Financial Reports Monitoring Pack - 31 October 2023

Argyll and Bute Council · 7 December 2023
Back to Policy and Resources Committee — 7 December 2023 and its agenda

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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE
FINANCIAL SERVICES 7 DECEMBER 2023
FINANCIAL REPORTS MONITORING PACK – 31 OCTOBER 2023  
1. INTRODUCTION 
1.1 This report provides a summary of the financial monitoring reports as at the end of
October 2023. There are five detailed reports, setting out the position as at 31
October 2023,  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 £0.080m as at the end of October 2023.  The key
variances are:
- Within Roads, numerous variances accumulating to a £0.841m overspend –
this is arising from an under-recovery of income in Piers & Harbours as a
result of a reduced number of berthings, in Public Conveniences due to
delayed installation of turnstiles, and on Traffic Regulation Orders (TROs) in
Roads. This is combined with overspends on Pupil Transport driver/escort
costs, Street Lighting Maintenance, staff costs in Amenities due to high
sickness and turnover and an unachievable saving in relation to Depot
Rationalisation.  These are partially offset by an underspend in Public
Transport payments to operators. 
- Within Financial Services, an overspend within the Scottish Welfare Fund on
Community Care and Crisis Grants £0.210m. 
- Within Executive Director Kirsty Flanagan there is an over-recovery of
vacancy savings, increased ferry grant income and savings on training costs
amounting to a favourable projection of £0.586m. 
- Within Education, an underspend of £0.400m from Education due to slippage
on Scottish Government 100 day Promise funding due to delays in
recruitment is partially offset by an overspend of £0.309m from Schools
Residential placements due to a higher than budgeted demand for this
service resulting in an overall £0.091m underspend.
- Within Treasury Management, there is a forecast underspend of £0.294m in

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relation to a discount received on the early repayment of three loans.
2.1.3 There is a year to date overspend of £1.415m. 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.
2.1.4 With regard to the ongoing financial impact of COVID-19, there are £5.512m of
reserves committed to manage the impact of the pandemic. The detail behind these
commitments is contained within Appendix 2 of the Reserves and Balances report.
2.1.5 Total policy savings relevant to 2023-24 financial year amount to £6.953m. The
table below outlines their progress as at 31 October 2023.
Category No. of
Options
2023-24
£000
2023-
24
FTE
2024-25
£000
2024-
25
FTE
Future
Years
£000
Future
Years
FTE
Delivered 10 5,843.5 (0.7) 5,891.0 (0.7) 6,058.0 (0.7)
On Track to be
Delivered 4 656.0 2.5 629.0 11.9 560.0 12.4
Still to be
Implemented 1 0.5 0.0 0.5 0.0 0.5 0.0
Being Developed 0 0.0 0.0 0.0 0.0 0.0 0.0
Will not be achieved 2 248.5 0.0 248.5 0.0 248.5 0.0
Potential Shortfall 2 180.0 0.0 180.0 0.0 180.0 0.0
Delayed 1 24.0 0.0 24.0 0.0 24.0 0.0
TOTAL 20 6,952.5 1.8 6,973.0 11.2 7,071.0 11.7
2.1.6 There are two savings marked as not going to be achieved. A cost pressure has
been recognised in 2024-25 for one of these and the other will be met by
underspends within the Service which will remove these savings targets. Two
further savings are categorised as having a shortfall and one is currently delayed.
Health and Social Care Partnership (HSCP) – Financial Update
2.1.7 The forecast outturn position at the end of August is an estimated overspend of
£0.850m for 2023-24 (forecast to come in on budget for Social Work and overspend
of £0.850m for Health). The HSCP’s financial position will continue to be monitored
and Financial Services staff will engage with the HSCP Chief Financial Officer to
ensure that mitigation actions are in place to address the deficit and ensure that no
additional funding is required from the Council.
2.2 Monitoring of Financial Risks
2.2.1 This report outlines the process and approach developed in carrying out a financial
risks analysis and provides an update on the current assessment of financial risks.

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2.2.2 There are 6 Council wide revenue risks identified for 2023-24 currently amounting to
£3.661m.
2.2.3 There are currently 39 departmental risks totalling £5.265m. Of the 39 departmental
risks, 6 are categorised as likely. These will continue to be monitored and action
taken to mitigate or manage these risks.
2.2.4 The current top three risks in terms of the financial impact are noted in the table
below.
SERVICE TITLE OF RISK DESCRIPTION OF RISK LIKELIHOOD FINANCIAL
IMPACT
£000
Roads and
Infrastructure
Services
Roads
Maintenance -
Bridges, Culverts
& Sea Defences
Extreme localised weather may
result in loss of bridge, culvert,
road or sea defence.
3 750
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
Roads and
Infrastructure
Services
Winter
Maintenance
Adverse weather conditions
which require greater than
budgeted number of gritting
runs.
4 365
2.2.5
2.2.6
There have been 4 changes to the departmental risks since the report as presented
to the Policy and Resources Committee on 12 October 2023. These are outlined in
paragraph 3.4.1 of the Financial Risks Report.
There are four potential future risks relating to funded childcare for 1 and 2 year olds,
the proposed new school campus on Mull, recovery costs associated with the recent
weather incident and digital access for learners. Further information on these can be
found within section 3.6 of the Financial Risks report.
2.3 Capital Plan Monitoring Report
2.3.1
2.3.2
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.
In recent years, the Council has agreed additional funding for the capital programme
totalling £10.803m 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, £8.1m has been

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allocated to projects leaving a balance of £2.703m available for allocation as
required.
2.3.3 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.
2.3.4 Actual net expenditure to date is £19.390m compared to a budget for the year to
date of £19.360m giving rise to an overspend for the year to date of £0.030m
(0.15%).
2.3.5 The forecast outturn for 2023-24 is a forecast net expenditure of £43.013m
compared to an annual budget of £43.657m giving rise to a forecast underspend for
the year of £0.644m (1.48%).
2.3.6 The forecast total net projects costs on the capital plan are £216.052m compared to
a total budget for all projects of £216.014m giving rise to a forecast overspend for
the overall capital plan of £0.038m (0.02%).
2.3.7 In respect of total project performance, there are 156 projects within the capital plan,
151 are complete or on target, 3 are off target and recoverable and 2 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 September 2023 to 31
October 2023 was a decrease of £12m.
2.4.3 Borrowing is below the Capital Financing Requirement for the period to 31 October
2023, at this stage in the financial year capital expenditure is below target. Capital
expenditure continued to be lower than anticipated over the last twelve months
however there is an expectation this will increase back up again over 2023-24 which
will continue to be monitored closely
2.4.4 The levels of investments were £72.251m at 31 October 2023. The average rate of
return achieved was 5.105% which is below the target SONIA (Sterling Overnight
Index Average) rate for the same period of 5.187%.

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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 £666.354m unusable reserves that are not backed with
resources. They are required purely for accounting purposes.
2.5.3 At 31 March 2023, the Council had a total of £93.828m of usable reserves. Of this:
• £2.916m relates to the Repairs and Renewals Fund
• £4.503m relates to Capital Funds
• £86.409m was held in the General Fund, with £79.466m of this balance
earmarked for specific purposes.
2.5.4 During 2023-24, the amount of £4.776m which was previously agreed to be utilised
from the one-off reprofiling gain from the Loans Fund Review was drawn down into
Earmarked Reserves to be used to fund the Capital Programme as detailed in
paragraph 3.5.1 of the reserves report. This results in the total earmarked balance
increasing to £84.242m.
2.5.5 Of the earmarked balance of £84.242m:
• £41.505m is invested or committed for major initiatives/capital projects
• £4.629m has already been drawn down
• £19.434m is still to be drawn down in 2023-24
• £18.674m 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 2023
This is the balance that is
unallocated over and above the 2%
contingency, which amounts to
£5.6911
1,252
Budgeted allocation to
General Fund for 2023-24
Budget
Per the Budget Motion at Council on
23 February 2023
19
Current Forecast Outturn
for 2023-24 as at 31
October 2023
Per paragraph 3.4.2. (80)

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Social Work outturn
adjustment
Per paragraph 3.4.3 - Social Work
would expect to transfer any surplus
to internal IJB reserves
0
Allocation from unallocated
general fund balance
Per paragraph 3.4.4 (8)
Estimated Unallocated
balance as at 31 March
2024 
1,183 
2.5.6 It can be seen that, after taking into consideration the budgeted allocation to the
General Fund agreed by Council on 23 February 2023 of £0.019m, the current
forecast outturn position for 2023-24 and the proposed allocation for floral displays
the Council is forecast to have a £1.183m 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 September and October, there is one virement requiring authorisation: 
- £0.216m harvested within Executive Director Douglas Hendry against the
vacancy savings target for the September period 
3.  RECOMMENDATIONS 
3.1 It is recommended that the Policy and Resources Committee: 
a) Consider the revenue budget monitoring report as at 31 October 2023 
b) Note the financial risks for 2023-24 
c) Note the capital plan monitoring report as at 31 October 2023 and approve the
proposed changes to the capital plan outlined in Appendix 4 of that report. 
d) Note the treasury monitoring report as at 31 October 2023 
e) Consider the reserves and balances report as at 31 October 2023  
f) Recommend to Council that the revenue virements over £0.200m during
September and October 2023 are approved

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4. IMPLICATIONS 
4.1 Policy – None.
4.2 Financial -  Outlines the revenue and capital monitoring
for 2023-24 as at 31 October 2023
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. 
Kirsty Flanagan
Executive Director /Section 95 Officer
3 November 2023 
Policy Lead for Finance and Commercial Services - Councillor Gary Mulvaney 
For further information contact Anne Blue, Head of Financial Services
anne.blue@argyll-bute.gov.uk

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REVENUE BUDGET MONITORING REPORT AS AT 31 OCTOBER 2023 POLICY AND RESOURCES COMMITTEE
7 DECEMBER 2023 
2023-24 Overall Position:
There is a forecast overspend of £0.080m as at the end of October 2023.  Within Executive Director Douglas Hendry, there is a forecast
underspend of £0.091m due to slippage in the utilisation of 100 day promise funding offset by an overspend within Residential Schools due to
a higher than budgeted demand for this service.  Within Executive Director Kirsty Flanagan, there is a forecast overspend of £0.465m due to
an under-recovery of income in Piers & Harbours as a result of a reduced number of berthings, in Public Conveniences due to the delayed
installation of turnstiles, and on Traffic Regulation Orders (TROs) in Roads. This is combined with overspends on Pupil Transport driver/escort
costs, Scottish Welfare Fund Community Care and Crisis Grants, Street Lighting Maintenance, staff costs in Amenities due to high sickness
and turnover and an unachievable saving in relation to Depot Rationalisation.  These are partially offset by an over-recovery of vacancy
savings, an underspend in Public Transport payments to operators and an underspend in training for Argyll & Bute Manager courses.  Social
Work is currently forecasting to break even at the end of the financial year.  This is due to a combination of the over-recovery of vacancy
savings, income from fees, charges and recharges and the use of non-recurring reserves to offset cost pressures arising from a high demand
for services and the use of agency staff to fill staffing recruitment and retention gaps across adult services.  Within Treasury Management,
there is a forecast underspend of £0.294m in relation to a discount received on the early repayment of three loans.   
There is a year to date overspend of £1.415m.  The year to date variances within the departments tend to relate to the timing of income and
expenditure and costs to capital not recharged yet. 
Key Highlights as at October 2023:  
• Council services are projecting an overspend of £0.080m as at 31 October 2023.  
• As of 31 October, the 2023/24 pay settlement negotiations for Chief Officers and non-teaching staff remain ongoing. Update: a revised
offer was made by employers to Unions on 3 November. Unison is currently consulting their members on the offer and we await the
outcome of their ballot. In the meantime, COSLA has asked employers to partially implement the offer and, at the time of writing, the
Council’s Payroll Team is working on this with a view to implementing the relevant pay rates and the related pay arrears due to staff
covering April to October by the end of November. 
Key Financial Successes:
Performance against budget for 2022-23 was an overall net favourable position of £3.326m underspend after adjusting for year-end
earmarking.  This breaks down as:
• £0.347m net underspend in relation to Council service departmental expenditure
• £6.937m net underspend in relation to other central costs largely due to a one-off treasury gain as a result of a discount on the early
repayment of loans
• £0.652m over-recovery of Council Tax income
• £4.610m of unspent budget earmarkings

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Key Financial Challenges: Proposed Actions to address Financial Challenges:
Addressing the long-term impact of the COVID pandemic on service
demand 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 2023-24 budget was agreed in
February 2023 there are still 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.
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. This is impacted further by the availability
of supply because of the COVID-19 pandemic, UK exit from the European
Union, Russia’s invasion of Ukraine and sanctions on Russian owned
entities, to name a few influencing factors.
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.

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Forecast Outturn Position
There is a forecast underspend of £0.080m for 2023-24 as at 31 October 2023.
Department
Annual
Budget   
£'000
Forecast
Outturn   
£'000
Current
Forecast
Variance
£'000
Previous
Forecast
Variance
£000
Change
£000 Explanation
Chief Executive's Unit 1,134 1,134 0 0 0
Executive Director (Douglas Hendry) 132,747 132,656 91 91 0
The projected underspend is due to slippage in the use of 100 day promise
funding offset by an overspend within Residential School Budgets due to a
higher than budgeted demand for this service.
Executive Director (Kirsty Flanagan) 55,080 55,545 (465) (382) (83)
This is due to an under-recovery of income in Piers & Harbours as a result of a
reduced number of berthing’s, in Public Conveniences due to the delayed
installation of turnstiles, and on TROs in Roads. This is combined with
overspends on Pupil Transport driver/escort costs, Scottish Welfare Fund
Community Care and Crisis Grants, Street Lighting Maintenance, staff costs in
Amenities due to high sickness and turnover and an unachievable saving in
relation to Depot Rationalisation. These are partially offset by an over-recovery of
vacancy savings, an underspend in Public Transport payments to operators and
an underspend in training for A&B Manager courses.
Social Work 76,117 76,117 0 0 0
This is due to a combination of the over-recovery of vacancy savings, income
from fees, charges and recharges and the use of non-recurring reserves to offset
cost pressures due to high demand for services and the use of agency staff to fill
staffing recruitment and retention gaps across Adult Services.
Central Budgets 26,639 26,345 294 0 294 Recognition of a discount received on the early repayment of loans.
Financed By (291,717) (291,717) 0 0 0
Total 0 80 (80) (291) 211

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Further information on the departmental forecast variances is included later on in the report. 
(480)
20
520
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)
Social Work
Central Budgets
Financed By
Underspend
Overspend

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Year to Date Position
The year to date position as at 31 October 2023 is an overspend of £1.415m and the main variances are noted below. 
Department
YTD
Actual
£'000
YTD
Budget
£'000
YTD
Variance   
£'000
Explanation
Chief Executive's Unit 730 734 4 The year to date underspend can be attributed to profiling issues.
Executive Director (Douglas Hendry) 73,049 73,348 299 The year to date underspend position is due to receipt of historic utility charge
refunds and underspends in Education within employee budgets, these are
partially offset by an over spend within the Residential Schools budget. Under the
Scheme of Devolved School Management (DSM) schools are permitted flexibility
at yearend, therefore no forecast variance will be processed in relation to any
school underspends.
Executive Director (Kirsty Flanagan) 33,841 32,752 (1,089) The year to date overspend is mainly due to the timing of income in comparison to
the budget profile
Social Work 31,344 31,378 34 The year to date underspend can be attributed to profiling issues.
Central Budgets 6,164 5,501 (663) The year to date overspend can be attributed to profiling issues.
Funding (151,005) (151,005) 0
Total Net Expenditure (5,877) (7,292) (1,415)

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

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OBJECTIVE SUMMARY – OVERALL COUNCIL POSITION AS AT 31 OCTOBER 2023
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 730 734 4 0.5% 1,134 1,134 0 0.0%
Executive Director (Douglas Hendry) 73,049 73,348 299 0.4% 132,747 132,656 91 0.1%
Executive Director (Kirsty Flanagan) 33,841 32,752 (1,089) (3.3%) 55,080 55,545 (465) (0.8%)
Social Work 31,344 31,378 34 0.1% 76,117 76,117 0 0.0%
Total Departmental Budgets 138,964 138,212 (752) (0.5%) 265,078 265,452 (374) (0.1%)
Central Budgets
Other Operating Income and Expenditure (1,370) (1,753) (383) 21.9% 3,921 3,921 0 0.0%
Joint Boards 627 873 246 28.2% 1,496 1,496 0 0.0%
Non-Controllable Costs 6,907 6,381 (526) (8.2%) 21,222 20,928 294 1.4%
Total Central Budgets 6,164 5,501 (663) (12.1%) 26,639 26,345 294 1.1%
TOTAL NET EXPENDITURE 145,128 143,713 (1,415) (1.0%) 291,717 291,797 (80) (0.0%)
Financed By
Aggregate External Finance (109,288) (109,288) 0 0.0% (226,268) (226,268) 0 0.0%
Local Tax Requirement (41,717) (41,717) 0 0.0% (59,301) (59,301) 0 0.0%
Contributions to General Fund 0 0 0 0.0% (1,517) (1,517) 0 0.0%
Earmarked Reserves 0 0 0 0.0% (4,631) (4,631) 0 0.0%
Total Funding (151,005) (151,005) 0 0.0% (291,717) (291,717) 0 0.0%
(Deficit)/Surplus for Period (5,877) (7,292) (1,415) 0 80 (80)
CURRENT PROJECTED FINAL OUTTURNYEAR TO DATE POSITION

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SUBJECTIVE SUMMARY – OVERALL COUNCIL POSITION AS AT 31 OCTOBER 2023
YTD
Actual
YTD
Budget
YTD
Variance
Variance Annual
Budget
Forecast
Outturn
Forecast
Variance
Variance
£'000 £'000 £'000 % £'000 £'000 £'000 %
Subjective Category
Employee Expenses 101,005 101,662 657 0.7% 189,684 188,924 760 0.4%
Premises Related Expenditure 12,069 12,104 35 0.3% 19,417 19,738 (321) (1.7%)
Supplies and Services 14,752 14,499 (253) (1.7%) 24,923 25,512 (589) (2.4%)
Transport Related Expenditure 7,651 7,085 (566) (8.0%) 17,654 17,536 118 0.7%
Third Party Payments 92,650 90,889 (1,761) (1.9%) 173,921 175,639 (1,718) (1.0%)
Capital Financing 2,359 0 (2,359) 14,523 14,523 0 0.0%
TOTAL EXPENDITURE 230,486 226,239 (4,247) (1.9%) 440,122 441,872 (1,750) (0.4%)
Income (236,363) (233,531) 2,832 (1.2%) (440,122) (441,792) 1,670 (0.4%)
(Deficit)/Surplus for Period (5,877) (7,292) (1,415) 0 80 (80)
YEAR TO DATE POSITION CURRENT PROJECTED FINAL OUTTURN
YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far.
Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year.  
The Variance is the difference between budget and actual or forecast outturn.
A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget.
A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less
than budget.

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CHIEF EXECUTIVE’S UNIT – AS AT 31 OCTOBER 2023 
The department is currently forecasting spend in line with budget. 
The department has a year to date underspend of £0.004m (0.5%) which can be attributed to profiling issues. 
Forecast Outturn Position 
Service Annual
Budget
£000
Forecast
Outturn
£000
Current
Forecast
Variance
£000
Previous
Forecast
Variance
£000
Change
£000
Chief Executive 1,134 1,134 0 0 0
Totals 1,134 1,134 0 0 0
Year to Date Position 
Key Financial Successes:
• All savings options have been delivered.  
• The department’s 2022-23 outturn position was an underspend of £0.017m. This resulted from an overall underspend of £0.087m offset
by earmarking of £0.070m due to auto-carry forwards including unspent grants and third party contributions.   
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.
0%
25%
50%
75%
100%
Chief Executive
Expenditure to date against the remaining budget for
each Service
YTD
Actual
£000
Remaining Budget
£000

Page 17

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.
Seek to work in partnership with third sector organisations such as
the TSI in Argyll and Bute to efficiently deliver full package of support
to community organisations. Within the partnership working of the
CPP we seek to establish working groups and collate resources
within this to deliver high quality solutions to identified needs.
Demands for funding from community applications to the Supporting
Communities Fund higher than available annual funds by about 40%.
Continue to monitor fund criteria adapting this to align with priority
outcomes for Argyll & Bute and continue to support groups to seek
alternative sources of funding from our database of funding
providers.

Page 18

CHIEF EXECUTIVE’S UNIT – OBJECTIVE SUMMARY AS AT 31 OCTOBER 2023 
Service Area YTD
Actual
£000
YTD
Budget
£000
YTD
Variance
£000
%
Variance
Annual
Budget
£000
Forecast
Outturn
£000
Forecast
Variance
£000
%
Variance Explanation
Chief Executive 227 224 (3) (1.3%) 421 421 0 0.0% Outwith Reporting Criteria
Community Planning
& Development 503 510 7 1.4% 713 713 0 0.0% Outwith Reporting Criteria  
730 734 4 0.5% 1,134 1,134 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 19

CHIEF EXECUTIVE’S UNIT – SUBJECTIVE SUMMARY AS AT 31 OCTOBER 2023
Subjective
Category
YTD
Actual
£000
YTD
Budget
£000
YTD
Variance
£000
%
Variance
Annual
Budget
£000
Forecast
Outturn
£000
Forecast
Variance
£000
%
Variance Explanation
Employee 484 490 6 1.2% 901 901 0 0.0% Outwith Reporting Criteria
Supplies and
Services 7 7 0 0.0% 12 12 0 0.0% Outwith Reporting Criteria
Transport 5 8 3 37.5% 14 14 0 0.0% Underspend on staff travel budgets.
Third Party 258 246 (12) (4.9%) 254 254 0 0.0% Overspend within third sector payments with some
funds due to be recouped back which will offset. 
Income (24) (17) 7 (41.2%) (47) (47) 0 0.0% Additional income relating to Climate Control work.
Totals 730 734 4 0.5% 1,134 1,134 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 20

CHIEF EXECUTIVE’S UNIT – RED VARIANCES AS AT 31 OCTOBER 2023
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 21

EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – AS AT 31 OCTOBER 2023  
The department is currently forecasting an under spend of £0.091m (0.1%) which is due to slippage in the utilisation of 100 day promise
funding offset by an overspend within Residential School Budgets due to a higher than budgeted demand for this service.
The department has a year to date (YTD) underspend of £0.299m (0.4%). The year to date underspend position is due to the receipt of historic
utility charge refunds and underspends in Education within employee budgets, these are partially offset by an over spend within the
Residential Schools budget.  Under the Scheme of Devolved School Management (DSM) schools are permitted flexibility at yearend, therefore
no forecast variance will be processed in relation to any school underspends. 
Forecast Outturn Position 
Service Annual
Budget
£000
Forecast
Outturn
£000
Current
Forecast
Variance
£000
Previous
Forecast
Variance
£000
Change
£000
Executive Director
(Douglas Hendry) 383 383 0 0 0
Head of Commercial
Services 11,574 11,574 0 0 0
Head of Education 104,795 104,704 91 91 0
Head of Legal and
Regulatory Support 15,995 15,995 0 0 0
Totals 132,747 132,656 91 91 0
Year to Date Position 
Key Financial Successes:
The 2022-23 year-end consolidated outturn position was an under spend of £2.202m after adjusting for automatic earmarking.  Contributing
factors included:
• Effective contract management of NPDO and Hub School contracts, including a lower-than-expected insurance premium as a result of
the annual renegotiation of insurance costs. 
• Successful negotiations with utility suppliers achieved both historic water charge refunds and ongoing reductions to water rates.
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 22

• Implementation of NDEEF project resulting in recurring annual saving in utilities and a significant contribution to meeting Net Zero
targets.
• Income generation within Early Years.
• Increased rental income within One Council Property.
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.
Analysis and review of delivery models, robust costings of any
service redesign required and continual monitoring of associated
budgets
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 PEF 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 outturns
and the impact on the future financial outlook. Strategies in place
to redesign services in line with future demand.
Ensure that Catering and Cleaning Services remain efficient and
effective given the requirement to increase free school meal provision for
P6/7 and Early Years, 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.
Support a longer-term service re-design project, including
collaborative working with partners and cross department support
with implementation of revised service delivery models. Continual
monitoring and review of costs and budgets, ensuring that any
efficiencies and savings are secured for the Council
Manage delivery of legislative/policy requirements that may not be fully
funded by Scottish Government therefore placing additional burdens on
the Council, for example, expansion of Universal Free School Meals for
P6 and 7s.
Analysis of new obligations and whether they incur additional costs
not met through increased funding allocations. Work will be
designed and implemented in the most effective way within
resource availability.
The Council has a requirement to deliver 1140 hours of Early Learning
and Childcare (ELC). The ring-fenced grant was reduced in 2022-23 and
again this year, reducing funding by £1.478m.
Robust service costings, financial monitoring and timely reporting
to ensure the service can be delivered within the financial
resources available. 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.

