report advising of the proposed closure of the Scottish Government Simplified Planning Zones (SPZ) Pilot Project, which was being progressed jointly by Development Policy (Planning and Regulatory Services) and Housing (Community and Culture) in association with a private development on behalf of the Scottish Government, was considered. Argyll and Bute proposed a project for the pilot that consisted of a remote rural island location (Mull) with a green field site in private control and a Main Town (Lochgilphead) location on a brown field site in Council ownership. Due to a range of issues it has become unfeasible to progress the project to a successful conclusion. Decision The Committee agreed to: 1. note and consider the information in the report; 2. recommend to the Policy and Resources Committee, the closure of the project with the return of unspent monies to the Scottish Government; and 3. continue to support the development of the sites through the normal planning process, utilising information gained during the project where possible. (Reference: Report by Executive Director with responsibility for Development and Economic Growth dated 7 February 2024, submitted) Page 319 Agenda Item 17
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ARGYLL AND BUTE COUNCIL PPSL COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 22 MAY 2024 SIMPLIFIED PLANNING ZONES: PROPOSED CLOSURE OF PROJECT 1.0 EXECUTIVE SUMMARY 1.1 The purpose of this report is to advise PPSL of the proposed closure of the Scottish Government Simplified Planning Zones (SPZ) Pilot Project, which was being progressed jointly by Development Policy (Planning and Regulatory Services) and Housing (Community and Culture) in association with a private developer on behalf of the Scottish Government. 1.2 The Simplified Planning Zone project was brought to the PPSL Committee on the 15th March 2017, which endorsed the principle of preparing an SPZ Scheme for a site in Lochgilphead and another site on Mull. This was to investigate the use of an SPZ Scheme to enable the delivery of self/custom build homes in differing situations. 1.3 A number issues arose during the course of the project which have impacted adversely on its delivery. These included issues relating to flooding, access, sustainable development, market changes and changed economic and policy environment. These issues mean that the feasibility of progressing a successful SPZ Scheme is now unlikely. Therefore continuation with this approach is not considered to be a practical solution. However, there still remains good potential to develop both sites more effectively outwith this project through the normal planning process, including for self/custom build homes. The option to close the project was discussed with the Scottish Government. Given the significant issues the Scottish Government would permit the closure of the project. A requirement of closing the project would be the return of any unspent grant money. 1.4 Recommendations It is recommended that the members of PPSL: i) note and consider the information in the Report; ii) recommend to the Policy and Resources Committee, the closure of the project with the return of unspent monies to the Scottish Government; and iii) continue to support the development of the sites through the normal planning process, utilising information gained during the project where possible. Page 321
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ARGYLL AND BUTE COUNCIL PPSL COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 22 MAY 2024 SIMPLIFIED PLANNING ZONES: CLOSURE OF PROJECT 2.0 INTRODUCTION 2.1. The Scottish Government sought projects from local authorities to assist with a pilot study into the use of the Simplified Planning Zone (SPZ) process. The aim was to investigate the potential for an SPZ Scheme to assist in the delivery of self/custom build housing. A Simplified Planning Zone is an area where the need to apply for planning permission is removed for certain types of development. 2.2. Argyll and Bute proposed a project for the Scottish Government pilot that consisted of a remote rural island location (Mull) with a green field site in private control and a Main Town (Lochgilphead) location on a brown field site in Council ownership. Due to a range of issues it has become unfeasible to progress the project to a successful conclusion. The closure of the project would require the remaining grant monies to be reimbursed to the Scottish Government. 3.0 RECOMMENDATIONS 3.1 Recommendations It is recommended that the members of PPSL: i) note and consider the information in the Report; ii) recommend to the Policy and Resources Committee, the closure of the project with the return of unspent monies to the Scottish Government; and iii) continue to support the development of the sites through the normal planning process, utilising information gained during the project where possible. Page 322
