Agenda Document Pack - Midlothian Council - 22/09/2026
Midlothian Council · 22 September 2026
Back to Midlothian Council — 22 September 2026 and its agenda
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Notice of Meeting and Agenda Midlothian Council Venue: Normandy Court/ Hybrid, Normandy Court, Normandy Drive, Dalkeith, EH22 1GJ Date: Tuesday, 22 September 2026 Time: 11:00 Executive Director : Place Contact: Clerk Name: Democratic Services Clerk Telephone: Clerk Email: democratic.services@midlothian.gov.uk Further Information: This is a meeting which is open to members of the public. Privacy notice: Please note that this meeting may be recorded. The recording may be publicly available following the meeting. If you would like to know how Midlothian Council collects, uses and shares your personal information, please visit our website: www.Midlothian.gov.uk Page 1 of 260
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1 Welcome, Introductions and Apologies 2 Order of Business Including notice of new business submitted as urgent for consideration at the end of the meeting. 3 Declaration of Interest Members should declare any financial and non-financial interests they have in the items of business for consideration, identifying the relevant agenda item and the nature of their interest. 4 Deputations No items for discussion 5 Minutes 5.1 Minute of the Midlothian Council meeting of 23 June 2026 - submitted for approval 5 - 34 Private Minute Addendum of the Midlothian Council meeting of 23 June 2026 - submitted for approval 5.2 Minute Volume Index - submitted for consideration 35 - 36 5.3 Public Action Log 37 - 40 Private Action Log 6 Questions to the Council Leader No items for discussion 7 Motions 7.1 Forces Children’s Rights Charter 41 - 42 7.2 Equipped for Learning (EFL) Programme 43 - 44 7.3 Clean, Safe and Respectful Communities 45 - 46 8 Public Reports 8.1 Financial Monitoring 2026/27 - General Fund Revenue, report by Chief Financial Officer and Section 95 Officer 47 - 62 Page 2 of 260
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8.2 Housing Revenue Account - Revenue Budget and Capital Plan 2026/27, report by Chief Financial Officer and Section 95 Officer 63 - 68 8.3 General Services Capital Plan - 2026/27 Quarter 1 Monitoring, report by Chief Financial Officer and Section 95 Officer 69 - 84 8.4 Housing and Building Maintenance Update 2026, report by Executive Director Place 85 - 104 8.5 Midlothian Strategic Housing Investment Plan 2027/28 - 2031/32, report by Executive Director Place 105 - 146 8.6 Midlothian Council’s Housing Services Assurance Statement 2026, report by Executive Director Place 147 - 156 8.7 All Through School and its Associated Catchment Areas at Shawfair Consultation Report, report by Executive Director Children, Young People & Partnerships 157 - 162 8.8 Education Annual Plan and Report, report by Executive Director Children, Young People & Partnerships 163 - 210 8.9 Edinburgh and South East Scotland City Region Deal (ESESCRD) - Regional Partnerships Proposition, report by Executive Director Place 211 - 248 8.10 Schedule of Meeting Dates: August 2027 - June 2029, report by Chief Officer Corporate Solutions 249 - 260 Exclusion of Members of the Public (A) TO CONSIDER RESOLVING TO DEAL WITH THE UNDERNOTED BUSINESS IN PRIVATE IN TERMS OF PARAGRAPHS 1, 4, 8, 9 AND 10 OF PART 1 OF SCHEDULE 7A TO THE LOCAL GOVERNMENT (SCOTLAND) ACT 1973 - THE RELEVANT REPORTS ARE THEREFORE NOT FOR PUBLICATION; AND (B) TO NOTE THAT NOTWITHSTANDING ANY SUCH RESOLUTION, INFORMATION MAY STILL REQUIRE TO BE RELEASED UNDER THE FREEDOM OF INFORMATION (SCOTLAND) ACT 2002 OR THE ENVIRONMENTAL INFORMATION REGULATIONS 2004. 9 Private Reports 9.1 Hopefield Economic Development Site Development, report by Executive Director Place 9.2 Beeslack Replacement High School Contractor Appointment, report by Executive Director Children, Young People & Partnerships 9.3 Ironmills Park, Cemetery Road, Dalkeith - Outline Options for the Steps and Path, report by Executive Director Place 9.4 Award of South of Scotland Electric Vehicle (EV) Charging Infrastructure Delivery Partner Concession Contract, report by Executive Director Place Page 3 of 260
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9.5 Ladywood Community Centre - Pitch Improvements, report by Executive Director Place 9.6 Recruitment of Chief Officer Place, report by Executive Director Place 10 Date of Next Meeting The next meeting will be held on Tuesday 10 November 2026 at 11am. Page 4 of 260
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INTERNAL USE ONLY DRAFT BY/DATE: REVIEW BY/DATE: 1-993 Minute of Meeting Midlothian Council Tuesday 22 September 2026 Item No 5.1 Midlothian Council Date Time Venue Tuesday 23 June 2026 11.00am Council Chambers, Normandy Court and Hybrid Present: Deputy Provost Bowen (Chair) Provost McCall (virtual) Councillor Parry (Council Leader) Councillor Cassidy (Deputy Council Leader) Councillor Alexander Councillor Curran Councillor Imrie (virtual) Councillor McEwan Councillor McKenzie Councillor McManus Councillor Milligan Councillor Russell Councillor Scott Councillor Smaill Councillor Pottinger Councillor Virgo Councillor Winchester Religious Representatives: In attendance: Dr Grace Vickers, Chief Executive Kevin Anderson, Executive Director Place Derek Oliver, Executive Director Children, Young People and Partnerships Fiona Clandillon, Head of Development - Capital and Entrepreneurial Projects Nick Clater, Head of Adult Services & Chief Social Work Officer David Gladwin, Chief Financial Officer and Section 95 Officer Rebecca Hooton, Chief Officer Children`s Services Partnerships and Communities and Deputy Chief Social Work Officer Saty Kaur, Chief Officer Corporate Solutions Michelle Strong, Chief Education Officer Alan Turpie, Legal and Governance Manager and Monitoring Officer Peter Arnsdorf, Head of Placemaking, Chief Planning Officer Suzanne Ross, Principal Solicitor (virtual) Page 5 of 260
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Gerri Stanley, Trainee Solicitor Anna Herriman, Strategic Transport Planning Manager Nicola Thorburn, Democratic Services Team Leader Hannah Forbes, Democratic Services Officer Maria Perez, Democratic Services Officer 1. Welcome and Apologies The Legal and Governance Manager and Monitoring Officer advised that as Provost McCall was attending today’s meeting virtually, they were unable to chair this meeting, as per the Council’s hybrid meeting policy. The Legal and Governance Manager and Monitoring Officer asked the Elected Members if they were comfortable that Standing Order 5, which states “The Provost acts as the Civic Leader within Midlothian. S/He, or, if absent, the Depute Provost, whom failing another Member of the Council chosen by the meeting, shall preside at meetings of the Council” is suspended. While Provost McCall is not absent and is attending this meeting remotely, this will allow Deputy Provost Bowen to chair this meeting. The Legal and Governance Manager and Monitoring Officer asked for a show of hands in favour of suspending Standing Order 5 and the 17 Elected Members in attendance unanimously agreed. The Chair welcomed everyone to this meeting of Midlothian Council and advised that the meeting will be broadcast live and saved to the Council’s archive. Items heard in private will not be made available to the public. On behalf of the Council, the Chair congratulated Midlothian resident, Samantha Gough, who has been awarded a Member of the Order of the British Empire (MBE) in the King’s Birthday Honours List 2026 for services to sport and disability inclusion for the visually impaired community. Apologies were received from Councillor Drummond and the Religious Representative, Anne-Theresa Lawrie. 2. Order of Business The Order of Business is as per the agenda. 3. Declarations of Interest Elected Members were invited to declare their financial or non-financial interest in items of the agenda. No declarations of interest were intimated at this stage of the proceedings. Elected Members were reminded that they could make further declarations of interest at relevant items of the agenda. Page 6 of 260
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4. Deputations No items for discussion. 5. Minutes Report No. Report Title Presented by: 5.1 Minute of Midlothian Council Meeting of 12 May 2026 Executive Director Place The Minute of the meeting of Midlothian Council held on the 12 May 2026 was submitted for approval. Councillor Parry moved to approve the Minute of the Meeting of Midlothian Council of 12 May 2026, seconded by Councillor Cassidy. Councillor Milligan raised a matter arising from the previous Minute and highlighted item 7.1 Health and Social Care, adding that during the debate on this item Councillor Parry made a statement that they did not believe Health and Social Care should be the burden of the Midlothian taxpayer. Councillor Milligan advised that they had been contacted by several people who have family members in receipt of care and do not think that was the appropriate term to be used for people in the care sector. Councillor Milligan asked Councillor Parry to clarify that they do not consider people in social care to be a burden. Councillor Parry thanked Councillor Milligan for the opportunity to reiterate that it was the cost burden that they were referring to, and not the people themselves. Councillor Parry acknowledged that the care given to people, and the work done by those providing the services, is crucial. Councillor Parry thanked all the front-line staff currently working in very challenging circumstances. Decision The Minute of the Midlothian Council Meeting of 12 May 2026 was approved as the correct record. Report No. Report Title Presented by: 5.2 Minute Volume Index Executive Director Place The Minute Volume Index was submitted for approval. The Minute Volume Index was moved by Councillor Parry and seconded by Councillor Cassidy. Decision Council approved the Minute Volume Index. Page 7 of 260
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Report No. Report Title Presented by: 5.3 Action Log Executive Director Place Council agreed that items flagged as recommended for closure could be removed from the Action Log. Decision Council agreed that items flagged as recommended for closure could be removed from the Action Log. 6. Questions to the Leader of the Council No items for discussion. 7. Motions Report No. Report Title Presented by: 7.1 Celebrating Midlothian Gala Days Councillor Parry Councillor Parry presented the motion as detailed below. Midlothian Council notes that Gala Days are a cherished tradition across Midlothian, deeply rooted in the area's history and community spirit, and acknowledges that these events are organised by dedicated local committees and volunteers, with support from Midlothian Council staff in areas such as logistics, safety, infrastructure and green spaces. Gala Days bring communities together, celebrate local identity, and create lasting memories for residents of all ages. Midlothian Council recognises the tireless efforts of Gala Day organisers and volunteers who give freely their time and energy to plan, coordinate, and deliver these vibrant community events. Midlothian Council formally congratulate and thank all Gala Day organisers, volunteers, Council staff, attendees and emergency services staff for their continued commitment to making these events a highlight of Midlothian's calendar. Councillor Parry emphasised their thanks to the volunteers, young people, schools, Council staff and blue light services for their dedication and hard work. The Provost added that they were pleased to second this motion, and whole heartedly agreed on the sentiments of Councillor Parry. Councillor Russell thanked Councillor Parry for highlighting the other gala days, festivals and fun days that take place in Midlothian and acknowledged the hard work of those involved. Page 8 of 260
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The motion was moved by Councillor Parry and seconded by Councillor McCall. Decision Council approved the motion. Report No. Report Title Presented by: 7.2 Volunteers’ Week 2026 Councillor McCall As Volunteer Champion, the Provost presented the motion as detailed below. Council recognises Volunteers' Week, which ran from 1 to 7 June 2026, with the theme of "Ignite Volunteerism"; notes that Midlothian Community Action hosted the annual Volunteer Awards at Newbattle Abbey College on Thursday 4 June 2026, with eight different awards being presented on the night; welcomes the breadth and depth of volunteering opportunities within Midlothian; recognises the hard work by Midlothian Community Action (MCA) to host the event and promoting volunteer opportunities; thanks the sponsors without whom the event could not take place; congratulates all the winners and nominees and thanks them for their commitment and dedication. The Provost highlighted that there are approximately 33,000 volunteers that are known to us in Midlothian, which is around one third of our residents volunteering, which is the highest number in Scotland. The Provost thanked MCA who organised the amazing Volunteer of the Year Awards which they helped to host, this was a wonderful opportunity to celebrate our volunteers and the contribution that they make to Midlothian and beyond. The Provost finished with the words that they shared at the Volunteer of the Year Awards; Volunteering continues to be a powerful force for good. It connects people, nurtures wellbeing, strengthens communities, ignites activism and empowers communities. It gives individuals a sense of purpose. Here in Midlothian volunteers create safe green spaces, support families, care for the environment, care for carers and for each other. Volunteers show up when they are needed most and in dignity lift people from struggles, mental health difficulties, loneliness or poverty. Councillor McKenzie added that it was lovely to attend the Volunteer of the Year Awards, which was a fantastic evening where they saw people from ages 8-80 winning awards. Councillor McKenzie said that in a world that is often full of negativity it was very humbling to see what these volunteers do on the front line. The motion was moved by Councillor McCall and seconded by Councillor McKenzie. Decision Council approved the motion. Page 9 of 260