Page 23

EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – OBJECTIVE SUMMARY AS AT 31 OCTOBER 2023  
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
209 215 6 2.8% 383 383 0 0.0% Outwith Reporting Criteria    
209 215 6 2.8% 383 383 0 0.0%  
Head of
Commercial
Services
Catering 426 430 4 0.9% 1,265 1,265 0 0.0% Outwith Reporting Criteria
Head of
Commercial
Services
Central/Management
Costs
876 799 (77) (9.6%) 1,761 1,761 0 0.0% The YTD overspend is due to
profiling and earmarkings to be
drawn down within Period
Products and Estates. 
Head of
Commercial
Services
CHORD 80 59 (21) (35.6%) 63 63 0 0.0% The YTD overspend is due to the
timing of recharges to capital.
Head of
Commercial
Services
Cleaning (71) 114 185 162.3% 481 481 0 0.0% The YTD underspend is due to
the timing of recharges for
cleaning and the reduced use of
bank staff. 
Head of
Commercial
Services
Culture, Heritage,
Recreation & Sport
3,441 3,395 (46) (1.4%) 5,915 5,915 0 0.0% Outwith Reporting Criteria
Head of
Commercial
Services
Events &
Commercial
Catering
167 (4) (171) 4275.0% 3 3 0 0.0% The YTD overspend is due to the
under recovery of income and
high staff costs within
Commercial Cafés and Events.
Head of
Commercial
Services
Property Portfolio (155) (102) 53 (52.0%) (191) (191) 0 0.0% The YTD underspend is due to
the timing of One Council
Property income.
Head of
Commercial
Services
Property Services 622 700 78 11.1% 769 769 0 0.0% The YTD underspend is due to
the receipt of historic water
charge refunds offset slightly by
the profile of income from
Renewable Energy.
Head of
Commercial
Services
Shared Offices 670 659 (11) (1.7%) 1,508 1,508 0 0.0% Outwith Reporting Criteria    
6,056 6,050 (6) (0.1%) 11,574 11,574 0 0.0%

Page 24

Head of
Education
Additional Support
for Learning
5,902 5,972 70 1.2% 11,470 11,470 0 0.0% Outwith Reporting Criteria
Head of
Education
Central/Management
Costs
1,365 1,307 (58) (4.4%) 2,328 2,328 0 0.0% The YTD overspend is due to
overspends in Licence fees,
offset by underspends elsewhere
within the service. 
Head of
Education
Community Learning
& Development
3 2 (1) (50.0%) 13 13 0 0.0% The YTD overspend is in the
Central Repairs Account (CRA)
which is managed across the
Service and is profile related. 
Head of
Education
COVID 91 100 9 9.0% 136 136 0 0.0% Outwith Reporting Criteria
Head of
Education
Early Learning &
Childcare
1,810 1,964 154 7.8% 9,722 9,722 0 0.0% The main contributing factor to
the YTD underspend is delays in
recruitment and an over-recovery
of sick pay within ELC settings.
This is partially offset by a YTD
overspend in the 1140 Hours
budget which will be rectified
through earmarking drawdowns.
Head of
Education
Primary Education 22,891 22,551 (340) (1.5%) 38,311 38,311 0 0.0% There is a YTD overspend within
employee budgets for which the
Mid Year Allocations will be
processed in November to align
teacher budgets with the new
staffing entitlements from August
and also within school meals for
which budget adjustments will be
processed for Free School Meals
and earmarkings drawn down.
Adjustments will also be
processed in November to
reallocate Teacher Cover costs. 
There is also a YTD overspend
for school
adaptations/maintenance and
budget requires to be identified
from within the service to cover
this.  The above overspends are
partially offset by a YTD
underspend in PEF budgets
which is profile-related.
Head of
Education
Pupil Support 1,472 1,379 (93) (6.7%) 2,636 2,945 (309) (11.7%) The YTD overspend in the
Schools Residential Budget is
due to a higher demand for

Page 25

service than budget allows.  A
forecast variance of £309k has
been recorded through the ledger
reflecting this position.
This YTD overspend is partially
offset by underspends in
Psychological Service, Investing
in the Wellbeing of our Young
People and Community Mental
Health and Wellbeing, which are
all profile-related.
Head of
Education
Schools - Central
Services
1,067 1,045 (22) (2.1%) 2,392 1,992 400 16.7% Outwith Reporting Criteria
Head of
Education
Secondary
Education
22,303 22,579 276 1.2% 37,787 37,787 0 0.0% The YTD underspend is primarily
within the staffing budgets.  The
Mid Year Allocations will be
processed in November to align
teacher budgets with the new
staffing entitlements from August. 
Adjustments will also be
processed in November to
reallocate Teacher Cover costs.
There is a YTD overspend of
£177k in Secondary HQ which is
mainly due to repairs and
maintenance expenditure. 
Budget requires to be identified
from within the service to cover
this pressure.  There is also an
under-recovery of school meals
income which is profile-related.    
56,904 56,899 (5) (0.0%) 104,795 104,704 91 0.1%  
Head of Legal &
Regulatory
Support
Central/Management
Costs
137 138 1 0.7% 271 271 0 0.0% Outwith Reporting Criteria
Head of Legal &
Regulatory
Support
Community Safety 95 95 0 0.0% 185 185 0 0.0% Outwith Reporting Criteria
Head of Legal &
Regulatory
Support
Elections 9 9 0 0.0% 37 37 0 0.0% Outwith Reporting Criteria
Head of Legal &
Regulatory
Support
Governance 278 284 6 2.1% 739 739 0 0.0% Outwith Reporting Criteria

Page 26

Head of Legal &
Regulatory
Support
Governance, Risk &
Safety
293 308 15 4.9% 581 581 0 0.0% Outwith Reporting Criteria
Head of Legal &
Regulatory
Support
Legal Services 206 224 18 8.0% 749 749 0 0.0% Outwith Reporting Criteria
Head of Legal &
Regulatory
Support
NPDO and Hub
Schools
7,987 8,133 146 1.8% 11,489 11,489 0 0.0% The YTD underspend is due to
receipt of historic water charge
refunds and the timing of income
and expenditure.
Head of Legal &
Regulatory
Support
Procurement,
Commercial and
Contract
Management
549 640 91 14.2% 1,253 1,253 0 0.0% The YTD underspend is due to
delays in recruitment of staff and
the timing of income and
expenditure.
Head of Legal &
Regulatory
Support
Trading Standards &
Advice Services
326 353 27 7.7% 691 691 0 0.0% Outwith Reporting Criteria    
9,880 10,184 304 3.0% 15,995 15,995 0 0.0%      
73,049 73,348 299 0.4% 132,747 132,656 91 0.1%   
YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far.
Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year.  
The Variance is the difference between budget and actual or forecast outturn.
A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget.
A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less
than budget.
An explanation is given for any variance which exceeds £50,000 or 10%.

Page 27

EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – SUBJECTIVE SUMMARY AS AT 31 OCTOBER 2023  
Subjective
Category
YTD
Actual
£000
YTD
Budget
£000
YTD
Variance
£000
%
Variance
Annual
Budget
£000
Forecast
Outturn
£000
Forecast
Variance
£000
%
Variance Explanation
Employee 57,329 58,305 976 1.7% 106,063 105,663 400 0.4% Non-Education: The YTD underspend of £261k is made up
of a £138k underspend in Legal and Regulatory Support
due to delays in recruitment and a £123k underspend in
Commercial Services due to delays in recruitment and lower
than anticipated use of bank budgets in catering and
cleaning. 
Education:  The £715k YTD underspend is mainly within
staffing budgets in ELC settings, Secondary Schools and
Learning Centres. Under the Scheme of Devolved School
Management (DSM) schools are permitted flexibility at year
end, therefore no forecast variance will be processed in
relation to any remaining underspend.
Premises 4,719 4,560 (159) (3.5%) 8,208 8,208 0 0.0% Non Education: The YTD underspend of £226k is largely
due to historic water charge refunds and profiling of CRA
and grounds maintenance budgets.      
Education: The £385k overspend is mainly due to repairs
and maintenance costs within schools and capital costs
relating to 1140 Hours expansion - £35k from earmarked
reserves will be drawn down to cover a proportion of this
and £80k requires to be transferred to Capital.
Supplies and
Services
6,818 7,306 488 6.7% 13,154 13,154 0 0.0% Non Education: The YTD underspend of £62k is mainly
within Catering Services and is due to profiling of catering
purchases budgets.
Education: The £426k underspend is mainly due to
underspends in PEF due to profiling and school budgets.
Under the Scheme of Devolved School Management (DSM)
schools are permitted flexibility at year end, therefore no
forecast variance has been processed in relation to this. 
Transport 228 190 (38) (20.0%) 343 343 0 0.0% Non Education: Outwith Reporting Criteria.
Education: The £35k YTD overspend is due to small
overspends across a wide range of both ELC, School and
Central cost centres.  These are profile-related and the
budget will be refined in the November period.
Third Party 25,668 25,490 (178) (0.7%) 41,999 42,308 (309) (0.7%) Non Education: The YTD overspend of £68k is largely due
to the timing of large payments in respect of NPDO/Hub
contracts and the timing of recharges.
Education: The YTD overspend of £110k is due to
increased demand within Schools Residential
Accommodation.

Page 28

Income (21,713) (22,503) (790) 3.5% (37,020) (37,020) 0 0.0% Non Education: The YTD under-recovery of income of
£174k is due to the timing of income within Renewable
Energy and school catering recharges and under-recovery
of income within Commercial Events and Cafes.  
Education: The under-recovery of income of £616k is due
to the profile of income from school meals.
Totals 73,049 73,348 299 0.4% 132,747 132,656 91 0.1%   
YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far.
Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year.  
The Variance is the difference between budget and actual or forecast outturn.
A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget.
A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less
than budget.
An explanation is given for any variance which exceeds £50,000 or 10%.

Page 29

EXECUTIVE DIRECTOR (DOUGLAS HENDRY) – RED VARIANCES AS AT 31 OCTOBER 2023
Service Area Annual
Budget
£000
Forecast
Outturn
£000
Forecast
Variance
£000
%
Variance Explanation
Education - Pupil Support 2,633 2,942 (309) (11.7%) Higher than budgeted demand for placements within
Residential Schools.
Education - Schools Central Services 2,341 1,941 400 17.1% Slippage in the use of 100 day promise funding for additional
teachers and support staff that will be fully utilised in 2024-25. 
A red variance is a forecast variance which is greater than +/- £50,000.

Page 30

EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – AS AT 31 OCTOBER 2023 
The department has a forecast overspend of £0.465m (0.8%). This is due to an under-recovery of income in Piers & Harbours as a result of a
reduced number of berthings, in Public Conveniences due to the delayed installation of turnstiles and on TROs in Roads. This is combined
with overspends on Pupil Transport driver/escort costs, Scottish Welfare Fund Community Care and Crisis Grants, Street Lighting
Maintenance, staff costs in Amenities due to high sickness and turnover and an unachievable saving in relation to Depot Rationalisation. 
These are partially offset by an over-recovery of vacancy savings, an underspend in Public Transport payments to operators and an
underspend in training for A&B Manager courses. 
The department has a year to date overspend of £1.089m (3.3%).  This is mainly due a delay in grant income from Transport Scotland in
Ferries and an under-recovery of berthing income in Piers and Harbours.  
Forecast Outturn Position 
Service Annual
Budget
£000
Forecast
Outturn
£000
Current
Forecast
Variance
£000
Previous
Forecast
Variance
£000
Change
£000
Executive Director (Kirsty
Flanagan) 201 (355) 556 556 0
Head of Customer Support
Services 9,014 8,984 30 0 30
Head of Development and
Economic Growth 8,113 8,113 0 0 0
Head of Financial Services 5,828 6,038 (210) (210) 0
Head of Roads and
Infrastructure Services 31,924 32,765 (841) (728) (113)
Totals 55,080 55,545 (465) (382) (83) 
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 31

Key Financial Successes:
During 2022-23 the department had an over-recovery of Planning Fee and Building Warrant income, an over-recovery of NDR commission
due to a successful debt recovery campaign during the year (which focussed on high level debts), plus an over recovery of vacancy savings.
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 £1.5m after automatic earmarkings in
2022-23.
Detailed monitoring in the key areas overspent in 2022-23 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.
Carry out the improvements identified during the Revenue and
Benefits Business Process Review to maximise income generation
and deliver efficiencies in service provision.
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 58
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.

Page 32

Dangerous buildings costs as there is no budget for this expenditure and
the council has no control over the demand for the service.
Building Standards, Legal Services and Financial Services are
working closely to manage debt recovery and to consider other
options to minimise corporate risk exposure. 
Due to the nature of the various components of Waste Management there
are ongoing challenges with:
• The 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 
To closely monitor all service components of Waste Management
and review the Waste Strategy in conjunction with our contractual
partner Renewi (previously Shanks).

Page 33

EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – OBJECTIVE SUMMARY AS AT 31 OCTOBER 2023
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
165 84 (81) (96.4%) 201 (355) 556 276.6% Based on the YTD vacancy
savings recovered, it is currently
anticipated that an over recovery
is likely to be achieved in the
region of £400K. There is also a
forecast underspend due to the
receipt of funding for ferries
previously funded internally of
£156k.    
165 84 (81) (96.4%) 201 (355) 556 276.6%  
Head of
Customer
Support Services
Central/Management
Costs
82 99 17 17.2% 174 174 0 0.0% Underspend on payments to
other bodies due to the timing of
payments.
Head of
Customer
Support Services
Communications 138 172 34 19.8% 324 324 0 0.0% Underspend in employee costs
due to vacancies which will be
used to cover future consultancy
costs.
Head of
Customer
Support Services
Customer Service
Centres
808 753 (55) (7.3%) 1,474 1,474 0 0.0% Under-recovery on charges to
departments for printing and
mail.
Head of
Customer
Support Services
HR 1,387 1,420 33 2.3% 2,678 2,648 30 1.1% Underspend in training costs
due to A&B Manager not
currently being run.
Head of
Customer
Support Services
ICT 2,305 2,336 31 1.3% 4,308 4,308 0 0.0% Outwith Reporting Criteria.
Head of
Customer
Support Services
Registrars (17) 10 27 270.0% 56 56 0 0.0% Underspend due to staff
vacancies. 
4,703 4,790 87 1.8% 9,014 8,984 30 0.3%  
Head of
Development &
Economic Growth
Airports 689 707 18 2.6% 1,210 1,210 0 0.0% Outwith Reporting Criteria.
Head of
Development &
Economic Growth
Building Control (147) (145) 2 (1.4%) (124) (124) 0 0.0% Outwith Reporting Criteria.

Page 34

Head of
Development &
Economic Growth
Central/Management
Costs
292 294 2 0.7% 579 579 0 0.0% Outwith Reporting Criteria.
Head of
Development &
Economic Growth
Culture & Heritage 109 116 7 6.0% 228 228 0 0.0% Outwith Reporting Criteria.
Head of
Development &
Economic Growth
Development
Management
(42) (114) (72) 63.2% (25) (25) 0 0.0% Overspend is due to overspends
on employee and agency
expenditure combined with the
timing of receipts for planning
income received. Schedule of
expected Planning Applications
to be reviewed to determine any
potential for the over-recovery of
income.
Head of
Development &
Economic Growth
Development Policy 210 207 (3) (1.5%) 392 392 0 0.0% Outwith Reporting Criteria.
Head of
Development &
Economic Growth
Economic
Development
923 984 61 6.2% 1,179 1,179 0 0.0% Underspend is due to grant
income received in advance of
expenditure which is offset
against expenditure that requires
draw down from earmarked
reserves.
Head of
Development &
Economic Growth
Environmental
Health
619 508 (111) (21.9%) 1,213 1,213 0 0.0% Overspend is due to a delay in
receiving Private Water Grant
income which will be received
later in the year. 
Head of
Development &
Economic Growth
Environmental
Initiatives
64 63 (1) (1.6%) 120 120 0 0.0% Outwith Reporting Criteria.
Head of
Development &
Economic Growth
Housing 2,786 2,716 (70) (2.6%) 3,105 3,105 0 0.0% Overspend in Temporary
Accommodation costs. 
Projection will be looked at to
determine impact for remainder
of the year.
Head of
Development &
Economic Growth
Private Landlords (354) 0 354 0.0% 0 0 0 0.0% Underspend is due to income for
Private Landlord Registration
fees received against a zero
budget.
Head of
Development &
Economic Growth
Transportation
Policy
295 125 (170) (136.0%) 236 236 0 0.0% Overspend is due to expenditure
for SUSTRANS and CWSR

Page 35

incurred in advance of grant
claim.    
5,444 5,461 17 0.3% 8,113 8,113 0 0.0%  
Head of Financial
Services
Accounting &
Budgeting
1,403 1,408 5 0.4% 2,671 2,671 0 0.0% Outwith Reporting Criteria.
Head of Financial
Services
Internal Audit &
Fraud
176 180 4 2.2% 339 339 0 0.0% Outwith Reporting Criteria.
Head of Financial
Services
Revenues & Benefits 1,829 1,917 88 4.6% 2,123 2,123 0 0.0% Underspend is due to income
received ahead of profile within
Housing Benefits
Head of Financial
Services
Scottish Welfare
Fund
306 307 1 0.3% 695 905 (210) (30.2%) Projected overspend in relation
to Scottish Welfare Fund
Community Care and Crisis
Grants.    
3,714 3,812 98 2.6% 5,828 6,038 (210) (3.6%)  
Head of Roads &
Infrastructure
Services
Amenity 2,512 2,295 (217) (9.5%) 3,240 3,393 (153) (4.7%) Forecast variance relates to
overspend across amenities for
use of roads staff to cover
vacancies and sickness (£85K),
under-recovery of hire of
facilities income (£28K) and
public convenience income due
to delay with fitting of door
charging mechanism (£40K).
There is also an overspend
currently in Parks CRA, no
forecast variance entered to
date pending proposed CRA
spend across RIS. Income
budget profile out of alignment
with actual expected income for
Cemeteries and Crematoria,
difficult to profile due to the
nature of the income
Head of Roads &
Infrastructure
Services
Car Parking (335) (358) (23) 6.4% (582) (582) 0 0.0% Outwith Reporting Criteria.
Head of Roads &
Infrastructure
Services
Central/Management
Costs
1,804 1,738 (66) (3.8%) 3,006 3,006 0 0.0% Overspend is due to the profile
of the income budget which will
be rectified by the end of the
year.

Page 36

Head of Roads &
Infrastructure
Services
Depots 207 183 (24) (13.1%) (429) (321) (108) 25.2% Delay in rental income and
timing of expenditure causing
small overspend which will be
rectified over the financial year.
Forecast variance due to saving
for Depot Rationalisation no
longer being achievable in year.
Head of Roads &
Infrastructure
Services
Fleet & Transport 5,365 4,948 (417) (8.4%) 8,680 8,722 (42) (0.5%) Overspend due to the timing of
Fleet recharges to other
services.  Forecast variance for
overspend for additional Pupil
Transport costs which is partially
offset against an underspend in
Public Transport due to a
reduction in payments to
operators.
Head of Roads &
Infrastructure
Services
Infrastructure 313 391 78 20.0% 763 763 0 0.0% Underspend due to the timing of
Flood and Coastal Protection
works which will be rectified over
the financial year.
Head of Roads &
Infrastructure
Services
Marine (2,464) (4,167) (1,703) 40.9% (4,215) (3,815) (400) 9.5% YTD variance higher than
projection due to timing of cash
flow in comparison to profiling of
budget and delay in receiving
grant from Transport Scotland.
Forecast overspend due to the
under-recovery of income from
Berthing charges.
Head of Roads &
Infrastructure
Services
Network & Traffic
Management
137 43 (94) (218.6%) 147 197 (50) (34.0%) Forecast overspend due to the
under recovery of TRO income
based on current shortfalls in
income to date and prior years'
total income.
Head of Roads &
Infrastructure
Services
Road Safety 58 65 7 10.8% 98 98 0 0.0% Small underspend due to the
timing of PPE purchases.
Head of Roads &
Infrastructure
Services
Roads & Lighting 6,085 7,359 1,274 17.3% 7,092 7,180 (88) (1.2%) YTD underspend due to the
timing of income in comparison
to the profiling of the budget,
mainly due to recharges made to
capital jobs, which will be
rectified over the financial year.
Forecast variance for overspend
in Street Lighting. This is due to
increased levels of maintenance

Page 37

required to meet the service's
responsibilities. 
Head of Roads &
Infrastructure
Services
Waste 6,133 6,108 (25) (0.4%) 14,124 14,124 0 0.0% Outwith Reporting Criteria.    
19,815 18,605 (1,210) (6.5%) 31,924 32,765 (841) (2.6%)      
33,841 32,752 (1,089) (3.3%) 55,080 55,545 (465) (0.8%)   
YTD is year to date and represents the actual or budgeted expenditure and income for the financial year so far.
Forecast Outturn is the estimate now of what expenditure or income will be for the whole of the financial year.  
The Variance is the difference between budget and actual or forecast outturn.
A positive variance is when actual or forecast expenditure is less than budget or actual or forecast income is more than budget.
A negative variance is shown in brackets and is when actual or forecast expenditure is more than budget or actual or forecast income is less
than budget.
An explanation is given for any variance which exceeds £50,000 or 10%.