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4.0 DETAIL 4.1 An SPZ Scheme may be used to promote self/custom build housing delivery. However, in the case of the 2 sites piloted within Argyll and Bute the issues encountered during the progression of the scheme significantly reduced the viability of the approach. 4.2 The issues include: • Flooding – full modelling of the Lochgilphead site highlighted issues that were difficult to resolve within an SPZ Scheme. • Access – constraints at Lochgilphead that may be better overcome using land outwith the Scheme. • Sustainable development – constraints resultant from a Scheme are liable to reduce delivery capacity and result in a less effective use of a valuable town centre site. • Market changes – the Scheme is not easily amended and may constrain development in changing market conditions. • Changed economic and policy environment - the Scheme has experienced significant delays related to the pandemic and SEPA cyber attack. There are new options for the delivery of self build/custom housing with greater policy support mechanisms. 4.3 The benefits of having taken part in the pilot have been the raising of awareness of self and custom build options with developers and communities, assisting in developing national policy and technical survey work undertaken on the Council owned Lochgilphead site. 4.4 Both sites from the project can progress successfully without the use of an SPZ Scheme. The Mull site is a designated housing allocation and the Lochgilphead site is within a Main Town Centre near infrastructure and key facilities. 5.0 CONCLUSION 5.1 The issues with the SPZ Scheme are such that the sites are not liable to achieve their full potential through this approach. In addition, market conditions are subject to change and it is considered that the SPZ Scheme is not as responsive to this as the normal planning process. The recommended approach is to close the project and support the delivery of the sites through the normal planning process. 6.0 IMPLICATIONS 6.1 Policy – None 6.2 Financial – Unused grant monies totalling £37,099.09 require to be returned to the Scottish Government. Page 323
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6.3 Legal – There is a requirement to return unused grant monies to the Scottish Government. 6.4 HR - None 6.5 Fairer Scotland Duty: None 6.5.1 Equalities - protected characteristics – None 6.5.2 Socio-economic Duty – None 6.5.3 Islands - None 6.6 Climate Change – None 6.7 Risk – Failure to close the project would utilise additional resource on potentially abortive work and is liable to result in a less effective route to delivery of development on the project sites. 6.8 Customer Service – None 6.9 The Rights of the Child (UNCRC) - None Kirsty Flanagan, Executive Director with responsibility for Development and Economic Growth Policy Lead Cllr Green 07/02/24 For further information contact: Sybil Johnson 01546 604308 sybil.johnson@argyll-bute.gov.uk Page 324
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE ROAD AND INFRASTRUCTURE SERVICES 15 AUGUST 2024 OCTOBER 2023 WEATHER EVENT – UPDATE 1.0 INTRODUCTION 1.1 This is a follow up to the report presented to Council on 25 April 2024 in respect of the October 2023 weather event. A number of projects have become increasingly more complex as the full extent of the damage, underlying ground conditions and a number of other factors have emerged. This report provides a detailed update on the various flood sites, provides information relating to the estimated overspends within the various projects and also proposes a range of measures for Members to consider which could be used to cover the estimated overspends. 2.0 RECOMMENDATIONS 2.1 It is recommended that the Policy and Resources Committee:- a. Note the updates on the works undertaken and completed and those that are ongoing. b. Notes the revised forecast overspend of £3.853m that is currently unfunded. c. Approves that options 1, 2 and 3 as detailed in the table at paragraph 3.10 are used to fund the overspend and defer consideration of the remainder of the overspend once the Crown Estate Funding and Place Based Investment funding is confirmed for 2024-25. 3.0 DETAIL 3.1 Following a period of unprecedented wet weather where there was a level of rainfall that left ground conditions very wet and in many cases saturated, over a months’ worth of rain fell over a 36 hour period starting Friday 6 October 2023 and running into Saturday 7 October 2023. This was the wettest 2-day period on record for Scotland since 1891 (MET Office report). Argyll and Bute was the worst affected area as shown in the chart below: Page 325 Agenda Item 18a