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8. Public Reports Report No. Report Title Presented by: 8.1 Financial Monitoring 2025/26 - General Fund Revenue Chief Financial Officer and Section 95 Officer The Chief Financial Officer and Section 95 Officer presented the report for decision. The purpose of this report is to provide Council with information on performance against service revenue budgets in 2025/26 and to provide commentary on areas of material variance against budget. The budget performance figures as shown in appendix 1 result in a net overspend of £1.083 million which represents 0.3% of the revised budget. Some areas of projected overspend relate to recurring areas of financial pressure or slower than planned delivery of savings measures. The Corporate Management Team have discussed these in depth and, where possible, put in place recovery actions. Midlothian Integration Joint Board (MIJB) spend on Adult Social Care exceeded budget by £2.827 million. The General Fund balance at 31st March 2026 is £24.418 million, of which £17.777 million is earmarked for specific use leaving a non-earmarked General Fund balance of £6.641 million. Council is recommended to: a) Approve a supplementary estimate of £2.827 million to increase the budget for Midlothian Integration Joint Board to £74.575 million (section4). b) Approve the application in 2025/26 of £1.759 million of Developer Contributions to fund unitary charge costs for Newbattle Community High School (section 3.4). And otherwise c) Note the contents of this report. The Chair thanked the Chief Financial Officer and Section 95 Officer for their report and invited questions. Councillor Parry thanked the Chief Financial Officer and Section 95 Officer for the paper, noting that it is also helpful to draw out some of the positives within the report and the continued areas of success, particularly in relation to the increase in leisure memberships. Councillor Parry acknowledged the overspend in terms of the Looked After Children and was reassured that this is on the agenda for discussion in today’s meeting. Councillor Parry added that the Health and Social Care year-end position is slightly better than expected but the additional £2.827 million to increase the budget for the MIJB is still significant for the Council, and we must work closely with MIJB Page 10 of 260
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colleagues to discuss the challenges and ensure they can continue to deliver a sustained service. Councillor Imrie referred to section 3.2 of the report regarding the Chief Executive having a directive to all the Directorates for budget recovery plans which was introduced in 2024/25, carried on to 2025/26 and now into 2026/27. Councillor Imrie highlighted that Directorates used to be responsible for their own budgets and these were not supplemented across any other Directorates. Councillor Imrie highlighted the staff costs for maternity cover and how these costs are partially offset by vacancies across the Council, which is not managing the budget within Education. If there is extra expenditure in Education, then that spend should be contained in Education. Councillor Imrie highlighted Waste Disposal and asked for more information on the problems described in the paper. Councillor Imire noted that when the waste plan was first envisaged, with the City of Edinburgh Council (CEC) being a partner with Midlothian, there was capacity for other local authorities or private waste collectors coming in and Midlothian would receive a gate price which would offset some of the expenditure. Councillor Imrie accepts the use of Developer Contributions to fund unitary charge costs for Newbattle Community High School due to the increase in pupil capacity but asked the Chief Financial Officer and Section 95 Officer what the implications are for the following years and whether this is a one-off payment. The Chief Financial Officer and Section 95 Officer advised that the information in section 3.2 is a recognition by the Chief Executive and all senior staff of the severity of the financial pressure Council faces and that all Council staff and Elected Members have a collective responsibility to adhere to business critical spend only. In terms of managing budgets within services, the Chief Financial Officer and Section 95 Officer advised that budgets are managed separately internally at Officer level, and these, and any recovery actions, are reviewed regularly. The information being presented to Council is a strategic level summary, but a more detailed breakdown can be provided if required. The Chief Financial Officer and Section 95 Officer advised that the Developers Contributions relating to the increased pupil capacity for Newbattle Community High School are a one-off payment for 2025/26. For Waste Disposal, the Executive Director Place advised that there was an expectation that the Council would get third party income, and while this is being received it has not been to the extent that was forecast. This has been raised with Finance, across the Place Directorate and the City of Edinburgh Council (CEC). There has been an increase in terms of volume coming from CEC into the plant, which reduces the capacity to allow others in and generate the third-party income. The Executive Director Place is engaged with their counterparts in the CEC and has a meeting next week to address the disparity and a Value for Money report. Councillor Imrie thanked the Chief Financial Officer and Section 95 Officer for providing clarification on the points they raised. Page 11 of 260
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Councillor Imrie thanked the Executive Director Place for their response in relation to Waste Disposal and added that they understood that the agreement with CEC was in terms of tonnage. If this is being exceeded then there is an unfairness regarding the amount of money we can take in and if some of the capacity is taken up by CEC then this has an impact on Midlothian Council, and the income stream we hoped to receive. Councillor Imrie requested that additional information is brought back to the Chamber as Council may need to take a position on this as it has not been budgeted for and may have a financial impact in coming years. Councillor Smaill added that the Council must balance its budget every February and now, only 4 months later, we have an additional £2.8 million going to the MIJB. Councillor Smaill asked if Audit Scotland are comfortable that Midlothian Council knew in February 2026 that a significant number was coming in relation to the MIJB but that this is only being recognised now and are we in danger of appearing to balance the budget and then having major adverse variances we were aware of. The Chief Financial Officer and Section 95 Officer advised that it would not be appropriate for them to comment on behalf of Audit Scotland but added that Audit Scotland publish commentary on IJB performance, highlighting challenges and the demand for services across Scotland and this is shared with Audit Committee on a routine basis. In terms of the specifics of the MIJB, the Council is governed by the Integration Scheme which is clear on how any overspend is dealt with and this is the appropriate time to provide a supplementary estimate, as recommended in the paper. Looking back to earlier monitoring reports, the projected overspend has been discussed throughout the year and alongside that there has been significant work taken by our Health and Social Care colleagues to manage the overspend and attract additional funding. Councillor Milligan acknowledged the positives in the report and that the impact of the investment in leisure services is apparent. Councillor Milligan also highlighted that when Council agreed to finance the Alpine Coaster in previous years there was criticism from members of the public and some Councillors, however we are now seeing the income going back into the Council to support other services. Councillor Milligan queried the underspend in Road Services, adding that they would have expected this to have been used. Councillor Milligan has raised a safety issue regarding the degradation of the white lines at give way and stop junctions, and particularly at the Eskbank and Cockpen roundabouts, that all require updating. Councillor Milligan was advised that the remaining budget was for disabled bay marking and removal and asked whether this money could be used to update the white lines. Councillor Milligan highlighted the shortfall in Commercial Properties and asked if we have downsized the team internally to help offset the costs of using external commercial agents for this work and whether any savings have been identified as a result. In terms of moving budgets between services, the Chief Financial Officer and Section 95 Officer advised that we have financial regulations and financial directives below that which provide guidance on how we can do that, so it is possible. Page 12 of 260
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The Executive Director Place noted there were dedicated operatives for lines and signs but that has been reduced since the 2018 budget saving proposal which was accepted. However, this is incorporated within the overall budget, and the white lining and signing is done on an ad-hoc basis rather than a set programme of works. The Executive Director Place added that this year through Roads Services there have been other funding sources that have assisted the budget, and while there is a revenue underspend we have benefited from capitalisation from Transport Scotland on the A703, the A7, the Tour de France profile for next year and the work ongoing in the area around the Sun Inn, Dalkeith. The Executive Director Place agreed to take away the prospect of repurposing that Roads Services underspend for white lines for consideration. The Executive Director Place advised that there are currently 7 vacancies in the Roads Services Team, which have been difficult to fill as recruitment has internal competition with Waste Services. There are also 3 vacancies in the Commercial Lets Team which are funding the external agency provision and updates are being provided to the Income Generation Cross Party Working Group (IGCPWG). Councillor Pottinger highlighted that the financial position on Adult Health and Social Care has worsened and asked if there are other options to manage the deficit that Council should be considering given that the previous motion to use reserves was unsuccessful. The Chief Financial Officer and Section 95 Officer advised that the MIJB budget for 2026/27 was approved in February 2026 and the MIJB accepted this and have financial recovery planning actions in place. The Chief Financial Officer and Section 95 Officer has assurance from the Chief Officers of the MIJB that the financial recovery plan for 2026/27 is progressing well and currently has no cause to revert to Council. In September 2026, when the Quarter 1 finances are available, this can be revisited. In the meantime, discussions with the National Health Service (NHS) and the Scottish Government will continue. Councillor Pottinger asked whether this requires a national resolution if other IJBs are in similar positions and the Chief Financial Officer and Section 95 Officer agreed that it does and referred to the Audit Scotland publication mentioned earlier in the meeting which details the challenges across Scotland. The report was moved by Councillor Parry and seconded by Councillor McManus. Decision Council approved the report and its recommendations. Action Waste Disposal - Provide further information on the usage and available capacity to Council following the meeting with the City of Edinburgh Council to address disparity and a Value for Money report - Executive Director Place. Review the Roads Services underspend and consider whether this can be repurposed to update degraded while lines at junctions - Executive Director Place. Page 13 of 260
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Report No. Report Title Presented by: 8.2 Housing Revenue Account: Revenue and Capital Final Outturn 2025/26 and Capital Plan 2026/27 - 2028/29 Chief Financial Officer and Section 95 Officer The Chief Financial Officer and Section 95 Officer presented the report for information. The purpose of this report is to provide Council with:- • The final outturn position for 2025/26 for both the Housing Revenue Account (HRA) and Capital Plan supported by the HRA; • A revised capital plan for 2026/27 to 2028/29 reflecting the cross-year budget movements and the latest capital plan delivery programmes. The summarised financial performance for 2025/26 is: • Capital Investment in the year totalling £47.099 million; • A net overspend of £1.729 million on the Revenue Account; • An HRA reserve at 31st March 2026 of £30.242 million, the majority of which is committed to finance investment in the new build programme. Council is recommended to note the contents of this report. The Chair thanked the Chief Financial Officer and Section 95 Officer for their report and invited questions. Councillor McKenzie thanked the Chief Financial Officer and Section 95 Officer and their team for the diligent work they do and added that there have been another 70 houses added to the Council’s stock which means 70 families now have more certainty and stability. Councillor Smaill requested more detail on the steep increase in responsive maintenance as detailed on page 62 of the meeting papers. The Executive Director Place advised that there has been an uptick and that is reflective of the work that is ongoing in relation to dampness across the housing stock and includes the removal and return of families to their homes. The average cost has been approximately £18,000 - £20,000, and in some instances £40,000 depending on the extent of the work. There have been some delays, which Elected Members will have had some correspondence on with their Constituents, and this is due to the availability of the contractors who specialise in that field as other local authorities are completing similar programmes of work at the same time. Councillor Smaill also requested detail on what percentage of the Scottish Government Housing Support Funds Midlothian receives. The Chief Financial Officer and Section 95 Officer advised that they did not have this information to hand but would take an action to provide this detail. Page 14 of 260
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Councillor Curran queried whether the number of Housing Officers has increased proportionally with the housing stock as the resource challenges in this area had been discussed at Council previously. The Executive Director Place advised that there are several vacancies that are being covered by agency staff and that they are in the final stages of completing the Managing Change Policy. This policy aligns to Building Maintenance Services (BMS) and Housing Services, and they expect that more information will be brought to September 2026 Council to give Elected Members visibility. Decision Council noted the report and its recommendations. Action Confirm the percentage of the Scottish Government Housing Support Funds that Midlothian receives - Chief Financial Officer and Section 95 Officer. Report No. Report Title Presented by: 8.3 General Services Capital Plan 2025/26 Final Outturn Chief Financial Officer and Section 95 Officer The Chief Financial Officer and Section 95 Officer presented the report for decision. The purpose of this report is to provide Council with:- • An update of the GSCP incorporating information on further additions to the Capital Plan for approval (Section 3) • Information on the final outturn performance against budget for 2025/26 (Section 4.1-4.5); • An update on the capital fund balance at 31 March 2026 (Section 5). It is recommended that the Council:- 1. Note the inclusion of the projects listed in Section 3.1 in the General Services Capital Plan (GSCP) 2. Approve the addition of the new projects to the GSCP, as outlined in Section 3.2 and the adjustment to project budgets, as outlined in Section 3.3; 3. Note the General Services Capital Plan outturn position for 2025/26 as set out in Section 4. The Chair thanked the Chief Financial Officer and Section 95 Officer for their report and invited questions. Councillor Parry highlighted some of the projects within this report, firstly noting that the progress on improvements to Mauricewood Primary School is welcomed. Councillor Parry also mentioned Birkenside Pavillion and Pathhead Pavillion, noting Page 15 of 260