Page 38

EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – SUBJECTIVE SUMMARY AS AT 31 OCTOBER 2023
Subjective
Category
YTD
Actual
£000
YTD
Budget
£000
YTD
Variance
£000
%
Variance
Annual
Budget
£000
Forecast
Outturn
£000
Forecast
Variance
£000
%
Variance Explanation
Employee 22,541 22,764 223 1.0% 43,793 43,505 288 0.7% Underspend across services due to vacancies and long term
absences. Main underspends relate to Infrastructure, Roads
& Lighting and HR. As per last month, the HR underspend
will be used to offset overspends elsewhere in the service.
The forecast underspend relates to an over-recovery of
vacancy savings, underspend on Staff Training Course Fees
and additional funding received for ferries all partially offset
by overspends in Pupil Transport and Depot costs due to a
saving not being achieved in year.
Premises 1,537 1,731 194 11.2% 3,447 3,447 0 0.0% Underspend relates mainly to profiling of Depot
Apportionment and Street Lighting Electricity partially offset
by overspends on Refuse Collection due to budget profiling.
Supplies
and
Services
5,996 5,496 (500) (9.1%) 8,861 8,861 0 0.0% Overspend relates to Economic Development for expenditure
that is funded from grant income and System Development -
Maintenance/Development of Computer Software.
Transport 7,042 6,476 (566) (8.7%) 16,243 16,243 0 0.0% Overspend for vehicle repairs and maintenance in Fleet,
which will be partially offset against additional income for
recharges to the services.
Third Party 35,206 33,227 (1,979) (6.0%) 63,600 63,835 (235) (0.4%) Overspend within Economic Development and Housing for
expenditure that is funded from grant income.
Forecast variance relates to overspends in Street Lighting for
maintenance costs and on Scottish Welfare Fund Community
Care and Crisis Grants. These are partially offset by
underspends in Public Transport payments to bus Operators.
Capital
Financing
0 0 0 0.0% 2,398 2,398 0 0.0% Outwith Reporting Criteria.
Income (38,481) (36,942) 1,539 (4.2%) (83,262) (82,744) (518) 0.6% Timing of income in comparison to profiling of budget in
Roads, mainly due to recharges made to capital jobs, which
will be rectified over the financial year and unbudgeted
income in Economic Development and Housing, which will
fund expenditure throughout the year. These are partially
offset by overspends in Revenues & Benefits, due to timing
of cashflows, and an under-recovery of income from Berthing
charges in Piers and Harbours. Forecast variance relates to
the under-recovery on income in Piers and Harbour for
Berthing, on Public Conveniences and on income from
TROs.
Totals 33,841 32,752 (1,089) (3.3%) 55,080 55,545 (465) (0.8%)

Page 39

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 40

EXECUTIVE DIRECTOR (KIRSTY FLANAGAN) – RED VARIANCES AS AT 31 OCTOBER 2023 
Service Area
Annual
Budget
£000
Forecast
Outturn
£000
Forecast
Variance
£000
%
Variance Explanation
Vacancy Savings (251) (651) 400 (159.4%) Over-recovery of vacancy savings.
Public Transport 5,266 5,118 148 2.8% Underspend in Operator Payments.
Pupil Transport 1,020 1,210 (190) (18.6%) Overspend in transport costs for drivers/escorts.
Piers & Harbours (1,839) (1,439) (400) 21.8% Under-recovery of income from Berthing charges.
Street Lighting 262 350 (88) (33.6%) Overspend on maintenance costs.
Traffic Regulation Orders (110) (60) (50) 45.5% Under-recovery of income from Traffic Regulation Orders.
Scottish Welfare Fund 394 579 (185) (47.0%) Overspend in relation to Scottish Welfare Fund Community
Care and Crisis Grants.
Depots (108) 0 (108) 100.0% Proposed saving for Depot Rationalisation no longer being
achievable in year.
Central Management Costs 48 (108) 156 325.0% Underspend due to receipt of funding for ferries previously
funded internally. 
A red variance is a forecast variance which is greater than +/- £50,000.

Page 41

SOCIAL WORK – AS AT 31 OCTOBER 2023 
The department is currently forecasting to break even at the end of the financial year. This is due to a combination of the over-recovery of
vacancy savings, income from fees, charges and recharges and the use of non-recurring reserves to offset cost pressures due to high demand
for services and the use of agency staff to fill staffing recruitment and retention gaps across Adult Services.   
The department has a year to date overspend of £0.034m (0.1%) which is mainly due to the use of agency staff across Homecare and Older
People Residential Units in Adult Services. 
Forecast Outturn Position 
Service Annual
Budget
£000
Forecast
Outturn
£000
Current
Forecast
Variance
£000
Previous
Forecast
Variance
£000
Change
£000
Chief Officer Integration 135 (334) 469 475 (6)
Head of Strategic Planning
and Performance 482 472 10 9 1
Head of Health and
Community Care 39,192 40,695 (1,503) (1,186) (317)
Head of Acute and
Complex Care 19,872 19,434 438 327 111
Head of Children and
Families 16,436 15,850 586 375 211
Totals 76,117 76,117 0 0 0
Year to Date Position 
Key Financial Successes: 
Delivered an underspend of £3.556m at the end of 2022/23 after automatic earmarkings of £1.078m. The total underspend of £4.634m has
been transferred to IJB reserves and should allow for future investment and transformation across Social Work. 
-60%
-35%
-10%
15%
40%
65%
90%
115%
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 42

Key Financial Challenges: Proposed Actions to address Financial Challenges:
Deliver the outstanding savings total for 2023/24 of £0.690m (as at
October 2023).
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 23/24 to address
the 23/24 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 October 2023 of
£1.696m. 
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 43

SOCIAL WORK – OBJECTIVE SUMMARY AS AT 31 OCTOBER 2023
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
219 268 49 18.3% 569 560 9 1.6% The YTD variance is as a result of the timing
of planned payments to NHS. The forecast
variance is outwith reporting criteria.
Chief Officer
Integration
Social Work
Central
Support
(962) (717) 245 (34.2%) (434) (894) 460 (106.0%) The YTD variance is due to over-recovery on
vacancy savings (£190k) combined with
underspends on centrally held funding.  The
forecast underspend is due to an over-
recovery on vacancy savings (£278k)
combined with underspends on centrally held
funds, printing & stationery and postages. 
(743) (449) 294 (15.9%) 135 (334) 469 (104.4%)  
Head of
Strategic
Planning &
Performance
Management
& Central
Costs
228 225 (3) (1.3%) 448 450 (2) (0.4%) Outwith reporting criteria.
Head of
Strategic
Planning &
Performance
Service
Development
14 19 5 26.3% 34 22 12 35.3% The YTD and forecast variances are due to
staff vacancies giving both a payroll
underspend and an under-recovery on
Charges to Health Boards.    
242 244 2 25.0% 482 472 10 34.8%  
Head of
Health and
Community
Care
Management
& Central
Costs
303 468 165 35.3% 1,467 1,120 347 23.7% The YTD variance is mainly due to YTD
underspends on centrally held funds.  The
forecast underspend is mainly due to
underspends on centrally held funds and staff
vacancies. 
Head of
Health and
Community
Care
Older People 17,234 16,170 (1,064) (6.6%) 37,725 39,575 (1,850) (4.9%) The YTD variance reflects demand within the
care home placement budget and YTD
overspends on employee costs due to the use
of agency staff in residential units and
homecare. The forecast overspend reflects
demand driven overspends within the care
home placement budgets and homecare. High
staff costs across HSCP residential units due
to agency cover are also contributing to the
forecast overspend. These overspends are
partially offset by staffing underspends across
ACM teams and internal residential units. 
17,537 16,638 (899) (5.4%) 39,192 40,695 (1,503) (3.8%)

Page 44

Head of
Acute and
Complex
Care
Learning
Disabilities
4,037 4,416 379 8.6% 14,217 13,617 600 4.2% The YTD variance reflects demand for
residential placements partially offset by
demand for supported living.  The forecast
underspend reflects known demand for
Residential Placements partially offset by
overspends on Supported Living and Respite
due to demand. 
Head of
Acute and
Complex
Care
Management
& Central
Costs
48 71 23 32.4% 130 101 29 22.3% Both the YTD and forecast variances are due
to underspends in areas such as printing and
stationary, travel and payments to other
bodies.
Head of
Acute and
Complex
Care
Mental Health 766 735 (31) (4.2%) 2,726 2,794 (68) (2.5%) The YTD variance is outwith reporting criteria.
The forecast overspend reflects higher than
budgeted demand for services in Supported
Living (£91k) and Residential Placements
(£104k). These are partially offset by an
underspend on the addictions service and
assessment and care management due to
staff vacancies. 
Head of
Acute and
Complex
Care
Physical
Disability
1,241 1,181 (60) (5.1%) 2,799 2,922 (123) (4.4%) The YTD variance reflects demand for service
within the supported living budgets and
overspends on purchases within the
Integrated Equipment Store. This is partially
offset by underspends in the residential
budget.  The forecast overspend reflects
higher than budgeted demand for Supported
Living (£103k), Respite (£9k) and higher than
budgeted equipment purchasing in the
Integrated Equipment Service (£15k). These
are offset slightly by a forecast underspends in
the Residential Care and ACM Budgets. 
6,092 6,403 311 31.7% 19,872 19,434 438 19.6%  
Head of
Children &
Families
Child
Protection
1,695 1,817 122 6.7% 3,674 3,393 281 7.6% The YTD variance is as a result of payroll
underspends due to vacancies as well as
underspends on travel and subsistence
combined with demand for services across
contact & welfare. The forecast underspend is
as a result of demand for contact and welfare
services as well as forecast underspends in
the Area Teams on payroll costs, payments to
other bodies, travel and subsistence.
Head of
Children &
Families
Children with
a Disability
539 476 (63) (13.2%) 984 1,027 (43) (4.4%) The YTD variance reflects demand for service.
The forecast variance is outwith reporting
criteria.

Page 45

Head of
Children &
Families
Criminal
Justice
79 198 119 60.1% 224 110 114 50.9% The YTD variance is a result of payroll
underspends due to vacancies combined with
underspends on payments to other bodies.
The forecast underspend is due to vacancies
within the Criminal Justice team.
Head of
Children &
Families
Looked After
Children
4,201 4,315 114 2.6% 7,836 7,631 205 2.6% The YTD variance is a result of demand for
fostering, kinship and adoption placements as
well as the YTD over-recovery of income for
the provision of nursery meals. This is
combined with payroll underspends due to
vacancies and long term absence. The
forecast underspend is a result of demand for
fostering, kinship and adoption placements as
well as on supporting young people leaving
care. There is also an over-recovery on
income from the Home Office for
unaccompanied asylum seeking children. This
is all partially offset by demand for external
residential placements and payroll overspends
in the children's houses.
Head of
Children &
Families
Management
& Central
Costs
1,702 1,736 34 2.0% 3,718 3,689 29 0.8% Outwith reporting criteria.
8,216 8,542 326 3.8% 16,436 15,850 586 3.6%
GRAND
TOTAL 31,344 31,378 34 0.1% 76,117 76,117 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 46

SOCIAL WORK – SUBJECTIVE SUMMARY AS AT 31 OCTOBER 2023 
Subjective
Category
YTD
Actual
£000
YTD
Budget
£000
YTD
Variance
£000
%
Variance
Annual
Budget
£000
Forecast
Outturn
£000
Forecast
Variance
£000
%
Variance Explanation
Employee 18,826 18,306 (520) (2.8%) 34,745 34,673 72 0.2% The YTD overspend is due to the use of
agency staff across the HSCP (£1.7m YTD
variance; £2.5m forecast), partially offset by
the over-recovery on vacancy savings and
payroll underspends due to vacancies. The
forecast underspend is mainly due to
forecast payroll underspends and the over-
recovery of vacancy savings offset by
agency staff costs. 
Premises 899 717 (182) (25.4%) 1,544 1,866 (322) (20.9%) The YTD overspend is mainly due to
overspends on central repairs and property
maintenance. The forecast overspend is due
to anticipated overspends on utilities due to
current market conditions as well as on
central repairs and property maintenance.
Some of the utility overspend is offset by an
over-recovery on income for recharges to
other bodies for shared costs. 
Supplies &
Services
1,161 837 (324) (38.7%) 1,371 1,960 (589) (43.0%) The YTD and forecast overspends are
mainly due to forecast slippage on agreed
savings targets within C&F and homecare.
Transport 348 371 23 6.2% 683 565 118 17.3% The YTD and forecast underspends are due
to various travel underspends across the
whole department following changes to
working practices post Covid-19 and the
number of staff vacancies.
Third Party 30,496 30,675 179 0.6% 62,160 63,333 (1,173) (1.9%) The YTD underspend is largely due to
budget profiling and the timing of payments
to third parties across purchased care
services. The forecast overspend is a result
of demand for purchased care services
across Adult Service and residential care
with C&F. This is partially offset by
underspends in Fostering and Adoption as
well as underspends on unallocated
centrally held funds.

Page 47

Income (20,386) (19,528) 858 (4.4%) (24,386) (26,280) 1,894 (7.8%) The YTD and forecast over recovery of
income is mainly due to increased income
from fees, charges and recharges.
Totals 31,344 31,378 34 0.1% 76,117 76,117 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 48

SOCIAL WORK – RED VARIANCES AS AT 31 OCTOBER 2023
Service Area Annual
Budget
£000
Forecast
Outturn
£000
Forecast
Variance
£000
%
Variance Explanation
Social Work Central Support (434) (894) 460 (106.0%)
The forecast underspend is due to an over-recovery on vacancy savings
(£278k) combined with underspends on centrally held funds, printing &
stationery and postages.
Management & Central Costs 1,467 1,120 347 23.7% The forecast underspend is mainly due to underspends on centrally held
funds and staff vacancies.
Older People 37,725 39,575 (1,850) (4.9%)
The forecast overspend reflects demand driven overspends within the care
home placement and homecare budgets. High staff costs across HSCP
residential units due to agency cover are also contributing to the forecast
overspend. These overspends are partially offset by staffing underspends
across ACM teams and internal residential units.
Learning Disability 14,217 13,617 600 4.2%
The forecast underspend reflects known demand for Residential Placements
partially offset by demand driven overspends on Supported Living and
Respite.
Mental Health 2,726 2,794 (68) (2.5%)
The forecast overspend reflects higher than budgeted demand for services in
Supported Living (£91k) and Residential Placements (£104k). These are
partially offset by an underspend on addictions services and assessment and
care management due to staff vacancies.
Physical Disability 2,799 2,922 (123) (4.4%)
The forecast overspend reflects higher than budgeted demand for Supported
Living (£103k), Respite (£9k) and higher than budgeted equipment
purchasing in the Integrated Equipment Store (£15k). These are offset slightly
by a forecast underspends in the Residential Care and ACM Budgets.
Child Protection 3,674 3,393 281 7.6%
The forecast underspend is a result of demand for contact and welfare
services as well as forecast underspends in the Area Teams on payroll costs,
payments to other bodies, travel and subsistence.
Criminal Justice 224 110 114 50.9% The forecast underspend is due to vacancies within the Criminal Justice team.
Looked After Children 7,836 7,631 205 2.6%
The forecast underspend is a result of demand for fostering, kinship and
adoption placements as well as on supporting young people leaving care.
There is also an over-recovery on income from the Home Office for
unaccompanied asylum seeking children. This is all partially offset by demand
for external residential placements and payroll overspends in the children's
houses.
A red variance is a forecast variance which is greater than +/- £50,000.

Page 49

MONITORING OF SAVINGS – AS AT 31 OCTOBER 2023
New policy savings were identified for the three year period 2023-24 to 2025-26 and these were agreed by Council in February 2023.  Council
agreed to policy savings of £6.145m in 2023-24 rising to £6.260m by 2025-26. 
The position of historical policy saving options is as follows:
- 2022/23 – those not delivered or that have further increases in value in 2023-24 onwards total £0.187m
- 2021/22 – those not delivered or that have further increase in value in 2023-24 onwards total £0.195m
- 2020/21 – those not delivered total £0.050m
- 2019/20 – all delivered
- 2018/19 - those not delivered total £0.376m
The 2023-24 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 are two savings where the department has indicated they will not be achieved, two are categorised as having a potential shortfall and one
is currently delayed as summarised below:
Saving Saving
Agreed
Status Detail Shortfall/
Delayed
Value
TB07 – Depots Feb-18 Will not be achieved Savings to date via the Oban project, tidying up NDR costs form
previous disposals and removing security costs. 
The remainder of the outstanding saving is based on removing the
smallest depot budget from each town but cannot do this without the
capital investment to create fit for purpose single depot facilities. 
Working through possible alternative delivery model and updated
business case for Lochgilphead – there is a shortfall between
possible capital costs and likely income from vacated sites.
This saving will not be achieved and a cost pressure has been put
through for this for 2024-25.  Work will be ongoing on the depot
rationalisation across the area and future savings will be brought
once known. 
£107,500

Page 50

R&I17 - Public transport
fare scale increase
Feb-21 Will not be achieved Fare increase did not offset the saving advised by the Stantec review.
This saving will not be achieved and shortfall has been absorbed by
underspends elsewhere in the service.
£29,000
TB13b Roads and
Amenity Services
charging (non-statutory
services)
Feb-18 Potential Shortfall -
there is a risk that the
original saving 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.
£150,000
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
TB09 – Public
Conveniences
Feb-18 Delayed - The full
saving will not be
achieved in line with
the original estimated
timescale.
Door access control project has an indicative start date of November
for installs. This delay has missed the busy summer months and
October holidays so expected income over winter will be minimal. We
have no way to accurately predict income levels but the system
allows for regular reporting and itemisation so we will quickly be in a
position to profile future income.
£24,000
All policy saving options previously agreed are noted in the table below for information.

Page 51

2023-24 2023-24
£000 FTE
Executive Director Douglas Hendry
CS01 Feb-22 Commercial
Services
Climate Change & Resource Efficiency 63.0 0.00 On Track to be Delivered
CS03 Feb-22 Commercial
Services
Stretch Targets for One Council Income &
Events
20.0 0.00 Delivered
EDU2324-001 Feb-23 Education Estimated saving due to change in pupil
numbers
700.00 0.0 Delivered
EDU2324-002 Feb-23 Education Removal of non-statutory Cultural
Coordinator post.
15.00 0.8 Delivered
Executive Director Kirsty Flanagan
DEG05(a) Feb-20 Development
and Economic
Growth
Raise additional fees by adopting the
current Building Cost Information Service
(BCIS) guide for the cost of building work.
Regular service users have been
informed of this change.
50.00 0.0 Delivered
DEG07 Feb-21 Development
and Economic
Growth
Additional income through fees and
charges for s64 Non-Material Amendment
Submissions, non e-planning application
submissions and property history
searches
28.00 0.0 Delivered
DEG01 Feb-22 Development
and Economic
Growth
Crown Estate Administration Contribution
to Project Delivery
104.0 0.00 Delivered
DEG2324-002 Feb-23 Development
and Economic
Growth
Reduce discretionary budget to minimum.
Retain budget to pay memberships to
SCDI, SLAED & HOPS but remove
remainder of discretionary budget.
21.50 0.0 Delivered
DEG2324-001 Feb-23 Development
and Economic
Growth
Long-term vacant 0.5FTE building
standards surveyors post that arose
through an employee reducing their
working hours is no longer requires in
structure.
24.00 0.5 Delivered
FIS2324-001 Feb-23 Financial
Services
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.
4,831.00 0.0 Delivered
FIS2324-002 Feb-23 Financial
Services
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.
493.00 0.0 On Track to be Delivered
TB07 Feb-18 Roads and
Infrastructure
Services
Create one main depot in key areas to
reduce costs
172.50 0.0 Will not be achieved
TB13b Feb-18 Roads and
Infrastructure
Services
Roads & Amenity Services charging (non-
statutory services)
150.0 0.00 Potential Shortfall
TB12b Feb-18 Roads and
Infrastructure
Services
Review charges for stadiums to enable
improvement work
30.00 0.0 Potential Shortfall
TB09 Feb-18 Roads and
Infrastructure
Services
Public Conveniences - Progress
sustainable models including turnstiles
and franchising; establish simpler asset
transfer process
24.00 0.0 Delayed
R&I17 Feb-21 Roads and
Infrastructure
Services
Public transport fare scale increase 76.00 0.0 Will not be achieved
R&I05 Feb-21 Roads and
Infrastructure
Services
Design service fees - bringing in line with
industry standards and reduce cost of
consultancy. Two posts created as a
spend to save
50.00 -2.0 Delivered
R&I09 Feb-21 Roads and
Infrastructure
Services
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
R&I15 Feb-21 Roads and
Infrastructure
Services
Emergency services support and fuel
provision from our fuel supplies
0.50 0.0 Still to be Implemented
RIS2324-001 Feb-23 Roads and
Infrastructure
Services
Support Communities to move to different
approaches to delivering School Crossing
Patrols through engagement with Parent
Council and Communities.
60.00 1.5 On Track to be Delivered
TOTAL 6,952.5 1.8
Template Ref Saving
Agreed
Service Savings Option Status of Implementation

Page 52

ARGYLL AND BUTE COUNCIL
FINANCIAL SERVICES
POLICY AND RESOURCES COMMITTEE 
7 DECEMBER 2023
FINANCIAL RISKS ANALYSIS 2023-24  
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 6 Council wide revenue risks identified for 2023-24 currently amounting
to £3.661m. 
1.4 There are currently 39 departmental risks totalling £5.265m.  Of the 39
departmental risks, 6 are categorised as likely.   
1.5 The financial risks are monitored routinely and actions put in place to continue to
mitigate the risks.

Page 53

ARGYLL AND BUTE COUNCIL
FINANCIAL SERVICES
POLICY AND RESOURCES COMMITTEE
7 DECEMBER 2023
FINANCIAL RISKS ANALYSIS 2023-24
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 2023-24.
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 Utility costs remain a volatile area and it is difficult to accurately predict how the
prices could vary. The outturn in respect of utilities for 2022-23 was an overspend
of £0.597m which was due to the unprecedented inflationary uplifts within the

Page 54

energy market although forward purchasing sheltered the Council from the full
impact. During 2023-24 the Council re-contracted for its energy needs and was
exposed to significantly higher market rates creating an in year cost pressure of
£0.936m with a proposal to fund this from the £1.4m contingency set aside for
inflationary increases as part of the 2023-24 budget setting process. With the
volatility of utilities pricing it is very difficult to predict the impact going forward but
a financial risk based on a 20% variation based on the original utilities budget
amounts to £0.827m.
3.2.2 The SJC pay award for 2023-24 has progressed but has still to be finalised and
this may have an impact on the base budget if the pay award is greater than the
total of what has been allowed for the in the budget. The Council has set aside
budget equivalent to 3.5%, and the Scottish Government has agreed funding
equivalent to 2.5%, which gives a total pay award budget equivalent to a 6%
increase. This is a situation that will be kept under close review as the pay
negotiations advance further. Each 1% costs an additional £0.826m (for SJC
employees only). The financial risk is recognised at £0.826m at this stage. It
should be noted that the Teachers pay award for 2023-24 is already settled and
built into the budget.
3.2.3 At the budget meeting on 24 February 2023, the Council agreed 6 new policy
savings options that would deliver savings over the period 2023-24 to 2025-26.
The savings to be delivered in 2023-24 amount to £6.145m. Whilst the Council
have a good track record in delivering savings, a 10% shortfall on this savings
target would amount to £0.615m.
3.2.4 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 £0.593m.
3.2.5 In respect of the Health and Social Care Partnership, it is the responsibility of the
Chief Officer and Chief Financial Officer to manage the HSCP financial position.
If an overspend is forecast, a budget recovery plan will be prepared and
submitted to the IJB, the Council and NHS Highland. Where recovery plans are
unsuccessful and an overspend occurs at the financial year end, and the HSCP
has insufficient reserves to meet the overspend, then the partners will be required
to make additional payments to the HSCP. Whilst any additional payments by the
Council and NHS Highland will be deducted from future years funding, there is still
a financial risk that the Council may have to pay out additional monies in year. As
at 31 October 2023, the net HSCP outturn in 2023-24 is estimated to be a
£0.850m overspend (Social Work forecasting a breakeven position and an
overspend of £0.850m from Health). As Social Work are currently projecting a
breakeven position and the IJB holds significant financial reserves, there is a nil
value on the risk.
3.2.6 There is an ongoing requirement to fund unavoidable inflationary cost increases in
areas like fuel, food etc. This has been predominantly caused by the lack of
availability of supply of labour and materials as a result of the COVID-19

Page 55

pandemic, the UK exit from the European Union, Russia’s invasion of Ukraine and
sanctions on Russian owned entities and ongoing events in the Middle East.
Inflation has begun to fall 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.
3.2.7 The Council wide risks are noted within the table below.
Description Likelihood Assessed
Financial Impact
£000
Energy costs increase by 20% greater
than anticipated
3 827
Pay award exceeding available
funding
3 826
10% shortfall on Savings Options 2 615
1% variation in Council Tax Income 2 593
IJB refer to Council for additional
funding to deliver social work services
1 0
1% variation of General Inflation Risk 4 800
Total 3,661
Capital
3.2.8 The finance settlement announcement on 20 December 2022 provided details of
the Local Government funding for 2023-24 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.
3.2.9 The capital plan for 2023-24 includes an estimate of £1.195m in respect of capital
receipts. This is based on an assessment provided by the Special Projects Team
in January 2023. A 10% variation equates to £0.120m and this would require to
be managed across the capital programme.
3.2.10
3.2.11
3.2.12
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. This can be attributed to a number of
factors such as the drag on markets and supplies of the COVID-19 pandemic, UK
exit from the European Union, Russia’s invasion of Ukraine and sanctions on
Russian owned entities and ongoing events in the Middle East, to name a few.
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.
While it has been possible to estimate the impact of these pressures on some
projects, and therefore either include those projections within the capital