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3.2 The works carried out following the rain event were extensive with dozens of locations requiring attention from simple cleansing of a small drain to significant landslides and bridge replacements. 3.3 A significant amount of work has been undertaken and completed thus far. Some examples include: • Various bridges – Tree and debris clearance to minimise flood risk at Bridgend Bridge, Upper Stronafian Bridge and Victoria Bridge (Cowal) and Glenmallon Bridge and Lindowan Burn Bridge (Helensburgh & Lomond). Confined space inspections and clearance was also completed to reduce the flood risk at structures in Helensburgh. • B828 Glenmore Bridge (Cowal) – Repairs to damaged parapets and training walls caused landslide. Works undertaken by internal Structures Maintenance Team • B839 Lochgoilhead Bridge (Cowal) – Repairs to the scoured and exposed bridge abutments and central pier foundations, reinstatement of erosion protection along the riverbank and riverbed. Working with Ross MacArthur Contractors to ensure bridge remained open to public and local community was not shut off, especially given the closure of the nearby B828 road due to landslips. • B828 Glenmore Road (Cowal) – Rock anchor repairs to rebuild eroded and missing road edges and verges, damaged road culverts and road restrain Page 326
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systems caused by landslip and rockfall. Working with Geo-Rope to completion, the road was reopened following separate remedial works by Forestry and Land Scotland to remove further risk of rockfall to users. • Ri Cruin Bridge – bridge abutment repair, scour protection works and invert pitching repairs carried out in conjunction with DA MacDonald and the Council’s Bridge Squad team. • A815 Landslip clearance to reopen the road in conjunction with the reopening of the A83 as a vital route to and from Cowal. This site is immediately adjacent to the “Dunoon Road End Straights” section of the A83 beside the Rest and Be Thankful and ongoing monitoring of this site continues. 3.4 The following table summarises locations where works are still outstanding. The most significant area of work relates to the A816, Kintraw, Ardfern landslide and further information on this is also provided within Appendix A. Further information relating to the financial estimates is included within the table at paragraph 3.6. LOCATION ONGOING WORKS SCHEDULED COMPLETION A816-110 Cuilfail Hotel Bridge, Kilmelford Following severe damage, this bridge was immediately closed to traffic, demolished, a new structure installed and reopened to traffic in under two weeks. Hydrological, Bathymetric & Ecological Studies are now nearing completion alongside consultations with SEPA. Ongoing designs of rock armour, bridge parapet, bridge training walls and narrow footway on the upstream side of the bridge. Contract award for the above described Phase 2 works was made after the Council’s Bellwin claim in February 2024 and are higher than the figure which was included in the claim. Site works due to re- start mid August 2024 aiming to be complete before winter. B844-010 Kilninver Bridge Phase 1 emergency works to protect the bridge and the B844 road completed November 2023. Previously proposed Phase 2 designs and works (scour protection) now being incorporated into Local Bridge Maintenance Fund scheme. Designs 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. Late Summer 2026 Page 327
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C30 Ford to Malevich Works completed and road fully reopened. As the emergency works progressed, rock was found to be much deeper than anticipated, costs to secure engineering solution to rock were therefore higher than previous estimates. July 2024 B836-060 Balliemore Bridge, Glen Lean Following severe damage to and partial collapse of existing bridge, a temporary bridge and associated road alignment was installed in under 2 months, with the alternative route opening on 1st December 2023. Next steps are construction of a new, permanent bridge and removal of the temporary structure. The Council’s attempts to seek engagement from OpenReach to remove their apparatus from within the bridge to allow the bridge to be demolished are ongoing. At this stage it appears that OpenReach will charge the Council circa £230k for this and their works will take