Agenda reports pack
Argyll and Bute Council · 16 June 2022
Back to Policy and Resources Committee — 16 June 2022 and its agenda
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Argyll and Bute Council Comhairle Earra-Ghàidheal Agus Bhòid Executive Director: Douglas Hendry Kilmory, Lochgilphead, PA31 8RT Tel: 01546 602127 Fax: 01546 604435 DX 599700 LOCHGILPHEAD 9 June 2022 NOTICE OF MEETING A meeting of the POLICY AND RESOURCES COMMITTEE will be held in the COUNCIL CHAMBER, KILMORY, LOCHGILPHEAD AND ON A HYBRID MEETING BASIS BY MS TEAMS ATTENDANCE on THURSDAY, 16 JUNE 2022 at 10:30 AM, which you are requested to attend. Douglas Hendry Executive Director BUSINESS 1. APOLOGIES FOR ABSENCE 2. DECLARATIONS OF INTEREST 3. MINUTES (Pages 3 - 10) Policy and Resources Committee held on 17 February 2022 4. BUDGET OUTLOOK 2023-24 TO 2027-28 (Pages 11 - 32) Report by Section 95 Officer 5. KEY PERFORMANCE INDICATORS FQ4 2021/22 (Pages 33 - 60) Report by Executive Directors with responsibility for Financial Services, Commercial Services, Legal and Regulatory Support and Customer Services Support 6. PLACE BASED INVESTMENT AND CROWN ESTATE FUND 2022/23 - PROJECTS AND ALLOCATION (Pages 61 - 70) Report by Executive Director with responsibility for Development and Economic Growth 7. HISTORIC ENVIRONMENT SCOTLAND HERITAGE AND PLACE PROGRAMME - OPPORTUNITY FOR PLACE BASED HERITAGE FUNDING (Pages 71 - 86) Report by Executive Director with responsibility for Development and Economic Growth Public Document Pack
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8. STRATEGIC EVENTS AND FESTIVALS - ROUND 4.2 - 2022/2023 (Pages 87 - 94) Report by Executive Director with responsibility for Development and Economic Growth 9. SCOTLAND LOVES LOCAL GIFT CARD UPDATE (Pages 95 - 98) Report by Executive Director with responsibility for Development and Economic Growth REPORT FOR NOTING 10. POLICY AND RESOURCES WORKPLAN (Pages 99 - 100) Policy and Resources Committee Councillor Gordon Blair Councillor Robin Currie (Chair) Councillor Audrey Forrest Councillor Kieron Green Councillor Amanda Hampsey Councillor Fiona Howard Councillor Willie Hume Councillor Jim Lynch Councillor Andrew Kain Councillor Reeni Kennedy-Boyle Councillor John McAlpine Councillor Liz McCabe Councillor Yvonne McNeilly Councillor Ross Moreland Councillor Gary Mulvaney (Vice-Chair) Councillor Douglas Philand Contact: Sandra Campbell Tel: 01546 604401
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MINUTES of MEETING of POLICY AND RESOURCES COMMITTEE held BY MS TEAMS on THURSDAY, 17 FEBRUARY 2022 Present: Councillor Robin Currie (Chair) Councillor Rory Colville Councillor Mary-Jean Devon Councillor Kieron Green Councillor Jim Findlay Councillor Audrey Forrest Councillor Jim Lynch Councillor David Kinniburgh Councillor Yvonne McNeilly Councillor Aileen Morton Councillor Gary Mulvaney Councillor Douglas Philand Councillor Alastair Redman Councillor Elaine Robertson Councillor Richard Trail Attending: Pippa Milne, Chief Executive Douglas Hendry, Executive Director Kirsty Flanagan, Executive Director Anne Blue, Interim Head of Financial Services Fergus Murray, Head of Development and Economic Growth Patricia O’Neill, Governance Manager 1. APOLOGIES FOR ABSENCE There were no apologies for absence. 2. DECLARATIONS OF INTEREST Councillor Audrey Forrest declared a non-financial interest in item 5 of the agenda (Budgeting Pack 2022/23) by virtue of her appointment by the Council to the Board of Live Argyll. She advised that as this was a council appointment she would remain in the meeting during consideration of this item of business. Councillor Elaine Robertson declared a financial interest in item 12 of the agenda (Other Funding Streams: Crown Estates, Islands Infrastructure Fund and Place Based Investment Fund) by virtue of a connection to property on Gibraltar Street, Oban. She advised that she would leave the meeting during consideration of this item of business. 3. MINUTES (a) Policy and Resources Committee held on 9 December 2021 The Minutes of the meeting of the Policy and Resources Committee held on 9 December 2021 were approved as a correct record. (b) Special Policy and Resources Committee held on 9 December 2021 The Minutes of the meeting of the Special Policy and Resources Committee held on 9 December 2021 were approved as a correct record. Page 3 Agenda Item 3
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4. FINANCIAL REPORTS MONITORING PACK - 31 DECEMBER 2021 The Committee gave consideration to a report providing a summary of the financial monitoring reports as at the end of December 2021. There were six detailed reports, setting out the position as at 31 December 2021. Decision The Policy and Resources Committee – 1. Noted the revenue budget monitoring report as at 31 December 2021. 2. Noted the progress with the policy savings options as at 31 December 2021. 3. Noted the financial risks for 2021-22. 4. Noted the capital plan monitoring report as at 31 December 2021 and approved the proposed changes to the capital plan outlined in Appendix 4 of that report. 5. Noted the treasury monitoring report as at 31 December 2021. 6. Noted the reserves and balances report as at 31 December 2021. 7. Noted there were no revenue virements over £0.200m during November and December. (Reference: Report by Section 95 Officer dated 10 February 2022, submitted) Councillor Jim Findlay joined the meeting at this point. * 5. BUDGETING PACK 2022-2023 The Committee gave consideration to the full package of papers included in the Budget Pack 2022/23 in relation to the Revenue and Capital Budgets for 2022/23. Decision The Committee agreed to refer consideration of the Budget Pack 2022/23 to the Council meeting on 24 February 2022, without recommendation. (Reference: Budgeting Pack 2022/23 dated 17 February 2022, submitted) * 6. TREASURY MANAGEMENT STRATEGY STATEMENT AND ANNUAL INVESTMENT STRATEGY The Committee gave consideration to a report which sought approval of the proposed Treasury Management Strategy Statement and Annual Investment Strategy which set out the Council’s Strategy for borrowing and investment for the forthcoming year. The report also set out the policy for the repayment of loans fund advances for 2022/23. Decision Page 4
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The Policy and Resources Committee agreed to recommend to Council at their meeting on 24 February 2022 to – 1. Approve the proposed Treasury Management Strategy Statement and Annual Investment Strategy and the indicators contained within. Note that the figures within the Strategy will be updated to reflect the budget decisions agreed at Council. 2. Approve the continued use of the asset life method for the repayment of loan fund advances using a 5.1% annuity interest rate, with the exception of spend to save schemes where the funding/income profile method could be used. 3. Approve the proposed asset repayment periods as detailed within section 2.6 of the Treasury Management Strategy Statement. 4. Approve the ability to continue to use countries with a sovereign rating of AA- and above, as recommended by the Council’s external treasury management advisors. (Reference: Report by Section 95 Officer dated 10 February 2022, submitted) 7. KEY PERFORMANCE INDICATORS FQ3 2021/22 The Committee gave consideration to a report presenting the FQ3 2021/22 Key Performance Indicators for Financial Services, Commercial Services, Legal and Regulatory Support and Customer Support Services in a simplified format commensurate with the Covid-19 situation. Decision The Policy and Resources Committee noted the FQ3 2021/22 Key Performance Indicator Reports as presented. (Reference: Report by Executive Director with responsibility for Customer Support Services dated 17 February 2022, submitted) 8. LORN ARC TAX INCREMENTAL FINANCE PROGRAMME - UPDATE REPORT The Committee gave consideration to a report providing an update on the Lorn Arc initiative. The report dealt with proposed amendments to the Tax Incremental Finance Agreement (TIF) between the Council and the Scottish Government. The report provided detailed updates on the current live projects at Dunbeg and Oban Airport. Decision The Policy and Resources Committee – 1. Noted and endorsed that officers would continue to negotiate with Scottish Government to seek extension of the TIF project completion and debt repayment deadlines. 2. Noted the progress made relating to Dunbeg Gateway Features and Halfway House Roundabout. 3. Agreed that officers would develop a business case for further Council investment at the Oban Airport Business Park site for the development of a new headquarters office / hanger building to be leased on completion to TSL Contractors Limited (TSL) including utilising the remainder of funding previously approved by the P&R Committee for Oban Airport Business Park. Page 5
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4. Agreed that officers would continue to progress with the other innovative proposals for the Oban Airport Business Park while the funding and tender bids were awaiting conclusion. 5. Noted that TSL would concurrently progress with the planning process in respect of the proposed development. 6. Noted the re-establishment of the Dunbeg Corridor Working Group that had held its first meeting with key stakeholders. (Reference: Report by Executive Director with responsibility for Development and Economic Growth dated 18 January 2022, submitted) * 9. STRATEGIC EVENTS AND FESTIVALS FUND - ROUND 4 - 2022/23 FUND The Committee gave consideration to a report providing an update on Round 4 – 2022/23 of the Council’s Strategic Events and Festivals Fund. The report provided details of the bids submitted, the current position with regard to Covid, and recommendations regarding the eligible bids being put forward to receive grant funding. Decision The Policy and Resources Committee – 1. Agreed to the award of eligible SEF Round 4 grants amounting to £94,500. 2. Agreed to awarding Tarbert Seafood Festival the amount applied for given that funding is available and that this does not prejudice the other applications. This would amount to an additional £800 and would bring the total award for SEF Round 4 grants to £95,300. 3. Agreed that any SEF grant offer only be formally issued upon confirmation from the individual event organisation that the event is formally confirmed and is definitely going ahead and still meets the SEF Round 4 criteria. These grants were detailed in Appendix 1, Table 1, to the submitted report. 4. Agreed not to award ineligible SEF Round 4 grants as detailed in Table 2 of the submitted report. 5. Agreed to continue delegation of powers to the Executive Director with responsibility for Development and Economic Growth to allow any subsequent amendment to existing grant requests to be made brought about as a consequence of future Covid restrictions regarding holding of events/mass gathering in 2022/23. Any amendment to a current grant request/offer would only be considered if the amendment related to either the same level or a reduction in the request from and constitute up to 75% of legitimate and eligible expenditure. 6. Noted that at the February 2021 Council budget meeting the Council agreed funding of £90,000 for an SEF Round 4 (2022/23), to be augmented by any underspend in 2020/21 and similarly that the SEF round 3 underspend would be earmarked and allocated to 2023/2024. 7. Agreed that the underspend from SEF Round 4 (2022/23) is made available to a further call for applications with a deadline of April 2022. Page 6
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8. Agreed to recommend to Council that any remaining underspend following the call for further applications from SEF Round 4 (2022/23) is earmarked and used to augment a future SEF round for 2024/25 – Round 6. (Reference: Report by Executive Director with responsibility for Development and Economic Growth dated 18 January 2022, submitted) 10. UK LEVELLING UP FUND - PROGRESS UPDATE The Committee gave consideration to a report providing an update on progress inters of the development of the Levelling Up Fund Bids, following on from the update provided in September 2021. Decision The Policy and Resources Committee – 1. Noted the progress with the two bids and approved that the bids are now titled Argyll and Bute Western Seaboard Marine Gateways Initiative and Connected Argyll and Bute. 2. Approved the removal of the Ardrishaig/Crinan Canal element of the regeneration bid. 3. Approved the adjustment to the Oban Integrated Transport Hub to become a Hydrogen Fuelling station (Hydroban). 4. Approved that up to £150,000 can be drawn down from the Recovery and Renewal Fund subject to the Chief Executive and the two Executive Directors being satisfied that the monies are for the purposes of developing the Levelling Up Fund bids. 5. Agreed that the Chief Executive and the two Executive Directors are delegated authority to approve any alterations required to elements of the bids, as agreed by Council in September 2021, as revised today, where this is necessary to meet deadlines for submission, after consultation with the Leader, Depute Leader and Leader of the largest Opposition Group. 6. Agreed that the Chief Executive and the two Executive Directors are delegated authority to approve the final bid submissions in the period from and including 5 May 2022, when Councillors demit office in anticipation of the Local Government election to be held on that date, until the first meeting of the Council when an administration is formed. Councillor Douglas Philand, after moving an amendment which failed to find a seconder, requested that his dissent be recorded from the foregoing decision. (Reference: Report by Executive Director with responsibility for Development and Economic Growth dated 24 January 2022, submitted) Page 7
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11. RURAL GROWTH DEAL PROGRESS - UPDATE AND RESOURCING OF BUSINESS CASES The Committee gave consideration to a report providing an update on the Rural Growth Deal. The report also sought approval to commit further financial resources to support the development of project business cases and associated project feasibility and development work. Decision The Policy and Resources Committee – 1. Noted progress of the Rural Growth Deal to date, upcoming milestones and the emerging draft full deal documentation included in Appendices 1-3 to the submitted report. 2. Approved a further drawdown of funding from the Inward Investment Fund (circa £150k). 3. Agreed that authority for approving the drawdown of this funding is delegated to the Chief Executive and 2 Executive Directors of the Council up to a maximum value of £150k and subject to them being satisfied that the monies are for the purpose of delivering the Rural Growth Deal. Any further funding required in excess of the approved value would require further approval from the Policy and Resources Committee. (Reference: Report by Executive Director with responsibility for Development and Economic Growth dated 18 January 2022, submitted) Having previously declared an interest in the following item of business, Councillor Elaine Robertson left the meeting and took no part in the consideration of this item. 12. OTHER FUNDING STREAMS: CROWN ESTATES, ISLANDS INFRASTRUCTURE FUND AND PLACE BASED INVESTMENT FUND The Committee gave consideration to a report setting out proposals on the use of the Scottish Crown Estate funding and the Islands Infrastructure Fund and recommending that proposals for the Place Based funding are brought back to Committee once the distribution is known. Decision The Policy and Resources Committee – 1. Approved the projects totalling £1,191,151 from the Crown Estate funding as outlined in the submitted report. 2. Approved the projects totalling £740,000 from the Islands Infrastructure Fund as outlined in the submitted report. 3. Noted that a further report would be brought forward once the final amount of Crown Estate funding to be distributed in 2022-23 is known. Page 8
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4. Noted that officers would bring forward a report during 2022-23 in respect of Place Based Investment Funding once the allocation is known. (Reference: Report by Executive Director with responsibility for Development and Economic Growth dated 31 January 2022, submitted) Councillor Elaine Robertson re-joined the meeting at this point. 13. POLICY AND RESOURCES COMMITTEE WORKPLAN The Policy and Resources Committee Workplan was before the Committee for noting. Decision The Policy and Resources Committee noted the content of the workplan as at February 2022. (Reference: Policy and Resources Committee Workplan dated February 2022, submitted) The Committee resolved in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973 to exclude the press and public for the following item of business on the grounds that it was likely to involve the disclosure of exempt information as defined in Paragraphs 8&9 respectively of Part 1 of Schedule 7A to the Local Government (Scotland) Act 1973. 14. ROTHESAY PAVILION CHARITY - REQUEST FOR FUNDING The Committee gave consideration to a report in relation to a revenue request from Rothesay Pavilion Charity. Decision The Policy and Resources Committee agreed the recommendations contained within the submitted report. (Reference: Report by Section 95 Officer dated 2 February 2022, submitted) Page 9
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 16 JUNE 2022 BUDGET OUTLOOK 2023-24 TO 2027-28 1. EXECUTIVE SUMMARY 1.1 This report summarises the budget outlook covering the period 2023-24 to 2027-28 taking into consideration the budget decisions taken at the Council Budget meeting held on 24 February 2022. This is the first outlook of the financial year and rolls forward previous estimates as well as updating some estimates and also extends the budget outlook out to 2027-28. The assumptions will continue to be updated and refined as the year progresses. 1.2 The estimates within the report are based on the mid-range scenario with best and worst case scenarios noted in Appendix 1. 1.3 The assumptions in respect of future years Scottish Government funding remain unchanged from those reported to full Council on 24 February 2022 and ranges between 0.5% reduction (best case) and 1.5% reduction (worst case) with a mid-range reduction of 1.0%. 1.4 For 2023-24 the Council tax base has been assumed to grow by 1% in the worst case scenario, 1.5% in the mid-range scenario and 2% in the best case. In future years this then drops down to 0.25% in the worst case scenario, 0.5% in the mid-range scenario and 0.75% in the best case. 1.5 The starting point for the 2023-24 budget is the approved budget for 2022-23 as agreed at Council on 24 February 2022 with the following updates: Adjustment relating to additional funding in the finance order that has been reduced by an assumption for future years. Increase in the Council Tax Growth percentage for 2023-24. Increase to non-pay inflation Small adjustments to the cost and demand pressures 1.6 The assumptions in respect of employee costs for Council services are as follows: Pay award for 2023-24 to 2027-28 of between 2% in the best and mid- range scenarios and 5% within the worst case scenario. It is acknowledged that as the pay award has not yet been agreed it could differ from this estimate and at this stage we are recognising that possibility as a financial risk. Increments between £0.345m and £0.690m with mid-range £0.690m. 1.7 For non-pay inflation, only unavoidable/inescapable inflation has been built in for the best case and mid-range scenarios with a contingency of £0.250m built into the mid-range. A further general inflationary increase has been built into Page 11 Agenda Item 4
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the worst case scenario. 1.8 There are a number of cost and demand pressures for Council services built into each scenario: Universal Credit – HB Admin grant Oracle Financial Ledger Replacement ASN Support SEEMiS Group – Education Management System Removal of charge for milk in schools Cashless Catering Local Government Election New HR System Project Team Waste Impact of BMW Ban Local Development Plan House Loans Loss of Parking Income Increased Bandwidth in Schools. 1.9 In addition to the identified cost and demand pressures an allowance for unidentified cost and demand pressures has been included in mid-range and worst case scenarios of between £0.250m and £0.500m per year. 1.10 There will be a political decision to be made as to the future allocation to the Health and Social Care Partnership. As part of the budget agreed in February 2022, indicative allocations for 2023-24 to 2024-25 were agreed on the basis of a flat cash allocation. In the budget outlook I have assumed flat cash allocations across all three scenarios. 1.11 At this stage a 3% reduction to the Live Argyll Management fee has been included within the estimates. At the 2022-23 budget setting meeting in February 2022 it was agreed to defer the proposed 3% reduction to the Live Argyll management fee until 2023-24 subject to any future budget decisions. It was agreed that management would engage in early discussions with Live Argyll in relation to future approach to support effective longer term financial planning. 1.12 The budget gap in the mid-range scenario after allowing for the current base commitments, employee adjustments, non-pay inflation and cost and demand pressures and not factoring in any previous savings decisions or future potential options is an estimated gap over the five year period of £43.566m with a gap of £9.203m in 2023-24. 1.13 The measures to balance the budget over the next five years are as follows: Proposed increase to fees and charges of between 2% and 4% (3% mid- range). 3% reduction to the Live Argyll Management Fee. Management/operational savings agreed by Council in February 2022. Policy savings already agreed by Council in February 2022. Page 12