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the difference these projects have made to the community facilities is excellent and encouraged other Elected Members to visit and witness the transformations. The report was moved by Councillor Parry and seconded by Councillor Scott. Decision Council approved the report and its recommendations. Report No. Report Title Presented by: 8.4 Annual Treasury Management Report 2025/26 Chief Financial Officer and Section 95 Officer The Chief Financial Officer and Section 95 Officer presented the report for information which informs members of the Council of the Treasury Management activity undertaken in 2025/26 and the year-end position. This report was considered in detail at Audit Committee on 22 June 2026 and is presented to Council today unchanged. It is recommended that Council note the Annual Treasury Management Report 2025/26. The Chair thanked the Chief Financial Officer and Section 95 Officer for their report and invited questions. Councillor Parry noted that this report had been presented to Audit Committee on 22 June 2026 where the Audit Committee had an opportunity to thank the Chief Financial Officer and Section 95 Officer and their team for the outstanding work they do on our Treasury Management Strategy every year, as this does benefit us significantly over the years. Councillor McEwan, as Chair of Audit Committee, reiterated their thanks to the Chief Financial Officer and Section 95 Officer and their team for continuing to look after the wellbeing of this Council. Decision Council noted the report and its recommendations. Report No. Report Title Presented by: 8.5 Medium Term Financial Strategy 2027/28 to 2028/29 Chief Financial Officer and Section 95 Officer The Chief Financial Officer and Section 95 Officer presented the report for information. Page 16 of 260
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The report sets out the outcome of a review of the Council’s financial planning assumptions which now point to a projected budget gap of £6.176 million in 2027/28 rising to £14.895 million by 2028/29. Pressure on budgets across the public sector is severe and as the fastest growing Local Authority in Scotland the impact is intensified in Midlothian. Population projections show a continued high level of growth in Midlothian through to 2043. There is a significant underlying funding gap before Council tax increases and planned utilisation of reserves of £15.261 million (4.2% of net expenditure) in 2027/28 rising to £25.859 million by 2028/29 (4.1% of net expenditure) that will impact on what services the Council can continue to deliver and how they are delivered. Reprioritisation and redesign are crucial to balancing the MTFS and swift action is needed. Council is recommended to: - a) Note that the Business Transformation Steering Group (BTSG) will continue to consider measures necessary to support delivery of a balanced Medium Term Financial Strategy (MTFS) before any policy measures are presented to Council. b) Note the recommendation from the best value audit report on transformation that the Council recognises that it is operating in a fiscally challenging environment and now needs to find a way to accelerate progress on the remaining projects within the Transformation Blueprint with the resources it has available and also further Accounts Commission commentary on delivering transformational change (sections 5.2 and 5.3). c) Note the MTFS planning assumptions set out in the report (sections 4.1to 4.3). d) Note that the budget gap for 2027/28, incorporating the planned use of service concession retrospection and an indicative 8% annual Council Tax increase is projected to be £6.176 million, rising to a projected £14.895 million by 2028/29 (section 4.1). e) Note the urgent need to address the gap between recurring expenditure and recurring income (section 5). f) Note the position relating to Midlothian Integration Joint Board (section 6) and g) Otherwise note the remainder of the report. The Chair thanked the Chief Financial Officer and Section 95 Officer for their report and invited questions. Councillor Pottinger mentioned a recent announcement from the Scottish Government regarding their large underspend and asked if Midlothian Council had made any direct appeals to them to assist us with our budgets. Page 17 of 260
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The Chief Financial Officer and Section 95 Officer advised that they did not have the detail of this particular announcement, however confirmed that they are not aware of additional funding flowing to Midlothian as a consequence of any underspend. Councillor Smaill highlighted a point, that was also raised at Audit Committee, about the potential of the Council having to borrow up to £900 million which is much higher than any historic debt burden and shared concerns about 2029/30 and 2030/31 as some major capital spends will involve high levels of borrowing. The numbers presented to Audit Committee on 22 June 2026 show that 50-year money now costs 6% and so the cost of servicing debt will transform the position from difficult in 2028/29 to almost impossible in subsequent years. Councillor Smaill asked when work will begin to look at those years further ahead. The Chief Financial Officer and Section 95 Officer clarified that the £1 billion referred to at Audit Committee is split between the General Fund and the Housing Revenue Account. Projections show that the costs will come down and may give us the opportunity to borrow at a lower rate, but that is not guaranteed so the Chief Financial Officer and Section 95 Officer and their team monitor this closely. For 2029/30 and beyond, the Chief Financial Officer and Section 95 Officer intends to present a 5- year plan to the new Council in 2027. There is a plan for 2029/30 which the Chief Financial Officer and Section 95 Officer can share but the further we go out in dates the more assumptions and risks are included. Councillor Scott mentioned the reference to one-stop-shop services in Gorebridge and Dalkeith and that these plans will be presented to the Business Transformation Steering Group (BTSG) on 5 October 2026. The building in Gorebridge has several leaks which are currently being caught by buckets and asked if this could be discussed earlier than October. The Chief Officer Corporate Solutions apologised and confirmed that there is not a report going to BTSG on 5 October 2026. They are waiting on an external funding bid to hopefully be agreed over the summer, which is why the work has not started. This would offset some of the money that Council has approved. The Chief Officer Corporate Solutions appreciated the urgency and advised that they aim to kick off these projects immediately after the summer holiday programmes is complete. Decision Council noted the report and its recommendations. Action Share the 2029/30 Medium Term Financial Strategy with Elected Members for information - Chief Financial Officer and Section 95 Officer. The Chair advised Council that both agenda items 8.6 and 8.7 had the potential for the discussions to stray into the private remit and asked the Legal and Governance Manager and Monitoring Officer to flag any such risks during discussion and that Elected Members were mindful of this. Page 18 of 260
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Report No. Report Title Presented by: 8.6 Best Value Audit - Asset Management Chief Financial Officer and Section 95 Officer The Chief Financial Officer and Section 95 Officer presented the report for information and advised that on an annual basis and in support of the rolling programme of Best Value Audits for individual Councils. The area of work most recently carried out was in relation to Asset Management and the Audit Scotland report was presented to and discussed and Audit Committee on 22 June 2026. The key findings are that, overall, the report is positive and Midlothian Council has strong arrangements in place in a number of areas including governance, affordability and partnership working, but that some opportunities do exist to strengthen asset management arrangements on top of the solid building blocks that are already in place. The report recommends that Council develop a strategic overarching asset management strategy which will reduce the risk of fragmented decision-making whist recognising significant progress in various areas of work and that improvements could be made in performance reporting. The Chair thanked the Chief Financial Officer and Section 95 Officer for their report and invited questions. No questions were submitted. Decision Council noted the report. Report No. Report Title Presented by: 8.7 Delivering for the Future. Transformation: How councils are redesigning and delivering more efficient services Chief Financial Officer and Section 95 Officer The Chief Financial Officer and Section 95 Officer presented the report for information which provides Council with a summary of the Delivering for the future, Transformation: How councils are redesigning and delivering more efficient services report which was published by Audit Scotland in May 2026 and is appended to this report. Five key messages come from the report covering the need for councils to drive forwards sustainable transformational change, have clear objectives and outcomes from transformation programmes, develop cross-sector working, promote community consultation and have a consistent approach to Equality Impact Assessments. This report was also presented at Audit Committee on 22 June 2026. Council is recommended to: Page 19 of 260
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• Consider the Audit Scotland report; • Note that the report draws on the findings of the Transformation Best Value Reviews of twenty-two Councils during 2024/25; and • Note that the key messages continue to be considered by Council Officers and embedded in the Medium-Term Financial Strategy (MTFS) Report to be considered by Council on Tuesday 23rd June 2026. The Chair thanked the Chief Financial Officer and Section 95 Officer for their report and invited questions. Councillor Pottinger referenced page 136 of the meeting papers where it mentioned that not all Councils were using Equality Impact Assessments and asked if this is just an observation or if it means we will not have these in the future, as they understood this was a statutory requirement. The Chief Financial Officer and Section 95 Officer advised that this is an Audit Scotland publication and the findings in the report cover most local authorities in Scotland. For Midlothian, the Equality Impact Assessments are embedded in our processes, and we are in a strong position. Councillor Virgo clarified that the report says that not all Councils are using Equality Impact Assessments effectively or consistently, not that they are not used at all. Councillor McEwan highlighted that this is an Audit Scotland report and that it alludes to Midlothian Council’s good practice under four case studies. Decision Council noted the report and its recommendations. Report No. Report Title Presented by: 8.8 Best Value Self-Evaluation Chief Executive The Chief Executive presented the report for information which provides Council with a completed self-evaluation of the Council’s adherence to the Best Value framework which reflects the changes introduced to the approach to auditing Best Value in Scottish councils by Audit Scotland in 2023. Council is asked to consider the Best Value Self-evaluation report (Appendix B) which reflects the recent review of the Best Value Framework in the context of the Best Value Report due to be prepared and considered by Audit Scotland in 2026/27. The Chair thanked the Chief Executive for their report and invited questions. Councillor Parry acknowledged the level of detail contained in this report and noted that it shows how fantastic our workforce is, including Officers and the Senior Management Team. This is a well put together summary of what the Council does and encouraged others to read it. Page 20 of 260
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Councillor Smaill highlighted that 15 years ago the Best Value report from Audit Scotland said that Elected Members did not challenge Council Officers enough and noted that this is certainly not the case now. Decision Council noted the report and its recommendations. Report No. Report Title Presented by: 8.9 Midlothian Community Planning Annual Reporting for H2 2025/2026 Chief Executive The Chief Executive presented the report which provides Midlothian Council with an update on the progress the Community Planning Partnership in Midlothian has made during 2025/2026, detailing progress on the outcomes and targets as set out in the four-year Single Midlothian Plan. The Community Planning Board receive 6 monthly detailed reports for scrutiny, challenge, celebrating success and feedback. In addition, the full Midlothian Community Planning Partnership has undertaken a robust scrutiny of progress during 2025/2026 at both operational and strategic thematic level, culminating at the Community Planning Board Scrutiny meeting held on 4th June 2026 where they analysed the latest 6-month monitoring and tracking report (Appendix B). Council is asked to: • Note the achievements set out in the Midlothian Community Planning Partnership Monitoring Report for H2 2025/2026. • Acknowledge and celebrate the strong partnership ethos, leadership, and commitment demonstrated by public and third sector partners, who have worked collaboratively with local communities to improve outcomes across Midlothian. • Note plans to produce a public facing accessible annual report summarising the achievements of the Single Midlothian Plan 2025/26. As Head of Paid Service, the Chief Executive was thrilled to sit through the Community Planning Board meeting and hear the progress on each of the themes. The Chair thanked the Chief Executive for their report and invited questions. No questions were submitted. Decision Council noted the report and its recommendations. Page 21 of 260