around 2 months. This will also require an extended hire period for the temporary bridge. Late 2024 / Early 2025 A816 Bealach Mor, Kintraw, Ardfern catch pits at base of unstable slope Licence To Occupy discussions are still ongoing between the Council and the Landowner. Works along the toe of the slope have been reviewed and at this time further landslip and rockfall events are within a predictable pattern, however, further significant landslides could occur at this location. We are now studying the option of installing rockfall protection barriers within the road corridor, which would no longer require catch pits and fencing as previously proposed. Further information (including budget costs) is described in more detail in Appendix A. See Appendix A for timescales A816 Bealach Mor, Kintraw, Ardfern convoy system ‘v’ fixed traffic lights Road Safety Audit has been progressed and identified some amendments to the road layout, these have been incorporated into the proposed works detailed later in this report. Hard wired traffic lights being designed for installation in due course. Further information (including budget costs) is described in more detail in Appendix A. End of September 2024 A816 Bealach Mor, Kintraw, Ardfern – permanent diversion onto Archaeologist has carried out further investigative works and have given positive feedback. The next stage is further design work including ground investigation, environmental impact assessment and 3 – 5 years Page 328
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a widened alignment of the emergency route additional archaeological matters which will allow for permissions to be sought and a final design progressed for a permanent solution. A new, separate contract is being progressed for this element of permanent works as a scope for these will be able to be developed and prepared by the Council in advance. Cost options are being worked up, further information will be included in the next update. Update to the Financial Estimates 3.5 The report to Council in April advised that the estimated costs related to the weather incident amounted to £10.543m. A claim amounting to £5.494m of revenue costs was submitted to Scottish Government at the end of the 4 month period and after deducting our threshold of £0.529m this results in a net claim of £4.965m – £4.353m of this has been received with the final £0.612m outstanding from Scottish Government whilst final checks are being made. The Council secured a further £2.3m of funding as part of the budget negotiations and the remainder was funded by either Council reserves or borrowing as part of the budget agreed in February 2024. 3.6 A number of projects have become increasingly more complex as the full extent of the damage, underlying ground conditions and a number of other factors have emerged and as a result costs have increased to those estimated in the report to Council in April 2024. The table below details the revised estimates and the increase in cost that is not currently budgeted for along with reasons for the increase. Scheme Feb 2024 Estimate £000 Movement Between Interim and Final Bellwin Claim £000 Total Funded Position £000 July 2024 Updated Estimate £000 Increase from Funded Position £000 Reasons for Increase B836-060 Balliemore Bridge (Glen Lean) – Revenue 752 (57) 695 1,150 455 Due to the nature of the extreme weather event damage to Balliemore Bridge, and following consultation with other Scottish Councils, it was anticipated that notifying OpenReach that the bridge was damaged beyond repair that they would divert their apparatus at their own cost to protect their infrastructure. OpenReach have not been in agreement with this and have insisted that the Council pay to divert and reinstate the apparatus in accordance with regular NRSWA Page 329
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Legislation processes. Current legal advice is to progress this route. Feb 24 estimate did not include diversion of OpenReach apparatus (£230k) and associated costs for delays to phase 2 works due to OpenReach diversion including extended hire of temporary bridge (at a higher weekly rate, circa £100k), traffic management, inspections and management (circa £125k) until new, permanent bridge is constructed late 24 / early 25. B836-060 Balliemore Bridge (Glen Lean) – Capital 1,448 0 1,448 1,448 0 n/a A816 Bealach Mor (Ardfern / Kintraw) Landslip – Revenue 2,809 94 2,903 5,155 2,252 Previously proposed Catchpit & Bund, estimated at a cost of £1.35m, was not included in Bellwin Claim in Feb 2024. Land access delays have incurred additional costs for traffic management, project management, maintenance & ongoing