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Proposed increase to Council Tax (3% in all scenarios). 1.14 In the mid-range scenario, the budget gap estimated over the five year period 2023-24 to 2027-28 is £32.275m with a gap of £6.891m in 2023-24. 1.15 The budget gap in the best case scenario over the five years is £21.160m with a gap of £4.337m in 2023-24 and in the worst case scenario, the budget gap over the five years is £75.256m with a gap of £15.082m in 2023-24. A summary of all three scenarios is included within Appendix 1. 1.16 Given the significant budget gap over the next five years it is proposed that a cross party Budget Working Group similar to what was in place for both the 2021-22 and 2022-23 budgets, is established and for the group to begin discussions in August 2022 to allow sufficient time to address the financial challenges ahead. 1.17 It is recommended that the Policy and Resources Committee: a) Consider the current estimated budget outlook position for the period 2023-24 to 2027-28. b) Agree to the establishment of a cross party Budget Working Group with a composition of six administration Members, three opposition Members and two Trade Union representatives and seek nominations for these positions. Page 13
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE FINANCIAL SERVICES 16 JUNE 2022 BUDGET OUTLOOK 2023-24 TO 2027-28 2. INTRODUCTION 2.1 This report summarises the budget outlook covering the period 2023-24 to 2027-28 taking into consideration the budget decisions taken at the Council Budget meeting held on 24 February 2022. This is the first outlook of the financial year and rolls forward previous estimates as well as updating some estimates and also extends the budget outlook out to 2027-28. The assumptions will continue to be updated and refined as the year progresses. 2.2 The budget outlook has been prepared using three different scenarios, best case, worst case and mid-range. Relatively small variations in assumptions can lead to fairly significant changes in the outcome. In the paragraphs that follow, the mid-range outlook is shown, however, all three scenarios are detailed within Appendix 1. 3. RECOMMENDATIONS 3.1 It is recommended that the Policy and Resources Committee: a) Consider the current estimated budget outlook position for the period 2023-24 to 2027-28. b) Agree to the establishment of a cross party Budget Working Group with a composition of six administration Members, three opposition Members and two Trade Union representatives and seek nominations for these positions. 4. DETAIL 4.1 Funding Scottish Government Finance Settlement 4.1.1 On 9 December 2021, the Cabinet Secretary for Finance and Economy launched a consultation on the Scottish Government’s first multi-year Resource Spending Review since 2011. The spending review was due to set out the spending plans for the remainder of the parliamentary term 2023-24 to 2026-27 and it was hoped that there would be enough transparency and detail as to provide the Council with more certainty on the funding over the next four years. At the time of writing, the spending review has just been published and unfortunately it’s at a much higher level than anticipated and doesn’t give sufficient detail on future years funding. Page 14
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4.1.2 When I considered the future funding assumptions as part of the budget in February, I had reflected on the UK Spending Review published in October 2021. The Scottish Parliament Information Centre (SPICE) analysis of the UK Budget highlighted that the total (unadjusted) Scottish block grant will increase from £36.7 billion (excluding COVID funding) in 2021-22 to £41.8 billion by 2024-25. However, as the Table below shows, this is very much front loaded, with a big real terms increase in 2022-23 (+7.7%), followed by two years of the Scottish Budget declining, slightly, in real terms. UK Spending Review – October 2021 Year Cash Terms Real Terms £billion % change £billion % change 2021-22 36.7 36.7 2022-23 40.6 10.6 39.5 7.7 2023-24 41.2 1.5 39.3 -0.7 2024-25 41.8 1.5 39.1 -0.4 While the Treasury published ‘Block Grant’ figures are notoriously difficult to translate into Scottish Budget terms, as a significant number of other factors are involved, and it is also not known how the Scottish Government will allocate their block grant to priorities, it still provides some guidance as to future funding prospects. 4.1.3 The updated spending envelope figures contained in the spending review show a small increase to the Total budget with Local Government remaining as flat cash until 2026-27. The Government has chosen to prioritise Health and Social Care and Social Security spending, which received 90% of the increase in the resource spending budget from 2022-23 to 2025-26. Whilst this is disappointing, it is not different to many other spending areas that have been identified as a priority in the past, for example, Education and Skills is flat cash through to 2025-26. Scottish Resource Spending Review – May 2022 Year Scotland Local Government £billion % change £billion % change 2022-23 41.8 10.6 2023-24 43.3 3.6 10.6 0.0 2024-25 44.4 2.5 10.6 0.0 2025-26 45.6 2.7 10.6 0.0 2026-27 47.5 4.2 10.7 0.9 What was confirmed in the spending review was that the £120m Scotland wide (our share £2.146m) announced on 27 January 2022 as part of the Stage 1 Budget Bill has been baselined. The figures for Local Government noted in the table above are at portfolio level (Level 2) and do not include any transfers to Local Government from other portfolios in-year. It is likely that we will not know that detail until the budget is announced in December. Page 15
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4.1.4 The table at paragraph 4.1.2 shows that there was an increase to the Scottish block of 10.6% in 2022-23, however, our general revenue grant was virtually flat cash. Future year increases are much reduced and from the table in paragraph 4.1.3, for Local Government it is expected to be flat cash up to 2025-26. The Scottish Government are due to release further detail via COSLA that might help to analyse the estimates further but at this stage the funding assumptions as outlined as part of the budget pack in February 2022 still remain and these will be reviewed when more information becomes available. The previous funding assumption was based on a range of between a 0.5% reduction (best case) and 1.5% (worst case) with a mid-range reduction of 1.0%. 4.1.5 When the budget was set on 24 February 2022, the funding as published in the provisional settlement was £207.515m with an additional £2.146m announced as part of Stage 1 of the budget process (£120m Scotland wide) on 27 January 2022. When the Finance Order was published on 2 March 2022, an additional £6.315m had been distributed to Argyll and Bute Council for Discretionary Housing payments, Scottish Child Bridging Payments, Removal of Curriculum and Music Tuition Charges, Free School Meals Expansion and school holidays and Health and Social Care. This funding was linked to additional policy commitments that had a matching increase to our expenditure budget and therefore no bottom line impact. 4.1.6 When the budget was set on 24 February 2022, the 2021-22 settlement for Teachers had not been agreed. As part of the negotiations, the Cabinet Secretary for Education and Skills wrote to COSLA on 9 December 2021 to confirm that “the Scottish Government was prepared to make a financial contribution towards the recurring costs in 2022-23 associated with the proposed revised pay offer to teachers for 2021-22”. At the time, the exact level of additional financial support was not known but both the recurring cost and level of income was calculated at £0.370m. It has now been confirmed that the all Scotland funding is £32.8m of which we expect to get 1.58%, £0.518m. This amount is due to be paid within 2022-23 and will then form part of the base budget that will be subject to the assumption of future funding. An adjustment to the base budget is also required increasing the base by £0.121m. 4.1.7 The table below summarises the mid-range scenario estimates expressed in percentage terms and monetary value. 2023-24 £000 2024-25 £000 2025-26 £000 2026-27 £000 2027-28 £000 % Change to Funding -1.0% -1.0% -1.0% -1.0% -1.0% Estimated SG Funding Reduction (2,016) (2,143) (2,122) (2,101) (2,080) Estimated SG Funding 214,330 212,187 210,065 207,964 205,884 Council Tax 4.1.8 The Council Tax budget for 2022-23 was set at £55.262m which reflected a 3% inflation increase and 1.5% growth in the Council Tax base as agreed by the Page 16
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Council on 24 February 2022. 4.1.9 During most of 2021-22 council tax growth of 0.25% was assumed in the mid- range scenario. An assessment was carried out in December 2021 and the growth was much better than estimated therefore as part of the 2022-23 budget a growth of 1.5% was built in to 2022-23, with the growth dropping back down to 0.5% in future years. This position has been further reviewed and it is estimated that a 1.5% growth in the mid-range (1% in worst case and 2% in best case) should be maintained for 2023-24 with the drop down to 0.5% in the mid- range now being pushed back to 2024-25. This will continue to be monitored on an ongoing basis and any required adjustments will be reported throughout the year. 4.1.10 Within this report, I will present the budget gap, prior to any Member based decisions and therefore at this stage in the report, the Council tax base is assumed to remain at the same level as 2022-23. 4.1.11 The table below summarises the estimated total funding in the mid-range scenario. 2023-24 £000 2024-25 £000 2025-26 £000 2026-27 £000 2027-28 £000 Estimated SG Funding 214,330 212,187 210,065 207,964 205,884 Council Tax Base 55,262 55,262 55,262 55,262 55,262 Council Tax Growth 829 1,109 1,391 1,674 1,959 Total Estimated Funding 270,421 268,558 266,718 264,900 263,105 4.2 Base Budget 4.2.1 The 2022-23 budget approved by Council on 24 February 2022 was £262.812m. 4.2.2 For future years, there are adjustments required to the base budget from decisions by Council on 24 February 2022 and other adjustments as noted in the table below: 2023-24 £000 2024-25 £000 2025-26 £000 2026-27 £000 2027-28 £000 Base Budget 2022-23 262,812 262,812 262,812 262,812 262,812 Additional Funding in Finance Order (see paragraph 4.1.4) 6,315 6,315 6,315 6,315 6,315 Additional budget required in relation to the Teachers Pay Settlement 2021-22 (see paragraph 4.1.5) 121 121 121 121 121 Adjust for repayment of Loans Fund Principal Repayment Holiday 162 170 179 188 197 Page 17
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Remove one off 2022-23 Election costs (350) (350) (350) (350) (350) Remove one off 2022-23 Management/Operational savings 2,174 2,182 2,182 2,182 2,182 Revised Base Budget 271,234 271,250 271,259 271,268 271,277 4.3 Employee Cost Changes Pay Award 4.3.1 The pay award for 2022-23 has still to be agreed and this may have an impact on the base budget if the pay award is greater than the estimate built into the current year’s budget, which was 2%. 4.3.2 In March 2022, COSLA Leaders agreed to make an undifferentiated offer of a 2% uplift to all bargaining groups on the basis of parity for all which has been both a key concern and agreed position for the past number of years. All Unions have rejected this initial offer and negotiations are ongoing. 4.3.3 The COSLA remuneration advisory group, made up of advisors from the Society of Local Authority Chief Executives (SOLACE), The Directors of Finance and the Society of Personnel and Development Scotland (SPDS) has noted the constraints on Local Government funding, with two thirds of Councils having budgeted for a pay increase of 2% or less. The 2% increase is deemed to be affordable, hence why that is the assumption that has been built into the mid- range scenario. 4.3.4 For future years, the pay assumption remains at 2% in both the mid-range and the best case, reflecting that 2% is deemed to be affordable but it is not likely that the pay award will be less than this. For scenario purposes, 5% has been built into the worst case. There remains a significant risk that the pay award agreed for 2022-23 and beyond could be higher. Every 1% over and above what is budgeted would add an additional pressure of circa £1.5m. Increments 4.3.5 The cost of employee increments for 2022-23 was £0.690m. There remains a fairly regular turnover of staff within posts and when this happens the cost of increments can, in some cases, be absorbed by the budget provision for the previous post holder, who may have been at the top of the spinal column point for the grade. This is shown in adjustments to the employee base budget. 4.3.6 In terms of the budget outlook it has been assumed that for future years, the best case is assumed to be half of the previous year cost, for mid-range and worst case, assumes equal to the cost in 2022-23. 4.3.7 The table below summarises the employee cost increases in the mid-range scenario for Council services. The employee cost increases relating to Social Work within the Health and Social Care Partnership are summarised within Page 18
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paragraph 4.6.3. 2023-24 £000 2024-25 £000 2025-26 £000 2026-27 £000 2027-28 £000 Pay Award 3,000 6,061 9,182 12,366 15,613 Increments 690 1,380 2,070 2,760 3,450 Total Employee Cost Changes 3,690 7,441 11,252 15,126 19,063 4.4 Non-Pay Inflation 4.4.1 Over the last few years, the Council have only included non-pay inflation within the budget where it was deemed to be unavoidable or inescapable. In terms of the budget outlook, only unavoidable/inescapable non-pay inflation is built into the best case and mid-range scenarios with a general inflation allowance over and above this built into the worst case. 4.4.2 When the 2022-23 budget was set in February, the indicative inflation estimates from 2023-24 were based on a similar level of inflation to the 2022-23 estimate, however, it was noted that this would be reviewed for the first budget outlook presented to the new Council as it was likely that there would be further increases to inflation, which is indeed the case. In addition, in terms of utilities, some of the contracts for 2022-23 were forward purchased and therefore the level of inflation was not going to be felt within 2022-23. 4.4.3 Officers have now undertaken a review of areas of non-pay inflation of significant value and volatility. The principle of only budgeting for unavoidable/inescapable remains, however, it has to be noted that in this current financial climate, some budgets with no inflation allowed for are now stretched beyond the point of containing the cost within budget and therefore the budget will now buy less than what it used to be able to buy (so in effect, we will see some cuts as a result). 4.4.4 When creating a budget outlook for future years, there is a risk that inflation assumptions could change during the year. Due to the current inflation uncertainty, it would be prudent to include a contingency for other inflation increases not included in the calculations. A contingency allowance of £0.500m is included within the worst case scenario and a £0.250m allowance included within the mid-range scenario each year. No contingency is included within the best case scenario. This contingency will either be required, reduced or removed to reflect changing circumstances before the 2023-24 budget process. 4.4.5 The table below summarises the non-pay inflation increases in the mid-range scenario for Council services with more detail available in Appendix 2. The non- pay inflation increases relating to Social Work within the Health and Social Care Partnership are summarised within paragraph 4.6.3. Page 19
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Inflation Category 2023-24 Previous estimates £000 2023-24 Updated estimates £000 Increase £000 Utilities - Electricity, Gas, Oil, Water 245 1,177 932 Street Lighting Electricity 32 116 84 Vehicle Fuel 62 62 0 Central Repairs - Outside Contractors 57 57 0 Waste PPP/Landfill Tax 455 502 47 NPDO/HUB Schools 651 1,024 373 Community Pool Subsidies 53 60 7 Residential Schools 84 91 7 Pre-Primary Partner Providers 86 86 0 ICT 123 123 0 Catering Purchases and Milk 310 309 (1) Contingency for unidentified/insufficient inflation estimate 250 250 Total 2,158 3,857 1,699 4.4.6 The inflation for years 2024-25 to 2027-28 is noted in the table below and is based on future years estimates of inflation at this point it time. It may be that the inflation could rise to a peak over the next couple of years and then fall again and this would alter the estimates in the table below, however, this is very difficult to predict and the estimates will be kept under review. 2024-25 £000 2025-26 £000 2026-27 £000 2027-28 £000 Unavoidable/Inescapable 6,187 8,661 11,287 14,078 Total Non-Pay Inflation 6,187 8,661 11,287 14,078 4.5 Cost and Demand Pressures 4.5.1 Over the last few years, services have worked on the basis of having to contain any cost and demand pressures within current resources, however, there are a number of cost and demand pressures already identified for Council services which were reported as part of the budget in February 2022. Since the budget meeting on 24 February 2022 the following changes have been made to the cost and demand pressures: New – Oracle Financial Ledger System Replacement New – Cost of Local Government Elections in 2027-28. Amended – Increased SEEMiS pressure for the Education Management System Amended – Profiling of Local Development Plan cost pressure. Officers are currently assessing the budget required in respect of the provision for 1140 hours. The Scottish Government reduced the funding for this area of spend in 2022-23 and it is likely that this may create a cost pressure for future years. The level of the cost pressure has not been quantified as yet and will be Page 20
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updated within a future budget outlook. 4.5.2 As with inflation, when creating a budget outlook beyond one year, there is a risk that unknown cost and demand pressures will emerge that have not been included within the outlook. It is suggested that no allowance for this is included within the best case scenario, a £0.500m general allowance is included within the worst case and a £0.250m allowance included within the mid-range scenario each year. 4.5.3 The cost pressures are detailed in appendix 3 and are summarised in the table below and will be subject to review during the financial year. 4.5.4 2023-24 £000 2024-25 £000 2025-26 £000 2026-27 £000 2027-28 £000 Universal Credit – HB Admin Grant 40 80 120 160 200 Oracle Fusion 35 35 35 35 35 ASN Support 0 75 206 206 206 SEEMiS Membership Fees 9 11 13 16 16 Sustainable rate for partner providers 342 327 327 327 327 Election costs 0 0 0 0 300 HR System 100 (50) (50) (50) (50) Waste 7 25 78 (91) (91) Compliance with BMW Ban 0 400 1,600 1,150 0 Local Development Plan 0 50 0 50 0 House Loans 19 19 19 19 19 Parking 15 15 15 15 15 IT – Increased bandwidth in schools 26 26 26 26 26 Allowance for pressures in future years 250 500 750 1,000 1,250 Total Cost and Demand Pressures 843 1,513 3,139 2,863 2,253 4.5.5 The cost and demand pressures relating to Social Work within the Health and Social Care Partnership are summarised within paragraph 4.6.3. 4.6 Health and Social Care Partnership 4.6.1 The Council, at the budget meeting on 24 February 2022, agreed a base allocation to the HSCP of £69.005m for 2022-23 as well as indicative flat cash allocations for 2023-24 to 2026-27. On 2 March 2022 the Local Government Finance Circular 1/2022 was published which distributed additional funding of which £4.037m was required to be passed to the HSCP, therefore their allocation increased from £69.005m to £73.042m. 4.6.2 In the budget outlook, I have assumed flat cash allocations across all scenarios. These are only assumptions and it will be a matter for Council to consider as part of the budget process next year. Page 21