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Report No. Report Title Presented by: 8.10 Midlothian’s Local Transport Strategy (LTS) 2026-2035 Executive Director Place The Executive Director Place presented the report for decision which presents Midlothian’s draft LTS 2026-2035 (Appendix C), and LTS Executive Summary (Appendix B) for adoption. Once adopted the LTS policies will provide the required policy framework for decisions and investment relating to transport in and affecting Midlothian. The LTS seeks to support the policies of Midlothian’s Local Development Plan (MLPD2), also presented separately on the Council agenda at this meeting. Council is recommended to: 1.1 Adopt the Local Transport Strategy (LTS) and also the summary versions (Appendices B & C respectively), which have been prepared to provide a policy framework to guide transport decisions and prioritise investment over the ten- year period to 2035, and 1.2 Agree to the development of a Prospectus for Midlothian Strategic Transport Projects, to be reported back to Council after the Summer recess 2027, which, as set out in section 3.will incorporate identified transport interventions from the Midlothian Local Development Plan 2 Transport Appraisal, and priority and committed transport schemes for delivery in the next decade. 1.3 Note the requirement to publish the Strategic Environmental Assessment (SEA) at Appendix E, and Integrated Impact Assessment (IIA) at Appendix F on the Council’s website. The Chair thanked the Executive Director Place for their report and invited questions. Councillor Cassidy welcomed the paper and acknowledged the amount of work that has been put into Midlothian’s Local Transport Strategy 2026-2035. This is a matter close to all our hearts in Midlothian, and we are aware of the problems encountered when trying to commute to Edinburgh. Councillor Cassidy added that they have had assurance that more carriages will be available for the Borders Railway when the new carriages are replaced in England. On behalf of the Labour Group, Councillor Imrie suggested that we look at the LTS differently. As Councillor Cassidy said, we all want a safer, cleaner and more accessible transport options and if we are serious about making a shift in Midlothian, then we need to consider what works for the people who live here. The data confirms that most residents who do not drive to work rely on public transport, not walking or cycling. Across Scotland public transport accounts for the bulk of the non-car commute, cyclists account for approximately 2-3% and walking is higher. In semi- rural authorities like Midlothian, with long commuting distances, state gradients and dispersed settlements, walking and cycling cannot absorb the model shift this strategy aspires to. While walking and cycling are important they are not substitutes for the daily commute for most people in this area. The Labour Group is suggesting that the LTS is unbalanced and there is too much emphasis on active travel such as walking and cycling and not enough emphasis on bus or rail. Council must recognise that public transport is most used by lower income households, young people, older Page 22 of 260
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residents and by those that cannot afford to run a car. The Labour Group is not against the LTS, but it must reflect the geography of Midlothian, those that live here and be based on how people travel. The balance in the LTS is not correct, and the Labour Group is asking for simple, constructive change so the primary focus is on public transport with walking and cycling as supporting elements. Councillor Alexander endorsed the need for more public transport but to say active travel should be secondary is not solving the problem as we need both as they complement each other. Active travel is becoming more popular and if we do not support this, we will not see the enjoyment and benefits. Councillor Parry thanked the Strategic Transport Planning Manager for their outstanding work to bring in a lot of funding which has been used for active travel. Councillor Parry noted her agreement with all the points made by Councillor Cassidy and Councillor Imrie, adding that our constituents often email the Elected Members about public transport. Councillor Parry added that Council must give Councillor Cassidy and Councillor Imrie the best possible mandate when they attend national meetings and therefore was comfortable to move forward as suggested. Councillor Smaill highlighted policy 28, which is detailed on page 492 of the meeting papers, regarding the LTS supporting the extension of the Borders Railway to Carlise and added that this report is not going to come forward for another year and so it would be premature for this Council to support a project for which we do not have a full specification. If policy 28 is to be kept it should be on the understanding that a final decision will be made when the evidence has been seen. Councillor Milligan noted that Councillor Parry had already agreed with the points made by Councillor Imrie on behalf of the Labour Group. Councillor Milligan added that, in a semi-rural community like Midlothian, the percentage of people relying on buses or rail is high and we need to send out a clear message that public transport is a priority. Councillor Milligan acknowledged the work done by the Strategic Transport Planning Manager and the money they have brought in which has led to many improvements. The Legal and Governance Manager and Monitoring Officer asked for clarification on what had been agreed and whether this paper is moved as it is or with the amendment suggested by the Labour Group. Councillor Parry moved recommendation 1.1 subject to an amendment to ensure that the Local Transport Strategy (LTS) reflects a balance between bus, rail and active travel. Recommendations 1.2 and 1.3 remain unchanged. Seconded by Councillor Milligan. Decision Council approved the report and its amended recommendations. The Deputy Provost called a short recess at 12.30pm. The meeting resumed at 12.45pm Page 23 of 260
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Report No. Report Title Presented by: 8.11 Midlothian Local Development Plan 2 (MLDP2) Proposed Plan – Approval for Consultation Head of Placemaking and Chief Planning Officer The Head of Placemaking and Chief Planning Officer presented the report for decision. This report seeks approval of the Midlothian Local Development Phase 2 (MLDP2) proposed plan and associated documents for consultation and summarises the main findings of the supporting environmental and transport assessments. The Head of Placemaking and Chief Planning Officer noted that every Local Authority is required by legislation to prepare a local development plan every 10 years. The Midlothian Local Development Plan (MLDP) was adopted in November 2017. Following the Scottish Government publishing planning policy National Planning Framework 4 (NPF4) Local Authorities reviewed their plans with a view to adopting a new or replacement plan. Midlothian Council has engaged with key agencies, communities, developers, landowners and Elected Members, and collected evidence on what the proposed MLDP2 should be based. The Council has validated the Local Place Plans which have set up community priorities for each area. To meet its housing targets, Midlothian Council also set an indicative Local Housing Land Requirement (LHLR) and progressed through a site selection progress which was approved at the Planning Committee Meeting of 18 November 2025. The Head of Placemaking and Chief Planning Officer advised the purpose of the MLDP2 is to set out the development strategy for Midlothian, identify sites for development and set out policies against which development proposals are assessed. Decisions on planning applications are to be made in accordance with MLDP2. The plan seeks to provide new homes needed to meet demand and support economic growth whilst protecting environmental and historic assets. The plan also aims to support the creation of sustainable, inclusive and accessible places across Midlothian. The main changes from the MLDP 2017 plan are that MLDP2 seeks to allocate land for development, enhance the importance of green infrastructure and support climate change mitigation. In terms of housing, the plan requires the provision of a range of properties, including homes for first-time buyers, those with bespoke needs and an affordable housing requirement. The plan seeks to broaden the range of matters which Developer Contributions can be secured for and increase the flexibility for employment sites in terms of uses. The plan also responds to issues raised by Elected Members in MLDP2 workshops, Planning Committee and Local Review Body meetings. Council is recommended to: - a) Approve for consultation the publication of the Midlothian Local Development Plan 2 (MLDP2) Proposed Plan, the Proposed Delivery Programme, the draft Environmental Report and the draft Habitats Regulations Appraisal. b) Instruct the Council’s Head of Placemaking to instigate a MLDP2 12-week public consultation. Page 24 of 260
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c) Confirm the Local Housing Land Requirement to be included in the MLDP2 Proposed Plan at 8,851 residential units. d) Note the content of and agree to the publication of the MLDP2 Housing Technical Note as supporting information to the 12-week public consultation. e) Note the content of the MLDP2 High Level Financial Statement, MLDP2 Transport Appraisal and the Summary of MLDP2 Response to Local Place Plans. f) Agree to the Head of Placemaking and Chief Planning Officer undertaking minor editorial amendments to the documents as required prior to publication. If Council agrees to these recommendations the final modified plan, following the consultation, will be submitted to the Scottish Government for examination and hopefully for adoption thereafter. The Chair thanked the Head of Placemaking and Chief Planning Officer for their report and invited questions. Councillor Scott thanked all Officers involved in the development of the MLDP2 reports and moved to approve the recommendations in the report subject to a minor amendment to the following sections of the MLDP 2 Proposed Plan: • Gorebridge Place Statement - Local Priorities and Aspirations. Paragraph 239 should be amended by adding the following additional bullet point “Identifying a site for a new high school in Gorebridge, which could also accommodate a sports complex (swimming pool, all weather pitches, gym etc) and health centre on the site”. • MLDP2 Draft Delivery Programme - Table 3 Education. Table 3 should be amended by changing reference to Newbattle High School in the “School” column, to “Newbattle High School or other non-denominational secondary school provision within existing catchment area” Councillor McKenzie seconded Councillor Scott’s motion to approve the report subject to the amendments listed above. Councillor Scott also suggested that the Community Profile in the MLDP2 report may be converted into a Guide to Midlothian and noted that including school transport among matters to be considered for Developer Contribution negotiations will alleviate costs for the Council. Councillor Scott also noted that wheelchair accessible bungalows in new estates will be attractive for aging or disabled residents looking to downsize and suggested introducing a register of residents who may benefit from these properties. Councillor Scott welcomed the plans to report financial contributions for each infrastructure plan to the Planning Committee on an annual basis and regularly review Developer Contributions but wondered whether there are sufficient officers to deliver this. Page 25 of 260
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The Head of Placemaking and Chief Planning Officer clarified that if Council decides to accept the proposed amendment moved by Councillor Scott, the amendments will be included in the document submitted for consultation. The Head of Placemaking and Chief Planning Officer confirmed the proposed plan looks to give the Council additional scope to spend Developer Contributions in a range of matters, including travel to school, but warned that there is still a legal and regulatory framework that dictates the time periods where these Developer Contributions need to be used and how they need to be applied to mitigate the aspects from a particular development rather than be put in a general pot. Councillor Alexander voiced her support for the MLDP2 report proceeding to consultation, noting that as the largest settlement in Midlothian, Bonnyrigg’s growth should be matched by an infrastructure that meets the need of the community. Councillor Alexander praised the report appendices on mitigating climate change as a step towards the Council achieving net zero. Further discussion ensued concerning the policies of allocating land for the accommodation of Gypsy and Traveller population in MLDP2. Councillor Scott queried whether this could be investigated with a view to piloting as there is a Traveller encampment on Dalkeith Campus at present. The Head of Placemaking and Chief Planning Officer clarified Scottish Government legislation requires the Council to have a policy with criteria to evaluate for future applications, however it is not required to identify a designated site. Councillor Curran noted the unauthorised Traveller camp at Dalkeith Campus is causing damage to the playing fields as well as causing disruption when the school was evacuated due to a false alarm as the usual muster points could not be used. The encampment is also preventing the local community from using the playing fields. Councillor Curran acknowledged the Traveller community’s right to practice their preferred lifestyle however this needs to be balanced against the needs of the wider community. Councillor Curran advised they wrote to the Cabinet Secretary to expedite the removal of the camp. The Executive Director Children, Young People and Partnerships noted Midlothian Council is currently using the Scottish Government guidance on unauthorised camping and conducting dynamic risk assessments. The Executive Director Children, Young People and Partnerships reassured Council that the evacuation was carried out with alternative muster points and that the Council is engaging with the Public Private Partnership (PPP) contractor and with Police Scotland on the matter. Councillor Imrie noted that the view of the Labour Group is that MLDP2 will shape the next decade in terms of population growth and determine all other aspects of community life. In that context, the Labour Group considers that it is not possible to accept additional housing allocations until the infrastructure needs have been met, and this expense must be funded by either developers or the Scottish Government. Councillor Imrie noted the current infrastructure is at breaking point and cited schools being at capacity. Roads are also behind development, and Councillor Imrie noted that there continues to be longstanding issues with the A701 corridor and the lack of alternatives to the bypass. The Transport Strategy likewise acknowledges gaps, and General Practitioners (GP) are also at capacity and not accepting new patients. Councillor Imrie encouraged Council to pause and not approve any new house Page 26 of 260