stabilisation of current works, standing time. Roads Safety Audit has now been concluded and recommends additional safety measures which will allow the removal of the traffic management convoy arrangement to reduce long term costs. Installation of these measures along with the traffic light system will incur additional costs in the short term. A816 Bealach Mor (Ardfern / Kintraw) Landslip – Capital scheme for long term, permanent realignment 1,100 0 1,100 1,100 0 n/a C030 Kilmaha Landslip - Revenue 315 83 398 864 466 Rock head found much deeper than anticipated - requiring redesigns for longer and additional anchors, support beams and higher spec mesh. Weather and material delivery delays. Page 330
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Higher tonnage of rock armour from earlier scheme on site than reported / estimated. Vehicle Barriers now included due to the significant difference in level exposed by the new arrangement. U014 Scammadale Landslip - Revenue 454 (83) 371 838 467 Rock head found much deeper than anticipated - requiring redesigns for longer and additional anchors, support beams and higher spec mesh. Weather and material delivery delays. Assistance to residents and businesses as this lifeline cul-de-sac road could not be fully closed. Vehicle Barriers now included due to the significant difference in level exposed by the new arrangement. A816-110 Cuilfail Hotel Bridge, Kilmelford – Revenue Emergency Response 200 0 200 200 0 n/a A816-110 Cuilfail Hotel Bridge, Kilmelford – Permanent Capital 1,800 0 1,800 2,086 286 Contract cost for Phase 2 works confirmed after Bellwin claim. This also now include rock armour to protect upstream and downstream embankment protection. These capital works were not eligible for Bellwin scheme. Other Revenue Schemes 1,665 102 1,767 1,694 (73) This line captures the following: Bridge Debris Clearances Lochgoilhead Bridge Repairs Roads Workers time and materials for all repairs and flood works they carried out Costs came in lower thanks to emergency response works at Ri Cruin Bridge being suffice and removing the need for further works during the summer as was initially forecast. Revenue Totals 6,195 139 6,334 9,901 3,567 Page 331
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Capital Totals 4,348 0 4,348 4,634 286 Overall Weather Event Totals 10,543 139 10,682 14,535 3,853 Next Steps 3.7 Our current focus is to complete the various works still outstanding and to continue to monitor slopes where debris flows may affect the road network. Current status, options and associated cost estimates (including substantiation of costs which have gone over the original estimates made at the time of the Council’s Bellwin claim) for the ongoing schemes. 3.8 Climate change is a significant challenge to the Council for a number of reasons but not least it is a challenge for the road and transport infrastructure. This report highlights the challenges from the October weather incident and the report in April highlighted some of the challenges faced over the last decade or so. The road and wider transport system provides the economic backbone for our communities. We need to have infrastructure which is fit for purpose and sufficiently resilient to withstand the increasing weather challenges we are experiencing which are linked closely to climate change. The building of a bypass on the A816, strengthening bridges, and modifying roadside ditches are all adaptations being progressed to better accommodate some of the climate changes we are seeing. However, more will be needed and whilst the works mentioned above will increase our infrastructure resilience to future weather events, the network overall is fragile and unable to cope with significant weather events. 3.9 It will be necessary to see more infrastructure investment put in place to enable climate change adaptations to be made. The level of investment will be significant, and the Council will need to consider how its funding can be assembled and what lobbying can be progressed with Scottish and UK Governments. Options to be considered to fund overspend 3.10 The revised estimates give rise to a £3.853m overspend that will require to be funded. The Council’s current unallocated General Fund Balance (not taking into account other overspends that are reported in the budget monitoring pack) is £2.259m. This overspend would therefore mean the Council would have to use the General Fund contingency and a recovery plan would require to be put in place to bring the General Fund out of contingency. A number of options have been outlined below that could fund the forecast overspend. No. Options Amount £000 Comment/Implications 1 Pause previously approved Roads 2,029 This will impact on the condition of the road network Page 332