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4.6.3 Social Work services have already identified a number of cost and demand pressures and these are summarised below and included within Appendix 4 for information purposes. It is expected that the HSCP absorb their cost and demand pressures from their funding allocation. Note that these only extend to three years rather than the five years within this Council budget outlook. 2023-24 £000 2024-25 £000 2025-26 £000 Pay Inflation 1,335 2,671 4,033 Pay Increments 103 206 309 Non-Pay Inflation 3,373 6,674 10,158 Care Services for Younger Adults 417 843 1,278 Adult Services - Supported Living 344 686 1,029 Continuing Care for Looked After Children 250 500 750 Kintyre Care Centre 750 750 750 Unknown Cost and Demand Pressures 500 1,000 1,500 Total Cost Increase estimates for Social Work 7,072 13,330 19,807 4.7 Estimated Budget Gap PRIOR to Measures to Balance the Budget 4.7.1 The budget gap in the mid-range scenario after allowing for the current base commitments, employee adjustment, non-pay inflation and cost and demand pressures is summarised in the table below. This is the budget gap prior to factoring in any previous savings decisions or potential options towards balancing the budget. 2023-24 £000 2024-25 £000 2025-26 £000 2026-27 £000 2027-28 £000 Base Budget 271,234 271,250 271,259 271,268 271,277 Employee Cost Changes 3,690 7,441 11,252 15,126 19,063 Non-Pay Inflation 3,857 6,187 8,661 11,287 14,078 Cost and Demand Pressures 843 1,513 3,139 2,863 2,253 Total Estimated Expenditure 279,624 286,391 294,311 300,544 306,671 Estimated Funding 270,421 268,558 266,718 264,900 263,105 Estimated Budget Surplus / (Gap) Cumulative (9,203) (17,833) (27,593) (35,644) (43,566) 4.8 Measures to Balance the Budget 4.8.1 In previous years, a general inflationary increase of 3% has been applied to fees and charges. For the budget outlook a range of between 2% (worst case) and 4% (best case) with a mid-range of 3%. The Council may consider, that in light Page 22
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of the increasing inflation we are experiencing on many cost areas, that it would be appropriate to increase the fees and charges inflation to a higher level. 4.8.2 A number of policy options were agreed at the Council meeting on 24 February 2022 that impacted on 2023-24 and beyond. These are now factored into the budget outlook, reducing the budget gap. 4.8.3 In terms of Council Tax, a 3% increase has been assumed across all scenarios, this being the increase applied in 2022-23. It will be a matter for Council to decide the level of Council Tax increase. 4.8.4 In respect of Live Argyll, at the budget meeting on 24 February 2022, Council agreed to defer the proposed 3% reduction in the management fee for 2022/23 and noted that this will be applied in 2023-24 and will be subject to any future budget decisions. 3% of the 2022-23 management fee equates to £0.122m and this reduction has been built into the budget outlook from 2023-24 onwards. No further reduction has been built in, this would be a matter for Council to consider. 4.8.5 The table below summarises the proposed measures to balance the budget in the mid-range scenario. 2023-24 £000 2024-25 £000 2025-26 £000 2026-27 £000 2027-28 £000 Fees and Charges Increase 356 722 1,099 1,488 1,888 Management/Operational Savings February 2021 20 20 20 20 20 Policy Savings February 2021 128 128 128 128 128 Policy Savings agreed February 2022 3 6 6 6 6 Council Tax Increase 1,683 3,450 5,278 7,170 9,127 Reduction to Live Argyll Management Fee 122 122 122 122 122 Total Measures to Balance the Budget 2,312 4,448 6,653 8,934 11,291 4.9 Estimated Budget Gap AFTER Measures to Balance the Budget 4.9.1 The table below summarises the estimated budget gap in the mid-range scenario. 2023-24 £000 2024-25 £000 2025-26 £000 2026-27 £000 2027-28 £000 Estimated Budget Gap Prior to Measures to Balance Budget (9,203) (17,833) (27,593) (35,644) (43,566) Savings Measures 2,312 4,448 6,653 8,934 11,291 Page 23
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Estimated Budget Surplus / (Gap) Cumulative (6,891) (13,385) (20,940) (26,710) (32,275) Estimated Budget Surplus / (Gap) In Year (6,891) (6,494) (7,555) (5,770) (5,565) 4.9.2 In the mid-range scenario, the budget gap estimated over the five year period 2023-24 to 2027-28 is £32.275m with a gap of £6.891m in 2023-24. 4.9.3 The budget gap in the best case scenario over the five years is £21.160m with a gap of £4.337m in 2023-24 and in the worst case scenario, the budget gap over the five years is £75.256m with a gap of £15.082m in 2023-24. A summary of all three scenarios is included within Appendix 1. 4.9.4 The changes from the previous anticipated outlook to 2026-27 (as noted at the budget meeting on 24 February 2022) are summarised in the table below. Note that the budget meeting report was not extended to 2027-28 which is why the table below only extends to 2026-27. 2023-24 £000 2024-25 £000 2025-26 £000 2026-27 £000 Previously reported budget surplus / (gap) Cumulative (7,774) (13,911) (21,166) (26,236) Additional Funding in the Finance Order that has been reduced by assumption for future years (63) (126) (188) (249) £120m additional Scottish Government Funding baselined as part of Spending Review 2,125 2,104 2,083 2,062 Increase in Council Tax Growth in 2023-24 570 607 644 683 Council Tax calculation adjustment (24) (58) (106) (173) Increase to Non-Pay Inflation (1,699) (1,871) (2,186) (2,655) Increase to Cost Pressures (49) (149) (48) (151) Additional funding for teachers pay award 143 138 133 128 Adjustment to base for teachers pay award (121) (121) (121) (121) Minor Rounding adjustments 1 2 15 2 Revised Budget Surplus / (Gap) Cumulative (6,891) (13,385) (20,940) (26,710) 4.10 Budget Working Group 4.10.1 As part of the 2021-22 and 2022-23 budgets, a cross party Budget Working Group (BWG) was established comprising of six Members from the administration, three Members from the opposition and two Trade Union representatives. The BWG did not have any decision making authority but could Page 24
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report to and make recommendations to either the Council or the Policy and Resources Committee. Its primary purpose was to engage with officers and provide scrutiny on the identification of savings options as they are developed. 4.10.2 Given the significant budget gap over the next five years it is proposed that a similar group is established to support the 2023-24 budget approach and for the group to begin discussions in August 2022 to allow sufficient time to address the financial challenges ahead. 5. CONCLUSION 5.1 In the mid-range scenario, the budget gap estimated over the five year period 2023-24 to 2027-28 is £32.275m with a gap of £6.891m in 2023-24. Council officers are continuing to further develop savings options during 2022-23 and these will be presented to members at a future date to help balance the budget in future years. 5.2 This is a very challenging budget outlook position and the level of Scottish Government grant and the pay award are the two assumptions that could alter the figures significantly. Both will be kept under close review and the budget outlook updated as and when further information becomes available. 5.3 It is proposed that a cross party BWG is established to provide scrutiny on the identification of savings options with early engagement with services users and stakeholders to help inform and develop savings options within the financial envelope. 6. IMPLICATIONS 6.1 Policy - Sets out the budget outlook that provides the financial envelope for policy decisions. 6.2 Financial - Sets best, worst and mid-range scenarios in respect of the budget outlook. The medium to longer term financial strategy is being updated and the Council are actively continuing to pursue opportunities to mitigate against future budget gaps. 6.3 Legal - None directly from this report but Council will need to balance the budget. 6.4 HR - None directly from this report but there is a strong link between HR and budgets. 6.5 Fairer Scotland Duty - See below 6.5.1 Equalities None directly from this report but any proposals to address the estimated budget gap will need to consider equality issues. 6.5.2 Socio Economic Duty None directly from this report but any proposals to address the estimated budget gap will need to consider socio economic issues. 6.5.3 Islands Duty None directly from this report but any proposals to address the estimated budget gap will need to consider Page 25
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any island specific issues. 6.6 Climate Change The Council is committed to addressing climate change and reviews how Services are delivering this on an ongoing basis within the available budget resources. 6.7 Risk - None directly from this report but any proposals to address the estimated budget gap will need to consider risk. 6.8 Customer Service - None directly from this report but any proposals to address the estimated budget gap will need to consider customer service. Kirsty Flanagan Executive Director/Section 95 Officer 2 June 2022 Policy Lead for Finance and Commercial Services: Councillor Gary Mulvaney APPENDICES: Appendix 1 – Budget Outlook, Best, Worst and Mid-Range Scenarios Appendix 2 – Non Pay Inflation Appendix 3 – Cost and Demand Pressures (Council Services) Appendix 4 – Cost and Demand Pressures (Social Work) For further information contact Anne Blue, Interim Head of Financial Services anne.blue@argyll-bute.gov.uk Page 26
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BUDGET OUTLOOK 2023-24 to 2027-28 APPENDIX 1 POLICY AND RESOURCES COMMITTEE - 17 JUNE 2022 2023-24 £000 2024-25 £000 2025-26 £000 2026-27 £000 2027-28 £000 2023-24 £000 2024-25 £000 2025-26 £000 2026-27 £000 2027-28 £000 2023-24 £000 2024-25 £000 2025-26 £000 2026-27 £000 2027-28 £000 Base Budget 269,127 269,127 269,127 269,127 269,127 269,127 269,127 269,127 269,127 269,127 269,127 269,127 269,127 269,127 269,127 Base Budget Adjustments 2,107 2,123 2,132 2,141 2,150 2,107 2,123 2,132 2,141 2,150 2,107 2,123 2,132 2,141 2,150 Revised Base Budget 271,234 271,250 271,259 271,268 271,277 271,234 271,250 271,259 271,268 271,277 271,234 271,250 271,259 271,268 271,277 Pay Award 2,978 6,016 9,114 12,274 15,497 2,978 6,016 9,114 12,274 15,497 7,445 15,262 23,470 32,089 41,138 Pay Increments 345 690 1,035 1,380 1,725 690 1,380 2,070 2,760 3,450 690 1,380 2,070 2,760 3,450 Additional Teacher Costs (23) 23 23 24 24 22 45 68 92 116 (23) 23 23 24 24 Total Employee Cost Changes (Council Services) 3,300 6,729 10,172 13,678 17,246 3,690 7,441 11,252 15,126 19,063 8,112 16,665 25,563 34,873 44,612 Non-Pay Inflation - Council Services 3,476 5,650 7,948 10,377 12,946 3,857 6,187 8,661 11,287 14,078 5,838 9,925 14,177 18,606 23,226 Housing Benefits Admin Grant 40 80 120 160 200 40 80 120 160 200 40 80 120 160 200 Oracle Fusion running costs 35 35 35 35 35 35 35 35 35 35 35 35 35 35 35 ASN Support 0 0 198 198 198 0 75 206 206 206 0 145 444 444 444 SEEMIS Membership Fees 9 11 13 16 16 9 11 13 16 16 9 11 13 16 16 Sustainable Rate for Partner Providers 342 327 327 327 327 342 327 327 327 327 342 327 327 327 327 Election Costs 0 0 0 0 250 0 0 0 0 300 0 0 0 0 350 Software support for a new HR system & Backfill for project team. 50 (50) (50) (50) (50) 100 (50) (50) (50) (50) 150 (50) (50) (50) (50) Waste 7 25 78 (91) (91) 7 25 78 (91) (91) 7 25 78 (91) (91) Compliance with BMW Ban 0 200 800 800 0 0 400 1,600 1,150 0 0 875 3,500 1,500 0 Planning (Local Development Plan) 0 50 0 50 0 0 50 0 50 0 0 50 0 50 0 House Loans 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 Parking 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 IT - increased bandwidth in schools 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 Allowance for Cost and Demand Pressures Future Years 0 0 0 0 0 250 500 750 1,000 1,250 500 1,000 1,500 2,000 2,500 Total Cost and Demand Pressures 543 738 1,581 1,505 945 843 1,513 3,139 2,863 2,253 1,143 2,558 6,027 4,451 3,791 Total Estimated Expenditure PRIOR to measures to balance the budget 278,553 284,367 290,960 296,828 302,414 279,624 286,391 294,311 300,544 306,671 286,327 300,398 317,026 329,198 342,906 Scottish Government Grant 214,895 213,821 212,752 211,688 210,629 213,817 211,679 209,562 207,466 205,391 212,736 209,545 206,402 203,305 200,256 Specific Funding for Additional Teachers 515 512 509 506 503 513 508 503 498 493 510 502 494 487 480 Council Tax 56,367 56,790 57,216 57,645 58,077 56,091 56,371 56,653 56,936 57,221 55,815 55,955 56,095 56,235 56,376 Total Funding 271,777 271,123 270,477 269,839 269,209 270,421 268,558 266,718 264,900 263,105 269,061 266,002 262,991 260,027 257,112 Budget Surplus / (Gap) PRIOR to measures to balance the budget (6,776) (13,244) (20,483) (26,989) (33,205) (9,203) (17,833) (27,593) (35,644) (43,566) (17,266) (34,396) (54,035) (69,171) (85,794) Measures to Balance the Budget: Fees and Charges 475 963 1,465 1,984 2,517 356 722 1,099 1,488 1,888 237 481 733 992 1,259 Live Argyll - 3% decrease to management fee 122 122 122 122 122 122 122 122 122 122 122 122 122 122 122 Management/Operational Savings agreed February 2021 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 Policy savings agreed February 2021 128 128 128 128 128 128 128 128 128 128 128 128 128 128 128 Policy savings reported Agreed February 2022 3 6 6 6 6 3 6 6 6 6 3 6 6 6 6 Council Tax Increase 1,691 3,445 5,265 7,152 9,109 1,683 3,425 5,227 7,092 9,021 1,674 3,403 5,188 7,031 8,933 Council Tax Increase (Growth element) 0 34 69 105 143 0 25 51 78 106 0 17 34 52 70 Total Measures to Balance the Budget 2,439 4,718 7,075 9,517 12,045 2,312 4,448 6,653 8,934 11,291 2,184 4,177 6,231 8,351 10,538 Budget Surplus / (Gap) Cumulative AFTER measures to balance the budget (4,337) (8,526) (13,408) (17,472) (21,160) (6,891) (13,385) (20,940) (26,710) (32,275) (15,082) (30,219) (47,804) (60,820) (75,256) Budget Surplus / (Gap) In Year AFTER measures to balance the budget (4,337) (4,189) (4,881) (4,064) (3,688) (6,891) (6,494) (7,555) (5,770) (5,565) (15,082) (15,137) (17,586) (13,016) (14,436) Best Case Scenario Worst Case ScenarioMid-Range Scenario Page 27
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NON-PAY INFLATION (COUNCIL) Appendix 2 Service Category Basis of Inflation Inflation Percentage Mid Range 2023/24 Council Wide Electricity Due to current market condition for electricity 20% increase mid range, with a 0.5% tolerance for best and worst case. 20.00% 484,544 Council Wide Gas Due to current market condition for gas 75% increase mid range, with a 0.5% tolerance for best and worst case. 75.00% 371,229 Council Wide Heating Oils Due to current market condition for heating oils 100% increase mid range, with a 0.5% tolerance for best and worst case. 100.00% 266,842 Council Wide Solid Fuel Based on estimates provided by facility services with a 0.5% tolerance for best and worst case. 8.00% 18,430 Council Wide Water Charges Current rate of inflation with a 0.5% tolerance for best and worst case. 6.20% 36,366 Council Wide Vehicle Fuel Historic rate carried forward from last year - will be reviewed during 2022-23 4.97% 62,000 Council Wide Central Repairs - Outside Contractors Historic rate carried forward from last year - will be reviewed during 2022-23 3.00% 57,000 Council Wide Contingency for unidentified/insufficient inflation estimate £250k built in to mid-range and £500k built in to worst case scenario 250,000 1,546,411 Education Pre-Primary Partner Provider Uplift Historic rate carried forward from last year - will be reviewed during 2022-23 2.50% 86,000 Education External School Placements Based on prior year uplifts 8.00% 90,590 Commercial Services Catering Purchases Figure used by facility services based on national estimates for year 1 with a 0.5% tolerance for best and worst case. 15.00% 308,543 Legal & Regulatory Support Leisure SLA-MAKI/Islay Pools Based on RPI at February 2022 with a 0.5% tolerance in the best and worst case scenarios. 8.18% 13,757 Legal & Regulatory Support Leisure SLA-Atlantis Based on RPI at April 2022 with a 0.5% tolerance in the best and worst case scenarios. 8.43% 46,673 Legal & Regulatory Support NPDO-Variable Element Based on year on year RPI uplift with a 0.5% tolerance for best and worst case. 8.18% 599,843 Legal & Regulatory Support NPDO-Utilities Rebate RPI at February 2022 with a 0.5% tolerance for best and worst case. 8.20% -23,945 Legal & Regulatory Support NPDO-Electricity Due to current market condition for electricity 20% increase mid range, with a 0.5% tolerance for best and worst case. 20.00% 89,930 Legal & Regulatory Support NPDO-Gas Due to current market condition for gas 75% increase mid range, with a 0.5% tolerance for best and worst case. 75.00% 119,481 Legal & Regulatory Support NPDO-Heating Oil Due to current market condition for heating oils 100% increase mid range, with a 0.5% tolerance for best and worst case. 100.00% 68,801 Legal & Regulatory Support NPDO-LPG Due to current market condition for gas 75% increase mid range, with a 0.5% tolerance for best and worst case. 75.00% 53,900 Legal & Regulatory Support NPDO-Water Current rate of inflation with a 0.5% tolerance for best and worst case. 6.20% 21,738 Legal & Regulatory Support HUB-Variable Element Based on year on year RPI uplift with a 0.5% tolerance for best and worst case. 8.18% 93,883 1,569,194 Customer and Support Services ICT Historic rate carried forward from last year - will be reviewed during 2022-23 15.00% 123,000 Roads and Infrastructure Waste PPP-Private Contractor Inflation Based on RPIX at February 2022 with a 0.5% tolerance for best and worst case. 7.09% 465,049 Roads and Infrastructure Waste PPP-Central Government Inflation Based on Landfill Tax increase between 21/22 and 22/23 with a 0.5% tolerance for best and worst case. 1.96% 36,765 Roads and Infrastructure Electricity - Street Lighting Due to current market condition for electricity 20% increase mid range, with a 0.5% tolerance for best and worst case. 20.00% 116,305 741,119 3,856,724 Council Wide Total Executive Director Douglas Hendry - Total Executive Director Kirsty Flanagan - Total Total Non-Pay Inflation in the Mid Range Page 28
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COUNCIL COST AND DEMAND PRESSURES 2023-24 to 2027-28 Department Service Cost/Demand Pressure 2023-24 £,000 2024-25 £,000 2025-26 £,000 2026-27 £,000 2027-28 £,000 2023-24 £,000 2024-25 £,000 2025-26 £,000 2026-27 £,000 2027-28 £,000 2023-24 £,000 2024-25 £,000 2025-26 £,000 2026-27 £,000 2027-28 £,000 Chief Executive's Unit Financial Services Universal Credit “Full” Service went live in Sept 2018, but managed migration has been deferred to 2021 and will not be completed until 2024. The DWP will reduce the Housing Benefit Administration Subsidy they pay to the Council as some claimants come off of Housing Benefit processed by Council staff and go onto Universal Credit processed by the DWP. The Council’s caseload has reduced marginally since implementation of Universal Credit but it is hard to predict just how quickly the rest of the working age caseload will migrate from Housing Benefit to Universal Credit between now and 2024. These figures represent our best estimates at this time. 40 80 120 160 200 40 80 120 160 200 40 80 120 160 200 Chief Executive's Unit Financial Services Implementation of new financial ledger system - Oracle Fusion Project 35 35 35 35 35 35 35 35 35 35 35 35 35 35 35 Executive Director - Douglas Hendry Education The demand for ASN support in Argyll and Bute has continued to grow with a significant increase in, and early identification of children and young people presenting with complex additional support needs, including mental health difficulties. It is anticipated that growth continues over the next 5 years however the extent of this growth is difficult to determine. Scottish Government statistics show that the number of pupils identified with ASN has increased markedly since 2010 and there continue to be year on year increases. These increases are likely due to continued improvements in recording and the introduction of the additional need types 'Child plans' and ‘Other’ in 2011. Scottish Government statistical datasets show that the percentage of school roll in mainstream schools of pupils with ASN has increased by approximately 3% year on year. Within many authorities, this means increased numbers of children accessing specialist provision. 0 0 198 198 198 0 75 206 206 206 0 145 444 444 444 Executive Director - Douglas Hendry Education The SEEMiS group, provider of the Council's Education Management Information System, recently reviewed their long term financial plan and refreshed it to cover the period 2021/22 to 2025/26. As a result of this exercise there were implications on Membership fees with a cost pressure on the Education service arising from financial year 2023/24. Indicative membership fees were provided for financial years 2021/22 to 2022/23 and these have been factored in accordingly. 9 11 13 16 16 9 11 13 16 16 9 11 13 16 16 Executive Director - Douglas Hendry Education Removal of 10p charge for milk in Primary Schools from August 2021. Council agreed to remove this charge from August 2021 to promote the implementation of the Healthy Eating in Schools Regulations and the roll out of free school meal to all Primary pupils by August 2022. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Executive Director - Douglas Hendry Education The existing cashless catering solution in 9 x secondary schools requires upgrading or replacing as a result of hardware obsolescence and software reaching end of life and contract end in Jan 2022. This solution is a red risk on the ICT GAMP and is no longer PSN or Cyberessentials Plus compliant. Local authorities across the UK have rapidly transformed their cashless catering and payment solutions during the pandemic to reflect the trends for online payments, pre-order self service, and deliver a safer, more efficient service. These trends are reflected in the supplier marketplace with new solutions now available for online self service payments and school meal selection with market leaders providing end to end solutions handling all school fund types in one integrated income management solution. This will reduce cash handling and allow school catering to prepare meals to order. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Executive Director - Douglas Hendry Education The Council has had a requirement to deliver 1140 hours of Early Learning and Childcare from August 2021. The Council has been notified that the ring fenced funding will be reduced by £1.124m from 2022-23. Also, as part of the 1140 expansion programme, the Scottish Government 'Funding Follows the Child' guidance, requires local authorities to set a rate locally that is paid to funded providers in the private and third sectors, including childminders, to deliver the funded entitlement that allows them to deliver a high quality ELC experience for all children. This rate should be sustainable and reflect national policy priorities, including funding to enable payment of the real Living Wage to all childcare workers delivering the funded entitlement and have a margin for re-investment built in. The service has worked hard to mitigate the effects of this and has reduced expenditure as far as possible. However there remains a funding gap, the service are able to cover the over spend for 2022-23 from carry forwards so the cost pressure is requested from 2023-24 onwards. The service will continually review their plans looking for efficiencies where possible. 342 327 327 327 327 342 327 327 327 327 342 327 327 327 327 Best Case Mid Range Scenario Worst Case APPENDIX 3 Page 29