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building until there is an infrastructure-first approach that will guarantee delivery of essential services and ensure communities are not overwhelmed by the growth. Councillor Milligan seconded Councillor Imrie’s proposal to pause the development plan until an infrastructure-first approach is agreed, noting that failure to do this will result in the Council failing Midlothian residents in the future. Councillor Parry acknowledged the concerns voiced by the Labour Group however, it is necessary to provide new homes for the large number of applicants on the housing waiting list. Councillor McManus agreed that the new housing developments are providing many young people the chance to buy their first home and remain in Midlothian. Councillor Parry agreed that MLDP2 should have an infrastructure- focused approach but warned that not delivering the numbers agreed on the LHLR could result in planning decisions being taken off the hands of Councillors. The Head of Placemaking and Chief Planning Officer confirmed that as housing targets have been set by the Scottish Government and accepted by Midlothian Council, if these numbers are not delivered the Scottish Government Reporter may impose sites on the Council and grant planning permission through the Planning by Appeal route. This can also result in the Reporter determining no Developer Contributions will be payable. As MLDP2 seeks to uplift Developer Contributions, the Council potentially stands to lose considerable amounts of money. The Head of Placemaking and Chief Planning Officer advised that the Associated Delivery Program sets how the Council will respond to the infrastructure pressure from the increasing homes and the interventions the Council can do in partnership with other agencies. The Head of Placemaking and Chief Planning Officer also asked to note that some infrastructure needs, like the Sheriffhall Roundabout separation, are outwith the control of Midlothian Council. It was acknowledged it is a difficult balance to strike, as Midlothian Council is obligated to provide those homes but, by not providing the associated infrastructure, it would also be failing its legal duty. Councillor Virgo acknowledged the concerns raised by the Labour Group but noted reducing it to an argument to pause delivery of housing targets is overly simplistic. Councillor Virgo suggested it may be necessary to develop a robust stance on the Developer Contributions and codifying the infrastructure needs so when a development is received the Developer Contributions can be extended to pay for other necessary infrastructure so the burden to provide these does not sit solely with the Council. The Head of Placemaking and Chief Planning Officer advised the draft delivery programme will go partway to identify what infrastructure will be required. Councillor Smaill clarified the argument is not to stop building houses, but to redress the balance so that the infrastructure is not under pressure as the population grows. Councillor Smaill advised it is regrettable how the Scottish Government floor system has led to additional pressures to growing Local Authorities compared to the previous system where the Council needs to fund almost all the cost for infrastructure and would have been able to pause riskier sites. Councillor Smaill suggested the Council strongly consider the estimated cost of the necessary infrastructure costs of the proposed growth and noted that developers are unlikely to be able to fund a large project like a school upfront as their business model is a cash flow one. Councillor Smaill queried whether the sites on Redheugh are going ahead, as this would fulfil Page 27 of 260
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the target set by the Scottish Government. The Head of Placemaking and Chief Planning Officer advised that any sites selected to meet the housing targets need to be deliverable, and there are several constraints affecting Redheugh, The Chair asked for clarification whether the Labour Group was moving an amendment on the draft MLDP2 report that was presented for decision. As Councillor Imrie left the meeting at 13:12pm due to connection difficulties, Councillor Milligan clarified the Labour Group’s position would be that it is necessary to put the infrastructure in place first to mitigate the issues of the increased population density. Councillor Milligan noted that the Labour Group would move to amend the report by changing the wording of recommendation C from “Confirm the Local Housing Land Requirement to be included in the MLDP2 Proposed Plan at 8,851 residential units.” to “no additional housing in this plan”. Councillor Milligan shared the view that it would be preferable to miss out on the Developer Contributions rather than have to face the cost of the necessary infrastructure required for the additional 8,851 homes in MLDP2 and hoped that the public would agree with this view when MLDP2 goes for consultation. Councillor Scott asked Council to note Midlothian is in a fortunate position because population is rising. Councillor Scott advised a declining population leads to a stagnant economy, abandonment of rural areas, aging population and young people leaving the area. Councillor Curran noted constituents in Danderhall do not feel fortunate, and while they support the new housing, they do not appreciate the disruption that comes with it. Further discussion ensued on the matter of the LHLR. Councillor Virgo noted that as Midlothian Council already submitted the LHLR figure to the Scottish Government it is no longer competent to discuss this at this stage. The Head of Placemaking and Chief Planning Officer confirmed that once the Scottish Government approved the 8,851 target, Midlothian Council moved onto the site selection. The Head of Placemaking and Chief Planning Officer clarified three quarters of the housing target is made up of existing sites with planning allocation and with granted planning permission but that they have not yet been built. MLDP2 is required to provide sites to meet the target, and these will be assessed based on their individual merits. If the Scottish Government finds Midlothian Council is not meeting targets, a Reporter can be appointed to assess the matter and if it is decided that there are insufficient sites to meet the target then control may be taken away from the Council. Councillor Milligan clarified the Labour Group agrees with the already allocated sites in the MLDP2 going ahead, and that the motion moved by Councillor Imrie would be to remove any additionality. Councillor Imrie rejoined the meeting at 13.34pm. Councillor Milligan queried how many houses would be built if the amendment to remove additionality was passed. The Head of Placemaking and Chief Planning Officer advised that removing the sites which have already been granted planning permission would leave a gap of 1,900 homes, which is the additionality that was referred to by Councillor Milligan. Page 28 of 260
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The Chair acknowledged there were many relevant points raised by Elected Members; however, Council was reminded of the need to vote on the recommendations of the report. Councillor Pottinger asked for clarification as to whether the vote would determine if the draft MLDP2 goes for consultation. The Legal and Governance Manager and Monitoring Officer advised that although there is a motion moved by Councillor Scott and seconded by Councillor McKenzie and an amendment moved by Councillor Imrie and seconded by Councillor Milligan to modify the wording of the MLDP2 recommendations, these do not affect the outcome of the MDLP2 being put to consultation. The Legal and Governance Manager and Monitoring Officer called on Council to a vote on the report, asking Elected Members to vote on either the motion or amendment, as described below: The Motion moved by Councillor Scott and seconded by Councillor McKenzie to adopt all recommendations on the report, subject to the following amendments: • editing recommendation A in the Gorebridge Place Statement – Local Priories and Aspirations on paragraph 239 to include the following bullet point “identifying a site for a new high school in Gorebridge, which could also accommodate a sports complex (swimming pool, all weather pitches, gym etc) and health centre on the site” • amending table 3: Education on the MLDP2 Draft Delivery Programme, to change the reference to Newbattle High School in “School” column, to “Newbattle High School or other non-denominational secondary school provision within existing catchment area”. The amendment moved by Councillor Imrie and seconded by Councillor Milligan, to agree recommendations A, B, D, E, F in the report, and to update recommendation C to state that "no additional housing will be included in the MLDP2 proposed plan”. A vote by roll call was carried out, with 9 Elected Members voting for the motion and 8 voting for the amendment. Decision Council approved the MLDP2 consultative draft subject to the agreed amendments in the wording of sections the report. The Legal and Governance Manager and Monitoring Officer advised there would be a short recess at 13:55pm. The meeting resumed at 14:05pm The Chief Officer Children’s Services Partnerships and Communities and Deputy Chief Social Work Officer and the Head of Development Capital and Entrepreneurial Projects joined the meeting. Page 29 of 260
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Report No. Report Title Presented by: 8.12 Large Grants 2027-2030 Chief Education Officer The Chief Education Officer presented the report for decision which provides an update on the current Large Grants Programme and the options for the next round of Large Grants funding 2027-2030. The Chief Education Officer noted that Midlothian Council has a long history of grant awards. Large Grants has typically been awarded for a three-year period and aligned to Single Midlothian Plan priorities of reducing poverty, improving health and achieving net zero. The current allocation for the project is £520,000 per annum and is in place until March 2027. Therefore, it is necessary to decide on the future of the Large Grants Programme beyond 27 April 2027. The findings of an external review on the Large Grants Programme showed it has made a positive impact on its beneficiaries. Feedback from the external review identified some ways to strengthen the process and ensure the impact of the Large Grants Programme is maximised. The advice recommended the Council make a commitment to the Real Living Wage and introduce inflation-based uplifts should the Large Grants Programme continue beyond April 2027. Considering this feedback and the tight timescales between now and the end of the current cycle of the Large Grants Program, Council is recommended to: • Note the update and approve the recommendation as detailed in section 3.9 of the report. • Approve that the Executive Director for Children, Young People and Partnerships has devolved responsibility for agreeing the new grants process and priorities, approving, and signing off the recommendations of the scoring panel and submitting a report to Council for information only. The Chair thanked the Chief Education Officer for their report and invited questions. Councillor Scott welcomed the report and moved option 3 as detailed in section 3.9 of the report, which is to continue the Large Grants allocation with inflation-based uplifts throughout the 3-year period. Councillor Scott also moved an amendment to increase the Large Grants allocation from £520,000 to £600,000 per annum, to keep up with inflation if the Executive Director Children, Young People and Partnerships can identify funding within the Education budget. Councillor Scott noted that the funding allocated to Large Grants has not increased in the past 8 years, and that workers in the voluntary sector are working under increasingly more challenging circumstances after the disappearance of the UK Prosperity Fund and the Local Growth Fund. Councillor Scott added that the third sector organisations support the most vulnerable members of society by providing a hand up rather than a handout and were responsible for communities getting through the Covid pandemic. Councillor Scott noted past recipients of Large Grants funding are very prominent Midlothian-based third sector organisations and charities such as Midlothian Young People Advice Service (MYPAS), Mayfield and Page 30 of 260
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Easthouses Development Trust (MAEDT), Gorebridge Development Trust, Kinship Care Midlothian, and Grandparents Parenting Again among others. Councillor Scott asked fellow Elected Members to support the work done by third sector workers and volunteers by increasing the allocation of the Large Grants project in the next 3-year cycle and ensuring it also receives inflation-based uplifts. Councillor Milligan agreed with the amendment proposed by Councillor Scott, however queried how the additional £80,000 funding requirement would be met if the Executive Director Children, Young People and Partnerships could not identify this funding through the Education budget. The Chief Financial Officer and Section 95 Officer advised the inflationary uplift on the original requested funding of £520,000 would be consumed in the budget setting. In terms of the additional £80,000 requested by Councillor Scott and its associated inflationary uplifts, this would require consideration if the Executive Director Children, Young People and Partnerships were unable to find any additionality in the service budgets to meet this requirement. Councillor Smaill asked for some confirmation on what index system would be used to consider inflationary uplifts. The Chief Financial Officer and Section 95 Officer noted the Consumer Prices Index (CPI) may be the most appropriate system, however noted that other Officers may wish to recommend another system. Councillor Parry seconded the motion to approve the recommendations of the report and the amendment to increase the Large Grants allocation from £520,000 to £600,000 per annum with inflation-based uplifts. The amended report was moved by Councillor Scott, seconded by Councillor Parry. Decision Council noted and approved the recommendations of the report and the amendment to increase the Large Grants allocation from £520,000 to £600,000 per annum with inflation-based uplifts. Report No. Report Title Presented by: 8.13 Woodburn Additional Support Needs Consultation Chief Education Officer The Chief Education Officer presented the report for decision on behalf of the Executive Director Children, Young People & Partnerships. The report advises Council of the outcome of the statutory consultation on the proposal to formally establish an Additional Support Needs (ASN) provision at Woodburn Primary School under the leadership of the Head Teacher and seeks approval for the recommendations outlined above. The ASN provision had been running onsite since December 2024 as Mayfield pupils relocated to Easthouses earlier than planned. This consultation put to the public was to formalise this arrangement. The statutory consultation on the proposal was Page 31 of 260