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Reconstruction Schemes (see detail in Appendix B) and with much reduced capital block for next year there is no guarantee that the previously programmed schemes will be able to be progressed. Unclear as to the impact of Roads Condition Index (RCI) but likely not to be positive. 2 Use £50k revenue within loans fund street lighting improvements for prudential borrowing, this could raise £750k of funding. 780 Will reduce the number of column replacements and lighting cable repairs impacting on the resilience of the lighting network. 3 Utilise some of the unallocated capital funding for street lighting cable and column replacements 100 Will reduce the number of column replacements and lighting cable repairs impacting on the resilience of the lighting network. Sub-Total 2,909 Balance from one of the following: 4 Use Crown Estate and Place Based Investment Funding to fund the remaining balance 944 OR This would limit the opportunities to use this funding for other projects across the Council area. Funding has not been confirmed for either schemes for 2024-25 yet. 5 Use Unallocated General Fund Reserves 944 OR This would reduce the level of unallocated General Fund reserves significantly and based on the other overspends currently being reported (see separate budget pack report) this would reduce the unallocated General Fund to £0.214m. 6 Reallocate capital funding set aside for the waste transfer station and use prudential borrowing to fund waste transfer station (this would have a revenue implication 944 This will cost £0.061m in recurring revenue expenditure that will need to be added to the loans fund. 3.11 It is recommended that the Policy and Resources Committee agree to Options 1-3 in the table above that will fund £2.909m of the overspend. The remainder of the overspend could be considered later in the financial year once the Crown Page 333
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Estate Funding and Place Based Investment funding is confirmed for 2024-25. 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. 4.2 The report also provides an update on the cost estimates and these give rise to £3.853m overspend that will require to be funded. A number of options to fund the overspend have been outlined within the report. 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 – new costs pressures have no identified funds to respond to the infrastructure damage. A Bellwin claim was progressed for eligible costs up to February 2024. Works not eligible for Bellwin will need to be funded, with previous estimates receiving funding following an earlier report and additional funding requirements now identified within this report. 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. Page 334
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APPENDICES: Appendix A – A816 Bealach Mor (Ardfern/Kintraw) Landslip Appendix B – Roads Reconstruction Schemes proposed to be paused Kirsty Flanagan, Executive Director with responsibility for Roads and Infrastructure Services Councillor John Armour, Policy Lead for Roads, Transport and Amenity Services 5 August 2024 For further information contact: Jim Smith, Head of Roads and Infrastructure Service Jim.Smith@argyll-bute.gov.uk Page 335
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Document is Restricted Page 337 Agenda Item 18bNOT FOR PUBLICATION by virtue of paragraph(s) 6, 9 of Schedule 7A of the Local Government(Scotland) Act 1973
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APPENDIX B - ROADS RECONSTRUCTION SCHEMES PROPOSED TO BE PAUSED MAKI B8002 Ardfern to Craignish (4 sites = 1815 Lin.m) £136,655 2025 Pre-SD Isle of Gigha (whole network) £66,667 A847 Bruach Gorm to Sewage Works - Pt Charlotte £217,497 Uc10 North of Ardnahoe £39,450 A847 Gowanlea to Seaview - Bruichladdich 700linm £44,455 Total £504,724 OLI U25 Musdale Road £70,172 U14 Scammadale Road £66,967 U48 Shore Street - Oban £79,691 B845 - Glen Salach (Blarcreen & Summit) £53,349 U58 Lower Gylen to Little Horse Shoe Bay KERRERA £104,435 U82 Leiter Rd £24,173 C 54 Loch Buie Rd £72,159 U16 Croggan Road £75,022 U14 Grasspoint £63,209 B8035 Gruline North - Mull £63,138 B8035 Gruline South - Mull £61,252 U80 Java Road £19,466 Total £753,033 B&C U27 Millhouse / U19 Couston £80,000 B839 / B828 Passing Place improvements £56,000 C1 Bruchag Road £50,000 A844 East Princess St & Battery place to Glenburn rd £111,000 U58 Serpentine Rd - to B881 Bishop St £24,000 U39 /U69 Gowanfield Place to St Brides Rd £80,000 Glenburn Rd £35,000 Total £436,000 H&L U71 Colqhoun St W Argyle St - W King St £34,000 U72 Columba St - Helensburgh £23,000 U 306 Victoria Road - Helensburgh £68,000 U105 East Prices St Henry Bell St - Geo St £132,000 Page 345 Agenda Item 18c