Page 56

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. 
3.2.13 Surveys have been completed in the Councils Learning Estates in relation to
Reinforced Autoclaved Aerated Concrete (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. The estimated costs associated with this are £3m which will
require additional funding. The Council is also currently undertaking both desktop
and on-site assessments to establish if RAAC is elsewhere in the Estate in over
650 buildings with priority being given to categories of building where there is high
and sustained footfall. No RAAC has been confirmed in these categories of
building thus far.  
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 7 600 5 565 0 0 20 1,745
Executive Director
Kirsty Flanagan 5 335 2 230 11 2,590 1 365 0 0 19 3,520
Total 7 355 8 790 18 3,190 6 930 0 0 39 5,265 
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

Page 57

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
Roads and
Infrastructure
Services
Winter
Maintenance
Adverse weather conditions
which require greater than
budgeted number of gritting
runs.
4 365 
3.3.3 The risks which are likely, but not included above, 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
Legal and
Regulatory
Support
Contract RPI for
NPDO and Hub
Schools
Increase in RPI would result in
higher costs.
4 100
Legal and
Regulatory
Support
NPDO -
Reduction in
insurance
savings 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
Legal and
Regulatory
Support
Licensing Reduced numbers of licensing
applications leading to reduced
income.
4 30

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3.4 Changes to Financial Risks since last report 
3.4.1 There have been 4 changes to the departmental risks since the financial risks
report was presented to the Policy and Resources Committee on 12 October
2023, as follows: 
- The risk in relation to Ferry Services – income has been removed as the
risk has been realised and there is a forecast variance recognised within
the budget monitoring report.
- The risk in relation to Street Lighting has been removed as the risk has
been realised and there is a forecast variance recognised within the budget
monitoring report. 
- The risk in relation to Elections has been increased from ‘Possible’ to
‘Likely’ and value increased from £0.045m to £0.060m to reflect the
increased risk of by-elections as there is now one by-election planned
during 2023-24.
- The risk in relation to NPDO – Reduction in insurance savings within
NPDO schools has been increased from ‘Possible’ to ‘Likely’ given the
increases in insurance costs. 
3.5 Monitoring of Financial Risks 
3.5.1 
3.5.2
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.   
During the 2023-24 budget setting process a contingency of £1.4m was agreed
which was circa 0.5% of the Councils budget at that time. This was included due
to the volatility in prices, the increases in inflation together with continuing
increased demand. The risk associated with Winter Maintenance will be
monitored closely over the coming months and should it materialise it is
recommended that this contingency is used to offset the pressure.  
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 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 leaving

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the Council to fund circa £20m therefore Council need to consider full affordability
options before agreeing to progress with this project. There are £9m in earmarked
reserves set aside for this purpose with funding required for the remaining
balance. A paper outlining possible funding options will be presented to Council
on 12 December 2023. 
3.6.3  As a result of significant rainfall Argyll and Bute Council activated the Bellwin
scheme in relation to the recovery of costs associated with the incident. The
funding from this scheme is welcomed however eligibility criteria of costs are
restrictive. Primarily the first £0.529m has to be covered by the Local Authority of
which £0.398m has been identified from Crown Estates funding with the
possibility this could be topped up further once the Crown Estate full year
allocation of funding is confirmed. Secondly, capital expenditure does not qualify
therefore any long term replacements to infrastructure such as bridges cannot be
claimed through the scheme therefore if not already part of the capital programme
will require funding. The costs associated with this are still being identified but
there is a risk that a significant value of these work will have to be funded by the
Council and not through the Bellwin scheme. A verbal update on the financial
position will be provided at Policy and Resources Committee on 7 December. 
3.6.4 In its present configuration, Argyll and Bute Council’s digital network does not
have the capacity to accommodate the requirements of 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 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 6
Council wide risks and 39 departmental risks identified with 6 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.

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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. 
Kirsty Flanagan
Executive Director/Section 95 Officer
3 November 2023 
Policy Lead for Finance and Commercial Services - Councillor Gary Mulvaney 
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

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APPENDIX 1
DEPARTMENT/SERVICE FINANCIAL RISKS AS AT 31 OCTOBER 2023
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).
Although expansion paused for full implementation for
P6&7, FSM expanded through entitlement to Scottish Child
Payment.
Senior Manager connected into the
National Operational Delivery Group. This
enables the Council's viewpoint to 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
As at 31 August 2023 As at 31 October 2023

Page 62

DEPARTMENT SERVICE TITLE OF RISK DESCRIPTION OF RISK MITIGATING ACTIONS IN PLACE
LIKELIHOOD
FINANCIAL
IMPACT
£000
LIKELIHOOD
FINANCIAL
IMPACT
£000
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
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.
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.
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 4 100

Page 63

DEPARTMENT SERVICE TITLE OF RISK DESCRIPTION OF RISK MITIGATING ACTIONS IN PLACE
LIKELIHOOD
FINANCIAL
IMPACT
£000
LIKELIHOOD
FINANCIAL
IMPACT
£000
Executive Director
Douglas Hendry
Legal and Regulatory
Support
NPDO - Reduction in insurance
savings within NPDO Schools
Increase in insurance costs as a result of the long-term
effects of Covid-19 on the insurance market and flood
claims.
Monitoring annual alteration to contract
insurance rate and mitigation through
financial forecasting and review of existing
budget.
3 75 4 75
Executive Director
Douglas Hendry
Legal and Regulatory
Support
Legal Services - Litigation Increased number of litigation cases. Ensure Legal Services are gateway to access
all legal advice and that advice is sought at
earliest opportunity.
3 50 3 50
Executive Director
Douglas Hendry
Legal and Regulatory
Support
NPDO/Hub DBFM contract
management efficiencies
Reduction in ability to generate contract management
efficiencies.
Monitoring annual efficiencies generated
and mitigation through robust contract
management and application of contract
specifications/requirements.
2 50 2 50
Executive Director
Douglas Hendry
Legal and Regulatory
Support
Elections More than 1 by-election required outwith standard election
cycle.
Outwith direct management control. 3 45 4 60
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.
4 30 4 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
Environmental Health- export
certificates
Downturn in requests for export certificates as a result of
UK withdrawal from EU, changes to international trading
agreements or business economy. Reduction in demand
creates a budget pressure on environmental health budget.
Monitor income and resources required for
export health certificates / attestations
required to support the export market.
Continue with food safety regulation
activities associated and support at 3rd
country audits. Pursue debt rigorously with
key customers through seeking regular
payments.
2 130 2 130
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 fees reduced by
Scottish Government
Potential that the Scottish Government may reduce
planning fees 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
improvment/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

Page 64

DEPARTMENT SERVICE TITLE OF RISK DESCRIPTION OF RISK MITIGATING ACTIONS IN PLACE
LIKELIHOOD
FINANCIAL
IMPACT
£000
LIKELIHOOD
FINANCIAL
IMPACT
£000
Executive Director
Kirsty Flanagan
Development and
Economic Growth
Planning fee shortfalls Due to downturn in economic / building activity, in
particular renewable energy development and other major
developments could lead to planning fee income shortfalls
leading to revenue budget pressures.
Current income levels are looking more
positive, however, we are dependent on
some high value applications coming in
which, if they don't materialise, will impact
the overall position. Will continue to
monitor Development Management
income and expenditure tightly and
investigate further income generation
streams.
1 50 1 50
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
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.
3 50 3 50
Executive Director
Kirsty Flanagan
Development and
Economic Growth
Animal Health Carrying out livestock seizure to protect welfare of the
animals
Monitor activity and seek to recover costs
from the disposal of the animals.
1 10 1 10
Executive Director
Kirsty Flanagan
Financial Services Council Tax Debt Collection
Recovery
Recovery of debt becomes more difficult to pursue in the
current economic climate. This is in relation to historical
debt that has accumulated over many years therefore any
adverse collection rates will impact on the year end debt
provision as opposed to the in-year financial position, hence
no forecast variance has been reported within the current
year.
Robust monitoring of arrangements with
debt collection agency and performance
against target collection rates.
3 345 3 345
Executive Director
Kirsty Flanagan
Financial Services 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
Financial Services Non-Domestic Rates Relief Risk of demand changing due to legislative changes outwith
our control for charitable relief for Arms Length External
Organisations (ALEO).
Outwith direct management control. 3 30 3 30
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
Waste - Compost Like Output
(CLO)
Compost Like Output is an element of waste that has been
heat treated and can only be used for landfill site
restoration. Renewi are currently producing more CLO than
we need and it is building up in our landfill sites - this has
been flagged up as a concern by SEPA and will need to be
removed.
Discussions ongoing with Renewi and the
Council on steps forward and what element
the council is responsible for.
3 164 3 164

Page 65

DEPARTMENT SERVICE TITLE OF RISK DESCRIPTION OF RISK MITIGATING ACTIONS IN PLACE
LIKELIHOOD
FINANCIAL
IMPACT
£000
LIKELIHOOD
FINANCIAL
IMPACT
£000
Executive Director
Kirsty Flanagan
Roads and Infrastructure
Services
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
Winter Maintenance Adverse weather conditions which require greater than
budgeted number of gritting runs.
Monitor weather conditions and apply
gritting policy to minimise costs.
4 365 4 365
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
41 5,550 39 5,265

Page 66

ARGYLL AND BUTE COUNCIL  POLICY & RESOURCES COMMITTEE  
FINANCIAL SERVICES 7 DECEMBER 2023 
CAPITAL BUDGET MONITORING REPORT – 31 OCTOBER 2023 
1.0 EXECUTIVE SUMMARY 
1.1 This report provides an update on the position of the capital budget as at 31
October 2023. 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 £19,390k
compared to a budget for the year to date of £19,360k resulting in an
overspend for the year to date of £30k (0.15%).
 Forecast Outturn for 2023-24 – forecast net expenditure for the full
financial year is £43,013k compared to an annual budget of £43,657k
giving rise to a forecast underspend for the year of £644k (1.48%).    
 Total Capital Plan – forecast total net project costs on the total capital
plan are £216,052k compared to a total budget for all projects of
£216,014k giving rise to a forecast overspend for the overall capital plan
of £38k (0.02%). 
1.3 Project Delivery: 
 Asset Sustainability – Out of 84 projects there are 82 projects (98%) on
track, 1 projects (1%) off track but recoverable and 1 project off track (1%).
 Service Development - Out of 42 projects there are 40 projects (95%) on
track, 2 project (5%) off track but recoverable and 0 projects (0%) off track.
 Strategic Change – Out of 30 projects there are 29 projects (97%) on
track, 0 projects (0%) are off track but recoverable and 1 project (3%) off
track.  
1.4 
1.5 
The Capital Programme is funded by various income streams as detailed in
Appendix 5. Additional funding allocated since the last report has come from
funding drawn down for Rural Growth Deal Clyde Engineering and Innovation
Cluster and COVID reserves for ICT. A portion of earmarked Climate Change
reserves which had been profiled as Capital Funding has been removed from
the capital plan as it is being used within revenue. 
Capital receipts of £160k have been received so far in 2023-24. 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 67

ARGYLL AND BUTE COUNCIL  POLICY & RESOURCES COMMITTEE 
FINANCIAL SERVICES 7 DECEMBER 2023 
CAPITAL BUDGET MONITORING REPORT – 31 OCTOBER 2023 
2.0  INTRODUCTION 
2.1 
2.2 
2.3 
2.4 
2.5 
2.6 
2.7 
This report provides an update on the position of the capital budget as at 31
October 2023. 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. 
Campbeltown Flood Scheme has seen compensation events raised by the
contractor which may result in an overspend within the project. These are currently
being discussed with the consultant and cost saving approaches are being sought
to bring the project in on budget therefore at this stage no forecast overspend has
been included within the figures and the project is still marked as on track. The
cost savings are hoped to mitigate these compensation events, though should
sufficient savings fail to be identified, an overspend on the project is possible at
which point it will be incorporated into the figures within this report. 
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. The estimated costs
associated with this are £3m which will require additional funding and will be
considered as part of the 2024-25 budget setting process. 
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 £19.755m. 
As a result of significant rainfall Argyll and Bute Council activated the Bellwin scheme
in relation to the recovery costs associated with the incident. The funding from this
scheme is welcomed however eligibility criteria of costs are restrictive. Capital
expenditure does not qualify therefore any long term replacements to infrastructure
such as bridges cannot be claimed through the scheme therefore if not already part of
the capital programme will require funding. The costs associated with this are still
being identified. 
New Waste legislation has been introduced on the disposal of Persistent Organic
Pollutants (POPs).  POPs are organic chemical substances which pose a risk to

Page 68

2.8 
2.9 
2.10
human health and the environment due to their persistence in the environment,
bioaccumulation through the food chain and long-range environmental transport
across a wide geographical range.  These items of waste will need to be stored
separately from general waste at landfill sites before being disposed of which will
incur additional capital expenditure.  Work is ongoing in relation to the impact and
costs of this new legislation but early estimates suggest the capital costs will be in
the region of £110k. 
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. 
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).
 Universal Free School Meals – delayed roll out to P6 and P7 and uncertain
capital funding levels available from the Scottish Government. Distributions
of 2023-24 funding have not yet been announced. 
 Other general construction inflationary 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 £10.803m has been allocated to the capital
programme for this purpose which has mitigated the impact to date however, as
detailed in the table below, only £2.703m remains 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
Total Additional Funding Allocated to Capital 10.803
Allocated to Projects within Capital Programme (5.779)
Committed for future years (2.321)
Balance Remaining 2.703

Page 69

4.0 CURRENT YEAR TO DATE FINANCIAL POSITION 
4.1 
4.2
Overall Position 
Actual net expenditure to date is £19,390k compared to a budget for the year to
date of £19,360k resulting in an overspend for the year to date of £30k (0.15%). 
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 8,255 8,261 (6)
Service Development 1,910 1,934 (24)
Strategic Change 9,195 9,195 0
Total  19,360 19,390 (30)
Service:      
ICT 717 717 0
Education 3,036 3,036 0
Live Argyll 365 365 0
Health & Social Care Partnership 442 442 0
Shared Offices 396 398 (2)
Roads & Infrastructure 11,099 11,127 (28)
Development & Economic Growth 653 653 0
CHORD 2,652 2,652 0
Total 19,360 19,390 (30) 
Material variances are explained in Appendix 1 and there are a number of small
variances contributing to the year to date overspend. 
3.0  RECOMMENDATIONS 
3.1 Note the contents of this report and the financial summaries as detailed in
Appendix 8 and approve the proposed changes to the capital plan detailed in
Appendix 4.

Page 70

5.0  FORECAST OUTTURN 2023-24 
5.1  Overall Position 
Forecast net expenditure for the full financial year is £43,013k compared to an annual
budget of £43,657k giving rise to a forecast underspend for the year of £644k (1.48%). 
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 25,404 25,230 174
Service Development 160 194 (34)
Strategic Change 18,093 17,589 504
Total  43,657 43,013 644
Service:      
ICT 1,428 1,428 0
Education 6,911 6,911 0
Live Argyll 1,263 1,083 180
Health & Social Care Partnership 2,201 2,201 0
Shared Offices 1,904 1,906 (2)
Roads & Infrastructure 24,683 24,725 (42)
Development & Economic Growth (423) (931) 508
CHORD 5,690 5,690 0
Total 43,657 43,013 644 
Material variances are explained in Appendix 2 and there are a number of smaller
variances contributing to the forecast underspend.

Page 71

6.0  TOTAL PROJECT COSTS 
6.1 Overall Position 
Forecast total net project costs on the total capital plan are £216,052k compared to a
total budget for all projects of £216,014k giving rise to a forecast overspend for the
overall capital plan of £38k (0.02%). 
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 59,383 59,387 (4)
Service Development 22,317 22,351 (34)
Strategic Change 134,314 134,314 0
Total  216,014 216,052 (38)
Service:      
ICT 6,380 6,380 0
Education 45,630 45,630 0
Live Argyll 2,970 2,970 0
Health & Social Care Partnership 4,752 4,752 0
Shared Offices 23,539 23,539 0
Roads & Infrastructure 59,247 59,275 (28)
Development & Economic Growth 5,297 5,307 (10)
CHORD 68,199 68,199 0
Total 216,014 216,052 (38) 
Material variances are explained in Appendix 3 and there are a number of
smaller variances leading to the forecast overspend.

Page 72

7.0  TOTAL PROJECT PERFORMANCE 
7.1  Overall Position 
There are 156 projects within the Capital Plan, 151 are Complete or On Target, 3
are Off Target and Recoverable and 2 are Off Track.
7.2  Project Position 
The table below shows the Performance Status of the Projects in the Capital Plan. 
Project Type:
Complete/
On Target
Off Target/
Recoverable
Off
Target/
Problem Total
Asset Sustainability 82 1 1 84
Service Development 40 2 0 42
Strategic Change 29 0 1 30
Total 151 3 2 156
Service:        
ICT 7 0 0 7
Education 31 0 0 31
Live Argyll 18 0 1 19
Health & Social Care
Partnership 17 0 0 17
Shared Offices 24 0 0 24
Roads & Infrastructure 33 2 0 35
Development & Economic
Growth 15 1 1 17
CHORD 6 0 0 6
Total 151 3 2 156

Page 73

7.3  Chart of Performance Status 
The graph provides a view of the Performance Status of the Projects included in
the Capital Plan:

Page 74

8.0 OFF TRACK PROJECTS 
8.1 
9.0 
9.1 
The Off-Track projects are noted in the table below and variance reports are
included in Appendix 6. 
Project Type Project What is Off
Track?
Explanation
Asset
Sustainability 
Lochgilphead
Community
Education
Centre
Current year
spend
Slippage from 2023-24
into 2024-25.
Delays occurred due to
lack of available external
Mechanical and Electrical
Consultants.
See variance report for
details.
Strategic
Change
03 TIF - Halfway
House
Roundabout
Current year
spend
Slippage from 2023-24
into 2024-25. 
Long term scope of the
project is still being
discussed with input from
Scottish Government
expected by end of 2023-
24.
See variance report for
details. 
STRATEGIC CHANGE PROJECTS 
Appendix 7 gives detailed information in respect of the Strategic Change
Projects within the Capital Plan. The appendix gives details of the forecast cost
of each project against the approved budget, the start and anticipated
completion date of the project and an assessment of the risks of the project and,
if these are not green, gives an explanation of the problem.

Page 75

10.0 
10.1 
CHANGES TO CAPITAL PLAN 
The table below shows proposed changes to the Capital Plan at summary level
which include slippages, accelerations and virements. Explanations relating to
the specific projects involved can be seen in Appendix 4. 
The updated gross expenditure capital plan incorporating these proposed
changes can be found in Appendix 9. 
Department
Prev.
Agreed
Changes 
2023-24
2023-
24
2024-
25
2025-
26
Future
Years
Total
Capital
Plan
£’000 £’000 £’000 £’000 £’000 £’000
Asset
Sustainability (977) (178) 178 0 0 0
Service
Development (12) 0 0 0 0 0
Strategic Change (6,933) (504) 509 (5) 0 0
Total (7,922) (682) 687 (5) 0 0              
Service:            
ICT 154 0 0 0 0 0
Education (903) 0 0 0 0 0
Live Argyll (28) (180) 180 0 0 0
Health & Social
Care Partnership 0 0 0 0 0 0
Shared Offices (366) 2 (2) 0 0 0
Roads &
Infrastructure (6,237) 14 (9) (5) 0 0
Development &
Economic Growth (20) (518) 518 0 0 0
Major Projects (522) 0 0 0 0 0
Total (7,922) (682) 687 (5) 0 0 
11.0          FUNDING 
11.1  The Capital Programme is funded by various income streams as detailed in
Appendix 5. Additional funding allocated since the last report has come from
funding drawn down for Rural Growth Deal Clyde Engineering and Innovation
Cluster and COVID reserves for ICT. A portion of earmarked Climate Change
reserves which had been profiled as Capital Funding has been removed from
the capital plan as it is being used within revenue.

Page 76

12.0 
12.1 
12.2 
12.3 
12.4 
12.5 
12.6 
12.7 
12.8
IMPLICATIONS 
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.   
Kirsty Flanagan 
Executive Director / Section 95 Officer 
07 November 2023                                                  
Policy Lead for Finance and Commercial Services – Councillor Gary
Mulvaney 
APPENDICES
- Appendix 1 – Year To Date finance variance explanations
- Appendix 2 – Forecast Outturn variance explanations
- Appendix 3 – Total Project finance variance explanations
- Appendix 4 – Changes to Capital Plan and Financial Impact
- Appendix 5 – Capital Funding
- Appendix 6 - Off Track project variance reports
- Appendix 7 - Cumulative spend, completion dates and risks relating                         
to significant capital projects. 
- Appendix 8 - Financial Summary – Overall
- Financial Summary – Executive Director Kirsty Flanagan
- Financial Summary – Executive Director Douglas Hendry
- Appendix 9 - Updated/Revised Capital Plan
For further information contact: Anne Blue, Head of Financial Services
anne.blue@argyll-bute.gov.uk

Page 77

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   (30)          Total value of non-material variances less than +/-£50k
Total 19,390 19,360 (30)

Page 78

APPENDIX 2 – Outturn Variance Explanations
Listed below are the projects where the current year variance is +/- £50k. 
Project 
Annual
Budget
£’000
Outturn
£’000 
(Over)/ Under
Forecast
Variance
COVID-19
Related         
£’000
(Over)/ Under
Forecast
Variance Non
COVID-19
Related         
£’000
Total
(Over)/
Under
Forecast
Variance         
£’000
Explanation
TIF - Halfway House
Roundabout  574 56  0 518 518
Slippage from 2023-24 into 2024-25. 
Project delayed in planning stage due to scope of
project changing.
See variance report for details.
Lochgilphead Community
Education Centre 302 122  0 180 180
Slippage from 2023-24 into 2024-25.
Delays occurred due to lack of available external
Mechanical and Electrical Consultants.
See variance report for details.
Other variances under £50k                 0 (54) (54) Total value of non-material variances less than +/-
£50k.
Total  0 644 644

Page 79

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 
(Over)/ Under
Forecast
Variance
COVID-19
Related         
£’000
(Over)/ Under
Forecast
Variance Non
COVID-19
Related         
£’000
Total (Over)/
Under
Forecast
Variance         
£’000
Explanation
Other variances under £50k             (38) (38)
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  (38) (38)

Page 80

APPENDIX 4 – Changes to Capital Plan and Financial Impact
OVERALL COST CHANGES
Project
2023-
24
£’000
2024-
25
£’000
2025-
26
£’000
Future
Years
£’000
Total
Capital Plan
£’000
Recommendation Explanation
Total Cost Changes 0 0 0 0 0   
SLIPPAGES AND ACCELERATIONS
Project
2023-
24
£’000
2024-
25
£’000
2025-26
£’000
Future
Years
£’000 
2023-24
Slippage
Related to
COVID-19
£’000
2023-24
Slippage
Related
to Non
COVID-
19
£’000
Total
2023-24 
£’000
Recommendation Explanation
03 TIF - Halfway House
Roundabout (518) 518     (518) (518)
Slip budget from
2023-24 into 2024-
25.
Slippage from 2023-24 into 2024-
25. 
See variance report for details.
Campbeltown Flood
Scheme 14 (9) (5)    14 14
Accelerate budget
from 2024-25 and
2025-26 into 2023-
24.
Minor change (0.09% of total
project budget) to Campbeltown
Flood Scheme expenditure profile
from Consultant update. 
Lochgilphead
Community Education
Centre
(180) 180     (180) (180)
Slip budget from
2023-24 into 2024-
25.
Slippage from 2023-24 into 2024-
25. Some works rescheduled to
ensure they don’t impact the facility
during it’s busier months. This has
led to minor slippage out with 2023-
24.
Burnett Building 2 (2)     2 2
Accelerate budget
from 2024-25 into
2023-24
Accelerate from 2024-25 into 2023-
24. Building condition survey
carried out.
Total Slippages and
Accelerations (682) 687 (5) 0  0 (682) (682)  
Net Impact of Changes (682) 687 (5) 0  0 (682) (682)