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undertaken in the period from Thursday 12 February 2026 to Thursday 2 April 2026. The statutory report on the outcome of the consultation was published on Monday 1 June 2026 and provides full details of the process undertaken, representations made and His Majesty’s Inspectorate of Education in Scotland (HMIES)’s independent report on the proposal. The Chief Education Officer noted that 65 responders engaged with the consultation. 87.7% percent of these responders were in favour of the proposal to formalise the arrangement to maintain the ASN provision in Woodburn Primary, and 78% also supported the Head Teacher leading the ASN provision. Council is recommended to approve the following: • An Additional Support Needs (ASN) stage will be formally established at Woodburn Primary School from August 2026; • The ASN stage will be under the leadership of the Head Teacher of Woodburn Primary School; The Chair thanked the Chief Education Officer for their report and invited questions. Councillor Scott welcomed the outcome of the consultation and moved to approve the recommendations of the report. Councillor Scott asked for reassurance that the necessary works to ensure learners’ safety will be completed during the summer. Councillor Scott also queried the plans for those learners in the Woodburn ASN provision who will transition to the new school campus in Mayfield when this opens in August 2027. The Chief Education Officer advised that there are early plans to support a slow and steady transition to ensure maximum success. The parents of those children that will transition to the new campus have already been contacted, and an interim principal teacher has also been appointed to manage the process for learners, families, and staff. Councillor Parry seconded the motion to approve the recommendations of the report. Councillor McKenzie and Councillor Russell voiced their support for the proposal, noting that families will benefit from a provision that meets learners’ needs, and that the Head Teacher at Woodburn is an excellent candidate to oversee this provision. The report was moved by Councillor Scott and seconded by Councillor Parry. Decision Council approved the report and its recommendations. Page 32 of 260
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9. Private Reports Exclusion of Members of the Public (A) TO CONSIDER RESOLVING TO DEAL WITH THE UNDERNOTED BUSINESS IN PRIVATE IN TERMS OF PARAGRAPHS 1, 8 AND 9 OF PART 1 OF SCHEDULE 7A TO THE LOCAL GOVERNMENT (SCOTLAND) ACT 1973 - THE RELEVANT REPORTS ARE THEREFORE NOT FOR PUBLICATION; AND (B) TO NOTE THAT NOTWITHSTANDING ANY SUCH RESOLUTION, INFORMATION MAY STILL REQUIRE TO BE RELEASED UNDER THE FREEDOM OF INFORMATION (SCOTLAND) ACT 2002 OR THE ENVIRONMENTAL INFORMATION REGULATIONS 2004. 10. Date of next meeting The next Council meeting is scheduled for Tuesday 22 September 2026. The public section of the meeting concluded at 14:20pm. Page 33 of 260
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Midlothian Council Minute Volume Presented to the Meeting of Midlothian Council on Tuesday, 22 September 2026 Midlothian Council Tuesday 22 September 2026 Item No 5.2 Page 35 of 260
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1 Minutes of Meetings submitted for Approval No items for discussion 2 Minutes of Meetings submitted for Consideration Minute of the Meeting of the Audit Committee on 23 February 2026 Minute of the Meeting of the Performance Review and Scrutiny Committee on 24 March 2026 Minute of the Meeting of the Local Review Body on 11 May 2026 Minutes of Meetings submitted for Information 3 Minute of the Meeting of the Special Midlothian Joint Integration Board on 26 March 2026 Minute of the Meeting of the Midlothian Joint Integration Board on 2 April 2026 Page 36 of 260
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Midlothian Council Tuesday 22 September 2026 Item No 5.3 Midlothian Council - Action Log No Date of meeting Item No and Title Action Action Owner Expected completion date Comments 1 24/02/2026 31/03/2026 8.7 Fees and Charges 2026/27 Following the approval of this paper at Council, continue cross-party discussions Assess the impact of changes to fees and charges for After School Clubs and Nurseries. Elected Members / Council Officers Executive Director Children, Young People & Partnerships Complete October 2026 Recommended for Closure Discussed at BTSG on 2 March – actions contained within the BTSG Action Log. Work ongoing and an update will be provided to BTSG in due course. 2 31/03/2026 8.5 Midlothian Local Housing Strategy 2026/27 to 2030/31 Following the deployment of the green bin, review the provision of bin stores for blocks of flats and confirm the locations. Executive Director Place June 2026 Recommended for closure Bin store locations identified between Waste Services and Housing Services. Engagement with respective Ward Members. Page 37 of 260
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No Date of meeting Item No and Title Action Action Owner Expected completion date Comments 3 31/03/2026 8.5 Midlothian Local Housing Strategy 2026/27 to 2030/31 Provide a report detailing the findings of a comparison between a Passivhaus and a standard Council house build in terms of energy efficiency and savings. Head of Development - Capital and Entrepreneurial Projects November 2026 In Progress with report expected to November Council meeting. 4 23/06/2026 8.1 Financial Monitoring 2025/26 - General Fund Revenue Waste Disposal - Provide further information on the usage and available capacity to Council following the meeting with the City of Edinburgh Council to address disparity and a Value for Money report. Executive Director Place December 2026 VFM report received. Waste capacity concerns acknowledged and further engagement continuing with CEC to resolve and also consider further opportunities. 5 23/06/2026 8.1 Financial Monitoring 2025/26 - General Fund Revenue Review the Roads Services underspend and consider whether this can be repurposed to update degraded while lines at junctions. Executive Director Place September 2026 Recommended for Closure Spend flexibility within the service budget is available. 6 23/06/2026 8.2 Housing Revenue Account: Revenue and Capital Final Outturn 2025/26 and Capital Plan 2026/27 - 2028/29 Confirm the percentage of the Scottish Government Housing Support Funds that Midlothian receives. Chief Financial Officer and Section 95 Officer Complete Recommended for Closure For the Affordable Housing Supply Programme, the Scottish Government have provided individual Council allocations for financial years 2026/27 to 2029/30 totalling in 2026/27 £704.470m, 2027/28 £723.544m, 2028/29 £745.250m and 2029/30 £767.608m. Midlothian Council’s individual shares are at 1.51% being £10.586m, £10.90m, £11.231m and 11.448m. Actual funding received is matched to individual Council house building programmes and will vary from the amounts shown above. Page 38 of 260
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No Date of meeting Item No and Title Action Action Owner Expected completion date Comments 7 23/06/2026 Medium Term Financial Strategy 2027/28 to 2028/29 Share MTFS projections for the next five years with Elected Members. Chief Financial Officer and Section 95 Officer August 2026 These will be shared with Elected Members in advance of the next scheduled Council meeting. Page 39 of 260
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MOTION Midlothian Council Meeting 22nd September 2026 This Council congratulates the Midlothian Education and Digital Services Teams on the findings of an independent review of the Equipped for Learning (EFL) Programme. The aim of EFL was to equip all Midlothian learners with the digital skills they need for learning, life and work and to ensure all learners had the same chance to succeed. The report celebrates the pedagogy-first approach to supporting, extending and enhancing learning, teaching and assessment, and the positive impact this has had on learners, the professional growth of staff, and the inclusion of families in learning. This Council 1. Welcomes the publication of the independent impact study, ‘Equipped for Learning – an independent review of impact (2021-2026)’, authored by Dr. Fiona Aubrey-Smith and unveiled at Newbattle Abbey College in Dalkeith on 27/28 August 2026. 2. Congratulates Midlothian Council’s Education Services, Susan Ward, Quality Improvement Officer (3-18), the Digital Inclusion & Learning Team, and Digital Services for their partnership working and visionary leadership of this £10.5 million transformation project. 3. Applauds the programme for successfully delivering universal digital equity by providing personal devices (iPads and Chromebooks) to more than 15,000 school-age pupils across Midlothian, ensuring all learners have an equal opportunity to succeed regardless of financial background. 4. Notes with pride the outstanding educational attainments verified by the five- year independent review, including: o A significant 11% increase in literacy attainment across P4, P7, and S3 year groups. o A rise in numeracy attainment from 72.8% to 80.2% across the same cohorts. Midlothian Council Tuesday 22 September 2026 Item No 7.2 Page 43 of 260
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MOTION TO MIDLOTHIAN COUNCIL TUESDAY 22nd SEPTEMBER 2026 CLEAN, SAFE AND RESPECTFUL COMMUNITIES Council reaffirms its commitment to tackling fly-tipping, littering, vandalism, anti-social behaviour and other environmental crime across Midlothian, using all available powers to identify and hold those responsible to account. Council agrees to ask officers to investigate the feasibility of extending the use of available powers and practice, eg. such as warrant cards, to appropriately trained and designated existing Council staff, where legally and operationally appropriate, to strengthen their ability to undertake enforcement activity; including fixed penalty notices, fines and prosecution, to be used more effectively to deter and tackle these issues. Council asks officers to report back on the legal, operational and training requirements in the feasibility of implementing this approach, and monitor the outcomes from expanded use of powers and practice. Moved by: Seconded by: Councillor Dianne Alexander Councillor Colin Cassidy Midlothian Council Tuesday 22 September 2026 Item No 7.3 Page 45 of 260
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Midlothian Council Tuesday 22 September 2026 Item No 8.1 Financial Monitoring 2026/27 - General Fund Revenue Report by David Gladwin, Chief Financial Officer and Section 95 Officer Report for Decision 1 Recommendations Council is recommended to: a) Approve the release of earmarked covid recovery funding to part-fund the current year projected overspend in Scottish Welfare Fund payments; b) Note that the Council Leader will write to the Scottish Government about ongoing financial pressures on the Scottish Welfare Fund; c) Approve the use of the remaining £2.581 million of Service Concession retrospection to enhance non-earmarked reserves in 2026/27 (para 5.3); d) Note that the projected budget gap for 2027/28 rises from £6.176 million to £8.757 million as a consequence of recommendation c) rising to £14.9 million by 2028/29; and otherwise e) Note the contents of this report. 2 Purpose of Report / Executive Summary 2.1 The purpose of this report is to provide Council with information on projections of performance against service revenue budgets in 2026/27 and to provide commentary on areas of material variance against budget. The budget performance figures as shown in appendix 1 result in a net overspend of £4.778 million which represents 1.4% of the revised budget. 2.2 On review of quarter 1 projections the Executive Leadership Team put in place a range of immediate recovery actions including a requirement for further cost reduction measures, additional scrutiny on high-risk areas of spend, enhanced monitoring arrangements and re- enforcement of strict financial discipline across the Council. 2.3 The projection of the General Fund balance at 31st March 2027 is £8.456 million assuming Council approval of recommendations a) and c). Of this £3.741 million is earmarked for specific use leaving a non- earmarked General Fund balance of £4.715 million. Date: 8th September 2026 Report Contact: David Gladwin, Chief Financial Officer and Section 95 Officer David.Gladwin@midlothian.gov.uk 0131 271 3113 Page 47 of 260
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3 Background 3.1 This report encompasses all performance against revenue budget for General Fund services. 3.2 Given the ongoing and severe financial pressures, the Chief Executive has extended the moratorium on any spend that is not business critical for 2026/27. In addition, robust and formal scrutiny arrangements have been re-enforced for financial year 2026/27 with Executive Directors ensuring full awareness throughout their Directorates of the need to recover the projected overspend by the end of the financial year. 3.3 Sections 3.5, 3.6 and 4.5 outline the additional monitoring measures implemented by the Chief Executive including enhanced scrutiny of high-risk areas of overspend, specifically Children’s Services and Health and Social Care. Performance against budget 3.4 The material areas of adverse variance against budget at quarter 1 are outlined in table 1 below which also describes mitigating measures and next steps. Narrative relating to Midlothian Integration Joint Board (MIJB) is provided in section 4 below. Table 1: Material cost variances against budget Budget Overspend Reason Action Plan / Mitigating Measures Next Steps External Residential Placements for Children £2,762,000 The number of children in residential placements has increased from 16 at the end of 2025/26 to 26 at quarter 1. As reported at Q4, the number of residential placements at 31st March grew from that reported at Q3 in 2025/26 which was the point at which the approved budget for 2026/27 was set. This is partially offset by additional income received by the council for children from other local authority areas in the care of Midlothian Foster Carers. All placements are assessed through a rigorous process before being approved. All externally placed children have plans reviewed under a range of processes to ensure that needs are met and plans exist for a safe return to family, kin or a local resource. Children’s Services are committed to early and preventative support to avoid children entering care. Investment in Family Wellbeing, Family group decision making and the pilot of Resilient Included Supported Empowered (RISE), as an intensive support service for children at risk of accommodation, support this commitment. Council in June 2026 approved a project to acquire 3 residential houses to be operated by the Council as an enhanced internal residential care provision. This will reduce costs associated with external placements. Work to deliver this is progressing well A funding application was submitted to the Scottish Government Invest to Save fund for £1.8m to enable and accelerate the transition to internal delivery. Council were advised on 20th August that the bid was successful in full. Page 48 of 260