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COUNCIL COST AND DEMAND PRESSURES 2023-24 to 2027-28 Department Service Cost/Demand Pressure 2023-24 £,000 2024-25 £,000 2025-26 £,000 2026-27 £,000 2027-28 £,000 2023-24 £,000 2024-25 £,000 2025-26 £,000 2026-27 £,000 2027-28 £,000 2023-24 £,000 2024-25 £,000 2025-26 £,000 2026-27 £,000 2027-28 £,000 Best Case Mid Range Scenario Worst Case APPENDIX 3 Executive Director - Douglas Hendry Legal and Regulatory Services Estimated cost (to be borne by the Council) of carrying out local Government elections in May 2027 (and in financial year 2027/28). Operating approx. 100 polling stations and carrying out poll and count for 11 Multi member wards – requiring 11 separate counts 0 0 0 0 250 0 0 0 0 300 0 0 0 0 350 Executive Director - Douglas Hendry Procurement In February 2019 the Council agreed a £250k procurement policy saving to be delivered through an increased focus on contract and demand management. This saving was dependent on the number and type of contracts being tendered for which have the potential to achieve revenue savings through the procurement process. It has proved harder to achieve than was first anticipated and this saving has been removed. As this saving had already been built into future budgets a cost pressure is required to reverse it. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Executive Director - Kirsty Flanagan HR Costs for a project team for a new HR system & Backfill . This is a total new system build. 50 -50 -50 -50 -50 100 -50 -50 -50 -50 150 -50 -50 -50 -50 Executive Director - Kirsty Flanagan Waste Additional costs derived from the current waste model. Note that the treatment of waste going forward has not been fully costed due to uncertainty as to how the council will deal with the Bio Municipal Waste ban and the Deposit Return Scheme. Pressure has increased due to an updated waste model. 7 25 78 (91) (91) 7 25 78 (91) (91) 7 25 78 (91) (91) Executive Director - Kirsty Flanagan Waste Achieving compliance with ban on biodegradable municipal waste in 2025. This is the estimated revenue costs from potential scenarios, remaining in or coming out of the current waste PPP contract. Coming out of the Waste PPP contract would create an additional one-off cost. There are also capital cost implications that are not included within these estimates. Due to the complexity of the model, estimates are subject to change. 0 200 800 800 0 0 400 1,600 1,150 0 0 875 3,500 1,500 0 Executive Director - Kirsty Flanagan Planning Local development plan will require to be done under the new Planning legislation which is a revised process from the current one and will have a 10 year life. The new process has 2 stages where there is likely to be a cost pressure - a gate check followed by an examination some time later. 0 50 0 50 0 0 50 0 50 0 0 50 0 50 0 Executive Director - Kirsty Flanagan Housing Rightsize budget for House Loans which is a historic budget which has simply been rolled forward year on year 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 Executive Director - Kirsty Flanagan Parking Loss in income at Glen Loin Car park, Arrochar due to end of lease and responsibility for car park returning to owners, Luss Estates 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 Executive Director - Kirsty Flanagan IT Increased bandwidth for schools to allow digital transformation to support the move to online learning 26 26 26 26 26 26 26 26 26 26 26 26 26 26 26 Executive Director - Kirsty Flanagan Housing Temporary Accommodation for the homeless has had a history of demand led overspending. The budget is in need of rightsizing. Costs include property maintenance, maintenance and replacement of furniture, property rental costs less benefit payments and the cost of voids which would include Council Tax and utilities and loss of benefit payments. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Council Wide Council Wide Rightsize budget for Apprenticeship Levy which is a historic budget which has simply rolled forward year on year. Apprenticeship Levy is charged at a rate of 0.5% of an employer's paybill but the budget has not been increased in line with salary budget increases 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Council Wide Council Wide General provision for unidentified Cost and Demand Pressures 0 0 0 0 0 250 500 750 1,000 1,250 500 1,000 1,500 2,000 2,500 TOTAL 543 738 1,581 1,505 945 843 1,513 3,139 2,863 2,253 1,143 2,558 6,027 4,451 3,791 Page 30
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SOCIAL WORK COST AND DEMAND PRESSURES - 2023-24 to 2025-26 APPENDIX 4 Service Cost/Demand Pressure 2023-24 £000 2024-25 £000 2025-26 £000 2023-24 £000 2024-25 £000 2025-26 £000 2023-24 £000 2024-25 £000 2025-26 £000 All Social Work Estimated Pay inflation reflecting a best case of 1%, mid range of 2% and worst case of 3%. 668 1,336 2,011 1,335 2,671 4,033 1,342 2,685 4,068 All Social Work Estimated Pay increments, best case is that 50% of the incremental changes based on 2022/23 are absorbed and in the mid-range and worst case, the increase is in line with the increase in 2022/23. 52 103 155 103 206 309 103 206 309 All Social Work Non-pay inflation, best and worst case based on unavoidable/inescapable inflation and worst case. 2,925 5,737 8,687 3,296 6,518 9,919 3,666 7,277 11,109 All Social Work Non-pay inflation impact of payroll inflation on NHS posts which are recharged to Social Work. 77 156 239 77 156 239 77 156 239 Adult Care Younger Adults Demand Growth (Excluding Physical Disability): There has been continuing increase in demand for care and support services for profoundly disabled younger adults (ie under 65) whose parents have historically provided care but are no longer able to. The best case assumes a 1% increase in spending reflecting the limited service capacity in the area, the mid-range reflects 2% growth and the worst case reflects 3% growth. 172 345 520 343 694 1,052 515 1,046 1,594 Adult Care Younger Adults Demand Growth - Physical Disability: There has been continuing increase in demand for care and support services for profoundly disabled younger adults (ie under 65) whose parents have historically provided care but are no longer able to. The best case assumes a 1% increase in spending reflecting the limited service capacity in the area, the mid-range reflects 2% growth and the worst case reflects 3% growth. 37 74 112 74 149 226 110 224 341 Adult Services Learning Disability Budget Adjustment - The Learning Disability Supported Living budget is carrying a recurring unbudgeted commitment of circa £743k which is contributing to the recurring overspend on the Social Work budget. To address this situation, it is proposed to realign the budget over the three year period from 2023/24 to 2025/26 whilst also reviewing cases and redesigning services. The adjustment will be reviewed annually to reflect spending reductions delivered as well as any changes to funding and practice resulting from the implementation of the Independent Review of Adult Social Care. 248 495 743 248 495 743 248 495 743 Adult Services Physical Disability Budget Adjustment - The Physical Disability budget is carrying a recurring unbudgeted commitment of circa £89k which is contributing to the recurring overspend on the Social Work budget. To address this situation, it is proposed to realign the budget over the three year period from 2023/24 to 2025/26 whilst also reviewing cases and redesigning services. The adjustment will be reviewed annually to reflect spending reductions delivered as well as any changes to funding and practice resulting from the implementation of the Independent Review of Adult Social Care. 30 60 89 30 60 89 30 60 89 Best Case Mid Range Worst Case Page 31
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Service Cost/Demand Pressure 2023-24 £000 2024-25 £000 2025-26 £000 2023-24 £000 2024-25 £000 2025-26 £000 2023-24 £000 2024-25 £000 2025-26 £000 Best Case Mid Range Worst Case Adult Services Mental Health Budget Adjustment - The Mental Health budget is carrying a recurring unbudgeted commitment of circa £197k which is contributing to the recurring overspend on the Social Work budget. To address this situation, it is proposed to realign the budget over the three year period from 2023/24 to 2025/26 whilst also reviewing cases and redesigning services. The adjustment will be reviewed annually to reflect spending reductions delivered as well as any changes to funding and practice resulting from the implementation of the Independent Review of Adult Social Care and any additional funding provided to address mental health issues as a consequence of the COVID pandemic. 66 131 197 66 131 197 66 131 197 Children and Families Continuing Care demand for Looked After young people who are cared for by the HSCP. The best case scenario is that the expected additional demand can be funded from within existing resources as a result of planned improvements to the service delivery model (eg shift away form high cost external residential care to local foster and kinship care), the mid case reflects £250k per annum and the worst case reflects £500k per annum. 0 0 0 250 500 750 500 1,000 1,500 All Social Work Allowance for unknown cost and demand pressures which could arise. The best case assumes unknown pressures totalling £250k per annum, the mid range £500k per annum and the worst case £750k per annum. 250 500 750 500 1,000 1,500 750 1,500 2,250 Adult Services Kintyre Care Centre - Potential cost pressure as a result of potential transfer of KCC facility to HSCP Management. 750 750 750 750 750 750 900 900 900 TOTAL COST AND DEMAND PRESSURES 5,274 9,687 14,253 7,072 13,330 19,807 8,307 15,680 23,339 Page 32
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE CUSTOMER SUPPORT SERVICES 16 JUNE 2022 KEY PERFORMANCE INDICATORS FQ4 2021/22 – COMMUNITY PLANNING AND DEVELOPMENT FINANCIAL SERVICES COMMERCIAL SERVICES LEGAL AND REGULATORY SUPPORT CUSTOMER SUPPORT SERVICES 1.0 EXECUTIVE SUMMARY 1.1 The Council’s Performance and Improvement Framework (PIF) sets out the presentation process for regular performance reporting. As a consequence of Covid-19 alternative options for each PIF activity have been agreed by the Executive Leadership Team (ELT). 1.2 This paper presents the Policy and Resources Committee with the FQ4 2021/22 Key Performance Indicators (KPIs) for Community Planning and Development, Financial Services, Commercial Services, Legal and Regulatory Support and Customer Support Services. 1.3 It is recommended that the Policy and Resources Committee reviews and scrutinises the FQ4 2021/22 KPI Report as presented. Page 33 Agenda Item 5
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE CUSTOMER SUPPORT SERVICES 16 JUNE 2022 KEY PERFORMANCE INDICATORS FQ4 2021/22 – COMMUNITY PLANNING AND DEVELOPMENT FINANCIAL SERVICES COMMERCIAL SERVICES LEGAL AND REGULATORY SUPPORT CUSTOMER SUPPORT SERVICES 2.0 INTRODUCTION 2.1. The Council’s Performance and Improvement Framework (PIF) sets out the presentation process for regular performance reporting. As a consequence of Covid-19 alternative options for each PIF activity have been agreed by the Executive Leadership Team (ELT). 2.2 This paper presents the Policy and Resources Committee with the FQ4 2021/22 Key Performance Indicators (KPIs) for Community Planning and Development, Financial Services, Commercial Services, Legal and Regulatory Support and Customer Support Services, as agreed by Council. 3.0 RECOMMENDATIONS 3.1 That members review and scrutinise the FQ4 2021/22 KPI Reports as presented. 4.0 DETAIL 4.1 To ensure appropriate monitoring and scrutiny of performance management during the Council’s Covid-19 response and recovery the ELT have identified a Council-wide suite of 85 Success Measures detailed within the Service Plans. Page 34
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From within the Service Plans some measures have been identified as Key Performance Indicators (KPIs) for 2021/22, and are currently reported quarterly to the appropriate Strategic Committees. Pyramid remains ‘live’ with all Success Measures aligned to Service Plans and updated as agreed. 4.2 Attached are the KPIs for FQ4 2021/22 that are relevant to the Policy and Resources Committee (Appendix 1). 5.0 CONCLUSION 5.1 Simplifying and focusing the performance reports in this manner is a proactive approach to help minimise back office function/non-essential activities whilst maintaining a level of service that supports scrutiny, performance monitoring and out statutory duties. 6.0 IMPLICATIONS 6.1 Policy: None 6.2 Financial: None 6.3 Legal: The Council has a duty to deliver best value under the Local Government in Scotland Act 2003 6.4 HR: None 6.5 Fairer Scotland Duty: 6.5.1 Equalities - protected characteristics: None 6.5.2 Socio-economic Duty: None 6.5.3 Islands: None 6.6 Climate Change 6.7 Risk: Ensures that all our performance information is reported in a balanced manner 6.8 Customer Service: None Douglas Hendry Executive Director with responsibility for Commercial Services and Legal and Regulatory Support Kirsty Flanagan Executive Director with responsibility for Customer Support Services Page 35
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Policy Lead for Corporate Services and Community Planning: Councillor John McAlpine Policy Lead for Finance and Commercial Services: Councillor Gary Mulvaney 25 April 2022 For further information contact: Jane Fowler, Head of Customer Support Services Tel: 01546 604466 APPENDICES Appendix 1 – Key Performance Indicators for - Community Planning and Development FQ4 2021/22 Financial Services FQ4 2021/22 Commercial Services FQ4 2021/22 Legal and Regulatory Support FQ4 2021/22 Customer Support Services FQ4 2021/22 Page 36
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FQ4 2021/22 Key Performance Indicators for Community Planning and Development Indicator: CPD104_02-The percentage of groups who say their effectiveness has increased as a result of capacity building by the team. Why measure this? This provides an indication of strengthening and developing community groups. This information would be used in inspections of Community Learning and Development. This indicator is above target with no change in performance since the last reporting period. Commentary. Six groups responded across four administrative areas. Their responses positively highlighted successful interaction with the Community Development Team. These groups had a focus in 2021/22 of delivering Covid-19 impact support to their communities and engaged with the Council’s Community Development Team for support and advice. Support included access to the Council’s wellbeing service through Health Assured to support resiliency of volunteers. Target: Annual FQ4: 75%. Actual: Annual FQ4: 100% Green. Benchmark: No Benchmark. Graph illustration of performance:- CPD104_02-The percentage of groups who say their effectiveness has increased as a result of capacity building by the team. Appendix 1 Page 37
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Indicator: CPD104_03-The percentage of groups whose users say they have an increase in confidence and wellbeing. Why measure this? This illustrates whether the delivery of capacity building support sessions is making a difference to individuals. This measure would be used in inspections of Community Learning and Development. This indicator is above target with no change in performance since the last reporting period. Commentary Six groups responded across four administrative areas. Their responses positively highlighted successful interaction with the Community Development Team. These groups had a focus in 2021/22 of delivering Covid-19 impact support to their communities and engaged with the Council’s Community Development Team for support and advice. Target: Annual FQ4: 75%. Actual: Annual FQ4: 100% Green. Benchmark: 88%. Graph illustration of performance:- CPD104_03-The percentage of groups whose users say they have an increase in confidence and wellbeing. Appendix 1 Page 38
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Indicator: CPD116_02-All issues raised at Area Community Planning Groups are considered and responded to by the Management Committee. Why measure this? It is important for all matters raised to be appropriately considered and responded to. This indicator is on target with no change in performance since the last reporting period. Commentary All issues that have been raised to the Community Planning Partnership (CPP) Management Committee from the Area Community Planning Groups (ACPG) for a response have been actioned in the year to date (April 2021 – March 2022). In June 2021 one item was raised by the Oban, Lorn and the Isles ACPG regarding sharing of good practice on climate change. This was duly actioned by the CPP Climate Change Working Group. In the September 2021, December 2021 and March 2022 CPP Management Committee meetings there were no items raised from the ACPGs for a response. Items raised from the ACPGs to those meetings were for noting only by the CPP Management Committee. Target: Annual FQ4: 100%. Actual: Annual FQ4: 100% Green. Benchmark: No Benchmark. Graph illustration of performance:- CPD116_02-All issues raised at Area Community Planning Groups are considered and responded to by the Management Committee. Appendix 1 Page 39
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FQ4 2021/22 Key Performance Indicators for Financial Services Indicator: FIS102_01-Maximise distribution of Scottish Welfare Fund. Why measure this? We distribute as much of the Scottish Welfare Fund as we can to help vulnerable people. We also have a statutory duty to do this. This indicator is above target. However, due to the nature of this indicator performance cannot be measured against the previous reporting period. Commentary At the end of March we spent £553,815. This is an overspend of £94,988 of our programme funding for 2021/22 of £458,827. The additional cost has been funded by earmarking. Target: Quarterly FQ4: 95.3%. Actual: Quarterly FQ4: 120.7% Green. Benchmark: 95.3%. Graph illustration of performance:- FIS102_01-Maximise distribution of Scottish Welfare Fund. Appendix 1 Page 40
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Indicator: FIS102_03-Maximise distribution of Discretionary Housing Payment (DHP) Fund. Why measure this? We distribute as much of the Discretionary Housing Payment as we can to help vulnerable people. We also have a statutory duty to do this. This indicator is above target. The Target and Actual are cumulative totals for the financial year. Commentary Performance continues to be good in this area. As at 31 March 2022 we have spent or committed £882,322 of our total allocation of £898,799 and have kept within budget while supporting medium and high priority cases. Target: Annual FQ4: 96.0%. Actual: Annual FQ4: 98.2% Green. Benchmark: 100.0%. Graph illustration of performance:- FIS102_03-Maximise distribution of Discretionary Housing Payment (DHP) Fund. Appendix 1 Page 41
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Indicator: FIS102_04a-All new benefit claims are processed promptly. Why measure this? We process benefit claims as quickly as we can to help vulnerable people. We also have a statutory duty to do this. This indicator is below target and performance has decreased slightly since the last reporting period. Commentary Performance at an average processing time of 25.19 days to process as at 31 March 22 does not meet the target of 21 days in the service plan. From August to March 2022 the increase in Self Isolation Support Grant (SISG) applications aligned with staff shortages has meant an increase to monthly processing times to between 26 and 27 days per month on average. This has caused the increase in the cumulative average processing times for the full year to 25.19 days. Benefit Assessors were redeployed to support the administration of the Scottish Government's Self Isolation Support Grant programme. We have tried to recruit Benefit Assessors to temporary posts using admin funding provided by the Scottish Government but have been unsuccessful. Some staff are currently working overtime in order to limit the delays in processing new claims. Target: Quarterly FQ4: 21 days for new claims (monthly data). Actual: Quarterly FQ4: 25.19 days Red. Benchmark: Scottish average 21 days. Graph illustration of performance:- FIS102_04a-All new benefit claims are processed promptly. Appendix 1 Page 42