Page 81

CAPITAL PROGRAMME FUNDING Appendix 5
Estimated
Capital
Funding
Carry
Forwards
from 22-23
Slippage /
Acceleration Additional Funding Updated Capital
Funding Available
Estimated
Capital
Funding
Carry
Forwards
from 22-23
Slippage /
Acceleration
Additional
Funding
Updated
Capital
Funding
Available
Estimated
Capital
Funding
Carry
Forwards
from 22-23
Slippage /
Acceleration
Additional
Funding
Updated
Capital
Funding
Available
General Capital Grant 11,900 222 -222 0 11,900 9,851 -276 0 129 9,704 10,007 54 0 0 10,061
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 1,195 0 0 0 1,195 350 0 0 0 350 400 0 0 0 400
Flooding Allocation 155 0 0 0 155 155 0 0 0 155 155 0 0 0 155
Ring Fenced Capital Grant 5,800 0 14 0 5,814 304 0 314 400 1,018 0 0 -324 0 -324
Restricted Funding 1,613 0 -522 1,389 2,480 0 0 488 2,065 2,553 0 0 34 50 84
Funded by Reserves 11,909 8,871 0 243 21,023 9,518 289 0 186 9,993 1,175 -155 0 0 1,020
Additional Funding from Revenue 25 0 0 117 142 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 22,235 -13,035 0 0 9,200 27,025 -5,025 0 0 22,000 29,700 20,300 0 0 50,000
Prudential Borrowing 20,718 -6,345 -8,078 74 6,369 27 6,434 8,300 0 14,761 0 1,388 0 0 1,388
Loans Fund Review 0 131 0 0 131 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
74,517 -10,156 -8,808 1,823 57,376 46,197 1,422 9,102 2,780 59,501 40,404 21,587 -290 50 61,751
BREAKDOWN OF ADDITIONAL FUNDING
Additional Funding 2023-24 2024-25 2025-26 Source Reported
Tobermory Top Flat - SHF 30 Revenue Funding Jan-23
Dunoon STEM Hub 50 Revenue Funding Jan-23
Dunoon STEM Hub 150 Grant Funding Jan-23
Dunoon Cycle Bothy 145 Grant Funding Jan-23
Gartbreck - Capping 118 Reserves Mar-23
Dunoon Cycle Bothy 74 Scottish Government Mar-23
Tigh Na Rhuda 400 50 Scottish Government Mar-23
Helensburgh and Rosneath Cycleways 290 SPT Jun-23
SPT - Bus Infrastructure 25 SPT Jun-23
Dunoon STEM Hub 1,750 Rural Growth Deal Jun-23
Rural Growth Deal planning stages 132 Rural Growth Deal Jun-23
Public Conveniences Upgrade - Coastal Communities Fund 200 Coasal Communities Fund Jul-23
Tobermory Harbour Wall and Railings, Phase 2 100 Coasal Communities Fund Jul-23
Tobermory Harbour Wall and Railings, Phase 2 250 Scottish Government Jul-23
Server Sustainability 95 Earmarked Reserves Jul-23
Oban Depot Development 67 Revenue Funding Aug-23
Roads Recon - STTS Funding 347 STTS Aug-23
Roads Recon - STTS Funding 40 STTS Sep-23
Coastal Change Adaptation 129 Scottish Government Sep-23
Telecomms Network 236 Earmarked Reserves Oct-23
Clean Energy - NDEEF1 -50 Earmarked Reserves Oct-23
Rural Growth Deal  - Clyde Engineering 25 Earmarked Reserves Oct-23
Total 1,823 2,780 50
2025-262024-252023-24

Page 82

OFF TRACK PROJECT  Appendix 6
Project Name:  Lochgilphead CeC Project Manager:  Rhona Mitchell Risk: 
Initial Start Date:  February 2024 Proposed End Date:  July 2024 
How was this project initially funded?  Capital  Please detail any additional funding.  
Previously Reported Committee and Date:    Next Reported Committee and Date: 
Why is the project classified as off target? 
Continued issues with availability of skilled external Mechanical & Electrical Consultants have resulted in delays to the design aspect of the programme,
specialist design of the solar roof panels, the associated structural considerations and confirmation of current loading capacity have compounded delays of a
final designed outcome and works have been unable to commence as planned.  In order to mitigate any potential prolongation costs projects have been
reprogrammed to reduce the commercial impact on the programme as a whole, revised timelines have been agreed with the Client representative and at all
times minimise disruption to Live Argyll’s day to day business. 
What has caused the issue outlined above?  
Issues with appointment and availability of skilled external Mechanical & Electrical Consultants have resulted in delays to the design aspect of the programme,
more specifically the specialist design of the solar roof panels and the associated structural considerations which have impacted on the detailing of the final roof
detail and Nett Zero requirements. 
Revised timelines have been agreed with the Client and are now programmed for commencement in February 2024 and are due for completion by end of July
2024. 
What action will be taken to rectify this issue?
All efforts are being made to maximise 23/24 spend, accelerate the works and mitigate any further delays, however, continued issues with availability of suitably
skilled labour, transport and material deliveries will impact our current spend profile and as a consequence the spend has been re-profiled into 24/25. 
What are the implications of the action proposed?
Successful completion programmed for Summer 24.   Realistic Capital reporting.

Page 83

OFF TRACK PROJECT  Appendix 6
Project Name:  Halfway House Roundabout Project Manager:  Adrian Jackson-Stark Risk: Low
Initial Start Date:   Proposed End Date:   
How was this project initially funded?    Please detail any additional funding.  
Previously Reported Committee and Date:    Next Reported Committee and Date: 
Why is the project classified as off target?
The project has been classified as off target due to £518k of forecasted expenditure slipping from 2023-24 into 2024-25.
What has caused the issue outlined above?  
Plans are still being developed and there is as yet no final decision on what this project could look like in the long term – it could be much larger than it currently
is – a view from Scottish Government is expected at least in principle late in 2023 or early 2024. For the current scope there is no spend imminently – this
project requires planning permission to be obtained by a third party prior to instigation and this is likely to occur with the award of a design contract in the spring
of 2024.
What action will be taken to rectify this issue?
Updates will be provided early 2024 once scope of project has been determined.
What are the implications of the action proposed?
Slippage from 2023-24 into 2024-25 at the earliest with potential for further slippage.

Page 84

Strategic Change Projects - Cumulative Spend, Start/Finish Dates and Project Risks APPENDIX 7
Strategic Change Projects
Prior Years
Spend
£'000
Current Year
Forecast
£'000
Total Project
Forecast
£'000
Total Project
Budget
£'000
Project Start
Date
Estimated
Completion
Date
Project
Risks
Identified Explanation
Helensburgh Waterfront Development 23,415 977 24,392 24,392 01/04/2017 31/03/2024 Green Physically complete, retentions outstanding
Campbeltown Flood Scheme 4,992 9,874 15,215 15,215 01/08/2016 31/03/2024 Green Contractor's updated programming of work moved Public Utility works from 22/23 to 23/24
CHORD Oban 7,279 626 7,905 7,905 27/10/2016 31/03/2022 Green Issues with contract close out impacting on timescales.
TIF - Halfway House Roundabout 66 56 640 640 tbc tbc Red Scope of project still to be determined - budget to be reprofiled.
CHORD Rothesay 15,231 6,737 24,012 24,012 tbc tbc Green Project recommenced.
Harbour Investment Programme 7,397 3,243 91,335 91,335 01/04/2017 31/03/2028 Green Budget slipped into future years.
Dunoon Primary 10,635 234 10,869 10,869 18/12/2014 30/04/2020 Green Physically complete - negotiations with contractor delaying payment of final sums outstanding.
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.
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.
Street Lighting LED Replacement 3,226 674 3,900 3,900 01/08/2016 31/12/2024 Green Tender for final package of works still to be awarded.
Helensburgh Office Rationalisation 11,538 300 11,838 11,838 25/04/2013 31/12/2022 Green Project subject to legal dispute.
CHORD Dunoon 12,495 27 12,522 12,522 03/02/2012 09/03/2018 Green
Main contract complete and retentions paid. Landscaping and remediation works ongoing but
issues with water ingress may require works in 22-23.
Kilmory Business Park Phase 2AA 47 560 1,129 1,129 01/02/2022 01/09/2024 Green Development Agreement still to be concluded.
Carbon Management - Non Education 29 21 50 50 01/04/2015 31/12/2024 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 Complete.
TIF - Oban Airport Business Park 489 56 590 590 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 6,529 28 6,557 6,557 29/09/2011 30/04/2015 Green Main contract complete. Art project proposed for 23-24.
TIF - North Pier Extension 214 0 214 214 06/12/2017 06/12/2021 Green Complete.
TIF - Lorn/Kirk Road 2,169 1 2,170 2,170 22/01/2015 31/03/2021 Green Complete.
Carbon Management Fuel Conversions 107 0 107 107 01/02/2014 31/03/2019 Green Complete.
Kilmory Biomass Carbon Management 956 0 956 956 20/09/2012 31/03/2019 Green Complete.
Clean Energy - NDEEF1 964 224 1,331 1,331 tbc 31/03/2024 Green
Clean Energy - NDEEF2 0 50 1,140 1,140 tbc tbc Green
Net Zero 0 0 366 366 tbc tbc Green
Strategic Change Total 129,739 24,167 239,678 239,678
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 85

ARGYLL AND BUTE COUNCIL - CAPITAL PLAN MONITORING REPORT - OVERALL COUNCIL Appendix 8
FINANCIAL SUMMARY - NET EXPENDITURE
Current Financial Year To Date
Budget Actual
(Over)/Under
Variance Budget Forecast
(Over)/Under
Variance Budget Forecast
(Over)/Under
Variance
£000s £000s £000s £000s £000s £000s £000s £000s £000s
EXPENDITURE
Asset Sustainability Projects
Executive Director Douglas Hendry 3,917 3,919 (2) 10,574 10,396 178 23,036 23,036 0
Executive Director Kirsty Flanagan 4,768 4,772 (4) 16,055 16,059 (4) 38,022 38,026 (4)
Asset Sustainability Total 8,685 8,691 (6) 26,629 26,455 174 61,058 61,062 (4)
Service Development Projects
Executive Director Douglas Hendry 320 320 0 525 525 0 16,437 16,437 0
Executive Director Kirsty Flanagan 1,645 1,669 (24) 6,199 6,233 (34) 38,309 38,343 (34)
Service Development Total 1,965 1,989 (24) 6,724 6,758 (34) 54,746 54,780 (34)
Strategic Change Projects
Campbeltown Schools Redevelopment 0 0 0 38 38 0 2,130 2,130 0
Dunoon Primary 2 2 0 234 234 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 0 224 224 0 1,331 1,331 0
Clean Energy - NDEEF2 0 0 0 50 50 0 1,140 1,140 0
Net Zero 0 0 0 0 0 0 366 366 0
Campbeltown Flood Scheme 6,516 6,516 0 9,860 9,874 (14) 15,215 15,215 0
Street Lighting LED Replacement 24 24 0 674 674 0 3,900 3,900 0
Harbour Investment Programme 522 522 0 3,200 3,200 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 1 1 0 56 56 0 590 590 0
TIF - Halfway House Roundabout 0 0 0 574 56 518 640 640 0
CHORD - Helensburgh 0 0 0 28 28 0 6,557 6,557 0
CHORD Dunoon 0 0 0 27 27 0 12,522 12,522 0
CHORD Oban 0 0 0 626 626 0 7,905 7,905 0
CHORD Rothesay 2,600 2,600 0 6,737 6,737 0 24,012 24,012 0
Helensburgh Waterfront Development 52 52 0 977 977 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 0 0 0 560 560 0 1,129 1,129 0
Dunoon Pier OBC 0 0 0 0 0 0 2,844 2,844 0
Strategic Change Total 9,717 9,717 0 24,705 24,201 504 240,028 240,028 0
Total Expenditure 20,367 20,397 (30) 58,058 57,414 644 355,832 355,870 (38)
INCOME
Asset Sustainability
Executive Director Douglas Hendry 0 0 0 (128) (128) 0 (578) (578) 0
Executive Director Kirsty Flanagan (430) (430) 0 (1,097) (1,097) 0 (1,097) (1,097) 0
Asset Sustainability Total (430) (430) 0 (1,225) (1,225) 0 (1,675) (1,675) 0
Service Development Projects
Executive Director Douglas Hendry 0 0 0 0 0 0 (7,771) (7,771) 0
Executive Director Kirsty Flanagan (55) (55) 0 (6,564) (6,564) 0 (24,658) (24,658) 0
Service Development Total (55) (55) 0 (6,564) (6,564) 0 (32,429) (32,429) 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 (522) (522) 0 (3,200) (3,200) 0 (91,292) (91,292) 0
01 TIF - Lorn/Kirk Road 0 0 0 (113) (113) 0 (2,154) (2,154) 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
Kilmory Business Park Phase 2AA 0 0 0 (979) (979) 0 (979) (979) 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 (522) (522) 0 (6,612) (6,612) 0 (105,714) (105,714) 0
Total Income (1,007) (1,007) 0 (14,401) (14,401) 0 (139,818) (139,818) 0
Net Total 19,360 19,390 (30) 43,657 43,013 644 216,014 216,052 (38)
Full Year This Financial Year Total Project Costs
31 October 2023

Page 86

MONITORING REPORT
Budget Actual Variance Budget Forecast Variance Budget Forecast Variance
£000s £000s £000s £000s £000s £000s £000s £000s £000s
EXPENDITURE
Asset Sustainability
Education 2,714 2,714 0 5,853 5,853 0 13,403 13,403 0
Live Argyll 365 365 0 1,242 1,062 180 2,125 2,125 0
Health and Social Care Partnership 442 442 0 2,147 2,147 0 3,452 3,452 0
Shared Offices 396 398 (2) 1,332 1,334 (2) 4,056 4,056 0
Asset Sustainability Total 3,917 3,919 (2) 10,574 10,396 178 23,036 23,036 0
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 320 320 0 320 320 0 7,774 7,774 0
CO2 Monitoring - Covid Mitigation in Schools 0 0 0 113 113 0 192 192 0
Early Learning and Childcare - 1140 Hours - CFCR 0 0 0 0 0 0 1,379 1,379 0
Riverside Leisure Centre Refurbishment 0 0 0 0 0 0 1,245 1,245 0
Dunclutha Childrens Home 0 0 0 54 54 0 1,300 1,300 0
Service Development Total 320 320 0 525 525 0 16,437 16,437 0
Strategic Change Projects
Campbeltown Schools Redevelopment 0 0 0 38 38 0 2,130 2,130 0
Dunoon Primary 2 2 0 234 234 0 10,869 10,869 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 0 224 224 0 1,331 1,331 0
Clean Energy - NDEEF2 0 0 0 50 50 0 1,140 1,140 0
Net Zero 0 0 0 0 0 0 366 366 0
CHORD Oban 0 0 0 626 626 0 7,905 7,905 0
CHORD Rothesay 2,600 2,600 0 6,737 6,737 0 24,012 24,012 0
CHORD - Helensburgh 0 0 0 28 28 0 6,557 6,557 0
CHORD Dunoon 0 0 0 27 27 0 12,522 12,522 0
Helensburgh Waterfront Deveopment 52 52 0 977 977 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 0 0 0 560 560 0 1,129 1,129 0
Dunoon Pier OBC 0 0 0 0 0 0 2,844 2,844 0
Strategic Change Total 2,654 2,654 0 10,297 10,297 0 125,964 125,964 0
Total Expenditure 6,891 6,893 (2) 21,396 21,218 178 165,437 165,437 0
INCOME
Asset Sustainability
Education 0 0 0 (125) (125) 0 (125) (125) 0
Shared Offices 0 0 0 (3) (3) 0 (3) (3) 0
Asset Sustainability Total 0 0 0 (128) (128) 0 (578) (578) 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
CHORD - Oban 0 0 0 0 0 0 (1,624) (1,624) 0
Net Departmental Total 6,891 6,893 (2) 17,969 17,791 178 145,090 145,090 0
31 October 2023
Total Project CostsFull Year This Financial YearCurrent Financial Year To Date
Appendix 8
FINANCIAL SUMMARY NET EXPENDITURE - EXECUTIVE DIRECTOR DOUGLAS HENDRY

Page 87

ARGYLL AND BUTE COUNCIL - CAPITAL PLAN 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
Flood Prevention 37 37 0 807 807 0 1,305 1,305 0
Coastal Protection 2 2 0 99 99 0 199 199 0
Coastal Change Adaptation 14 14 0 158 158 0 287 287 0
Bute Sea Wall Repairs 46 46 0 100 100 0 680 680 0
Helensburgh Flood Mitigation 1 1 0 428 428 0 428 428 0
Bridge Strengthening 199 199 0 1,336 1,336 0 1,686 1,686 0
Local Bridge Maintenance Fund 104 104 0 1,000 1,000 0 5,203 5,203 0
Roads Reconstruction 3,261 3,261 0 7,419 7,419 0 15,419 15,419 0
Roads Reconstruction - Helensburgh CHORD 0 0 0 47 47 0 47 47 0
Roads Reconstruction - Oban CHORD 0 0 0 3 3 0 3 3 0
Helensburgh CHORD - Signage etc 0 0 0 10 10 0 10 10 0
Lighting 0 0 0 890 890 0 1,040 1,040 0
Environmental Projects 191 191 0 650 650 0 1,021 1,021 0
Play Park Refurbishment 0 0 0 312 312 0 938 938 0
Public Convenience Upgrades 54 54 0 282 282 0 282 282 0
Footway Improvements 220 220 0 750 750 0 750 750 0
Glengorm - Capping 0 0 0 0 0 0 0 0 0
Glengorm - Cell and Transfer Station (PB) 85 89 (4) 85 89 (4) 85 89 (4)
Gartbreck - Capping 6 6 0 6 6 0 200 200 0
EV Quick Chargers 0 0 0 62 62 0 62 62 0
Tobermory Car Park 0 0 0 96 96 0 96 96 0
Active Travel 0 0 0 389 389 0 389 389 0
Block Allocation - RIS 0 0 0 0 0 0 4,268 4,268 0
Server Sustainability 0 0 0 352 352 0 1,177 1,177 0
PC Replacement 306 306 0 518 518 0 1,835 1,835 0
Telecomms Network 242 242 0 256 256 0 480 480 0
Asset Sustainability Total 4,768 4,772 (4) 16,055 16,059 (4) 38,022 38,026 (4)
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 784 784 0 2,187 2,187 0 4,861 4,861 0
Fleet Management 0 0 0 325 325 0 4,538 4,538 0
Lismore Ferry 0 0 0 15 15 0 672 672 0
Oban Depot Development Project 4 5 (1) 4 5 (1) 2,184 2,185 (1)
Lochgilphead Depot Rationalisation 8 31 (23) 8 31 (23) 37 60 (23)
Jackson's Quarry Refurbishment 0 0 0 0 0 0 285 285 0
Witchburn Road Demolition 0 0 0 0 0 0 158 158 0
Safe Streets, Walking and Cycling (CWSS) 0 0 0 370 370 0 3,383 3,383 0
SPT - bus infrastructure 0 0 0 0 0 0 1,430 1,430 0
Cycleways - H&L (FSPT) 7 7 0 300 300 0 3,402 3,402 0
Helensburgh Public Realm - Arts Strategy Fund 0 0 0 50 50 0 53 53 0
Town Centre Funds 252 252 0 708 718 (10) 4,319 4,329 (10)
Rural Growth Deal 146 146 0 157 157 0 207 207 0
Dunoon Cycle Bothy 181 181 0 292 292 0 563 563 0
Dunoon STEM Hub 19 19 0 713 713 0 2,558 2,558 0
Ardrishaig North Active Travel 75 75 0 112 112 0 880 880 0
Nature Restoration Fund 0 0 0 346 346 0 346 346 0
Gibraltar Street Public Realm Improvements 0 0 0 222 222 0 250 250 0
Hermitage Park 0 0 0 26 26 0 3,388 3,388 0
West Coast UAV Innovation Logistics and Training Hub 0 0 0 0 0 0 0 0 0
Applications Projects 169 169 0 348 348 0 3,193 3,193 0
Service Development Total 1,645 1,669 (24) 6,199 6,233 (34) 38,309 38,343 (34)
Strategic Change Projects
Campbeltown Flood Scheme 6,516 6,516 0 9,860 9,874 (14) 15,215 15,215 0
Street Lighting LED Replacement 24 24 0 674 674 0 3,900 3,900 0
Harbour Investment Programme 522 522 0 3,200 3,200 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 - Oban Airport Business Park 1 1 0 56 56 0 590 590 0
TIF - Halfway House Roundabout 0 0 0 574 56 518 640 640 0
Strategic Change Total 7,063 7,063 0 14,408 13,904 504 114,064 114,064 0
Total Expenditure 13,476 13,504 (28) 36,662 36,196 466 190,395 190,433 (38)
INCOME
Asset Sustainability
EV Quick Chargers 0 0 0 (27) (27) 0 (27) (27) 0
Roads Reconstruction (430) (430) 0 (470) (470) 0 (470) (470) 0
Tobermory Car Park 0 0 0 (400) (400) 0 (400) (400) 0
Asset Sustainability Total (430) (430) 0 (1,097) (1,097) 0 (1,097) (1,097) 0
Service Development Projects
Applications Projects 0 0 0 (46) (46) 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 (590) (590) 0 (3,502) (3,502) 0
Town Centre Funds 0 0 0 (625) (625) 0 (2,237) (2,237) 0
Rural Growth Deal (28) (28) 0 (177) (177) 0 (207) (207) 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 (394) (394) 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
Fleet Management - PB 0 0 0 (2,187) (2,187) 0 (4,861) (4,861) 0
Fleet Management (27) (27) 0 (27) (27) 0 (27) (27) 0
Lochgilphead Depot Rationalisation 0 0 0 0 0 0 0 0 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 - Appin Depot Sale 0 0 0 0 0 0 0 0 0
Oban Depot - Revenue Contribution 0 0 0 (67) (67) 0 0 0 0
Lismore Ferry 0 0 0 0 0 0 (500) (500) 0
Witchburn Road Demolition 0 0 0 0 0 0 (157) (157) 0
Service Development Total (55) (55) 0 (6,564) (6,564) 0 (24,658) (24,658) 0
Strategic Change Projects
Campbeltown Flood 0 0 0 0 0 0 (270) (270) 0
Harbour PB (522) (522) 0 (3,200) (3,200) 0 (91,292) (91,292) 0
01 TIF - Lorn/Kirk Road 0 0 0 (113) (113) 0 (2,154) (2,154) 0
Strategic Change Total (522) (522) 0 (3,313) (3,313) 0 (93,716) (93,716) 0
Total Income (1,007) (1,007) 0 (10,974) (10,974) 0 (119,471) (119,471) 0
Net Departmental Total 12,469 12,497 (28) 25,688 25,222 466 70,924 70,962 (38)
31 October 2023
Full Year This Financial Year Total Project Costs
FINANCIAL SUMMARY NET EXPENDITURE - EXECUTIVE DIRECTOR KIRSTY FLANAGAN
Appendix 8

Page 88

CAPITAL PLAN 2023-24 APPENDIX 9
Overall Summary
Service
Previous Years
£000's
2023-24                                           
£000s
2024-25                 
£000s
2025-26                
£000s
2026-27                 
£000s
2027-28                
£000s Total
Education 39,077 7,014 4,029 3,521 0 0 53,641
Shared Offices 17,661 1,909 3,344 977 0 0 23,891
ICT 2,529 1,474 1,593 1,221 0 0 6,817
RIS 26,197 31,275 43,957 55,023 2,733 0 159,185
DEG 18,331 3,409 2,653 0 0 0 24,393
HSCP 1,246 2,223 828 477 0 0 4,774
Live Argyll 1,274 1,083 636 427 0 0 3,420
CHORD 68,156 8,989 2,461 105 0 0 79,711
Overall Total 174,471 57,376 59,501 61,751 2,733 0 355,832