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A review of Foster and Kinship capacity is underway with the aim of expanding supply of carers thus providing a wider range of options to be considered as an alternative to an external placement. A report on this will be presented to Council in November 2026. Council Fleet £518,000 The cost of maintaining the Council Fleet exceeds budget by £361,000. Fleet downtime in the current financial year has been higher than expected with a consequent financial pressure. The number and cost of external vehicle hires exceeds budget by £157,000. This is a combination of the implementation of Waste Twin Streaming and fleet downtime. Enhanced cost control measures are in place whilst a root and branch review of the Councils Fleet operation takes place. Enhanced authorisation procedures are in place pre-hire of vehicles. The number of external hires has reduced during Q2. Root and branch review of Council Fleet Operations. Staff Costs £705,000 An overspend in Sport and Leisure of £555,000 mainly as a consequence of using non-permanent staff to cover permanent posts. Service pressures in Corporate Solutions have resulted in fewer vacancies being held and some higher one-off costs for non-permanent staff Use of non-permanent staff in Children’s Services to cover staff absence. Partially offset by vacancies across the Council. Staffing review is ongoing. Service reviews within Corporate Solution are ongoing. Conclusion of ongoing absence management processes may soften current pressures. Strengthening of enhanced level of vacancy control. Strategic Workforce Plan is in place Scottish Welfare Fund £302,000 Financial support granted to eligible claimants exceeds available funding. An options paper was presented to the Cost of Living Task Force on Tuesday 1st September 2026. £0.272m of Covid recovery funding remains in an earmarked reserve, It is recommended to release this to Page 49 of 260
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fund most of the 2026/27 financial pressure whilst also engaging with the Scottish Government on additional funding. Non-residential services for Children £245,000 Increased spend on Daycare due to increased client numbers particularly relating to children with Additional Support Needs. Growth in number of clients receiving direct payments. Growing service demand continues to be managed through scrutiny arrangements. Service criteria has been amended. Process is quality assured and scrutined prior to approval, with earlier intervention where possible. Council Tax Income £207,000 At Q1 the growth in Band D properties is slower than built into the approved budget. There may be a lag in recording new properties which will contribute to the projected shortfall at Q1 and unwind as the year progresses. There also remains £0.547 million of Medium Term Financial Strategy (MTFS) cost reductions either to be finalised or to be fully implemented. A number of these are taking longer than planned to implement with an adverse impact on the 26/27 financial position. These are detailed at appendix 2 and reported to the Business Transformation Steering Group (BTSG) on a half-yearly basis. Work continues to implement these as quickly as possible. Underspends • A reduction in the number of school pupils assessed as eligible for transport for school year 2026/27 combined with service delivery efficiencies results in a projected underspend of £999,000. • Electricity unit prices for both street lighting and council buildings are significantly lower than those used in creating the 2026/27 budget. This gives rise to a combined positive variance of £0.692 million at Q1 albeit with ongoing price risk in a volatile market. Consumption is in line with budget. • Loan Charges are projected to be underspent by £573,000. The main factors are: o Impact of lower capital expenditure for 2025/26 than expected when the 2026/27 budget was set; o Deferral of borrowing to later in 2026/27 than budgeted although borrowing rates remain higher than those used to set the budget; o Higher than forecast surplus cash related directly to timing of capital expenditure thus providing opportunity to generate some deposit income; Page 50 of 260
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• Sport and Leisure income exceeds budgeted targets by £796,000, The most notable areas are: o A continued rise in membership income which is projected to exceed budget by £589,000; o Budgeted income in 2026/27 for the Alpine Coaster was based on 2025/26 customer numbers. They have risen further in 2026/27 thus give additional income of £118,000; o Income from general facility use at Midlothian Snowsports centre is higher than budgeted by £89,000. • Insurance premiums change annually on 1st July. In recent years premiums have risen by a large percentage which was reflective of the market generally and also the councils claims experience. The 2026/27 budget was set in anticipation of a similar rise. However, despite a significant percentage rise, it was lower than provided for. This, along with a relatively lower volume of claims on the Council during Q1, gives rise to a projected underspend of £269,000. • A funding bid was made to the Scottish Government for specific financial support for some of the cost of living interventions in Midlothian during 2026/27. The outcome of this bid was unknown at the time the 2026/27 budget was finalised with the proviso that if successful, funding would be used to offset budgeted costs. The Council was awarded £201,000 in 2026/27 on a one-off basis. 3.5 On review of quarter 1 projections, the Executive Leadership Team initiated some immediate actions. Deep dive sessions were held for both Adult Social Care and Childrens Services spend with particular scrutiny on proposed recovery actions and enhanced expenditure controls. For recurring areas of financial pressure like fleet and sport and leisure staffing, Executive Directors are preparing a scope and implementation timeline for completing detailed reviews. 3.6 In addition, alongside the continued financial discipline measures referenced in section 3.2, the essential requirement for services to live within available budget has been stressed and all service areas need to comply. Executive Directors are ensuring full awareness throughout their Directorates. Page 51 of 260
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4 Delegation of resources to Midlothian Integration Joint Board 4.1 The approved budget provided for the allocation of £75.123 million to the MIJB for the provision of delegated services. Minor budget adjustments give a revised budget of £75.125 million. Q1 projections show an overspend of £3.004 million on Adult Social Care services which is made up of: • A shortfall in delivery of approved savings for 26/27 of £1.313 million; • The impact of additional care packages during Q4 of 2025/26 of £0.823 million; • Further growth in care packages in 2026/27 of £0.635 million; and • Funding pressures relating to commissioned contracts of £0.233 million. 4.2 In accordance with the Integration Scheme the MIJB is required to deliver delegated services within budget allocations from the Council and NHS Lothian and, where any overspend is projected, to put in place a recovery plan to address that. As a last resort the integration scheme allows for the MIJB to seek additional financial support from its partners, either by way of an additional budget allocation or by “brokerage” (provision of additional resources in a year which are repaid in the following year). 4.3 Financial Monitoring reports covering all of the MIJB activities are formally presented to the Integration Joint Board and are available on the committee management section of the Council website:- Midlothian Integration Joint Board (cmis.uk.com) 4.4 MIJB met on Thursday 20th August and discussed Q1 projections. In support of a recognised need for urgent recovery action MIJB agreed that an updated financial recovery plan be brought to MIJB Audit and Risk Committee on Thursday 10th September 2026 rather than wait for the next scheduled MIJB on Thursday 24th September 2026. 4.5 In advance of formal reporting as described in the previous paragraph The Chief Executive, The IJB Chief Officer, the Chief Social Worker and the Chief Financial Officer met on Wednesday 2nd September to scrutinise recovery plans including £1.313 million of savings measures which MIJB have not yet delivered. Page 52 of 260
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5 General Fund Reserve 5.1 The balance on the General Fund as at 31 March 2027 is as follows: £ million £ million General Fund Reserve at 1 April 2026 24.418 Planned movements in reserves Application of Budgets carried forward from 2025/26 for use in 2026/27 (7.332) Utilisation of retrospective service concessions to fund costs in 2026/27 (4.093) Transformation funding applied to date during 2026/27 (0.031) (11.456) Overspend per appendix 1 (4.778) Recommendation (a) – release covid recovery earmarked reserve 0.272 General Fund Balance at 31 March 2027 8.456 An element of the General Fund is earmarked for specific purposes and this is shown below: £ million General Fund Balance at 31 March 2027 8.456 Earmarked for specific purposes To support delivery of the Transformation Blueprint (1.588) Planned use of Service Concession Retrospection as part of balancing the 2027/28 budget (2.581) Planned use of Loans Fund Review Savings (2.153) General Reserve at 31 March 2027 2.134 Application of Service Concession Retrospection in 2026/27 rather than in 2027/28 (recommendation c / para 5.3) 2.581 Updated General Reserve at 31 March 2027 4.715 5.2 The Reserves Strategy approved by Council on 12th February 2019 requires Council to maintain an adequate level of General Reserve to provide a contingency for unforeseen or unplanned costs. In the financial context at that time Council approved the adoption of 2% of the approved budgeted net expenditure (excluding resources delegated to MIJB) to be considered a minimum. This now equates to £5.3 million. Council also agreed that where projections indicate that the 2% minimum General Reserve balance be breached an immediate recovery plan be implemented to recover the position, failing which, the next available budget would need to provide for the reinstatement of reserve position. 5.3 The MTFS assumes use of the remaining value of Service Concession retrospection of £2.581 million in 2027/28 to contribute to achieving a balanced budget. In light of projections laid out in this report and the requirements of the Council’s Reserves Strategy, it is recommended to bring forward use to the current financial year. This approach will be reviewed as the year progresses. Page 53 of 260
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5.4 The General Reserve of £4.715 million, assuming recommendations in this paper are approved, is £0.6 million below the minimum set in the Reserves Strategy. It must continue to be viewed both in the context of £5.3 million of underlying service pressures in 2026/27 (Appendix 1 - General Fund Services Net Expenditure) and the latest MTFS projected gap of approximately £14.9 million through to 2028/29. 5.5 Until there is significant progress towards a balanced MTFS it remains sound financial practice to maintain a substantial buffer in the General Reserve to offset any further adverse performance against budget or delays in delivering savings measures. This will be a key part of 2027/28 budget setting deliberations. 6 Report Implications (Resource, Digital and Risk) 6.1 Resource The performance against budget set out in this report presents the projected position for the year. Work continues across the council to reduce overspends and to progress at pace delivery of approved savings. 6.2 Digital Increased reliance and investment in digital solutions and digital first solutions will be a key element of future plans. 6.3 Risk Section 95 of the Local Government (Scotland) Act 1973 requires all Local Authorities in Scotland to have adequate systems and controls in place to ensure the proper administration of their financial affairs. The assessment of performance against budgets by services is underpinned by comprehensive financial management and budgetary control arrangements. These arrangements are central to the mitigation of financial risk. Areas of council spend are determined by immediate demand pressures that must be met. Although unknown at the point of presenting financial projections they present a significant financial risk. Maintaining a non-earmarked General Fund Reserve in accordance with the approved Reserves Strategy provides some mitigation of this risk. Ensuring that adequate systems and controls are in place reduces the risk of significant variances arising, and where they do arise they help to ensure that they are identified and reported on and that appropriate and robust remedial action is taken. The primary purpose of this report is to provide an assessment of performance against budget for the full year. The material variances detailed in the report highlight that the financial management and budgetary control arrangements require continual review and enhancement if financial risk is to be effectively mitigated during the year. Page 54 of 260
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There are some areas where effective forecasting of spend against budget can be hindered due to incomplete service information which in previous years has resulted in previously unreported or significantly adjusted variances at the financial year end. CMT continues to consider these areas and supports actions to address the underlying issues and mitigate the risk associated with them. The Council recognises the potential for compensation claims deriving from Scottish Government’s Limitation (Childhood Abuse) (Scotland) Act 2017 which removes the three year time limit on claims of child abuse. Some claims will be historic and relate to Lothian Regional Council, Midlothian District Council or their predecessors and some will date post reorganisation and relate to Midlothian Council, and so presents a risk that would further reduce reserves from those currently projected. 6.4 Ensuring Equalities As changes to existing plans are developed, the assessment of the impact of these proposals in relation to their impact on equalities and human rights will be carried out. This will help to ensure wherever possible that there are no negative impacts on equality groups or potential for infringement of individuals’ human rights from the any of the proposals. 6.5 Additional Report Implications See Appendix A Page 55 of 260