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Indicator: FIS110_01-Increase the total value of rates (NDR) relief awarded. Why measure this? Good practice to support local businesses as to their entitlement, by the end of March each year we have to publish the level of relief to businesses. This indicator is above target. However, due to the nature of this indicator performance cannot be measured against the previous reporting period. Commentary With the continuation of the Covid related reliefs for 2021/22 by the Scottish Government the amount of relief granted to eligible businesses is increasing month on month. At 31 March 2022 the total relief granted to businesses was £24,461,586. This has been excellent performance from the team as all reliefs have to be applied for and processed - not automatically granted. Target: Annual FQ4: £15m. Actual: Annual FQ4: £24,461,586 Green. Benchmark: No Benchmark. Graph illustration of performance:- FIS110_01-Increase the total value of rates (NDR) relief awarded. Appendix 1 Page 43
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Indicator: FIS110_02-Maintain the percentage of suppliers that are paid within 30 days. Why measure this? Based on good practice and to best support small and medium size businesses who rely on cash flow. This indicator is on target however performance has decreased slightly since the last reporting period. Commentary Despite a significant amount of staff time being spent on testing the new ledger system, this indicator remains on target. Another period of excellent performance. Target: Quarterly FQ4: 95.5%. Actual: Quarterly FQ4: 95.5% Green. Benchmark: Scottish average 93.08%. Graph illustration of performance:- FIS110_02-Maintain the percentage of suppliers that are paid within 30 days. Appendix 1 Page 44
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Indicator: FIS115_01-The agreed audit plan is delivered. Why measure this? The agreed audit plan provides assurance that our processes and procedures are thorough. This indicator is on track with no change in performance since the last reporting period. Commentary Thirteen audits have been completed as at 31 March 2022. The plan is on track with all reports to be finalised and reported to the Audit & Scrutiny Committee on or before the June 2022 Committee. Target: Quarterly FQ4: 100%. Actual: Quarterly FQ4: 100% Green. Benchmark: Previous year’s performance 100%. Graph illustration of performance:- FIS115_01-The agreed audit plan is delivered. Appendix 1 Page 45
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Indicator: FIS115_02-Maintain the high rate of collecting Non-Domestic Rates [NDR]. Why measure this? It is important that all local taxes due are collected. We also submit our performance to the Scottish Government. This indicator is below target, this is a cumulative total for the financial year. Commentary As at 31 March 2021 Non Domestic Rates collected is 96.37% which is slightly less than the council target of 97%. This is mainly attributed to changes in legislation for certain reliefs mainly Small Business Bonus Scheme Relief (SBBS) which was previously available to unoccupied properties who now no longer qualify for 100% relief. Coronavirus Retail, Hospitality and Leisure Relief (RHL) which had previously been automatically granted now requires business to make an application and eligibility has been tightened. Therefore the net NDR due increased and additional work is required to collect the monies due. Target: Quarterly FQ4: 97.30% cumulatively at March 2022. Actual: Quarterly FQ4: 96.37% Red Benchmark: Scottish average 97.30%, ABC 97.30%. Graph illustration of performance:- FIS115_02-Maintain the high rate of collecting Non-Domestic Rates [NDR]. Appendix 1 Page 46
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Indicator: FIS115_03-Maintain the high rate of collecting Council Tax. Why measure this? It is important that all local taxes due are collected. We also submit our performance to the Scottish Government. This indicator is above target. The Target and Actual are cumulative totals for the financial year. Commentary Council Tax collections have exceeded our target of 96% and at 31 March 2021 the collection figure was 96.28%. This is excellent performance from the team particularly given the extra pressure of administering Covid related funding streams. Target: Quarterly FQ4: 96.10% cumulatively at March 2022. Actual: Quarterly FQ4: 96.28% Green. Benchmark: Scottish average 96.10%, ABC 97.30%. Graph illustration of performance:- FIS115_03-Maintain the high rate of collecting Council Tax. Appendix 1 Page 47
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FQ4 2021/22 Key Performance Indicators for Commercial Services Indicator: COM107_01-Provide quality meals within cost margins to all pupils. Why measure this? All pupils have the opportunity for a nutritious, quality school meal. This indicator remains within target since the last reporting period. Commentary Food cost inflationary pressure continues to be monitored and indications are that this will increase in the next 12 months. Particular pressures on specific key lines are increasing, with chicken increasing in cost by 18%. Frequent discussions at a national level with supply chain, Scottish Government (SG) and Scotland Excel are continuing, and officers sit on the Scottish Government chaired Public Sector Food Forum The Scottish Local Authorities Economic Development (SLAED) submitted a request to Consortium of Scottish Local Authorities (CoSLA) on 30th November 2021. The request was to identify the impact of the EU Exit on food and drink supply chains (prices rises) and food security (local shortages) and how they are intrinsically entwined with other pressing issues, such as rising fuel and energy costs – both for the public sector and communities in general. Meetings have been held between CoSLA and Argyll and Bute Council Officers to discuss this issue. Further representation on this issue is to be made with CoSLA Leaders. A paper entitled ‘EU Exit Local Impacts on Food Goods and Supply Chains’ was presented to DMT on 28th February 2022. All three recommendations were noted, in particular the last recommendation “Note the pressing timescales, where the introduction of import controls on agri-foods and plant imports in July 2022 could have severe implications for remote rural and island communities to receive specific food items (i.e. perishable goods) in appropriate timescales.” The Scottish Parliament's Cross Party Group on Food took place on 27/4/22. The main topic for discussion was the impact of the war in Ukraine on food supplies and food insecurity. Officers raised the specific issues impacting school meals and are expecting further discussions to take place with the SG Taskforce in due course as a result of raising this issue. Locally, officers continue to explore opportunities to access more local produce, though it is also affected by rising costs, e.g. for fertiliser and feed. Target: Quarterly FQ4: +/- 5.00%. Actual: Quarterly FQ4: -4.00% Green. Benchmark: +/- 3.00%. Appendix 1 Page 48
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Graph illustration of performance:- COM107_01-Provide quality meals within cost margins to all pupils. Appendix 1 Page 49
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FQ4 2021/22 Key Performance Indicators for Legal and Regulatory Support Indicator: LRS102_01-Advice and assistance from Welfare Rights is provided to clients to ensure they maximise their income. Why measure this? It is important that the correct amount of welfare rights are being claimed for every client. This indicator is above target. The Target and Actual figures are cumulative totals for the financial year. Commentary Although the year to date figure is below target, the figure for income generated by Welfare Rights in FQ4 is £993,251. This figure is in excess of the quarter target as there has been an increased number of closed cases. The volume of referrals received overall has reduced due to Covid-19 as there was an uplift in Universal Credit. Target: Quarterly FQ4: £2,750,000. Actual: Quarterly FQ4: £2,728,847 Red. Benchmark: No Benchmark. Graph illustration of performance:- LRS102_01-Advice and assistance from Welfare Rights is provided to clients to ensure they maximise their income. Appendix 1 Page 50
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Indicator: LRS110_02-Maintain the percentage of local suppliers that benefit from the awards of contracts via the procurement portal. Why measure this? This demonstrates the proportion of local businesses that benefit from contract awards thus supporting and growing the local economy. This indicator is below target and performance has decreased since the last reporting period. Commentary There was a decrease from the previous quarter due to the nature of the contracts. However, of the 6 bids made by local contractors, 5 were awarded the contract (83.3%) with a total value of over £911k. A summary of all contracts awarded in FQ4 is available on Pyramid. The Procurement, Commercial and Contract Management Team continue to support local suppliers by providing useful information on the Council’s website, i.e. pre-recorded webinars on how to bid for Council contracts, hints and tips for tendering as well as our contract plan, details of upcoming supplier development events and our category officer’s contact details all of which enable local suppliers to be able to bid for our contracts. The YTD % is 26.1% (above target). Target: Quarterly FQ4: 20.0%. Actual: Quarterly FQ4: 13.5% Red. Benchmark: 25.0%. Graph illustration of performance:- LRS110_02-Maintain the percentage of local suppliers that benefit from the awards of contracts via the procurement portal. Appendix 1 Page 51
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Indicator: LRS110_03-Maintain the percentage of Small Medium Enterprises (SMEs) that win council contracts. Why measure this? This illustrates the level of support given to Small or Medium Enterprises. This is also reported to the Scottish Government. This indicator is above target however performance has decreased since the last reporting period. Commentary Performance is above target, however, slight decrease from previous quarter due to the nature of some of the contracts awarded in FQ4. Of the 34 bids made by Small and Medium Enterprises (SMEs), 30 were awarded the contract. Overall YTD is 88.2%. Detail of contracts bid for and won by SMEs is available in Pyramid. Target: Quarterly FQ4: 76.0%. Actual: Quarterly FQ4: 81.1% Green. Benchmark: 83.0%. Graph illustration of performance:- LRS110_03-Maintain the percentage of Small Medium Enterprises (SMEs) that win council contracts. Appendix 1 Page 52
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Indicator: LRS110_04-Increase the number of community benefits that are delivered through the contracts we award locally. Why measure this? This demonstrates that community benefits are being delivered. This indicator is on track and performance has improved since the last reporting period. Please note there is no Target for this indicator. Commentary The Procurement, Commercial and Contract Management Team have been working closely with their suppliers to deliver additional social, economic and environmental value and achieved 40 community benefits through Contract Management, Contract Awards and the Request List from 1st October 2021 to 31st March 2022. Further detail is available in Pyramid. Target: Bi-Annual Oct-March 22: No Target. Actual: Bi-Annual Oct-March 22: 41 Green. Benchmark: No benchmark. Graph illustration of performance:- LRS110_04-Increase the number of community benefits that are delivered through the contracts we award locally. Appendix 1 Page 53
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FQ4 2021/22 Key Performance Indicators for Customer Support Services. Indicator: CSS101_02-Increase public use of corporate social media sites on three categories of information: council news, community success and general use. Why measure this? We issue informative articles on Council services and achievements as well as the area overall. This supports the overall objective of attracting people to the area. This indicator is above target and performance has improved since the last reporting period. Commentary We continue to increase followers across all corporate social media channels, using a content approach of council news/general use info/community news. Covid related information continues to demand space on our channels. By exception, our Twitter following has not increased sufficiently to meet our target - typically this channel has had a higher following than the others, so less scope for significant growth potentially. We have updated Twitter targets for the next quarters to reflect more realistic targets. When the part time Insight and Research Officer starts, this post holder will look further into this to understand more reasons why so we can apply changes as required. Target: Quarterly FQ4: 43,021. Actual: Quarterly FQ4: 43,936 Green. Benchmark: 40,759. Graph illustration of performance:- CSS101_02-Increase public use of corporate social media sites on three categories of information: council news, community success and general use. Appendix 1 Page 54
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Indicator: CSS101_03-Increase the percentage of telephone service enquiries received by Customer Service Centres that are dealt with at the first point of contact by the Customer Service Centre. Why measure this? This illustrates how we aim to get it 'right first time' with contact through our Customer Service Centre. This indicator is above target however performance has decreased slightly since the last reporting period. Commentary This figure is based on the number of calls made, answered and transferred. Total number of calls received = 27,653 with 24,075 answered at first point of contact = 94.4%. First point of contact means that the customer service agent has sufficient information at hand to answer the question for the caller or to log a service request there and then without having to transfer to the service for the answer. The Target for 22/23 has been raised from 82% to 92%. Target: Quarterly FQ4: 82.0%. Actual: Quarterly FQ4: 94.4% Green. Benchmark: 95.5%. Graph illustration of performance:- CSS101_03-Increase the percentage of telephone service enquiries received by Customer Service Centres that are dealt with at the first point of contact by the Customer Service Centre. Appendix 1 Page 55
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Indicator: CSS108_01-The percentage of Modern Apprentices that go on to a positive destination after completing the Argyll and Bute Council Modern Apprentice Programme. Why measure this? We have created Modern Apprenticeship opportunities, it is important that we measure their success in terms of gaining work or further training as a result of our investment. This indicator is above target however performance has decreased slightly since the last reporting period. Commentary Just over 96% of our apprentices are continuing to secure positive destinations on completion of their apprenticeship. There has been no change since the last quarter. Overall 38 apprentices out of a total of 51 who have completed their apprenticeship have gone on to secure employment with the council. Target: Annual FQ4: 95.0%. Actual: Annual FQ4: 96.1% Green. Benchmark: 95.0%. Graph illustration of performance:- CSS108_01-The percentage of Modern Apprentices that go on to a positive destination after completing the Argyll and Bute Council Modern Apprentice Programme. Appendix 1 Page 56
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Indicator: CSS113_01-Deliver the ICT and Digital Strategy Action Plan. Why measure this? The actions delivered in the strategy ensure we continue to provide an efficient and effective ICT service to support the organisation. This indicator is on track to a revised plan. Commentary Progress reports are presented to every IT Management Team meeting. The Plan is On Track - A full programme of work is underway including the launch of greater functionality within MS365. With the migration of 2000 corporate users on premise mailboxes and h drive files to MS365 complete, restrictions for mailbox and personal file share size have been removed. The increase of MS365 Team sites by 10% approx. in recent weeks, illustrates the enthusiasm of council staff to adopt MSTeams as a hub for collaborative teamwork and as a communications platform both internally and with external partners. The use of MSForms for surveys and polls within teams meetings are visible across several services that recognise the flexibility and adaptability of this useful MS365 tool. The recent successful deployment of the Committee Room Video Conferencing solution is also built upon MSTeams. Our SOCITM Satisfaction 2022 survey has just completed and we are currently assessing feedback. The score for the long standing metric which measures staff satisfaction with the Office Systems such as Word, Excel, Email, SharePoint, Teams, etc. has risen for the first time in many years. The survey was conducted 6 months after the migration of users to MS365 and we may be seeing some early evidence that staff are deriving greater benefit and satisfaction as a result of deploying MS365. Target: Annual FQ4: Complete by 2023/24. Actual: Annual FQ4: On Track Green. Benchmark: No Benchmark. Graph illustration of performance:- CSS113_01-Deliver the ICT and Digital Strategy Action Plan. Appendix 1 Page 57
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Indicator: CSS113_02-Maintain the average time taken to resolve ICT incidents. Why measure this? To support the Council to operate effectively and efficiently and any unforeseen ICT incidents are resolved as quickly as possible. This indicator is below target (lowest is best) and performance has improved since the last reporting period. Commentary Average time to fix service affecting incidents through FQ4 was 2.4 hours. Performance well within target for the quarter despite the major Kilmory firewall hardware issue in March. Target: Quarterly FQ4: 4.5 hrs. Actual: Quarterly FQ4: 2.4 hrs Green. Benchmark: 3.0 hrs. Graph illustration of performance:- CSS113_02-Maintain the average time taken to resolve ICT incidents. Appendix 1 Page 58
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Indicator: CSS115_01-Increase the percentage of all self-service and automated contacts. Why measure this? Increasing the volume of self-service and automated contacts reduces the use of other higher cost channels and improves our efficiency. This indicator is above target and performance has improved since the last reporting period. Commentary In FQ4 there were 38,657 transactions dealt with by customer service agents (26.9%) and 105,298 automated or self-service transaction (73.1%) so the 62% target was well exceeded. Consequently the target for 2022/23 has been raised from 62% to 70% Target: Quarterly FQ4: 62.0%. Actual: Quarterly FQ4: 73.1% Green. Benchmark: 62.0%. Graph illustration of performance:- CSS115_01-Increase the percentage of all self-service and automated contacts. Appendix 1 Page 59
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Indicator: CSS117_01-The percentage of delegates who have reported an increase in their knowledge and/or confidence following completion of the Argyll and Bute Manager Programme. Why measure this? It is important that the investment in the Argyll and Bute Manager Programme delivers the expected and effective outcomes. This indicator is on track, however no face to face training has taken place. Commentary No employees completed training in FQ4. Sixteen managers were inducted onto the Managing Teams programme in 2021 and it is anticipated that they will complete in 2022/23. Fifteen employees were inducted onto the Preparing to Manage programme and it is anticipated that they will also complete in 2022/23. Target: Annual FQ4: 0% Target reduced in light of Covid as no face to face training has occurred. Actual: Annual FQ4: 0% Green. Benchmark: No Benchmark. Graph illustration of performance:- CSS117_01-The percentage of delegates who have reported an increase in their knowledge and/or confidence following completion of the Argyll and Bute Manager Programme. Appendix 1 Page 60
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 16 JUNE 2022 PLACE BASED INVESTMENT AND CROWN ESTATE FUND 2022/23 – INITIAL PROJECTS AND ALLOCATION 1.0 EXECUTIVE SUMMARY 1.1 Argyll and Bute Council has been allocated £712,000 for financial year 2022/23 from Scottish Government, via its Place Based Investment (PBI) Programme. The purpose of this report to ask members to agree to some initial projects and respective PBI funding allocations with the allocation of the remainder of the funding being considered at the August meeting of the Policy and Resources Committee. 1.2 The report also asks members to agree to the allocation of Crown Estate funding for 2022/23 to a number of projects. Whilst the Council has not yet been advised of the formal allocation for 2022/23, at the February Council meeting it was advised that it would be considered prudent to commit up to £1.0m of anticipated funding in 2022/23. Based on the £1.0m allocation and the spend previously agreed at February Council, there remains £597,453 available to be allocated by members. Members are also asked to agree to a variation in the originally proposal relating to the allocation of £50,000 of Crown Estate Scotland (CES) funding to Argyll & the Isles Coast and Countryside Trust (ACT). This was originally agreed at the Policy and Resources Committee on 18 February 2021. 1.3 This is the second year that the Council has been in receipt of Place Based Investment (PBI) funding from the Scottish Government. The allocation for 2021/22 was £821,000. The Scottish Government committed to providing all local authorities with Place Based Investment funding on an annual basis to coincide with their remaining financial years. This means that PBI funding will be available to the Local Authorities for a further three years following this year’s allocation. 1.4 Funding can only be used for capital regeneration projects, and projects must aim to: link and align to place-based initiatives, and establish a coherent local framework to implement the Place Principle; Page 61 Agenda Item 6