Page 89

CAPITAL PLAN 2023-24 APPENDIX 9
Education
Category Service Project
Previous
Years
£000's
2023-24                     
£000s
2024-25                 
£000s 2025-26                 £000s
2026-27            
£000s
2027-28            
£000s
Total
£000s
Asset Sustainability Education Asbestos Control/Removal Works 0 7 0 0 0 0 7
Block Allocation - Education 0 916 166 520 0 0 1,602
Digital Inclusion 20-21 0 9 0 0 0 0 9
Free School Meals 0 379 900 1,495 0 0 2,774
Homeless Houses - Housing Quality Standard 0 1 0 0 0 0 1
Internal Refurbishment Budget 0 7 0 0 0 0 7
Lochgilphead Primary School Demolition 0 0 0 0 0 0 0
Pre-5's/Nurseries 0 0 0 0 0 0 0
Primary Schools 0 3,370 2,420 1,280 0 0 7,070
School Houses - Housing Quality Standard 0 13 0 0 0 0 13
Secondary Schools 0 1,129 543 226 0 0 1,898
Asset Sustainability Total 0 5,831 4,029 3,521 0 0 13,381
Service Development Education Ardrishaig Primar School - Pre Five Extension 2 0 0 0 0 0 2
Bowmore Primary School - Gaelic Medium Grant 0 38 0 0 0 0 38
Bowmore Primary School - Pre Five Unit 149 0 0 0 0 0 149
Bunessan Primary School - Gaelic Medium Improvements 120 0 0 0 0 0 120
Clyde Cottage - 600 hours provision 556 0 0 0 0 0 556
CO2 Monitoring - Covid Mitigation in Schools 79 113 0 0 0 0 192
Craignish Primary School - Pre Five Extension (600 hours funding) 400 0 0 0 0 0 400
Early Learning and Childcare 850 0 0 0 0 0 850
Early Learning and Childcare - 1140 Hours 7,454 320 0 0 0 0 7,774
Early Learning and Childcare - 1140 Hours - CFCR 1,379 0 0 0 0 0 1,379
Iona Primary School - Pre Five Unit (600 hours funding) 490 0 0 0 0 0 490
Islay High & Rosneath PS Pitches 719 0 0 0 0 0 719
Lochgoilhead Primary School - Pre Five Unit (600 hours funding) 391 0 0 0 0 0 391
Park Primary Extension and Pre Fives Unit 341 0 0 0 0 0 341
Sandbank Gaelic Pre Five Unit 491 0 0 0 0 0 491
Service Development Total 13,421 471 0 0 0 0 13,892
Strategic Change Education Campbeltown Schools Redevelopment 2,092 38 0 0 0 0 2,130
Dunoon Primary School 10,635 234 0 0 0 0 10,869
Kirn Primary School 10,085 34 0 0 0 0 10,119
Replacement of Oban High School 2,844 406 0 0 0 0 3,250
Strategic Change Total 25,656 712 0 0 0 0 26,368
Overall Total 39,077 7,014 4,029 3,521 0 0 53,641

Page 90

CAPITAL PLAN 2023-24 APPENDIX 9
Shared Office
Category Service Project
Previous
Years
£000's
2023-24     
£000s
2024-25      
£000s
2025-26      
£000s
2026-27        
£000s
2027-28    
£000s
Total
£000s
Asset Sustainability Shared Offices 5-7 East Clyde Street - Coastal Communities Fund 0 0 0 0 0 0 0
Argyll House, Dunoon 0 9 0 0 0 0 9
Asbestos Capital Property Works 0 51 0 0 0 0 51
Block Allocation 0 152 298 427 0 0 877
Bowmore Area Office 0 76 0 0 0 0 76
Burnett Building 0 2 108 0 0 0 110
Capital Property Works 0 38 0 0 0 0 38
Fire Risk Assessment Works 0 14 0 0 0 0 14
Helensburgh and Lomond Civic Centre - Emergency Heating Pipework 0 130 0 0 0 0 130
Hill Street Dunoon Rewire 0 33 0 0 0 0 33
Kilmory Castle 0 0 1,409 0 0 0 1,409
Legionella Control Works 0 144 0 0 0 0 144
Manse Brae District Office 0 0 0 0 0 0 0
Manse Brae Roads Office 0 2 0 0 0 0 2
Our Modern Workspace 0 683 480 0 0 0 1,163
Asset Sustainability Total 0 1,334 2,295 427 0 0 4,056
Strategic Change Shared Offices Campbeltown Office Rationalisation 595 1 0 0 0 0 596
Carbon Management - Group Heating Conversion Project (Prudential Borrowing)1,938 0 0 0 0 0 1,938
Carbon Management Business Cases (FPB) 201 0 0 0 0 0 201
Carbon Management Capital Property Works 16/17 19 0 0 0 0 0 19
Carbon Management Fuel Conversions (FPB) 107 0 0 0 0 0 107
Clean Energy - NDEEF1 964 224 143 0 0 0 1,331
Clean Energy - NDEEF2 0 50 540 550 0 0 1,140
Helensburgh Office Rationalisation  (FPB,REC) 11,538 300 0 0 0 0 11,838
Kilmory Biomass Project OBC (FPB,REV) 956 0 0 0 0 0 956
Net Zero 0 0 366 0 0 0 366
Non-NPDO Schools PV Panel Installations 400 0 0 0 0 0 400
NPDO Schools Solar PV Panel Installations 761 0 0 0 0 0 761
Oil to Gas Heating Conversions (FPB) 182 0 0 0 0 0 182
Strategic Change Total 17,661 575 1,049 550 0 0 19,835
Overall Total 17,661 1,909 3,344 977 0 0 23,891

Page 91

CAPITAL PLAN 2023-24 APPENDIX 9
Major Projects
Category Service Project
Previous
Years
£000's
2023-24    
£000s
2024-25    
£000s
2025-26     
£000s
2026-27          
£000s
2027-28     
£000s
Total
£000s
Strategic Change CHORD CHORD - Dunoon 12,495 27 0 0 0 0 12,522
CHORD - Helensburgh -Public Realm Imprv 6,529 28 0 0 0 0 6,557
CHORD - Oban 7,279 626 0 0 0 0 7,905
CHORD - Rothesay 15,231 6,737 1,973 71 0 0 24,012
Helensburgh Waterfront Development 23,415 977 0 0 0 0 24,392
HWD - FFE 316 34 0 0 0 0 350
Kilmory Business Park Phase 2AA 47 560 488 34 0 0 1,129
OBC for Dunoon Pier 2,844 0 0 0 0 0 2,844
Strategic Change Total 68,156 8,989 2,461 105 0 0 79,711
Overall Total 68,156 8,989 2,461 105 0 0 79,711

Page 92

CAPITAL PLAN 2023-24 APPENDIX 9
ICT
Category Service Project
Previous
Years
£000's
2023-24      
£000s
2024-25      
£000s
2025-26      
£000s
2026-27     
£000s
2027-28       
£000s
Total
£000s
Asset Sustainability ICT Block Allocation - ICT 0 0 132 0 0 0 132
PC Replacement 0 518 648 669 0 0 1,835
Server Sustainability 0 352 425 400 0 0 1,177
Telecomms Network 0 256 72 152 0 0 480
Asset Sustainability Total 0 1,126 1,277 1,221 0 0 3,624
Service Development ICT Applications Projects 2,529 348 316 0 0 0 3,193
Service Development Total 2,529 348 316 0 0 0 3,193
Overall Total 2,529 1,474 1,593 1,221 0 0 6,817

Page 93

CAPITAL PLAN 2023-24 APPENDIX 9
Roads and Infrastructure Services
Category Service Project
Previous
Years
£000's
2023-24     
£000s
2024-25    
£000s
2025-26   
£000s
2026-27    
£000s
2027-28    
£000s
Total
£000s
Asset Sustainability RIS Block Allocation 0 0 0 4,268 0 0 4,268
Bridge Strengthening 0 1,336 350 0 0 0 1,686
Bute Sea Wall Repairs 0 100 580 0 0 0 680
Coastal Change Adaptation 0 158 129 0 0 0 287
Coastal Protection 0 99 100 0 0 0 199
Environmental Projects 0 650 371 0 0 0 1,021
EV Quick Chargers 0 62 0 0 0 0 62
Flood Prevention 0 807 305 155 38 0 1,305
Footway Improvements 0 750 0 0 0 0 750
Glengorm - Capping 0 0 0 0 0 0 0
Glengorm - Cell and Transfer Station (PB) 0 85 0 0 0 0 85
Helensburgh CHORD - Signage etc 0 10 0 0 0 0 10
Helensburgh Flood Mitigation 0 428 0 0 0 0 428
Investment in Active Travel 0 389 0 0 0 0 389
Lighting 0 890 150 0 0 0 1,040
Local Bridge Maintenance Fund 0 1,000 4,000 203 0 0 5,203
Plant and Machinery 0 0 0 0 0 0 0
Public Convenience Upgrades 0 282 0 0 0 0 282
Roads Reconstruction 0 7,419 8,000 0 0 0 15,419
Roads Reconstruction - Helensburgh CHORD 0 47 0 0 0 0 47
Roads Reconstruction - Oban CHORD 0 3 0 0 0 0 3
Tobermory Car Park 0 96 0 0 0 0 96
Asset Sustainability Total 0 14,923 14,220 5,017 38 0 34,198
Service Development RIS Campbeltown Old Quay 1,381 0 0 0 0 0 1,381
Depot Rationalisation 0 0 0 0 0 0 0
Fleet Management - Prudential Borrowing 2,674 2,187 0 0 0 0 4,861
Jackson's Quarry Refurbishment 285 0 0 0 0 0 285
Lismore Ferry Replacement 637 15 20 0 0 0 672
Lochgilphead Depot Rationalisation 29 8 0 0 0 0 37
Oban Depot Development 2,180 4 0 0 0 0 2,184
Preliminary design for  Regional Transport projects (tif) 205 16 0 0 0 0 221
Witchburn Road Demolition 158 0 0 0 0 0 158
Service Development Total 10,582 2,555 1,200 0 0 0 14,337
Strategic Change RIS Campbeltown Flood Scheme 4,992 9,874 343 6 0 0 15,215
Harbour Investment Programme PB 7,397 3,200 28,000 50,000 2,695 0 91,292
Street Lighting LED Replacement 3,226 674 0 0 0 0 3,900
Strategic Change Total 15,615 13,748 28,343 50,006 2,695 0 110,407
Overall Total 26,197 31,226 43,763 55,023 2,733 0 158,942

Page 94

CAPITAL PLAN 2023-24 APPENDIX 9
Development and Economic Growth
Category Service Project
Previous
Years
£000's
2023-24    
£000s
2024-25   
£000s
2025-26    
£000s
2026-27     
£000s
2027-28     
£000s
Total
£000s
Service Development DEG Ardrishaig North Active Travel 755 112 13 0 0 0 880
Cycleways - H&L (FSPT) 2,812 300 290 0 0 0 3,402
Dunoon Cycle Bothy 259 292 12 0 0 0 563
Dunoon STEM Hub 95 713 1,750 0 0 0 2,558
Gibraltar Street Public Realm Improvements 28 222 0 0 0 0 250
Helensburgh Public Realm - Arts Strategy Fund 3 50 0 0 0 0 53
Hermitage Park 3,362 26 0 0 0 0 3,388
Nature Restoration Fund 0 346 0 0 0 0 346
Rural Growth Deal 50 157 0 0 0 0 207
Safe Streets, Walking and Cycling (CWSS) 3,013 370 0 0 0 0 3,383
SPT - bus infrastructure 1,405 0 25 0 0 0 1,430
Town Centre Funds 3,611 708 0 0 0 0 4,319
Service Development Total 15,393 3,296 2,090 0 0 0 20,779
Strategic Change DEG 01 TIF - Lorn/Kirk Road 2,169 1 0 0 0 0 2,170
05 TIF - North Pier Extension 214 0 0 0 0 0 214
09 TIF - Oban Airport Business Park 489 56 45 0 0 0 590
TIF - Halfway House Roundabout 66 56 518 0 0 0 640
Strategic Change Total 2,938 113 563 0 0 0 3,614
Overall Total 18,331 3,409 2,653 0 0 0 24,393

Page 95

CAPITAL PLAN 2023-24 APPENDIX 9
Health & Social Care Partnership
Category Service Project
Previous
Years
£000's
2023-24   
£000s
2024-25   
£000s
2025-26   
£000s
2026-27    
£000s
2027-28    
£000s
Total
£000s
Asset Sustainability HSCP Ardfenaig 0 24 0 0 0 0 24
Block Allocation 0 779 292 184 0 0 1,255
Capital Property Works 0 79 0 0 0 0 79
Digitalising telecare 0 100 0 0 0 0 100
Dunoon Hostel 0 0 0 0 0 0 0
Eadar Glinn 0 0 0 0 0 0 0
East King Street Childrens Home 0 58 0 0 0 0 58
Glencruitten Hostel 0 81 36 143 0 0 260
Gortonvogie 0 1 0 0 0 0 1
Greenwood/Woodlands 0 216 0 0 0 0 216
Lochgilphead Resource Centre 0 16 0 0 0 0 16
Rothesay Community Education Centre 0 0 0 0 0 0 0
Shellach View 0 142 0 0 0 0 142
Thomson Home Rothesay 0 0 0 0 0 0 0
Tigh An Rudha HFE 0 600 500 150 0 0 1,250
Tobermory Top Flat 0 22 0 0 0 0 22
Asset Sustainability Total 0 2,169 828 477 0 0 3,474
Service Development HSCP Dunclutha Childrens Home 1,246 54 0 0 0 0 1,300
Service Development Total 1,246 54 0 0 0 0 1,300
Overall Total 1,246 2,223 828 477 0 0 4,774

Page 96

CAPITAL PLAN 2023-24 APPENDIX 9
Live Argyll
Category Service Project
Previous
Years
£000's
2023-24    
£000s
2024-25    
£000s
2025-26    
£000s
2026-27   
£000s
2027-28 
£000s
Total
£000s
Asset Sustainability Live Argyll Aqualibrium 0 340 48 40 0 0 428
Corran Halls Gaelic Centre 0 113 46 84 0 0 243
Inveraray CARS 0 0 0 0 0 0 0
Kintyre Community Education Centre - Lift Shaft Refurbishment 0 2 0 0 0 0 2
LA - Indoor Cycles 0 0 0 0 0 0 0
Lochgilphead Library Relocation 0 14 0 0 0 0 14
Moat Centre (Roofing) 0 0 0 0 0 0 0
Queen's Hall - Partition Wall 0 0 0 0 0 0 0
Riverside Leisure Centre - Health Suite Upgrade 0 204 0 0 0 0 204
Rothesay Swimming Pool 0 40 25 50 0 0 115
The Moat Centre - Gym Store 0 0 0 0 0 0 0
The Moat Centre - Heating Upgrade 0 0 0 0 0 0 0
The Moat Centre - Window Upgrade 0 0 0 0 0 0 0
Victoria Halls, Helensburgh 0 78 0 0 0 0 78
Asset Sustainability Total 0 1,062 636 427 0 0 2,125
Service Development Live Argyll Riverside Leisure Centre Refurbishment 1,245 0 0 0 0 0 1,245
Service Development Total 1,245 0 0 0 0 0 1,245
Strategic Change Live Argyll Carbon Management 29 21 0 0 0 0 50
Strategic Change Total 29 21 0 0 0 0 50
Overall Total 1,274 1,083 636 427 0 0 3,420

Page 97

ARGYLL AND BUTE COUNCIL  POLICY AND RESOURCES COMMITTEE
FINANCIAL SERVICES 7 DECEMBER 2023 
TREASURY MANAGEMENT MONITORING REPORT – 31 OCTOBER 2023 
1. EXECUTIVE SUMMARY 
1.1. This report sets out the Council’s treasury management position for the period 1
September 2023 to 31 October 2023 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 31
October 2023, at this stage in the financial year capital expenditure is below target.
During the period the Council took the opportunity to repay three loans at a discounted
price which generated a one-off gain to the Loans Fund of £0.294m. The repayment
was funded by utilising existing cash balances therefore no additional borrowing was
required to repay these loans and it is unlikely that the Council will take out longer
term loans in the short term. The gain will be carried forward and will be an option for
Elected Members to consider when setting the 2024-25 budget. 
1.3. The net movement in external borrowing in the period 1 September 2023 to 31 October
2023 was a decrease of £12m. 
1.4. The levels of investments were £72.251m at 31 October 2023. The rate of return
achieved was 5.105% compared to the target SONIA rate which was 5.187%. 
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 98

ARGYLL AND BUTE COUNCIL  POLICY AND RESOURCES COMMITTEE
FINANCIAL SERVICES 7  DECEMBER 2023 
TREASURY MANAGEMENT MONITORING REPORT – 31 OCTOBER 2023 
2. INTRODUCTION 
2.1. This report sets out the Council’s treasury management position for the period 1
September 2023 to 31 October 2023 and includes information on: 
• Overall borrowing position
• Borrowing activity
• Investment activity
• Economic background
• Interest rate forecast
• Prudential Indicators 
3. 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 2023. The CFR
represents the underlying need for the Council to borrow to fund its fixed assets and
accumulated capital expenditure. 
Forecast Forecast Forecast
2023/24 2024/25 2025/26
£000 £000 £000
CFR at 1 April 291,782 295,621 320,708
Net Capital Expenditure 15,569 37,279 51,906
Less Loans Fund Principal Repayments (5,950) (6,254) (6,573)
Less: NPDO Repayment (5,780) (5,938) (6,235)
Estimated CFR 31 March 295,621 320,708 359,806
Less Funded by NPDO (111,564) (111,784) (106,846)
Estimated Net CFR 31 March 184,057 208,924 252,960
Estimated External Borrowing at 31 March 176,532 221,513 261,510
Gap 7,525 (12,589) (8,550)

Page 99

3.2. Borrowing is below the Capital Financing Requirement for the period to 31 October
2023. During the period the Council took the opportunity to repay three loans at a
discounted price which generated a one-off gain to the Loans Fund of £0.294m. The
repayment was funded by utilising existing cash balances therefore no additional
borrowing was required to repay these loans. The gain will be carried forward and will
be an option for Elected Members to consider when setting the 2024-25 budget. Whilst
borrowing rates are still comparatively low, 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 31 October 2023 is
£184.057m. The table below shows how this has been financed. £112.484m is funded
by loans and there are substantial internal balances of £148.824m of which £72.251m
are currently invested, as detailed in section 3.7, leaving a net internal balance of
£71.573m. 
Position at
31/08/23
Position at
31/10/23
£000 £000
Loans 125,440 112,484
Net Internal Balances 65,313 71,573
Total CFR 190,753 184,057 
3.5. During the period from 1 September 2023 to 31 October 2023, £12m of loans were
repaid and no new borrowing was taken.  The analysis of the movement in borrowing
is shown in the table below: 
Actual
£m
(12)
0
Net Movement in External Borrowing (12)
External Loans Repaid 1st September 2023 to 31st
October 2023
Borrowing undertaken 1st September 2023 to 31st
October 2023
3.6. The table below summarises the movement in the level and rate of temporary
borrowing at the start and end of the period. 
£000 % Rate
Temp borrowing at 31st August 2023 283 3.40%
Temp borrowing at 31st October 2023 328 4.40%

Page 100

Investment Activity
3.7     The average rate of return achieved in the Council’s investments to 31 October 2023
was 5.105% compared to the SONIA (Sterling Overnight Index Average) rate for the same
period of 5.187%. The Council’s rate of return is marginally less than SONIA due to
the rapid rise in interest rates which increased SONIA faster than the Council was able
to redeem its existing lower rated investments. At 31 October 2023 the Council had
£72.251m of short term investments at an average rate of 5.105%. 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. 
Counterparty Maturity Amount £000 Interest
Rate
Rating  S&P
Clydesdale Bank Instant 251 5.15% Short Term A-2, Long
Cambridgeshire County Council 22/01/2024 5,000 1.00% AA
London Borough of Croydon 10/10/2024 5,000 4.10% AA
National Bank of Kuwait 09/04/2024 7,500 5.13% Short Term A-1, Long
First Abu Dhabi Bank 09/05/2024 5,000 5.27% Short Term A-1+,
National Bank of Kuwait 10/11/2023 2,500 5.00% Short Term A-1, Long
Goldman Sachs 10/11/2023 2,500 4.91% Short Term A-1, Long
London Borough of Croydon 10/06/2024 5,000 5.30% AA
Close Brothers 31/01/2024 2,500 5.87% Short Term A-1, Long
First Abu Dhabi Bank 01/02/2024 5,000 5.93% Short Term A-1+,
First Abu Dhabi Bank 09/08/2024 5,000 6.16% Short Term A-1+,
Goldman Sachs 16/02/2024 5,000 5.93% Short Term A-1, Long
Australia and New Zealand Banking Group 16/02/2024 5,000 5.92% Short Term A-1+,
MMF- Federated Call 2,500 0.00% AAA
MMF - Legal and General Call 14,500 0.00% AAA
Total 72,251
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. These cash balances are in excess of what
is required for normal operating purposes but the economic environment for
investments has improved over the last few months with an increase in interest rates,
making investing these monies easier than in previous years.