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U62 Church Road - Rhu £43,000 U101 East King - Charlotte St to Grant St £36,000 Total £336,000 Page 346
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Document is Restricted Page 347 Agenda Item 19NOT FOR PUBLICATION by virtue of paragraph(s) 6 of Schedule 7A of the Local Government(Scotland) Act 1973
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Document is Restricted Page 355 NOT FOR PUBLICATION by virtue of paragraph(s) 6 of Schedule 7A of the Local Government(Scotland) Act 1973
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Document is Restricted Page 359 NOT FOR PUBLICATION by virtue of paragraph(s) 6 of Schedule 7A of the Local Government(Scotland) Act 1973
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Document is Restricted Page 365 NOT FOR PUBLICATION by virtue of paragraph(s) 6 of Schedule 7A of the Local Government(Scotland) Act 1973
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Document is Restricted Page 373 NOT FOR PUBLICATION by virtue of paragraph(s) 6 of Schedule 7A of the Local Government(Scotland) Act 1973
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Policy and Resources Committee Work Plan 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 15 August 2024 Financial Report Monitoring Pack Financial Services Every meeting except May 16 July 2024 Budget Outlook Financial Services Education Network Transformation Programme Education / Customer Support Services Corporate Debt Recovery Policy/Sundy Debt Procedure Manual Financial Services National Care Service: Stage 2 Scrutiny: Call for Views Legal and Regulatory Support Redirection Of Crown Estates Funding Development and Economic Growth UKSPF Update Development and Economic Growth Islands Programme Development and Economic Growth RGD Update and further request of drawdown Development and Economic Growth Islands Cost Crisis Emergency Funding Development and Economic Growth October 2023 Weather Event – Update Roads and Infrastructure Services Data Strategy and Action Plan Customer Support Services Page 381 Agenda Item 20
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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. Community Empowerment (Scotland) Act 2015 – Update on Expressions of Interest / Asset Transfer Requests Commercial Services Helensburgh Waterfront Update – Appointment Of Preferred Bidder Commercial Services Council Carbon Emissions 2022/2023 Commercial Services Climate Change Board Update Commercial Services Simplified Planning Zones: Proposed Closure Of Project Development and Economic Growth Recommendation from Planning, Protective Services and Licensing Committee held on 22 May 2024 Date Report Title Dept/Section How Often? Date Due Comments 10 October 2024 Financial Report Monitoring Pack Financial Services 10 September 2024 7. Budget Outlook 8. Financial Services 9. Volunteer Policy Customer Support Services Date Report Title Dept/Section How Often? Date Due Comments 5 December 2024 Financial Report Monitoring Pack Financial Services 5 November 2024 10. Budget Outlook 11. Financial Services 12. Budget Update 2025/26 13. Financial Services Page 382
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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. 14. Annual Review of Procurement Strategy and Sustainable Procurement Policy 15. Legal and Regulatory Support Date 16. Report Title Dept/Section How Often? Date Due Comments 13 February 2025 Financial Report Monitoring Pack 17. Financial Services Every meeting except May 14 January 2025 18. Budget 2024-2025 Financial Services 19. Treasury Management Strategy and Investment Strategy Financial Services Date 20. Report Title Dept/Section How Often? Date Due Comments 8 May 2025 21. Budget Outlook 22. Financial Services 8 April 2025 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 Page 383
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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. Deal Full Business Case by the UK and Scottish Government. Single Authority Model Update 07.12.23 Agreed further report to be provided following the completion of work to articulate the benefits and key objectives associated with each option. Lorn Arc TIF Programme - Oban Airport Business Park – Outline Business Case Commercial Services / Development and Economic Growth 09.05.24 Agreed further report to be provided with Business Case. Page 384