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support place policy ambitions, such as town centre revitalisation, community- led regeneration, 20 minute neighbourhoods and Community Wealth Building; ensure that all place-based investments are shaped by the needs and aspirations of local communities; and, accelerate net zero ambitions, wellbeing and inclusive economic development, tackling inequality and disadvantage, community involvement and ownership. 1.5 The funding for 2022/23 must be committed by 31st March 2023 and be evidenced by at minimum a fully let contract or commencement of works in order to avoid having to return any unspent funds to Scottish Government. This means that there is not much time to ensure that we meet with this timeframe and as such the recommended projects in Table 1 (paragraph 4.7) are projects that not only have the ability to meet the aims of the fund, but add value to existing pieces of work and are time critical. 1.6 The fund links closely to the ongoing reprioritisation focus of the Economic Growth service, and associated Economic Strategy and Economic Recovery Plan. With its ‘place’ focus, the fund also builds on and adds value to the previous year’s PBI funding as well as previous Town Centre Fund investment, as well as previous regeneration initiatives taken forward by the council. 1.7 The Crown Estate funding is targeted at the sustainability of coastal communities within the following categories: Environment Community Climate Change Economic Development. As part of the annual reporting requirements for this fund, the Council has to advise how the funding has been spent across the categories. 1.8 RECOMMENDATIONS It is recommended that Policy and Resources Committee: a) Agree to the allocation of the Place Based Investment funding for 2022/23 to the projects in Table 1, paragraph 4.7. b) Agree to the allocation of the Crown Estate funding for 2022/23 to the projects in Table 1, paragraph 4.7. c) Agree to the amendment to the proposals relating to the award of £50,000 of CES funding to ACT as detailed under paragraph 2.5. d) Note that a further report on the allocation of the remaining unallocated £322,486 Place Based Investment and £397,453 Crown Estate Funding for 2022/23 will be brought forward to the August meeting of the Policy and Resources Committee. Page 62
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 16 JUNE 2022 PLACE BASED INVESTMENT AND CROWN ESTATE FUND 2022/23 – INITIAL PROJECTS AND ALLOCATION 2.0 INTRODUCTION 2.1 The council has been allocated £712,000 from Scottish Government for financial year 2022/23 for capital ‘place’ regeneration projects. In addition to this year’s allocation, the Scottish Government has committed to continuing to provide local authorities with funding from its Place Based Investment Programme on an annual basis for the next 3 financial years. Although the annual share for Argyll and Bute in subsequent years is yet to be fully determined, it is likely to be of a level that could deliver a number of key projects, and which could meaningfully support the economic recovery of the area. It is also hoped that these funds could act as match funding to unlock larger projects over time. 2.2 The purpose of this report to ask members to agree the allocation of Argyll and Bute Place Based Investment (PBI) for 2022/23 to some initial projects. 2.3 The initial projects proposed are considered to fit strongly with the PBI criteria, deliver on the Council’s Economic Recovery Strategy, are time critical, add value to investment that has already been made by the Council, deliver on our regeneration outcomes for our places, take account of available officer resources and take account of the relatively tight timeline that we need to meet to align with the funding. 2.4 The purpose of this report is also to ask members to agree to the allocation of some addition Crown Estate (CE) funding that is expected within 2022/23 to allow officers to progress with the projects identified. Although the CE allocation for 2022/23 is not yet confirmed it was recommended at the February Council meeting that the Council could commit up to £1.0m of anticipated funding in 2022-23. At that meeting it was agreed to allocate £402,547 from the £1.0 million leaving £597,453 still available to be allocated. 2.5 The report also ask members to consider an amendment to a previously agreed allocation (Policy & Resources Committee February 2021) of £50,000 under CES funding to Argyll & the Isles Coast and Countryside Trust (ACT) in regard to the provision of Bute and Cowal climate change satellite pods. ACT has consulted with local organisations on how best to deliver on the Crown Estate proposal which falls under the category of Environment and Page 63
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Community and the following changes to the funding are proposed: 1. £10,000 grant to Bute Community Forest to extend community engagement by providing e-bike and mountain bike access to the community forest, working with Fyne Futures. The funding will pay for a handover station for the transition between e-bikes, which are unsuitable in the forest, to mountain bikes. This would enable the journey from Rothesay to be car free and would also provide a ‘carbon free’ product. If the funding envelope allows, a small pontoon will also be constructed near Moss Wood. This £10,000 funding would therefore go directly to Bute Community Forest. 2. Remaining £40,000 grant to ACT to assist in enhancing the existing Dunoon Bike Bothy project including delivery of secure bike storage, working in partnership with the Dunoon Bothy to deliver on activities similar to the successful eco hub in Blarbuie Woodland, Lochgilphead, including a tool library, food share initiative, providing zero carbon information and supporting the development of cycling in the area. These activities aim to promote reuse/refurbish of key products, diverting them from landfill and would also be a partnership with local organisations 3.0 RECOMMENDATIONS 3.1 It is recommended that Policy and Resources Committee: a) Agree to the allocation of the Place Based Investment funding for 2022/23 to the projects in Table 1, paragraph 4.7. b) Agree to the allocation of the Crown Estate funding for 2022/23 to the projects in Table 1, paragraph 4.7. c) Agree to the amendment to the proposals relating to the award of £50,000 of CES funding to ACT as detailed under paragraph 2.5. d) Note that a further report on the allocation of the remaining unallocated £322,486 Place Based Investment and £397,453 Crown Estate Funding for 2022/23 will be brought forward to the August meeting of the Policy and Resources Committee. 4.0 DETAIL 4.1 The 2020 Programme for Government committed to establishing a Place Based Investment Programme (PBIP), linking and aligning place-based funding initiatives. Scottish Government confirmed that Local Government would be receiving a share of the PBIP funding over a 5 year period, including the initial year 2021/22, to support and advance place-based investment and build on the strong partnership currently existing through the Regeneration Capital Grant Fund. As has been the case this year, Argyll and Bute Council will receive a share of this capital funding over the next 4 years. Page 64
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4.2 Argyll and Bute Council’s allocation for year 1 (2021/22) was £821,000. The Council’s allocations for this year (2022/23) is £712,000. Forthcoming years have not yet been determined but if the same percentage were to be applied against the current total fund figures that have been given, it is estimated that the Council’s allocation for years 3-5 could be in the region of £500,000 per year. However, there is no absolute certainty to these figures at this time. 4.3 The main objectives of the PBIP are: to link and align place-based initiatives, and establish a coherent local framework to implement the Place Principle; to support place policy ambitions such as town centre revitalisation, community led regeneration, 20 minute neighbourhoods and Community Wealth Building; to ensure that all place-based investments are shaped by the needs and aspirations of local communities; and, to accelerate our ambitions for net zero, wellbeing and inclusive economic development, tackling inequality and disadvantage, community involvement and ownership. 4.4 The challenge in respect of the fund is to identify projects that meet the place- based criteria, and are able to be delivered within short timeframes with our limited staff resources. Projects to be delivered under the 2022/23 allocation need to be delivered in a 9 month period and therefore need to be sufficiently well advanced in terms of their development, straightforward to deliver and/or be ready to start on site, or be able to be delivered by a third party. 4.5 Under the PBI allocation for 2021/22 the council supported a total of 8 projects and prior to the commencement of PBI funding the council supported a total of 28 projects under the previous SG Town Centre Funding stream. As a number of those projects being supported through the previous year’s allocation are ongoing, the key issue has and continues to be the availability of internal resources to develop and deliver new projects. 4.6 As with last year’s PBI funding the focus for this year’s PBI fund has to be on projects that are at delivery stage, and can definitely be delivered. The projects need to fit with the PBI criteria, have the ability to build on previous investments, and require the resources to be in place to ensure delivery within the timescales required by the Scottish Government. The initial projects identified in Table 1 have therefore been selected on the basis that they are focusing on existing projects that are well advanced and there is a time constraint associated with them and they can be readily taken forward to meet the PBI timelines, and for the added value that they can offer to our communities. 4.7 As members will also be aware the Council receives an allocation of funding from Crown Estate (CE) Scotland each year and whilst confirmation is still awaited as to the actual allocation for 2022/23 it is estimated that there is still Page 65
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sufficient funding that would allow funding from CE to support the delivery of a number of time critical projects. The proposed projects and associated allocation for both PBI and CE are listed below in Table 1 Table 1 Place Based Investment & Crown Estate Funding 2022/23 Allocation Project Consideration Fit with Criteria Estimated Funding Required 2022/23 Place Based Investment 2022/23 Crown Estates (total award still to be confirmed estimate of £1million)) Lochgilphead CARS Priority Buildings To be provided as third party grant to support the repair of an additional two Priority Buildings; to substantially enhance project outcomes, safeguard historic buildings and visually lift the area. Strong fit with PBI – adds value to existing funding secured via Historic Environment Scotland £200,000 £200,000 £0 Helensburgh Pier – Enhanced hard landscaping and lighting of the masonry pier section of Helensburgh Pier to improve its visual appearance and further enhance this part of the waterfront, including the views looking out from the swimming pool and gym. By ensuring that the surfacing is seamless and matches the quality and finishes of the Council’s Waterfront development project, it will visually lift this area of the townscape at this point, increase pedestrian safety and add value to the investment already taking place. Fits well with PBI and CE criteria – Place , 20 min neighbourhood Previous £163,000 PBI and £92,710 CE award giving Total of £255,710, based on estimate back in December 2021. Subsequent increase costs based on estimated figures from June 2022. New figure is significantly £89,514 £89,514 £0 Page 66
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higher reflecting rises in construction costs and is now £345,224 which leaves £89,514 of a shortfall. Contract ready to be let. Tobermory Harbour Wall and Railings, Phase 2 To increase the wall height and introduce new railings to Tobermory Harbour as the next phase of harbour improvements; to mitigate against the effects of climate change, ensure the retail core is better protected and safer for pedestrians. Fit with PBI and CE – Phase 1 was supported by CE and TCF £450,000 (apply to IP for £250,000) £100,000 £100,000 Jura Passenger Ferry infrastructure The proposal is to replace the existing ladder system with a small pontoon and gangway boarding arrangement that can be semiportable and deployed on the Feolin side when required. The funding would be used to provide the community with the means to safely board and exit the small replacement craft used as a passenger only link when the larger vessels cannot sail. The access needs to provide a safe sloped access and floating staging area for passengers which can accommodate the small craft alongside. Fit with CE criteria Critical infrastructure that will provide inclusive access provision for Jura community and other ferry users £100,000 £0 £100,000 TOTALS £389,514 ( PBI 2022/23 is £712,000 Leaving £322,486 to still be allocated ) £200,000 (if approved £397,453 remaining for 22/23 assuming estimated £1million allocation ) Page 67
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4.8 With the Scottish Government having committed PBI funding for the next three years, it is important to plan how best to take full advantage of the funding going forward as well as CE future funding. In advance of the third round of funding, key projects could be identified to allow time for these to be fully developed to align with the programme and ensure that projects have the best chance of being delivered. However it may also be considered that it is beneficial to retain flexibility in regard to future PBI and CE funding to allow the Council the ability to meet shortfalls in funding relating to existing projects and complement existing investments. 5.0 CONCLUSION 5.1 The relatively tight timescales associated with both of these funds but more specifically the PBI fund, combined with the large number of existing projects being delivered by the council, make for a challenging place based investment programme. The initial projects recommended in this report are focused on those that are time critical and fit well with the net zero ambitions of the Council and Government together with the 20 minute neighbourhood/wellbeing context. The proposed projects build on investment already in place, or projects identified through existing Place based work such as the Lochgilphead CARS or Helensburgh visioning exercises. 6.0 IMPLICATIONS 6.1 Policy – There is a need to comply with the Scottish Government ‘place’ policies as outlined in paragraph 4.3 and associated guidance for the Fund as well as the Crown Estate fund guidance outlines in paragraph 1.7 6.2 Financial – The Scottish Government expect that any uncommitted PBI funds by 1st April 2023 will be returned to Scottish Government. 6.3 Legal – None 6.4 HR – Resourced from existing staff 6.5 Fairer Scotland Duty: 6.5.1 Equalities - protected characteristics - None 6.5.2 Socio-economic Duty – The Fund will support local economies through place- based centre regeneration activity. 6.5.3 Islands – The Fund will support island economies through place-based regeneration activity and has the potential to align with, and add value to, the Islands Infrastructure Investment Fund. 6.6. Risk – In order for each PBI project to progress to delivery stage, a fully let contract must be in place by 31st March 2023. The projects will be continually monitored to ensure that funds can be reallocated to another Place Based Investment Fund project to avoid having to return any uncommitted funds to Page 68
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Scottish Government at this time. 6.7 Climate Change – the projects deliver towards net zero and address Argyll and Bute’s carbon footprint. 6.8 Customer Service - None Executive Director with responsibility for Development and Economic Growth: Kirsty Flanagan Policy Lead for Economy and Rural Growth: Councillor Robin Currie 20 May 2022 For further information contact: Fergus Murray, Head of Development and Economic Growth Fergus.Murray@argyll-bute.gov.uk Audrey Martin Transformational Projects and Regeneration Manager Audrey.Martin@argyll-bute.gov.uk Page 69
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 16 JUNE 2022 HISTORIC ENVIRONMENT SCOTLAND HERITAGE AND PLACE PROGRAMME - OPPORTUNITY FOR PLACE BASED HERITAGE FUNDING 1.0 EXECUTIVE SUMMARY 1.1 The purpose of this report is to alert the Council to the new, Historic Environment Scotland (HES) Heritage & Place Programme and to seek endorsement for the submission of an expression of interest (EOI). 1.2 Announced by HES on 30th March 2022, the Heritage & Place Programme (H&PP) is a competitive, area-based funding programme that aims to contribute to the development of vibrant and sustainable places in Scotland, through community-led regeneration of the historic environment. It supports the development and delivery of heritage focused schemes within conservation areas, or distinctive heritage areas with local authority recognition, up to the value of £1.5m, depending on the size of the scheme and level of match funding. Match funding will be required from the council for both the development stage were an EOI to be submitted and successful and further match funding would be required for the delivery stages were the development stage bid submitted and approved. The level of match funding for required for the delivery stage (over 5 years) would be much great. 1.3 Expressions of interest are invited until 31st July 2022; submissions to which are expected to outline the proposed heritage area and indicative scheme. The EOI application form is attached as Appendix 1. 1.4 Should HES support the outline proposal, a Development Phase application would be invited to be submitted by 15th December 2022, and if the Development Phase application is subsequently approved, the council would be invited to work up the project in full, and to submit a formal application within the following twelve month period. Should the resulting final application be approved, this would see the project delivered with H&PP grant funding and the necessary match funding over a period of up to five years (potentially 2024 to 2029). 1.5 As part of the Development Phase application, the council can apply for a Development Grant, normally of up to 50% of eligible costs, for research, investigations, and reports to be produced during your Development Phase, as well as a dedicated Development Officer. The council would require to cover the short fall in the development costs, estimated to be £60,000, total development costs are anticipated to be £120,000. Crown Estate funding may be a possible source for the council funding. In regard to the Delivery phase Page 71 Agenda Item 7
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HES grant funding would cover projects, activities, and management costs to be undertaken during the Delivery Phase. The percentage of HES grant will be assessed in relation to the local area context and the overall match funding package and value for money. Again match funding would be required including funding from the Council. In previous CARS schemes council funding has varied from £300,000- £500,000, although it is worth noting that buildings costs have risen significantly. The Council funding has previously been made up of a mix of capital funding as well as private sector housing grant funding. Contribution from building owners would also forms part of the match funding package. There is the possibility for council capital funding to come from future Crown Estate funding and it would be spread over a 5 year period 1.6 The council has previously secured 8 rounds of funding from HES for heritage-led regeneration projects, under the Conservation Area Regeneration Scheme (CARS) programme, which the H&PP replaces. Funding successfully secured to date equates to £6.6m, not taking into account match funding secured or wider economic benefit to the local communities. The funding to date has, and will safeguard historic buildings and enhance the sense of Place and town centres of Campbeltown, Rothesay, Inveraray, Dunoon, Lochgilphead and Helensburgh. In many of the CARS schemes there has been close working and alignment across the council and particularly with colleagues in housing and building standards to ensure the greatest benefit to the area and the fabric of the town. 1.7 In considering the focus and criteria of the new funding programme and taking into account the towns that have previously been the focus for CARS funding, it is recommended that the Council consider a possible EOI submission for either Tarbert, Loch Fyne, or Tobermory, in the style of a CARS. In order to assess which would have the strongest chance of success an analysis of each against the criteria will be undertaken, and also discussed with colleagues in the council and at HES. Given the competitive nature of the fund the decision has to be based on the town that can offer the strongest fit. 1.8 There is also an additional opportunity to apply to the National Lottery Heritage Fund (NLHF) under the Grants for Heritage programme. An EOI is also required as the first step in applying to this fund, and if invited to continue, also requires a further 2 stage process. A submission to NLHF will depend on the scale of the project and fit with their programme. RECOMMENDATIONS It is recommended that Members: i) Agree that an expression of interest be made to Historic Environment Scotland for the Heritage and Place Programme, and potentially also to National Lottery Heritage Fund for the Grants for Heritage Programme if applicable for the conservation town that is considered to best fit with the Page 72