Page 101

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 2023-24 are attached in Appendix 3. 
4. CONCLUSION 
4.1 In the period from 1 September 2023 to 31 October 2023, the Council’s borrowing
decreased by £12m, and is currently below the Capital Financing Requirement. There
are substantial internal balances, of which £72.251m is currently invested. The
investment returns were 5.105%. 
5. 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 –     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 –       None.
5.8 Customer Service –     None. 
Kirsty Flanagan
Section 95 Officer
2 November 2023 
Policy Lead for Finance and Commercial Services - Councillor Gary Mulvaney 
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 102

Appendix 1 – Economics Update
• The first half of 2023/24 saw:
- Interest rates rise by a further 100bps, taking Bank Rate from 4.25% to 5.25% and,
possibly, the peak in the tightening cycle.
- Short, medium and long-dated gilts remain elevated as inflation continually surprised to
the upside.
- A 0.5% m/m decline in real GDP in July, mainly due to more strikes.
- CPI inflation falling from 8.7% in April to 6.7% in August, its lowest rate since February
2022, but still the highest in the G7.
- Core CPI inflation declining to 6.2% in August from 7.1% in April and May, a then 31 years
high.
- A cooling in labour market conditions, but no evidence yet that it has led to an easing in
wage growth (as the 3myy growth of average earnings rose to 7.8% in August, excluding
bonuses).
• The 0.5% m/m fall in GDP in July suggests that underlying growth has lost momentum since
earlier in the year. Some of the weakness in July was due to there being almost twice as many
working days lost to strikes in July (281,000) than in June (160,000). But with output falling in
10 out of the 17 sectors, there is an air of underlying weakness.
• The fall in the composite Purchasing Managers Index from 48.6 in August to 46.8 in September
left it at its lowest level since COVID-19 lockdowns reduced activity in January 2021. At face
value, it is consistent with the 0.2% q/q rise in real GDP in the period April to June, being
followed by a contraction of up to 1% in the second half of 2023.
• The 0.4% m/m rebound in retail sales volumes in August is not as good as it looks as it partly
reflected a pickup in sales after the unusually wet weather in July. Sales volumes in August
were 0.2% below their level in May, suggesting much of the resilience in retail activity in the
first half of the year has faded.
• As the growing drag from higher interest rates intensifies over the next six months, we think
the economy will continue to lose momentum and soon fall into a mild recession. Strong labour
demand, fast wage growth and government handouts have all supported household incomes
over the past year. And with CPI inflation past its peak and expected to decline further, the
economy has got through the cost-of- living crisis without recession. But even though the worst
of the falls in real household disposable incomes are behind us, the phasing out of financial
support packages provided by the government during the energy crisis means real incomes
are unlikely to grow strongly. Higher interest rates will soon bite harder too. We expect the
Bank of England to keep interest rates at the probable peak of 5.25% until the second half of
2024. Mortgage rates are likely to stay above 5.0% for around a year.
• The tightness of the labour market continued to ease, with employment in the three months to
July falling by 207,000. The further decline in the number of job vacancies from 1.017m in July
to 0.989m in August suggests that the labour market has loosened a bit further since July.
That is the first time it has fallen below 1m since July 2021. At 3.0% in July, and likely to have
fallen to 2.9% in August, the job vacancy rate is getting closer to 2.5%, which would be
consistent with slower wage growth. Meanwhile, the 48,000 decline in the supply of workers
in the three months to July offset some of the loosening in the tightness of the labour
market. That was due to a 63,000 increase in inactivity in the three months to July as more
people left the labour market due to long term sickness or to enter education. The supply of
labour is still 0.3% below its pre-pandemic February 2020 level.
• But the cooling in labour market conditions still has not fed through to an easing in wage
growth. While the monthly rate of earnings growth eased sharply from an upwardly revised
+2.2% in June to -0.9% in July, a lot of that was due to the one-off bonus payments for NHS

Page 103

staff in June not being repeated in July. The headline 3myy rate rose from 8.4% (revised up
from 8.2%) to 8.5%, which meant UK wage growth remains much faster than in the US and in
the Euro-zone. Moreover, while the Bank of England’s closely watched measure of regular
private sector wage growth eased a touch in July, from 8.2% 3myy in June to 8.1% 3myy, it is
still well above the Bank of England’s prediction for it to fall to 6.9% in September.
• CPI inflation declined from 6.8% in July to 6.7% in August, the lowest rate since February
2022. The biggest positive surprise was the drop in core CPI inflation, which declined from
6.9% to 6.2%. That reverses all the rise since March and means the gap between the UK and
elsewhere has shrunk (US core inflation is 4.4% and in the Euro-zone it is 5.3%). Core goods
inflation fell from 5.9% to 5.2% and the further easing in core goods producer price inflation,
from 2.2% in July to a 29-month low of 1.5% in August, suggests it will eventually fall close to
zero. But the really positive development was the fall in services inflation from 7.4% to 6.8%.
That also reverses most of the rise since March and takes it below the forecast of 7.2% the
Bank of England published in early August.
• In its latest monetary policy meeting on 20 September, the Bank of England left interest rates
unchanged at 5.25%. The weak August CPI inflation release, the recent loosening in the labour
market and the downbeat activity surveys appear to have convinced the Bank of England that
it has already raised rates far enough. The minutes show the decision was “finely balanced”.
Five MPC members (Bailey, Broadbent, Dhingra, Pill and Ramsden) voted for no change and
the other four (Cunliffe, Greene, Haskel and Mann) voted for a 25bps hike.
• Like the US Fed, the Bank of England wants the markets to believe in the higher for longer
narrative. The statement did not say that rates have peaked and once again said if there was
evidence of more persistent inflation pressures “further tightening in policy would be required”.
Governor Bailey stated, “we’ll be watching closely to see if further increases are needed”. The
Bank also retained the hawkish guidance that rates will stay “sufficiently restrictive for
sufficiently long”.
• This narrative makes sense as the Bank of England does not want the markets to decide that
a peak in rates will be soon followed by rate cuts, which would loosen financial conditions and
undermine its attempts to quash inflation. The language also gives the Bank of England the
flexibility to respond to new developments. A rebound in services inflation, another surge in
wage growth and/or a further leap in oil prices could conceivably force it to raise rates at the
next meeting on 2nd November, or even pause in November and raise rates in December.
• The yield on 10-year Gilts fell from a peak of 4.74% on 17th August to 4.44% on 29th
September, mainly on the back of investors revising down their interest rate expectations. But
even after their recent pullback, the rise in Gilt yields has exceeded the rise in most other
Developed Market government yields since the start of the year. Looking forward, once
inflation falls back, Gilt yields are set to reduce further. A (mild) recession over the next couple
of quarters will support this outlook if it helps to loosen the labour market (higher
unemployment/lower wage increases).
• The pound weakened from its cycle high of $1.30 in the middle of July to $1.21 in late
September. In the first half of the year, the pound bounced back strongly from the Truss
debacle last autumn. That rebound was in large part driven by the substantial shift up in UK
interest rate expectations. However, over the past couple of months, interest rate expectations
have dropped sharply as inflation started to come down, growth faltered, and the Bank of
England called an end to its hiking cycle.
• The FTSE 100 has gained more than 2% since the end of August, from around 7,440 on 31st
August to 7,608 on 29th September. The rebound has been primarily driven by higher energy
prices which boosted the valuations of energy companies. The FTSE 100’s relatively high
concentration of energy companies helps to explain why UK equities outperformed both US
and Euro-zone equities in September. Nonetheless, as recently as 21st April the FTSE 100
stood at 7,914.

Page 104

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. 
Link now expect the MPC will keep Bank Rate at 5.25% for the remainder of 2023 and the first half
of 2024 to combat on-going inflationary and wage pressures. They do not think that the MPC will
increase Bank Rate above 5.25%, but it is possible. 
Our current PWLB rate forecasts below are based on the Certainty Rate. 
• 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. 
A SUMMARY OVERVIEW OF THE FUTURE PATH OF BANK RATE
• Our central forecast for interest rates was previously updated on 25 September and
reflected a view that the MPC would be keen to further demonstrate its anti-inflation
credentials by keeping Bank Rate at 5.25% until at least H2 2024. We expect rate cuts
to start when both the CPI inflation and wage/employment data are supportive of such a
move, and that there is a likelihood of the overall economy enduring at least a mild
recession over the coming months, although most recent GDP releases have surprised
with their on-going robustness.
• Naturally, timing on this matter will remain one of fine judgment: cut too soon, and
inflationary pressures may well build up further; cut too late and any downturn or
recession may be prolonged.
• In the upcoming months, our forecasts will be guided not only by economic data releases
and clarifications from the MPC over its monetary policies and the Government over its
fiscal policies, but also international factors such as policy development in the US and
Europe, the provision of fresh support packages to support the faltering recovery in China
as well as the on-going conflict between Russia and Ukraine, and Gaza and Israel.
• On the positive side, consumers are still anticipated to be sitting on some excess savings
left over from the pandemic, which could cushion some of the impact of the above
challenges and may be the reason why the economy is performing somewhat better at
this stage of the economic cycle than may have been expected. However, as noted
previously, most of those excess savings are held by more affluent households whereas
lower income families already spend nearly all their income on essentials such as food,
energy and rent/mortgage payments.
PWLB RATES
• Gilt yield curve movements have broadened since our last Newsflash. The short part of
the curve has not moved far but the longer-end continues to reflect inflation concerns. At
the time of writing there is 60 basis points difference between the 5 and 50 year parts of

Page 105

the curve. 
The balance of risks to the UK economy: -
• The overall balance of risks to economic growth in the UK is to the downside. 
Downside risks to current forecasts for UK gilt yields and PWLB rates include: - 
• Labour and supply shortages prove more enduring and disruptive and depress
economic activity (accepting that in the near-term this is also an upside risk to inflation
and, thus, could keep gilt yields high for longer). 
• The Bank of England has increased Bank Rate too fast and too far over recent
months, and subsequently brings about a deeper and longer UK recession than we
currently anticipate. 
• UK / EU trade arrangements – if there was a major impact on trade flows and
financial services due to complications or lack of co-operation in sorting out
significant remaining issues. 
• Geopolitical risks, for example in Ukraine/Russia, the Middle East,
China/Taiwan/US, Iran and North Korea, which could lead to increasing safe-haven
flows. 
Upside risks to current forecasts for UK gilt yields and PWLB rates: -
• Despite the recent tightening to 5.25%, the Bank of England proves too timid in its
pace and strength of increases in Bank Rate and, therefore, allows inflationary
pressures to remain elevated for a longer period within the UK economy, which then
necessitates Bank Rate staying higher for longer than we currently project. 
• The pound weakens because of a lack of confidence in the UK Government’s pre-
election fiscal policies, resulting in investors pricing in a risk premium for holding UK
sovereign debt.
• Longer-term US treasury yields rise strongly if inflation remains more stubborn
there than the market currently anticipates, consequently pulling gilt yields up
higher. (We saw some movements of this type through October although generally
reversed in the last week or so.) 
• Projected gilt issuance, inclusive of natural maturities and QT, could be too
much for the markets to comfortably digest without higher yields compensating.

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Appendix 3 – Prudential Indicators 
PRUDENTIAL INDICATOR 2023-24 2023-24 2024-25 2025-26
(1).  EXTRACT FROM BUDGET
Forecast
Outturn
Original
Estimate
Forecast
Outturn
Forecast
Outturn
Capital Expenditure £'000 £'000 £'000 £'000
Non - HRA 15,569 43,110 37,279 51,906
TOTAL 15,569 43,110 37,279 51,906
Ratio of financing costs to net revenue stream
Non - HRA 4.25% 4.37% 4.40% 4.43%
Net borrowing requirement
brought forward 1 April * 291,782 304,498 372,359 320,708
carried forward 31 March * 295,621 372,359 320,708 359,806
in year borrowing requirement 3,839 67,861 (51,651) 39,098
In year Capital Financing Requirement
Non - HRA 3,839 67,861 (51,651) 39,098
TOTAL 3,839 67,861 (51,651) 39,098
Capital Financing Requirement as at 31 March    
Non - HRA 295,621 372,359 320,708 359,806
TOTAL 295,621 372,359 320,708 359,806

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PRUDENTIAL INDICATOR 2023-24 2024-25 2025-26
(2).  TREASURY MANAGEMENT PRUDENTIAL INDICATORS £'M £'M £'M
Authorised limit for external debt -    
borrowing 268 283 305
other long term liabilities 112 113 108
TOTAL 380 396 413
Operational boundary for external debt -     
borrowing 263 278 300
other long term liabilities 109 110 105
TOTAL 372 388 405
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 2023/24
under 12 months       
12 months and within 24 months
24 months and within 5 years
5 years and within 10 years
10 years and above
30% 0%
40% 0%
100% 0%
upper limit lower limit
30% 0%
30% 0%

Page 108

ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE
FINANCIAL SERVICES 7 DECEMBER 2023
RESERVES AND BALANCES – UPDATE AS AT 31 OCTOBER 2023 
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 £666.354m unusable reserves that are not backed with
resources. They are required purely for accounting purposes. 
1.3 At 31 March 2023 the Council had a total of £93.828m of usable reserves. Of this:
• £2.916m relates to the Repairs and Renewals Fund
• £4.503m relates to Capital Funds
• £86.409m was held in the General Fund, with £79.466m of this balance
earmarked for specific purposes.
1.4  During 2023-24, the amount of £4.776m which was previously agreed to be utilised
from the one-off reprofiling gain from the Loans Fund Review was drawn down into
Earmarked Reserves to be used to fund the Capital Programme as detailed in
paragraph 3.5.1. This results in the total earmarked balance increasing to
£84.242m. 
1.5 Of the earmarked balance of £84.242m: 
• £41.505m is invested or committed for major initiatives/capital projects 
• £4.629m has already been drawn down
• £19.434m is still to be drawn down in 2023-24
• £18.674m 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
2023-24 which equates to £5.691m.  At the beginning of the financial year there
was £1.252m of unallocated General Fund Balance (over and above contingency). 
After taking into consideration the budgeted allocation to the General Fund agreed
by Council on 23 February 2023, the current forecast outturn position for 2023-24
and the proposed allocation for floral displays, the Council is forecast to have a
£1.183m surplus over contingency.

Page 109

ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE
FINANCIAL SERVICES 7 DECEMBER 2023
RESERVES AND BALANCES - UPDATE AS AT 31 OCTOBER 2023 
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 2023 
3.2.1 The balances on each type of reserve at 31 March 2023 are set out in the two
tables below, per the Unaudited Accounts for 2022-23. 
Unusable Reserves £000
Revaluation Reserve 174,952
Capital Adjustment Account 268,788
Financial Instruments Adjustment Account (1,871)
Pensions Reserve 232,073
Accumulated Absences Account (7,588)
Total Unusable Reserves 666,354 
Usable Reserves £000
Repairs and Renewals Fund 2,916
Capital Fund and Usable Capital Receipts Reserve 4,503                                                                                                                
General Fund  86,409
Total Usable Reserves  93,828
Total Reserves  760,182

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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 2023 can be analysed as follows: 
Balance
31/03/23
£000
Balance on General Fund as at 31 March 2022 96,081
Decrease to General Fund balance at end of 2022-23 (9,672)
Earmarked Balances (79,466)
Contingency allowance at 2% of net expenditure (5,691)
Unallocated balance as at 31 March 2023 1,252 
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 2023, the new amount
earmarked from the Loans Fund gain (see section 3.5.1), 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

Page 111

reviewed and updated the spending profiles. Appendix 2 provides further details
on the breakdown of COVID reserves. 
3.4 Unallocated General Fund Balance 
3.4.1  The Council’s General Fund contingency is set at 2% of net expenditure for
2023-24 and amounts to £5.691m.  At the beginning of the financial year there
was £1.252m of unallocated General Fund Balance (over and above
contingency).   After taking into consideration the budgeted allocation to the
Earmarking
Category
Balance
31/03/2023 -
per year
end
published
report
New
Earmarkings
in year
Invested or
committed
for major
initiatives
/capital
projects
Drawn-
down to
2023-24
Budget as
at 31/10/23
Still to be
drawn-
down in
2023-24
Planned
Spend
Future
Years
Released to
General
Fund
£000 £000 £000 £000 £000 £000 £000
Strategic Housing
Fund 7,247 6,847 400
Investment in
Affordable
Housing
3,163 3,163
Capital Projects 16,059 4,776 20,835
Lochgilphead and
Tarbert
Regeneration
1,460 1,460
Support for Rural
Growth Deal 756 756
Asset
Management
Investment
2,098 2,070 28
Piers and
Harbours
Investment Fund
2,789 2,789
Scottish
Government
Initiatives
2,834 352 1,486 996
CHORD 378 150 228
DMR Schools 1,394 625 736 33
Energy Efficiency
Fund 218 218
Existing Legal
Commitments 476 476
Unspent Grant 13,179 489 1,702 5,212 5,776
Unspent Third
Party Contribution 265 30 138 97
Previous Council
Decision - Other 3,808 1,699 225 1,424 460
Redundancy
Provision 1,578 500 1,078
Supporting
Organisational
Change
1,426 87 113 1,226
One Council
Property Team 566 189 377
Fleet - Timing
Delay 658 658
Hermitage Park 19 19
Electric Vehicle
Chargers 17 17
COVID-19 5,512 257 551 4,052 652
Unspent Budget 13,566 1,140 629 4,063 7,734
Totals 79,466 4,776 41,505 4,629 19,434 18,674 0

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General Fund agreed by Council on 23 February 2023 of £0.019m, the current
forecast outturn position for 2023-24 and the proposed allocation for floral
displays the Council is forecast to have a £1.183m surplus over contingency. 
3.4.2 The revenue budget position as at 31 October 2023 was estimated to be a
£0.080m overspend. 
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.  Note that as at 31 October, Social Work
was projecting a breakeven position.  
3.4.4 The Environment, Development and Infrastructure Committee on 31 August
2023 agreed to pursue a blended model of options for the provision of floral
displays and recommended the additional revenue cost for 2023-24 of £0.008m
be funded from the unallocated General Fund and built into the budget outlook
estimates for future years.  
3.4.5  The table below summarises the position of the unallocated General Fund
balance taking into consideration the points noted above. 
Heading Detail £000
Unallocated General Fund
as at 31 March 2023
This is the balance that is
unallocated over and above the 2%
contingency, which amounts to
£5.691m
1,252
Budgeted allocation to
General Fund for 2023-24
Budget
Per the Budget Motion at Council on
23 February 2023
19
Current Forecast Outturn
for 2023-24 as at 31
October 2023
Per paragraph 3.4.2.  (80)
Social Work outturn
adjustment
Per paragraph 3.4.3 - Social Work
would expect to transfer any surplus
to internal IJB reserves
0
Allocation from
unallocated general fund
balance
Per paragraph 3.4.4 (8)
Estimated Unallocated
balance as at 31 March
2024 
1,183 
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 table below shows what has been drawn
down against the one-off gain and the remaining balance.

Page 113

Agreed
Allocation
Transferred
to
Earmarked
Reserves in
previous
years
Transferred
to
Earmarked
Reserves
23-24 
Balance
Remaining 
£000 £000 £000 £000
Provision for increasing
principal repayments 7,649   7,649
Funding Gap in Capital
Programme 2,619  (2,619) 0
Significant Strategic Change
Projects  5,013 (2,856) (2,157) 0
Completed Projects  5,280 (5,280)  0 
20,561 (8,136) (4,776) 7,649 
4. CONCLUSION 
4.1 The report outlines the overall reserves and balances for the Council covering
the purpose and level of each reserve.  It also provides detail as to expenditure
against earmarked balances held within the General Fund.   
4.2 As at 31 October 2023 the estimated unallocated General Fund, after taking
into consideration the budget motion, the current forecast outturn for 2023-24
and the proposed allocation for floral displays, the Council is estimated to have
a £1.183m surplus over contingency. 
5. IMPLICATIONS 
5.1 Policy - Earmarked funds and funds set aside for delivery of
Single Outcome Agreement are available to support
Council Policy.
5.2 Financial -  Outlines the balances held with the Council’s usable
and unusable reserves.     
5.3 Legal -  None.
5.4 HR -  None.
5.5 Fairer Scotland Duty- None.
5.5.1 Equalities – protected
characteristics - 
None.
5.5.2 Socio-economic Duty -  None.
5.5.3 Islands -  None.
5.6 Climate Change - None.
5.7 Risk -  A contingency of £5.691m (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. 
Kirsty Flanagan
Executive Director/Section 95 Officer 
3 November 2023

Page 114

Policy Lead for Finance and Commercial Services - Councillor Gary Mulvaney 
APPENDICES
Appendix 1 – Earmarked Reserves breakdown of unspent budget
Appendix 2 – Earmarked Reserves breakdown of COVID earmarkings 
For further information contact Anne Blue, Head of Financial Services
anne.blue@argyll-bute.gov.uk

Page 115

APPENDIX 1
Earmarked Reserves - Unspent Budget
As at 31 October 2023
Ref Department Service Description Opening Balance Budget
Drawdown
New
earmarkings
in year
Remaining
Balance
Still to be
drawndown in 23-
24
Planned to
spend in future
years
Plans for Use Amount
Planned to be
Spent in 2023-
24
Amount
Planned to be
Spent in 2024-
25
Amount
Planned to be
Spent from
2025/26
onwards
001 Chief Executive's Unit Community Planning Communities and Partnership
Team
8,855 0 8,855 0 8,855 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.
0 8,855
002 Executive Director
(Douglas Hendry)
Across Services /
Education
Digital Projects (Supply Staff
Booking System)
25,100 9,900 15,200 0 15,200 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 15,200
003 Executive Director
(Douglas Hendry)
Commercial Services Rothesay Academy - Demolition
and Waste Disposal
953,875 53,495 900,380 0 900,380 Since Rothesay Academy was vacated over 15 years ago no site clearance has taken place and there are
potential Health and Safety and insurance cover implications due to deterioration of the building.
£55,000 earmarking will allow clearance of remaining materials and debris.
Also £840,000 to fund estimated future costs of demolition (subject to removal of listed status) to be
added to an existing earmarking . There are potential Health and Safety and insurance cover
implications due to deterioration of the building.
53,495 900,380 0
004 Executive Director
(Douglas Hendry)
Commercial Services Rothesay Pavilion Charity 750,000 0 750,000 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.
0 750,000
005 Executive Director
(Douglas Hendry)
Commercial Services Rothesay Pavilion Essential
repairs
306,400 0 306,400 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
006 Executive Director
(Douglas Hendry)
Commercial Services Estates - NDR Revaluation
Appeals
84,688 24,750 59,938 59,938 0
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. 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.
84,688 0
007 Executive Director
(Douglas Hendry)
Commercial Services Demolition of former
Lochgilphead Primary and
Rothesay Secondary School
0 0 0 0 0 To fund the demolition of the former Lochgilphead Primary School and former Rothesay Academy
(subject to the removal of the listing). Lochgilphead Primary complete and remainder of funds to be
used to commence Rothesay Project.
0 0
008 Executive Director
(Douglas Hendry)
Commercial Services Mid Argyll Community Pool 30,000 0 30,000 30,000 0 At the Council Budget meeting on 23 February 2023, 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
009 Executive Director
(Douglas Hendry)
Commercial Services MacTaggart Leisure Islay 30,000 0 30,000 30,000 0 At the Council Budget meeting on 23 February 2023, 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
010 Executive Director
(Douglas Hendry)
Commercial Services Site Investigation Works 21,013 0 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
011 Non Departmental /
Executive Director
(Douglas Hendry)
Across Services /
Commercial Services
Information Management
(Estates Survey Work)
12,697 0 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
12,697 0
012 Executive Director
(Douglas Hendry)
Commercial Services (2023 Contract Inflation
Adjustments) MAKI/Islay Pools
SLA - inflationary increase
9,523 0 9,523 9,523 0 Additional pressure resulting from the February 2023 inflation rate being higher than the assumptions
built into the non-pay inflation calculation which went to Council at budget setting and reflects the
difference between what was in the budget and what will need to be paid under the SLAs. The February
inflation figure wasn't known until the middle of March, after the budget was set, and the recent trend
in inflation reductions turned around in February with an increase.
9,523 0 0
013 Executive Director
(Douglas Hendry)
Education ASN Review 1,255,000 0 1,255,000 0 1,255,000 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.
0 1,255,000 0
014 Executive Director
(Douglas Hendry)
Education Reduced Teacher Staffing Costs -
Strike Action
800,000 0 800,000 0 800,000 To fund one off savings in 2024-25 from the underspend in staffing from strike action. 0 800,000 0
015 Executive Director
(Douglas Hendry)
Education (2023 Digital Projects) School
WiFi Upgrades
200,000 22,925 177,075 127,075 50,000 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. 
150,000 50,000 0
016 Executive Director
(Douglas Hendry)
Education Education Transformation Fund 146,579 1,942 144,637 144,637 0 At the Council meeting on 27 February 2020, it was agreed to input £400k into Education Digital
Learning.  The additional funds have been spent in 20/21, 21/22 and 22/23 as part of the ongoing
transformation work in the Education service, focussing on digital and virtual learning technology and
the development of learning clusters.  This will continue into 2023/24.
146,579 0