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new criteria and to stand the best chance of success bearing in mind that this will be a highly competitive process. ii) Agree that delegated authority be given to the Executive Director of Development and Infrastructure to submit subsequent applications to the heritage funders, should the council be invited to do so. iii) Agree to the principle of funding from the Council to support the delivery of the Development Phase should an EOI be successful and a development grant from HES be offered, normally of up to 50% of eligible costs. It is estimated that Council funding would be £60,000 for the development phase works. iv) Agree to the principle of match funding from the Council for the delivery phase were a stage one development bid to go forward and be successful. Note that a future report will be brought back to members for their consideration were this to be the case. . Page 73
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 16 JUNE 2022 HISTORIC ENVIRONMENT SCOTLAND HERITAGE AND PLACE PROGRAMME - OPPORTUNITY FOR PLACE BASED HERITAGE FUNDING 2.0 INTRODUCTION 2.1 This report seeks to provide members with information relating to the new Heritage and Place Programme, which provides an opportunity for place based heritage funding. 2.2 This report also asks that members agree to the submission of an expression of interest (EOI) in relation to the respective heritage regeneration funding programmes of Historic Environment Scotland and possible to National Lottery Heritage Fund if applicable, with a view to supporting the development of either a Tarbert, or Tobermory, Heritage and Place Project in the style of a Conservation Area Regeneration Scheme (CARS). 3.0 RECOMMENDATIONS 3.1 It is recommended that Members: i) Agree that an expression of interest be made to Historic Environment Scotland for the Heritage and Place Programme, and potentially also to National Lottery Heritage Fund if appropriate for the Grants for Heritage Programme for the conservation town that is considered to best fit with the new criteria and stand the best chance of success bearing in mind that this will be a highly competitive process. ii) Agree that delegated authority be given to the Executive Director of Development and Infrastructure to submit subsequent applications to the heritage funders, should the council be invited to do so. iii) Agree to the principle of funding from the Council to support the delivery of the Development Phase should an EOI be successful and a development grant from HES be offered, normally of up to 50% of eligible costs. It is estimated that Council funding would be up to £60,000 for the development phase. iv) Agree to the principle of match funding from the Council for the delivery phase were a stage one development bid to go forward and be successful Page 74
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and a Delivery Phase grant offered. Note that a future report will be brought back to members for their consideration were this to be the case. 4.0 DETAIL 4.1 On 30th March 2022, Historic Environment Scotland (HES) announced a new place based heritage fund. The new Heritage & Place Programme (H&PP) is a competitive area-based funding programme that aims to contribute to the development of vibrant and sustainable places in Scotland, through community-led regeneration of the historic environment. It supports the development and delivery of heritage focused schemes within conservation areas, or alternatively distinctive heritage areas with local authority recognition. 4.2 Grants for the delivery of the programme will typically range from £750k to £1.5m, depending on the size of the scheme and level of match funding. The grant priorities are as follows: Enable communities to prioritise investment in local historic environment assets. Renew communities’ sense of place and appreciation of their local historic environment. Strengthen the resilience of local historic environment assets and build the capacity of communities to look after them. Build a sustainable base of traditional skills for the local area. Contribute to climate action outcomes for the historic environment. Result in sustainable and inclusive benefits for the local economy. 4.3 The H&PP supersedes the Conservation Area Regeneration Scheme (CARS) funding, which HES made available over eight rounds between 2007 and 2019. The final CARS projects, which seek to use heritage as a driver for regeneration, are due to conclude on 31st March 2025. 4.4 Argyll and Bute Council have successfully delivered CARS projects in Campbeltown, Inveraray and Rothesay to date, and currently have another four CARS projects in delivery: Rothesay Townscape Heritage (phase 2) and Dunoon CARS will conclude on 31st March 2023; and Lochgilphead CARS, and Helensburgh CARS will conclude on 31st March 2025. 4.5 Over the course of the twelve year period, the council has successfully secured 8 rounds of CARS funding, equating to £6.6m, and which totals £23m of investment made to 6 key Argyll and Bute town centres when match funding is also taken into account. 4.6 Due to the success of the council’s CARS projects to date, there is opportunity to use this experience in supporting the potential for a seventh CARS style of project. The town centre locations within Argyll and Bute with conservation areas, which have not previously been the focus of a CARS and which could therefore fit well with the scheme, are Tarbert and Tobermory. In order to determine which would be the priority for this current call further discussion is Page 75
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required with colleagues at HES and within the council and further work requires to be undertaken to determine which would stand the best chance of success as it is anticipated that this will be a very competitive process 4.7 CARS funding was generally open for applications every two to three years, and although it is anticipated that H&PP will be open for applications on a regular basis, at this stage HES are unable to confirm when a second round may be announced and as such taking the opportunity to apply at this stage is recommended. 4.8 Much like a CARS, there is an expectation that the H&PP delivery phase will not exceed 5 years, and a delivery scheme is likely to consist of: Repair and resilience capital projects which may involve the reuse of historic environment assets using appropriate techniques and materials. Traditional skills training and materials activities which target local needs. Community heritage activities. A management and maintenance strategy to include activities which will help to build capacity within communities to value and look after the historic environment for the longer term. 4.9 The programme has a two-stage application process, which includes a Development Phase, to enable a meaningful place-making approach with strong community engagement. The process is set out as follows: 1) Deadlines for expression of interest – 31st July 2022. 2) Should HES support the project outline, the council will then be invited to submit an application for a Development Phase. Up to 50% of the development phase cost can be supported by HES through the Fund. 3) Deadlines for the Development Phase application – 15th December 2022. 4) Should HES approve the development phase application, the council will be given up to 12 months to work up and submit an application for the Delivery Phase. The Development Phase would be expected to commence April 2023. 5) The deadline for the Delivery Phase application – to be submitted no later than 12 months from the development phase award. 4.10 There is also an opportunity to apply to the National Lottery Heritage Fund’s (NLHF), Grants for Heritage Programme. This too requires an expression of interest in the first instance, and further to review and indicative support for the project outline from NLHF, a subsequent application would be invited. For potential joint funding, the NLHF would consider applications between £0.75m and £1.5m, and also requires a three stage application process. 4.11 It should be noted that if the council was successful in any EOI that is submitted there will be a requirement to identify Council funding towards the Development Phase costs. HES would provide up to 50% grant funding. It is estimated that Page 76
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development costs would be £120,000 requiring £60,000 of match funding from the Council. In addition it should also be noted that being invited to submit an application for the Development Phase or awarded a Development Phase grant, would not guarantee that the council would be successful at Delivery Phase application stage. It should also be noted that if successful at the development phase that the council would require to commit to matching funding for the Delivery Phase, spread over a 5 year period. It is difficult to estimate costs at this early stage but previous levels of match funding from the council in regard to CARS has been in region of £300,000 - £500,000 with Council funding being made up of a mix of capital funding as well as private sector housing grant funding. Contribution from building owners would also forms part of the match funding package. There is the option for council capital funding to come from future Crown Estate funding and it would be spread over a 5 year period 5.0 CONCLUSION 5.1 The place based heritage funding offered by Historic Environment Scotland (HES) and National Lottery Heritage Fund (NLHF) provides significant opportunity to support the safeguarding and restoration of key heritage buildings and structures within the town centres of either Tobermory or Tarbert. 5.2 It is proposed to undertake further work to understand which of the 2 town centres would fit best with the Heritage and Place Programme criteria and which would provide the council with the best chance of securing heritage regeneration funding, and subsequently submit an expression of interest to HES by 31st July 2022 and potentially also to NLHF depending on the likely scale of the potential project and fit with criteria. 6.0 IMPLICATIONS 6.1 Policy – The submission of an EOI to this new programme will comply with Council established policy. 6.2 Financial – There is no initial cost to submit an expression of interest (EOI). However should the EOI be successful and the council is asked to progress to the development phase and a development grant is offered there will be a requirement for Council funding to assist with the development costs. The Council funding requirement is estimated to be £60,000 and could come from Crown Estate funding. It should also be noted that if successful at the development phase that the council would require to commit to matching funding for the Delivery Phase, spread over a 5 year period. It is difficult to estimate costs at this early stage but previous levels of match funding from the council in regard to CARS has been in region of £300,000 - £500,000 with Council funding being made up of a mix of capital funding as well as public sector housing grant funding. Contribution from building owners would also forms part of the match funding package. There is the option for council capital funding to come from future Crown Estate funding and it would be spread over a 5 year period Page 77
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6.3 Legal – None arising from this report, however legal agreements may have to be entered into with Funders should the projects be supported. 6.4 HR – Staff resources will be required to undertake the necessary work required to undertake further assessment work and to also submit the EOI. If the EOI was successful and HES funding secured for the development phase this would include costs towards the appointment of an officer to take forward the development phase. 6.5 Fairer Scotland Duty: 6.5.1 Equalities - protected characteristics - None 6.5.2 Socio-economic Duty – the new programme is designed to offer improved socio-economic opportunities for local communities. 6.5.3 Islands – the project if focused on an island will be designed to have a positive implication. 6.6 Climate Change – It is a requirement of the funding to fully consider, and propose mitigation measures to the effects of climate change. 6.7 Risk – The three stage process and the possibility of two separate funders means the risk to the ability of aligning is more challenging however HES and HLHF have stated that they will work closely together to make this as aligned as possible. It is also reliant on strong support from the local community and buildings owners including businesses. It is also anticipated that the process will be highly competitive and the EOI may not be successful. 6.8 Customer Service - None Executive Director with responsibility for Development and Economic Growth: Kirsty Flanagan Policy Lead for Economy and Rural Growth: Councillor Robin Currie Policy Lead for Islands and Business Development: Councillor Liz McCabe 3rd May 2022 For further information contact: Fergus Murray, Head of Development and Economic Growth Fergus.Murray@argyll-bute.gov.uk Lorna Pearce, Senior Economic Regeneration Officer lorna.pearce@argyll-bute.gov.uk Page 78
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Appendix 1 – Heritage and Place Programme, Expression of Interest Application Form Page 79
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HPP2022-1114 Application Preview General Information Scheme Area Details Application ID HPP2022-1114 Application Type Heritage and Place Programme Organisation Information Argyll and Bute Council Kilmory Lochgilphead Argyll, Argyll and Bute, PA31 8RT Phone: 0-170-050-1374 Organisation Type: Local Authority Contact Name Lorna Pearce Kilmory Lochgilphead Argyll Role: Senior Economic Regeneration Officer Phone: 0-170-050-1374 x Email: lorna.pearce@argyll-bute.gov.uk Scheme Title Local Authority Area Argyll and Bute Will your scheme be delivered or administered jointly with another organisation? No HPP2022-1114 Page 1 of 5 Page 81
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Name of Town or City (where the scheme will take place) Area Location (approximate postcode and datazone ref. numbers) Does the Scheme Area lie within a recognised heritage area designation? Conservation Area Name of conservation area Date of conservation area designation Date of the most recent conservation area boundary review, if applicable Where the area is not a designated conservation area, please give a brief description of the area, its status, and the name used to describe it. Has a conservation area or area character appraisal been produced? No If no, please give date when this will be undertaken. Has a conservation area or area management plan been produced? No If no, please give date when this will be undertaken. Please tell us why you think the heritage in this area is important, including who values it and why, and why this area has been prioritised for funding over other conservation/heritage areas in the local authority or national park authority area. HPP2022-1114 Page 2 of 5 Page 82
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Estimated Costs Please outline the needs and opportunities your scheme will address within the local area. Provide a description of your scheme proposal, including the key projects and activities to be delivered. Approximately when will your area scheme start and finish? Proposed Development Phase start date (month/year) Proposed Development Phase end date (month/year) Proposed Delivery Phase start date (month/year) Proposed Delivery Phase end date (month/year) How much do you estimate that your scheme is likely to cost overall (for both Development and Delivery Phases)? What are your estimated costs for the Development Phase? How much funding will you be requesting from HES for the Development Phase? How much funding from all other sources (including the local authority) will be contributed to the Development Phase? HPP2022-1114 Page 3 of 5 Page 83
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Supporting Documents What are your estimated costs for the Delivery Phase? How much funding will you be requesting from HES for the Delivery Phase? How much funding from all other sources (including the local authority) will be contributed to the Delivery Phase? Please tell us about anything else, that has not already been covered here, in support of your scheme expression of interest. Please upload your supporting documents for your Expression of Interest here. Map of Scheme Area Governing document Accounts Joint Delivery Agreement HPP2022-1114 Page 4 of 5 Page 84
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Images of Scheme Area Area Character Appraisal Area Management Plan Other HPP2022-1114 Page 5 of 5 Page 85
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 16 JUNE 2022 STRATEGIC EVENTS AND FESTIVALS FUND – ROUND 4.2 2022/2023 1.0 EXECUTIVE SUMMARY 1.1 The purpose of this report is to update Members on the further call for applications in respect of Round 4 2022/23 (referred to as Round 4.2) of the Council’s Strategic Events and Festivals Fund (SEF). The report provides details of the bids submitted, and recommendations regarding all the eligible bids being put forward to receive grant funding. 1.2 At the February 2021 Council budget meeting the Council agreed funding of £90,000 for an SEF Round 4 (2022/23), to be augmented by any underspend in 2020/21 and similarly that the SEF Round 3 underspend would be earmarked and allocated to 2023/2024. The total budget available to be allocated for Round 4 2022/23 was £150,164. 1.3 Under the initial Round 4 call a total of 13 applications were received of which nine were eligible and were approved by members at the Policy and Resources (P & R) Committee on 17 February. The nine awards amounted to a total eligible request of £95,300 which left a budget underspend, (which cannot be fully clarified until all events have taken place), of circa £55k. As a consequence Members agreed at the same P & R Committee to issue a further call for applications with a deadline of April 2022, referred to as Round 4.2. 1.4 Round 4.2 - 2022/23 opened on 25 Feb April 2022 and closed on 15 April 2022. A total of 8 applications were received of which 7 are eligible and amount to a total eligible request of £29,800. Applications can be viewed at Appendix 1. If members agree to the awards as detailed in Appendix 1 this means that between the initial Round 4 call and Round 4.2 call a total of 16 applications will have been successful amounting to a total grant award of £125,100. This still leaves a current budget underspend of circa £25,064, which cannot be fully clarified until events have taken place. 1.5 Events and festivals contribute significantly to our local economy and communities across Argyll and Bute and is a key part of the economic recovery plan for the area however like other key sectors it has faced significant challenges in the past two years as a consequence of Covid. Many of our strategic events and festivals have had to either cancel or significantly reduce in scale. The sector is currently in a period of recovery and continues Page 87 Agenda Item 8
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to be fragile and is recognised as such by Scottish Government measures to support the sector. The Council’s annual SEF funding plays a key role in the recovery of the sector and this is clearly demonstrated in the response to both the initial Round 4 call and the Round 4.2 call with a total of 21 applications being submitted and approval being given to a total of 16 events. RECOMMENDATIONS It is recommended that Members of the Policy and Resources Committee: a) Agree to the award of eligible SEF Round 4.2 grants amounting to £29,800 to a total of 7 events as detailed in Appendix 1, Table 1. b) Agree that any SEF grant offer only be formally issued upon confirmation from the individual event organisation that the event is formally confirmed and is definitely going ahead and still meets the SEF Round 4 criteria. These grants are detailed in Appendix 1, Table 1. c) Agree not to award ineligible SEF Round 4.2 grant as detailed in Appendix 1, Table 2. d) Agree to continue delegation of powers to the Executive Director with responsibility for Development and Economic Growth to allow any subsequent amendment to existing grant requests to be made brought about as a consequence of future Covid restrictions regarding holding of events/mass gathering in 2022/23. Any amendment to a current grant request/offer would only be considered if the amendment related to either the same level or a reduction in the request from and constitute up to 75% of legitimate and eligible expenditure. e) Note that £25,064 would be left to be earmarked towards a future SEF round as previously agreed by Committee in February 2022. Page 88
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 16 JUNE 2022 STRATEGIC EVENTS AND FESTIVALS FUND – ROUND 4.2 2022/23 2.0 INTRODUCTION 2.1 The purpose of this report is to update Members on the further call for applications in respect of Round 4 2022/23 (referred to as 4.2) of the Council’s Strategic Events and Festivals Fund (SEF). The report provides details of the bids submitted, and recommendations regarding the eligible bids being put forward to receive grant funding. 2.2 In recognition of the importance of the events sector to the economy of Argyll and Bute the SEF Fund was agreed to be set up by the Council and was firstly taken forward as a competitive fund in 2019/20. A critical element of the application requirement is that the event or festival be held in Argyll and Bute and be of a strategic nature, i.e. having the capacity to attract people from outwith the area, with a focus on national and international visitors, and generate significant economic benefits for the local community. To illustrate this, the estimated economic impact in the area from the funded events and festivals pre- Covid in Round 1 was circa £7.5m. 2.3 There is no doubt that Covid has had an unprecedented negative impact on the events and festivals sector with no events taking place in Argyll and Bute in 2020/21 and only five out of ten that were awarded grant funding under Round 3, taking place in 2021/22, many in a scaled back format. The Council has acted promptly to support the industry by complementing event cancellation support at a national level given by Event Scotland, and by earmarking and allocating underspend from SEF Round 2 and SEF Round 3 to help support future Rounds. The industry continues to face uncertainty and unpredictability however it is hoped that the sector is on the road to recovery and events will be able to go ahead this year. 2.4 To continue to assist with the economic recovery of the events and festivals sector across Argyll and Bute it is proposed that any underspend from Round 4.2 – 2022/23 is earmarked and used to augment a future SEF round for 2024/2025 – Round 6. 2.5 The total budget available for SEF Round 4 2022/23 was £150,164. Following the approval of the 9 eligible applications under the Round 4 first call a total of £95,300 was agreed by P & R committee leaving circa £55k for Round 4.2 call. A total of 8 applications have now been received, 7 are considered eligible and being recommend for approval amounting to a total request of £29,800. Page 89
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Unfortunately, one of the 8 applications does not fit the criteria and is therefore ineligible. The applications are listed on Appendix 1 under the headings Table 1 and Table 2. 3.0 RECOMMENDATIONS 3.1 It is recommended that Members of the Policy and Resources Committee: a) Agree to the award of eligible SEF Round 4.2 grants amounting to £29,800 to a total of 7 events as detailed in Appendix 1, Table 1. b) Agree that any SEF grant offer only be formally issued upon confirmation from the individual event organisation that the event is formally confirmed and is definitely going ahead and still meets the SEF Round 4 criteria. These grants are detailed in Appendix 1, Table 1. c) Agree not to award ineligible SEF Round 4.2 grant as detailed in Appendix 1, Table 2. d) Agree to continue delegation of powers to the Executive Director with responsibility for Development and Economic Growth to allow any subsequent amendment to existing grant requests to be made brought about as a consequence of future Covid restrictions regarding holding of events/mass gathering in 2022/23. Any amendment to a current grant request/offer would only be considered if the amendment related to either the same level or a reduction in the request from and constitute up to 75% of legitimate and eligible expenditure. e) Note that £25,064 would be left to be earmarked towards a future SEF round as previously agreed by Committee in February 2022. 4.0 DETAIL 4.1 The overarching aim of the Strategic Events and Festivals Fund is to support event organisers to enhance and grow their events with the result that more visitors are attracted to Argyll and Bute, providing substantial economic benefit to the respective areas. The fund will provide critical support in the economic recovery of the area and may prevent organisations and events from ceasing to operate. 4.2 SEF Round 4.2 - 2022/23 opened on 25 February and closed on 15 April 2022. A total of 8 applications were received of which 7 are eligible and amount to a total eligible request of £29,800. These applications can be viewed at Appendix 1 and show a range of events and festivals from across the area, and delivering a wide variety of event types, 4.3 One of the 8 SEF applications is ineligible as unfortunately it does not meet the criteria for SEF, the event is detailed at Appendix 1, Table 2. The event Page 90
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in question, Dark Skies Gigha Stargazing Festival, is a new event and seeks to take advantage of the fact that the Isle of Gigha is uniquely placed as a recognised Dark Sky Discovery site of Milky Way Class. The organisers have stated that it is proposed to grow this event over the next few years to attract visitors from across the UK and possible beyond however for the first year the focus is on the community of Gigha with only a very small number, 10 in total, indicated as coming from outwith the local area. The event in its current form cannot therefore be classed as strategic as it will not have the capacity to attract people from outwith the area, nor will it have a focus on national and international visitors, nor generate significant economic benefits for the local community. It has therefore not been possible to score the event against the key criteria such that it would allow this to be put forward for approval. This is not however to say that this event is not a good event and it is very much hoped that as the event grows and is able to reach a wider audience that it will be able to be considered for support from future SEF Rounds. 4.4 It is fully appreciated that strategic events and festivals are still facing an unprecedented set of extraordinary and challenging circumstances brought about as a result of Covid and that this has put a strain on the financial stability of many of the organisation however it is hoped, given the relaxation of all restrictions, that the outlook for Argyll and Bute strategic events in 2022, is looking much more positive at this point. 4.5 The impact of SEF Round 4 funding is fully recognised in assisting in the economic recovery of the area and the sustainability of the event organisers. To further aid recovery the Council previously agreed to earmark underspend to augment future rounds up to Round 5 2023/24, and to partial release of up to 75% SEF Grant to support legitimate and eligible expenditure incurred in relation to cancellation of events. 4.6 Whilst all restrictions have been lifted and the situation is looking much more positive for events and festivals it is appreciated that there is still a risk that things could change. It is therefore proposed that the support outlines above continues for cancelled events as previously agreed. Also, that any underspend from SEF Round 4.1 – 2022/23 is earmarked and used to augment a future SEF round for 2024/2025 – Round 6. The current estimated underspend based on Round 4 and round 4.2, which cannot be clarified until events have taken place, is circa £25,064 4.7 Event Scotland continue to support events through industry support funds and fully recognise the fragility of the sector and the need to assist recovery. It has recently launched a fund for event businesses affected by the Omicron variant and a new national programme for events taking place between April – December 2022. Council officers are in regular discussion with Event Scotland to ensure that funding awarded is complementary and does not duplicate Council funding. 4.8 In addition, officers will continue to liaise with event organisers who have successfully applied to SEF Round 4 2022/23 to provide information and support where appropriate. Page 91
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5.0 CONCLUSION 5.1 Round 4 SEF 2022/23 application and assessment process has been completed as per the guidance. Between Round 4 and round 4.2 call a total of 21 applications were received and a total of 16 events supported leaving an unallocated budget of £25,064 to be carried over to support Round 6. It is really encouraging to see the amount of applications received across Round 4 and also the amount of strategic events that the SEF Round 4 funding will be able to support during 2022. Many of those that applied are strategic events that had previously applied pre Covid and many are long standing events and it is excellent to see these being able to take place this year. Whilst the sector is still fragile it is hoped that the events sector will be able to start to rebuild itself this year and begin its recovery and there is no doubt that the continued support to the sector via future SEF funding will play a key part in this recovery. 6.0 IMPLICATIONS 6.1 Policy - The Council’s Economic Strategy supports the value of events and festivals for their positive impact on the economy 6.2 Financial - SEF Round 4 2022/23 budget is £150,164. Between SEF Round 4 & 4.2 calls 16 applications totaling £125,100 are being supported. This leaves a balance of circa £25,064 to be earmarked for augmenting SEF Round 6 2024/25. 6.3 Legal - Award letters and grant contracts will be issued as and when a decision is made and confirmation has been received that the event will go ahead. 6.4 HR - Resourced from existing staff 6.5 Fairer Scotland Duty - The Fund seeks to support the economic growth of areas. 6.5.1 Equalities - protected characteristics: None 6.5.2 Socio-economic Duty: The Fund seeks to support the economic growth of areas including a positive contribution to fragile areas. 6.5.3 Islands: The Fund seeks to support island economies by encouraging increased levels of visitors. 6.6 Climate Change - As part of the application process events have to demonstrate net zero and this is part of the scoring process. 6.7 Risk - The full effects of the impact of Covid is still unclear however we have seen the cancellation of events over the past two years and understand that the sector is extremely fragile. Page 92
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6.8 Customer Service - None Executive Director with responsibility for Development and Economic Growth: Kirsty Flanagan 28th April 2022 Policy Lead for Economy and Rural Growth: Councillor Robin Currie For further information contact: Fergus Murray, Head of Development and Economic Growth Fergus.Murray@argyll-bute.gov.uk Audrey Martin, Transformation Projects and Regeneration Manager Audrey.Martin@argyll-bute.gov.uk Page 93
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APPENDIX 1 Table 1 - SEF Round 4.2 Eligible Grant Applications Received April 2022 Event Recommended Funding Award £2,500 - £5,000 Fund Oban Winter Festival 5,000 Sea Change Powering Women in Film 2022 4,000 Bute Noir 4,000 Argyll Gathering Oban Games 4,800 Tiree Music Festival 5,000 Tarbert Music Festival 2,000 Helensburgh Christmas Festival 5,000 Total 29,800 Total SEF Round 4.2 Request 29,800 SEF Round 4 Previously Allocated 95,300 Total Allocated 125,100 22/23 Budget Remaining 25,064 Table 2 - SEF Round 4.2 Ineligible Grant Applications Received April 2022 Event Original Funding Requested £2,500 - £5,000 Fund Dark Skies Gigha Stargazing Festival 1,600 Total SEF Round 4.2 Request 1,600 Page 94
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 16 JUNE 2022 SCOTLAND LOVES LOCAL GIFT CARD UPDATE 1.0 EXECUTIVE SUMMARY 1.1 The purpose of this report is to update members on the Scotland Loves Local Argyll and Bute Gift Card Scheme. 1.2 The Argyll and Bute Love Local Gift Card formally launched in October 2021 and there are currently 110 businesses registered to accept the gift card as payment for goods and services throughout Argyll and Bute. Table 1 provides an overview of the transactions to date:- Table 1: Gift Card Transactions No. of cards sold to date Value of cards sold to date No. of in store transactions to date In store spend to date 235 £12,035.00 78 £2,563.55 1.3 At the full Council meeting on 28th April 2022, members agreed that the council commit a share of the Local Authority COVID Economic Recovery (LACER) Fund to: Issue Scotland Loves Local Gift Cards to households in receipt of Council Tax Reduction Scheme - £797,720; Fully fund Gift Card for 2022/2023 into 2023/2024 - £30,000; Marketing budget to promote Gift Card - £10,000. 1.4 A report will be brought back to members at a future date to update on the progress on the take up of the Argyll and Bute Love Local Gift Card. RECOMMENDATION Members of Policy and Resources Committee are invited: a) To consider the contents of the report and the progress of the Scotland Loves Local Gift Card scheme within Argyll and Bute. Page 95 Agenda Item 9
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 16 JUNE 2022 SCOTLAND LOVES LOCAL GIFT CARD UPDATE 2.0 INTRODUCTION 2.1 The purpose of this report is to update members on the Scotland Loves Local Argyll and Bute Gift Card Scheme. Members are invited to view the webpage at the link below, which provides details of the buisnesses within Argyll and Bute who have signed up, along with news and updates. Argyll and Bute Gift Card - Scotland Loves Local Gift Cards 3.0 RECOMMENDATIONS 3.1 Members of the Policy and Resources Committee are asked: a) To consider the contents on the report and the progress of the Scotland Loves Local Gift Card scheme within Argyll and Bute. 4.0 DETAIL 4.1 At their meeting of the 12th August 2021, Policy and Resources Committee agreed to the council taking part in the Scotland Loves Local Gift Card scheme and to signing the concordat in regard to participation in the fully funded trial period of one year. Members also agreed to give further consideration to the possibility of extending the scheme once sufficient information became available. 4.2 The Argyll and Bute Gift Card formally launched in October 2021. The scheme was a year-long pilot, funded by Scottish Government and administered through the Scotland’s Town Partnership, designed to boost local spending and support local businesses. 4.3 During the first year of the scheme, the council sought to promote the gift card amongst outlets, merchants and visitor attractions in the local authority area. Officers worked with local stakeholders such as BIDS, Chamber of Commerce and other community organisations to promote uptake of the card. 4.4 There are currently 110 businesses registered to accept the card as payment for Page 96
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goods and services throughout Argyll and Bute, including retailers, food and drink providers, health and beauty providers, leisure and accommodation providers as well as other service providers. At the time of writing this report, there are a further 28 businesses in the process of registering to join this Scheme. 4.5 Table 1 provides an overview of transactions to date:- Table 1: Gift Card Transactions No. of cards sold to date Value of cards sold to date No. of in store transactions to date In store spend to date 235 £12,035.00 78 £2,563.55 4.6 COSLA Leaders and Ministers agreed an £80m Local Authority COVID Economic Recovery (LACER) Fund available to Local Authorities, with the intent to support local economic recovery and cost of living impacts on low-income households. At the full Council Meeting of 28th April 2022, members agreed to commit a share of the LACER Fund to the Gift Card. The approved options were:- Issue Scotland Loves Local Gift Card to households in receipt of Council Tax Reduction Scheme - £797,720; Fully fund Gift Card for 2022/2023 into 2023/20224 - £30,000; Marketing budget to promote Gift Card - £10,000. 4.7 There are 6,531 households in receipt of the Council Tax Reduction Scheme, and who will receive a Gift Card worth £120. The Gift Card at present can be spent in a number of retailers such as Aldi, Boots, Marks and Spencer, and Semi Chem, as well as a host of independent retailers/businesses. Scotland’s Town Partnership is working to secure other retailers such as Co-op, PayPoint and SPARs in Argyll and Bute, which would allow recipients to spend their Gift Card in locally accessible food and energy providers. It is anticipated that the significant amount of LACER Funds committed will increase business registration across Argyll and Bute. 4.8 With the Gift Card now fully funded until 2023/2024, this will allow the scheme to gather momentum, encourage sign up by more retailers and increase purchase by consumers to spend money locally and support local economic recovery. Officers will work with Scotland’s Town Partnership to promote the benefits of the card and will continue to monitor the benefits of the card and report back to members. 4.9 The marketing allocation from the LACER funds will be used to encourage additional business registration across Argyll and Bute. Officers are currently considering options for spend and anticipate marketing activity will be rolled out from the summer months. 4.10 A report will be brought back to members at a future date to update on the progress on the promotion and take up of the Love Local Gift Card in Argyll and Bute. Page 97
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5.0 CONCLUSION 5.1 Members of the Policy and Resources Committee are asked to consider the contents of the report and the progress of the Scotland Loves Local Gift Card scheme within Argyll and Bute. 6.0 IMPLICATIONS 6.1 Policy – The Gift Card supports Scottish Government’s ‘place’ policies, particularly the 20 minute neighbourhood concept. 6.2 Financial – Council has committed a share of LACER funding toward purchase, continuation and promotion of the Gift Card. 6.3 Legal – None. 6.4 HR – It should be noted that work to undertake the promotion of the Shop Local Card will place an additional call on officer time within the Development and Economic Growth Service and the council’s Communications Team. 6.5 Fairer Scotland Duty: 6.5.1 Equalities - protected characteristics – None. 6.5.2 Socio-economic Duty – Council has committed to £797,720 to provide Gift Cards to individuals in receipt of Council Tax Reduction Scheme. The cards support local economies through encouraging local spend. 6.5.3 Islands – The Gift Card supports the economy of island communities through encouraging local spend. 6.6. Climate Change – The Gift Card supports Climate Change objectives through encouraging local spend. 6.7 Risk – Ensuring commitment of £797,720 towards purchase of Gift Card will be spent. 6.8 Customer Service – None. Executive Director with responsibility for Development and Economic Growth: Kirsty Flanagan Policy Lead for Economic and Rural Growth: Councillor Robin Currie 6 May 2022 For further information contact: Fergus Murray, Head of Development and Economic Growth Fergus.Murray@argyll-bute.gov.uk Audrey Martin, Transformation Projects and Regeneration Manager Audrey.Martin@argyll-bute.gov.uk Page 98
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Policy and Resources Committee Work Plan 2022-23 This is an outline plan to facilitate forward planning of reports to the Policy and Resources Committee. Date Report Title Dept/Section How Often? Date Due Comments 16 June 2022 Budget Outlook 2023-24 to 2027-28 Financial Services Key Performance Indicators FQ4 2021/22 Customer Support Services Place Based Investment and Crown Estate Fund 2022/23 – Projects and Allocation Development and Economic Growth Historic Environment Scotland Heritage and Place Programme – Opportunity for Place Based Heritage Funding Development and Economic Growth Strategic Events and Festivals - Round 4.2 – 2022/2023 Development and Economic Growth Scotland Loves Local Gift Card Scheme Development and Economic Growth Date Report Title Dept/Section How Often? Date Due Comments 11 August 2022 Financial Report Monitoring Pack Financial Services Every meeting except May Amended scheme for the establishment of community councils in Argyll and Bute: consultation feedback Legal & Regulatory Support Key Performance Indictors FQ1 – 2022/2023 Customer Support Services Place Based Investment Development and Economic Growth Budget Outlook 23-24 to 27-28 Financial Services Page 99 Agenda Item 10
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Policy and Resources Committee Work Plan 2022-23 Future Items – Date to be determined. Climate Change Board Update Papers Decarbonisation Action Plan Commercial Services Page 100