Page 116

Ref Department Service Description Opening Balance Budget
Drawdown
New
earmarkings
in year
Remaining
Balance
Still to be
drawndown in 23-
24
Planned to
spend in future
years
Plans for Use Amount
Planned to be
Spent in 2023-
24
Amount
Planned to be
Spent in 2024-
25
Amount
Planned to be
Spent from
2025/26
onwards
017 Executive Director
(Douglas Hendry)
Education MCR Pathways Pilot 80,000 40,872 39,128 0 39,128 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.
40,872 39,128 0
018 Executive Director
(Douglas Hendry)
Education Gaelic Specific Grant 30,000 0 30,000 30,000 0 Proposal to fund the continuation of the Principal Teacher Languages (Gaelic focus) post for the 2023-
24 academic year to promote and develop Gaelic Medium Education across Argyll and Bute. This
earmarking refers to the Council contribution towards the Gaelic grant for 22-23.
30,000 0 0
019 Executive Director
(Douglas Hendry)
Education (2023 Digital Projects) Cashless
Catering
30,000 0 30,000 5,000 25,000 To support the ongoing implementation of the new cashless catering system during the testing and roll
out phase.
5,000 25,000 0
020 Executive Director
(Douglas Hendry)
Education Skype for Business for Education
/ Digital Projects (Skype for
Business)
10,000 0 10,000 10,000 0 To fund the initial capital costs for the implementation of Skype for Business for Education.  This will
bring the Education service in line with other council departments and will improve staff collaboration
and modernise school telephony to deliver the  service more efficiently and cost effectively.
A balance was released back to the general fund in 2021-22 because the rollout project was almost
complete with only £0.01m expected spend in 23/24.
10,000 0
021 Executive Director
(Douglas Hendry)
Education Education Learning Estate
Condition Surveys
1,815 0 1,815 1,815 0 To fund the delivery of School Core Facts (SCF) compliant Condition Surveys for prioritised School
Buildings.
1,815 0
022 Executive Director
(Douglas Hendry)
Legal and Regulatory
Services
Education Purchasing Officers 210,000 37,000 173,000 68,000 105,000 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.
105,000 105,000
023 Non Departmental /
Executive Director
(Douglas Hendry)
Across Services / Legal
and Regulatory
Services
Information Management
(Digitalisation of Title Deeds)
92,000 0 92,000 92,000 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 (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
92,000 0
024 Executive Director
(Douglas Hendry)
Legal and Regulatory
Services
Councillor IT Equipment 44,557 0 44,557 29,557 15,000 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.
29,557 15,000
025 Executive Director
(Douglas Hendry)
Legal and Regulatory
Services
Digital Projects: Hybrid Council
meetings
43,302 0 43,302 43,302 0 The funding will be used to maintain the ICT equipment used to support the provision of on-line and
hybrid Council meetings.
43,302 0
026 Executive Director
(Douglas Hendry)
Legal and Regulatory
Services
Debt Counselling & Welfare
Rights
21,452 0 21,452 5,965 15,487 To meet the cost of a Debt Counselling and Welfare Rights Management System. 5,965 15,487
027 Executive Director
(Douglas Hendry)
Legal and Regulatory
Support
(2023 Contract Inflation
Adjustments) NPDO and DBFM
School Contracts – inflationary
increase
350,000 350,000 0 0 0 Additional pressure resulting from the February 2023 inflation rate being higher than the assumptions
built into the non-pay inflation calculation which went to Council at budget setting and reflects the
difference between what was in the budget and what will need to be paid under the NPDO/Hub DBFM
Schools contracts. The February inflation figure wasn't known until the middle of March, after the
budget was set, and the recent trend in inflation reductions turned around in February with an
increase.
350,000 0 0
028 Executive Director
(Douglas Hendry)
Legal and Regulatory
Support
(2023 Digital Projects)
Replacement of Council
Chambers Online Meeting
Equipment
130,000 0 130,000 130,000 0 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.
130,000 0 0
029 Executive Director
(Kirsty Flanagan)
Customer Support
Services
(2023 Digital Projects) iTrent
Project
332,000 0 332,000 147,000 185,000 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.
147,000 185,000 0
030 Executive Director
(Kirsty Flanagan)
Customer Support
Services
Security Operations Centre
Subscription
113,594 0 113,594 53,594 60,000 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 year 4 onwards.  There is unallocated funding
of £103,545 from the earmarking (172) created at 2020/21 year end for 'Digital Projects' combined with
this earmarking to cover these costs for 3 years.
53,594 60,000
031 Executive Director
(Kirsty Flanagan)
Customer Support
Services
Growing our Own and Modern
Apprentices
109,150 0 109,150 95,790 13,360 Funding earmarked to support trainee development and modern apprenticeship opportunities based
on priority workforce risk areas. These areas have been identified and proposals developed. £95,790 to
be spent in 23/24 and £13,360 to be spent in 24/25 to fund a graduate trainee and 3 apprentices to
deliver trainee development and modern apprenticeship opportunities
95,790 13,360
032 Non Departmental /
Executive Director
(Kirsty Flanagan)
Across Services /
Customer Support
Services
Digital Projects (Increase in
Schools Bandwidth)
63,455 0 63,455 63,455 0 To complete one of a number of Digital Service Transformation projects with a commitment of £0.064m
to increase Schools Bandwidth. 
63,455 0
033 Executive Director
(Kirsty Flanagan)
Customer Support
Services
(2023 Digital Projects) Resilient
Website Project
60,000 0 60,000 60,000 0 Cybersecurity action to move to a cloud based website platform that would improve resilience and
enable service continuity in the event of a cyber attack.  Procurement in progress for resilient website
solution and Scotgov Cloud Services Project providing input. Contract Award expected by end 2023.
60,000 0 0
034 Executive Director
(Kirsty Flanagan)
Customer Support
Services
(2023 Digital Projects) Digital
Project Officer
60,000 0 60,000 60,000 0 Employ a temporary Digital Project Officer as part of OD changes. 60,000 0 0

Page 117

Ref Department Service Description Opening Balance Budget
Drawdown
New
earmarkings
in year
Remaining
Balance
Still to be
drawndown in 23-
24
Planned to
spend in future
years
Plans for Use Amount
Planned to be
Spent in 2023-
24
Amount
Planned to be
Spent in 2024-
25
Amount
Planned to be
Spent from
2025/26
onwards
035 Executive Director
(Kirsty Flanagan)
Customer Support
Services
Implementation of Gaelic
Language Plan
30,000 0 30,000 30,000 0 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.
30,000 0
036 Executive Director
(Kirsty Flanagan)
Customer Support
Services
(2023 Digital Projects) Digital
Engagement Services Developer
28,000 0 28,000 11,630 16,370 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.  New temporary Digital
Developer took up post on 18/09 and funds will be used for salary across the rest of the year – to be
drawn down in FQ4.
11,630 16,370 0
037 Executive Director
(Kirsty Flanagan)
Customer Support
Services
Business Development Training 27,601 288 27,313 27,313 0 This budget is funding ongoing leadership development, coaching, action learning sets and
commissioned training including Priority Management.
27,601 0
038 Executive Director
(Kirsty Flanagan)
Customer Support
Services
Learning and Development 19,436 0 19,436 19,436 0 In order to maximise the opportunities and efficiencies of digital learning, this funding will be used to
support the extension of digital learning in order to deliver the Digital Learning Strategy, which was
approved in FQ4 20/21.
19,436 0
039 Executive Director
(Kirsty Flanagan)
Customer Support
Services
Establishing HR Service Centre 13,824 0 13,824 13,824 0 To facilitate the implementation of technical efficiency improvements and new processes 13,824 0
040 Non Departmental /
Executive Director
(Kirsty Flanagan)
Across Services /
Customer Support
Services
Digital Projects (Replacement
Learning Management System)
11,470 0 11,470 11,470 0 To deliver a number of Digital Service Transformation Projects with an original commitment of £0.030m
towards a replacement Learning Management System £0.030m.
11,470 0
041 Executive Director
(Kirsty Flanagan)
Development &
Economic Growth
Planning Income (Saving 23-24) 340,000 0 340,000 340,000 0 To fund one off operational saving MGT5 agreed for the 2023/24 budget 340,000 0 0
042 Executive Director
(Kirsty Flanagan)
Development &
Economic Growth
Planning Income 60,000 0 60,000 60,000 0 To fund additional resources to support and develop the Council's planning service. 60,000 0 0
043 Executive Director
(Kirsty Flanagan)
Development and
Economic Growth
Oban TIF (Tax Incremental
Financing)
385,193 0 385,193 116,000 269,193 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.
116,000 269,193
044 Executive Director
(Kirsty Flanagan)
Development and
Economic Growth
Strategic Events & Festivals 80,664 0 80,664 40,946 39,718 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 2023-2024.
40,946 39,718
045 Executive Director
(Kirsty Flanagan)
Development and
Economic Growth
Island Post 50,461 0 50,461 50,461 0 To fund a temporary post at LGE11 to assist with the National Islands Plan Implementation Route Map
2020-2025.
50,461 0
046 Non Departmental /
Executive Director
(Kirsty Flanagan)
Across Services /
Development and
Economic Growth
Information Management
(Document Management and
Workflow for Planning, Building
Standards and Environmental
Health)
21,177 0 21,177 21,177 0 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 Hoping to implement the replacement for IDOX in March 2024 but there have been severe
issues/delays with the new programme
21,177 0
047 Executive Director
(Kirsty Flanagan)
Development and
Economic Growth
Royal National Mod 20,000 0 20,000 20,000 0 One off funding allocation for the Royal National Mod agreed as part of the budget setting process for
2019/20. Grant contract issued. Proposed payment of £20k per annum starting 2020/21  (2023/24 final
payment of £20k)
20,000 0
048 Executive Director
(Kirsty Flanagan)
Financial Services Financial Systems 33,748 0 33,748 33,748 0 To fund the completion of the implementation of the Oracle Fusion Financial Management System, a
software update for cash receipting to ensure card payments can still be taken and the procurement
and implementation of a new system to manage the requirements of the IFRS16 Leases accounting
standard.
33,748 0
049 Executive Director
(Kirsty Flanagan)
Financial Services Accounting and Budgeting Team
Resilience
30,664 0 30,664 16,664 14,000 To fund the implementation of a new staffing structure in 2022/23 as agreed at ELT on 12 April 2022
which has been implemented.  The residual funding is being used to meet the costs of ongoing
professional accountancy  training over the period 2022/23 to 2026/27
16,664 14,000
050 Executive Director
(Kirsty Flanagan)
Financial Services CIPFA 24,040 1,835 22,205 4,165 18,040 CIPFA Training - To fund the professional training costs for staff undertaking the CIPFA professional
accountancy qualification.
6,000 18,040
051 Executive Director
(Kirsty Flanagan)
Roads & Infrastructure Waste Variation Monies 1,967,056 0 1,967,056 724,884 1,242,172 This will be used to fund/part-fund various waste infrastructure projects that will support the council’s
compliance with the 2025 ban on the Landfill of Biodegradable Municipal Waste. This will include
scoping work for the creation of a waste transfer station at Helensburgh and landfill cell construction
works at Gartbreck  (£640k for Capital works on Gartbreck completed in 2022/23, reserve will be drawn
down for this in 2023/24).
724,884 410,000 832,172
052 Executive Director
(Kirsty Flanagan)
Roads & Infrastructure 3G pitches / Tarbert Sports
Pitches
375,022 76,749 298,273 3,251 295,022 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. 
80,000 80,000 215,022
053 Executive Director
(Kirsty Flanagan)
Roads & Infrastructure Green Transport Initiatives 140,000 0 140,000 140,000 0 At the Council meeting on 27 February 2020, it was agreed to input £400k in Green transport,
investment in footway and cycle path maintenance supporting the healthy wellbeing and green agenda. 
Spend has been delayed due to COVID and this will be taken forward in 23/24. £260k Footways
Reconstruction programme now spent and will be drawn down against capital programme during
23/24. £140k Ardrishaig North Project will be spent in 22/23 and drawn down in 23/24.
140,000 0
054 Executive Director
(Kirsty Flanagan)
Roads & Infrastructure Climate Change 81,884 0 81,884 81,884 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.
81,884 0

Page 118

Ref Department Service Description Opening Balance Budget
Drawdown
New
earmarkings
in year
Remaining
Balance
Still to be
drawndown in 23-
24
Planned to
spend in future
years
Plans for Use Amount
Planned to be
Spent in 2023-
24
Amount
Planned to be
Spent in 2024-
25
Amount
Planned to be
Spent from
2025/26
onwards
055 Executive Director
(Kirsty Flanagan)
Roads & Infrastructure Amenity Services introduction of
management information
system
28,099 0 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 28,099
056 Executive Director
(Kirsty Flanagan)
Roads & Infrastructure
Services
(2023 Contract Inflation
Adjustments) Waste PPP
255,000 0 255,000 150,000 105,000 Adjustment to inflation included in the budget based on updated RPIX figures at February 2023.  Based
on the current forecast it is anticipated the full earmarking will not be required and is unlikely to 
exceed £150K.  For the purposes of balancing this spreadsheet I have entered £150K against 2023-24
and the balance against 2024-25 at this stage.  Will be monitored monthly.
150,000 105,000 0
057 Non Departmental Non Departmental Underwriting development of
Rothesay Pavilion
1,000,000 0 1,000,000 0 1,000,000 Funding to meet additional costs identified as necessary for the refurbishment of Rothesay Pavilion. 0 1,000,000
058 Non Departmental Non Departmental Oban TIF (Tax Incremental
Financing - Excess NDR)
875,651 0 875,651 0 875,651 This is the surplus NDR after paying all Loans Charges in respect of TIF infrastructure projects.  This fund
will be used in the future as TIF projects are delivered.
0 0 875,651
059 Non Departmental Non Departmental Loans Fund 385,279 0 385,279 385,279 0 At the Council Budget meeting on 24 February 2022, Saving FS01, a Loans Fund
Management/Operational saving for 22/23 budget of £0.500m was agreed with at least £0.200m to
come from underspends in 21/22.  The underspend position for 21/22 is £0.385m and this earmarking is
being released as a saving to help bridge the 2023/24 budget gap.
385,279 0
060 Non Departmental Non Departmental Loans Fund 300,000 0 300,000 300,000 0 To fund one off operational saving MGT3 agreed for the 2023/24 budget 300,000 0 0
061 Non Departmental Non Departmental Information Management
(Balance of Funding)
209,844 9,375 200,469 -9,375 209,844 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
0 209,844
062 Non Departmental Non Departmental Spend to Save Route
Optimisation Software
100,000 0 100,000 100,000 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.
100,000 0
063 Non Departmental /
Social Work
Non Departmental Engagement with Hub North re
provision of services for older
adults and vulnerable people
across Argyll and Bute
100,000 0 100,000 100,000 0 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.
100,000 0
064 Non Departmental Non Departmental CHARTS 80,000 0 80,000 80,000 0 As agreed at Council on 24 February 2022, investment in CHARTS £0.075m.  To support the organisation
in delivering targeted support, in communities, to the culture, arts and heritage sector as part of its
plans to contribute to overall economic recovery.
At the Council Budget meeting on 23 February 2023, the Council committed to £0.075m one-off
investment in CHARTS in response to an external funding request will be spent in 23-24
80,000
065 Non Departmental Non Departmental Community Resilience Fund 76,447 0 76,447 0 76,447 Fund established in 2012/13 to be spent over more than one year. Fund reduced at the Council meeting
on 11 February 2016
0 76,447
13,565,615 629,131 0 12,936,484 4,203,118 8,733,366 4,832,249 6,810,521 1,922,845

Page 119

APPENDIX 2
COVID
As at 31 October 2023
Ref Department Service Description Opening Balance Budget
Drawdown
Released
back to
General
Fund
New
earmarkings
in year
Remaining
Balance
Still to be
drawndown in 23-
24
Planned to
spend in future
years
Plans for Use Amount
Planned to be
Spent in 2023-
24
Amount
Planned to be
Spent in 2024-
25
Amount
Planned to be
Spent from
2025/26
onwards
001 Chief Executive's Unit Community Planning Community Planning - temp post
to support communities
55,000 0 55,000 55,000 0 Post supporting year 1 of supporting communities fund 55,000 0
002 Chief Executive's Unit Community Planning Covid impacts – support to
communities’
49,147 27,926 21,221 21,221 0 Funding provided in relation to the Local Self-Isolation Assistance Service.  The Community Planning and
Development Team will work with community groups to support their community response and
resiliency to Test and Protect and the longer term impacts of COVID-19 on local community
organisations.
49,147 0
003 Executive Director
(Douglas Hendry)
Education Logistics Funding - Safe Opening
of Schools
699,036 0 699,036 699,036 0 Scottish Government funding to ensure the safe opening and operation of schools. Includes transport,
PPE, cleaning, ventilation and expansion of estate. It is likely that any unused balances would have to be
returned to the Scottish Government.
699,036 0
004 Executive Director
(Douglas Hendry)
Education Additional Teaching/Support in
Schools/Digital Devices/Family
Home Learning Support Fund -
421,198 69,832 351,366 311,366 40,000 Continuation of funding for additional staffing, teachers, support staff, additional devices for pupils and
additional family/home learning programmes.
381,198 40,000
005 Executive Director
(Douglas Hendry)
Education Education to Support Young
People
191,042 160,560 30,482 0 30,482 As agreed at the Council Meeting on 25 February 2021 with an original allocation of £0.600m.  Agreed to
fund a package of measures to boost the wellbeing and build back the resilience of young people, in
particular those most vulnerable, following the Covid-19 pandemic, including counselling and increased
provision of childcare for children under three. Notes that the Scottish Government is yet to confirm
details of funding for similar initiatives and, should our investment in children’s wellbeing qualify for this
funding, the balance will be re-allocated to the Recovery and Renewal Fund. 
160,560 30,482
006 Executive Director
(Douglas Hendry)
Education Recruitment of Additional
Teachers and Support Staff in
Schools
51,371 51,371 0 0 0 Fund additional teachers and support staff. 51,371 0
007 Executive Director
(Douglas Hendry)
Legal and Regulatory
Services
Welfare Rights Support 131,634 64,906 66,728 15,278 51,450 As agreed at the Council Meeting on 25 February 2021 - an allocation of £0.172m.  As part of our focus
on Improving Opportunities for People and Communities, agrees to provide additional resources to
proactively support people experiencing poverty and hardship, by investing in two additional Welfare
Rights support staff for two years.
80,184 51,450
008 Executive Director
(Kirsty Flanagan)
Customer Support
Services
Self Isolated Support / Self
Isolated Support Grant (HR)
65,250 0 65,250 49,000 16,250 These were monies that were provided by Scotgov to fund additional overtime and resources for
Shielding/Caring for People and Test and Protect activities.
The funds are being used for a number of Customer Service and Business efficiency related projects
including a system and consultancy of RPA (robotic process automation) and application development.  A
49,000 16,250
009 Executive Director
(Kirsty Flanagan)
Development and
Economic Growth
Staycation and Marketing Argyll
and Bute
389,992 0 389,992 300,000 89,992 As agreed at the Council Meeting on 25 February 2021 with an original allocation of £0.800m.   This will
include provision of additional waste disposal facilities and other facilities that will be informed by the
Motorhome and Informal Camping Survey.
300,000 89,992
010 Executive Director
(Kirsty Flanagan)
Development and
Economic Growth
Tackling Digital Exclusion Top-Up
Fund
217,600 0 217,600 217,600 0 As agreed at the Council Meeting on 25 February 2021.  Establishes the Tackling Digital Exclusion Top Up
Fund to support communities and in some cases individuals that are missing out on national
programmes due to logistics and economies of scale.  While vouchers are available from the UK and
Scottish Governments in some cases these do not cover the full cost of infrastructure builds. 
Expenditure should be incurred during 23-24 to draw down against.
217,600 0
011 Executive Director
(Kirsty Flanagan)
Development and
Economic Growth
LACER Funding (Sector Support
Grant)
95,398 0 95,398 95,398 0 Local Authority COVID Economic Recovery Fund grant.  This will provide funding, either part of the small 
business development grant or standalone, to help micros and small business to implement projects that
95,398 0
012 Executive Director
(Kirsty Flanagan)
Development and
Economic Growth
Economic Development - temp
post to support economic
recovery
55,000 0 55,000 55,000 0 As agreed at Policy & Resources committee on 9 December 2021, allocation of £0.055m to a post to
support the economic and social recovery together with the building back stronger themes.  To be used
to fund Settlement Project Support Officer during 23-24.
55,000 0
013 Executive Director
(Kirsty Flanagan)
Development and
Economic Growth
EH Covid Posts 37,775 0 37,775 37,775 0 Funding initially for 2 posts for 2 years.  Posts were initially recruited to with one leaving and the other
going on maternity leave resulting in delays in expenditure.  One employee is now back from maternity
leave and earmarked reserve will be drawn down to cover their costs in 23-24.
37,775 0
014 Executive Director
(Kirsty Flanagan)
Development and
Economic Growth
LACER Funding (New Enterprise
Support Grant)
31,159 0 31,159 31,159 0 Local Authority COVID Economic Recovery Fund grant.  This funding would provide £3,000 grants to help
new businesses start up and establish.  Fund fully committed, there was a delay in getting all payments
made and remainder will be made in 23-24.
31,159 0
015 Executive Director
(Kirsty Flanagan)
Development and
Economic Growth
LACER Funding (Shop Local) 26,793 0 26,793 26,793 0 Local Authority COVID Economic Recovery Fund grant.  This funding would provide funding to continue
the Shop Local scheme into 2022/23 and 2023/24, buying additional cards and allow the cards to gather
26,793 0
016 Executive Director
(Kirsty Flanagan)
Development and
Economic Growth
LACER Funding (Small Business
Development Grant)
24,988 0 24,988 24,988 0 Local Authority COVID Economic Recovery Fund grant.  This funding will provide funding of between
£500 and £5,000 to help existing micro and small businesses to improve their resilience or growth via
projects to implement green initiatives, implement digital development, implement marketing
24,988 0
017 Executive Director
(Kirsty Flanagan)
Financial Services Housing Benefits Private 321,524 35,640 285,884 285,884 0 Specific funding allocation for Housing Benefit including DHP. Funds will be used to continue to support
vulnerable people initially financially affected by the COVID-19 outbreak but now facing the cost of living
crisis to sustain their tenancies.  This earmarking will help offset potential overspends in the DHP/
Scottish Welfare Fund budget going forward.
321,524 0
018 Executive Director
(Kirsty Flanagan)
Financial Services Flexible Food Fund 194,156 137,445 56,711 56,711 0 Financial Insecurity funding from Scottish Government routed into the Argyll and Bute Flexible Food and
Fuel Fund (ABFFFF) is aimed at tackling financial insecurity for adults and families across Argyll and Bute. 
Working in partnership with the Community Food Forum, Bute Advice Centre and ALIenergy, households
194,156 0

Page 120

Ref Department Service Description Opening Balance Budget
Drawdown
Released
back to
General
Fund
New
earmarkings
in year
Remaining
Balance
Still to be
drawndown in 23-
24
Planned to
spend in future
years
Plans for Use Amount
Planned to be
Spent in 2023-
24
Amount
Planned to be
Spent in 2024-
25
Amount
Planned to be
Spent from
2025/26
onwards
019 Executive Director
(Kirsty Flanagan)
Financial Services Flexible Funding for Supporting
People while at Tier 4 COVID
76,357 3,069 73,288 73,288 0 Funding from SG to strengthen local authority responses to meet emerging needs and support people in
their communities struggling with the restrictions and guidance at all protection levels re COVID,
particularly those at risk through health and social inequalities. This support could cover the same types
of support.  In June 2021 the Council agreed to support 20 projects led by a range of Council officers,
officers from the HSCP and members of the third sector to deliver wide ranging support across our
region.  A report will be presented to members in due course.
76,357 0
020 Executive Director
(Kirsty Flanagan)
Financial Services Self Isolated Support Grant 5,316 0 5,316 0 5,316 Unspent admin funding for processing Self isolation Support Grants. 0 5,316
021 Non Departmental Non Departmental Recovery and Renewal Fund 1,547,000 0 1,547,000 1,547,000 0 As agreed at Council on 24 February 2022, Recovery and Renewal Fund £1.547m.  This is provision for
future recovery, regeneration and renewal, as well as any future pressures which may arise following the
Covid-19 pandemic through a dedicated Recovery and Renewal Fund.  Commitments have been made
against this fund as follows: Levelling up bid costs £0.150m, Scotland Loves Local overspend £0.037m and
Rothesay Pavilion £1.360m.
1,547,000 0
022 Non Departmental Non Departmental COVID Funding 418,337 0 418,337 0 418,337 Net balance on COVID cost centres at year end 2022/23 with proposals on use to be developed. 0 0 418,337
023 Non Departmental Non Departmental Capital pressure 257,000 0 257,000 257,000 0 Pressure identified on the 20/21 COSLA COVID costs spreadsheets - requires to be earmarked to be
drawn down when required against the Capital Plan
257,000 0
024 Non Departmental Non Departmental Levelling up Fund bids per P&R
February 22
150,000 0 150,000 150,000 0 As agreed at Policy & Resources committee on 17 February 2022, an allocation of  up to £0.150m to
support Levelling Up Fund bids
150,000 0
0 0 0 0 0
5,512,073 550,749 0 0 4,961,324 4,309,497 651,827 4,860,246 233,490 418,337