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Appendices APPENDIX A – Report Implications A.1 Key Priorities within the Single Midlothian Plan The existing financial plans support the delivery of the key priorities in the Single Midlothian Plan. As the impact on the Council of the pandemic and recovery continues to unfold over the financial year any changes in the availability and allocation of resources will need to be considered in parallel to the actions proposed to continue to delivery key priorities. A.2 Key Drivers for Change Key drivers addressed in this report: Holistic Working Hub and Spoke Modern Sustainable Transformational Preventative Asset-based Continuous Improvement One size fits one None of the above A.3 Key Delivery Streams Key delivery streams addressed in this report: One Council Working with you, for you Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above A.4 Delivering Best Value The report does not directly impact on Delivering Best Value. A.5 Involving Communities and Other Stakeholders The development of the Medium Term Financial Strategy reflects community consultation exercises carried out in 2019 and again in 2022 to help shape the drafting of the “Midlothian Promise” and the development of the Council’s Longer Term Financial Strategy. In addition, there is continued engagement with the recognised Trade Unions on the financial position. Page 56 of 260
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A.6 Impact on Performance and Outcomes The Financial Strategy facilitates decisions on how Council allocates and uses its available resources and as such has fundamental implications for service performance and outcomes. The lasting financial consequences of the pandemic will impact on the availability and allocation of resources in pursuit of key outcomes as set out in the Single Midlothian Plan for both the immediate and longer term and therefore the ability of the Council to continue to deliver services in a financial sustainable manner. A.7 Adopting a Preventative Approach Maintaining the effectiveness of the Financial Strategy will support the prioritisation of resources to support prevention. A.8 Supporting Sustainable Development There are no direct sustainability issues arising from this report and the council continues work to mitigate as far as feasible any sustainability issues which arise as a consequence of any of the changes to existing plans. Appendix 1 Performance Against Budget Appendix 2 Approved Savings Delivery Page 57 of 260
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MIDLOTHIAN COUNCIL Appendix 1 GENERAL FUND 2026/27 Performance against budget Revised Budget Revised Budget Revised Budget (Underspend) Function Approved Budget Expenditure Income Net Outturn / Overspend £ £ £ Management and Members 5,455,889 5,452,503 0 5,452,503 5,409,503 (43,000) Place Corporate Solutions 27,264,985 47,439,879 (20,065,302) 27,374,577 28,129,577 755,000 Place 31,476,336 46,317,075 (13,048,494) 33,268,581 33,427,581 159,000 Central Costs 1,123,418 3,081,193 0 3,081,193 2,812,193 (269,000) People and Partnerships Midlothian Integration Joint Board 75,122,525 84,583,205 (9,458,343) 75,124,862 78,128,862 3,004,000 Non-Delegated Services - Community Safety and Welfare Rights 743,723 908,289 (80,154) 828,135 830,135 2,000 Childrens Services, Partnerships and Communities 23,634,016 26,180,061 (1,056,425) 25,123,636 28,304,636 3,181,000 Facilities/Sport & Leisure 11,863,790 22,086,126 (10,220,331) 11,865,795 11,479,795 (386,000) Education 163,006,392 171,112,289 (5,971,585) 165,140,704 164,065,704 (1,075,000) Lothian Valuation Joint Board 672,924 672,924 0 672,924 672,924 0 Non Distributable Costs 810,000 810,000 0 810,000 810,000 0 GENERAL FUND SERVICES NET EXPENDITURE 341,173,998 408,643,544 (59,900,634) 348,742,910 354,070,910 5,328,000 Loan Charges 8,712,000 8,712,000 0 8,712,000 8,139,000 (573,000) NDR Discretionary Relief 70,300 70,300 0 70,300 70,300 0 Investment Income (50,736) 0 (50,736) (50,736) (50,736) 0 Service Concessions - in-year (3,227,000) 0 (3,227,000) (3,227,000) (3,227,000) 0 Allocations to HRA, Capital Account etc. (6,003,564) (6,003,564) 0 (6,003,564) (6,003,564) 0 340,674,998 411,422,280 (63,178,370) 348,243,910 352,998,910 4,755,000 less Funding: Scottish Government Grant (255,982,000) 0 (256,188,000) (256,188,000) (256,372,000) (184,000) Council Tax (80,600,000) 0 (80,600,000) (80,600,000) (80,393,000) 207,000 Utilisation of Reserves 4,092,998 411,422,280 (399,966,370) 11,455,910 16,233,910 4,778,000 Page 59 of 260
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MIDLOTHIAN COUNCIL Appendix 2 GENERAL FUND 2026/27 Delivery of Approved Savings Savings 26/27 26/27 Target Outturn Variance Narrative Place Management Review 1,256 1,256 0 Leadership Review - Corporate Solutions 45 45 0 Rationalisation of the office Estate 250 250 0 Shared on-call Service 10 10 0 Review of Temporary Accommodation 200 200 0 HRA Void Clearances 15 15 0 School and ASN Transport Review 30 30 0 School Admin Support 20 20 0 Non-delegated HSC efficiencies 45 45 0 Reduction of Specialist Instructors 35 35 0 Further review of S&L 44 44 0 Reduce Shrub Bed maintenance 36 36 0 PPP school closures during holidays 40 40 0 Public Toilets closure 81 57 24 Remaining facilities offered for sale or Community Asset Transfer Trading Standards Regional collaboration 90 90 0 Cease Night Security at Stobhill Depot 150 150 0 Safety Advisory Group 25 25 0 Remove 5 FTE Grade 1 Cleaners 125 76 49 Incremental workforce reductions are being realised Location and Vehicle Advertising 25 25 0 Wrap Around Care 75 0 75 Plan to deliver this to be developed. Land Services Review 75 75 0 Education Third Party Contracts Review 500 500 0 Admin Review 34 34 0 1% DSM Budget 400 400 0 Transformation of the School Week 2,000 2,000 0 Continuous Improvement Team 28 28 0 Internal Audit 55 55 0 Reduction in offer to MIJB 1,133 1,133 0 Communities and Lifelong Learning Review 250 250 0 Parking Fines 100 26 74 Fine income offset by running costs. Link to development of parking strategy Roads Maintenance - replace maintenance costs with £2.5m capital 267 267 0 Reduction of Dry-Side and Wet-side facilities at the weekend in Leisure Centres 177 72 105 New staffing rotas being developed but not yet implemented Reduction in Cleaning Frequency in some Council Buildings 132 62 70 Incremental workforce reductions are being realised Review of Service Contracts in CYPP Directorate 500 500 0 CLLE Efficiency 75 75 0 Review of CYPP Central Teams 200 200 0 Lets and Charges for After School Clubs 40 40 0 Delivery of Business Critical Spend 717 717 0 Client Transport 100 100 0 Cost reductions exceed target Review of Council owned assets 50 0 50 Commercial Opportunities at Vogrie 50 0 50 Options to expand Council offering for young people during school holidays 25 0 25 Investment in Sport and Leisure Assets 200 200 0 Additional income exceeds target Expansion of out of school childcare provision 25 0 25 Total 9,730 9,183 547 Future Dated Targets Online Customer Engagement 235 Reduce Net cost of Benefits by 6% 238 Total 10,203 Page 61 of 260
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Midlothian Council Tuesday 22 September 2026 Item No 8.2 Housing Revenue Account Revenue Budget and Capital Plan 2026/27 Report by David Gladwin, Chief Financial Officer and Section 95 Officer Report for Noting 1 Recommendations Council is recommended to note the contents of this report. 2 Purpose of Report / Executive Summary The purpose of this report is to provide Council with a summary of expenditure and income to 3rd August 2026 for the Capital Plan and a projected outturn for both the Housing Revenue Account (HRA) and Capital Plan for 2026/27. The summarised financial performance for 2026/27 is: • Projected capital investment in the year totalling £40.730 million; • A projected net underspend in the revenue account of £1.121 million; • A projected HRA general reserve at 31st March 2027 of £29.491 million. Date: 14th August 2026 Report Contact: Name: Lisa Young Email: lisa.young@midlothian.gov.uk Page 63 of 260
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3 Background 3.1 Capital Plan 2026/27 The 2026/27 Capital Plan budget has been revised to reflect the current profile of spend as shown in appendix B. Capital investment in the year is projected to be £40.730 million and there are currently no material variances anticipated for the financial year. There is work underway to develop a housing stock capital improvement plan to relieve pressure on the general repairs budget. The works will include a programme for replacing kitchens, bathrooms and fencing and is due to be reported to Capital Plan Asset Management Board for November Council. 3.2 Revenue Account 2026/27 For 2026/27 there is currently a projected underspend of £1.121 million against budget, as shown in appendix C, this is due to:- • The housing stock capital improvement programme, mentioned in the previous section of this report, has been reflected in the current year projections and is expected to generate an underspend in responsive repairs by approximately £1.363 million; • Reflection of the latest delivery programme for the HRA capital plan and the availability of reduced rate PWLB loans specifically available for the HRA will result in lower borrowing costs of £0.606 million; This is offset by:- • The number of void repairs has been higher than budgeted due to higher number of repairs works required on properties switching between temporary needs and general needs accommodation to bring the properties up to a lettable standard. The overspend for void repairs is currently estimated to be £0.596 million; • Insurance costs are expected to be overspent by £0.190 million mainly due to an increase in the level of insurance premiums and claims related to HRA properties. The HRA general reserve balance is projected to be £29.491 million at 31st March 2027, which is committed to finance existing investment commitments to 2041/42. Page 64 of 260
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4 Report Implications 4.1 Resource There are no direct resource implications arising from this report. 4.2 Digital There are no direct digital implications arising from this report. 4.3 Risk The principal risks are around the issue of affordability, ensuring that the investment in new build and the existing stock can be made without having to impose unacceptable increases on weekly rents. This is mitigated by the adoption of a long term financial strategy and modelling which demonstrates that existing investment commitments are sustainable. There is also the risk of capital spend being lower than projected due to delays on projects, particularly in the current climate , this could result in lower debt charges causing the Housing Revenue Account Reserve balance to increase by more than projected. 4.4 Ensuring Equalities There are no equality issues arising directly from this report. 4.5 Additional Resource Implications See Appendix A. Appendices Appendix A – Additional Resource Implications Appendix B - Capital Plan 2026/27 Appendix C – Revenue Account 2026/27 Page 65 of 260
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APPENDIX A – Report Implications A.1 Key Priorities within the Single Midlothian Plan Not applicable A.2 Key Drivers for Change Key drivers addressed in this report: Holistic Working Hub and Spoke Modern Sustainable Transformational Preventative Asset-based Continuous Improvement One size fits one None of the above A.3 Key Delivery Streams Key delivery streams addressed in this report: One Council Working with you, for you Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above A.4 Delivering Best Value The report does not directly impact on Delivering Best Value. A.5 Involving Communities and Other Stakeholders The report does not directly relate to involving communities. A.6 Impact on Performance and Outcomes The report does not directly impact on Midlothian Council’s performance and outcomes. A.7 Adopting a Preventative Approach The report does not directly relate to adopting a preventative approach. A.8 Supporting Sustainable Development The report does not directly relate to supporting sustainable development. Page 66 of 260
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MIDLOTHIAN COUNCIL Appendix B HOUSING REVENUE ACCOUNT CAPITAL PLAN 2026/27 Revised Budget Actuals To Date Projected Outturn (Under)/Over Spend CAPITAL GRANTS AND RECEIPTS £'000 £'000 £'000 £'000 Scottish Government Grants -Affordable housing supply programme 7,128 0 7,128 0 -Off market purchases 550 0 550 0 Council tax on second homes 23 0 23 0 Borrowing requirement 33,029 8,555 33,029 0 Total Capital Grants and Receipts 40,730 8,555 40,730 0 APPROVED CAPITAL EXPENDITURE £'000 £'000 £'000 £'000 Investment in Additional Housing Stock -New social housing phase 3-5 20,761 3,853 20,761 0 -New social housing phase 6 4,624 61 4,624 0 -Dalkeith town centre regeneration - social housing 500 167 500 0 -Open market purchases 1,589 918 1,589 0 Capital Repairs and Enhancement of Existing Stock -Scottish Housing Quality Standards (SHQS) Repairs 1,652 473 1,652 0 -Energy Efficiency Standard for Social Housing (EESSH) 5,600 2,397 5,600 0 -Upgrade Central Heating Systems 987 447 987 0 -Damp remediation works 2,000 82 2,000 0 Other Capital Expenditure -Aids and adaptations 540 148 540 0 -Backdated developer contributions 1,000 0 1,000 0 -Bonnyrigg District Heating Scheme (BDHS) meters 1,476 10 1,476 0 Total Capital Expenditure 40,730 8,555 40,730 0 Page 67 of 260
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MIDLOTHIAN COUNCIL Appendix C HOUSING REVENUE ACCOUNT 2026/27 Revised Budget Projected Outturn (Under)/Over Spend Average Number of Houses 7,951 7908 (43) £'000 £'000 £'000 EXPENDITURE Repairs and Maintenance -Responsive 7,400 6,037 (1,363) -Planned 938 964 26 -Void 3,181 3,777 596 -Decant/Compensation 79 79 0 Total Repairs 11,598 10,857 (741) Supervision and Management -Allocations to General Fund 6,004 6,004 0 -Landscaping 740 740 0 -Insurance 451 641 190 -Other Supervision and Management 398 402 4 Total Supervision and Management 7,593 7,787 194 Capital Financing Costs 20,353 19,747 (606) Void Rent and Council Tax 1,414 1,374 (40) Other Expenditure 2,213 2,251 38 Total Expenditure 43,171 42,016 (1,155) INCOME Dwelling Rents (40,134) (40,123) 11 Garage Rents (748) (741) 7 Service Charge Income (347) (331) 16 Other Income (70) (70) 0 Total Income (41,299) (41,265) 34 Net (Income)/Expenditure for HRA Services 1,872 751 (1,121) Movement in Housing Revenue Account Reserve Housing Revenue Account Reserve Opening Balance (30,242) (Enhancement)/impairment during the year as above 751 Reserve earmarked to fund capital investment plans (29,491) Page 68 of 260
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Midlothian Council Tuesday 22 September 2026 Item No 8.3 General Services Capital Plan - 2026/27 Quarter 1 Monitoring Report by David Gladwin, Chief Financial Officer & Section 95 Officer Report for Decision 1 Recommendations It is recommended that the Council:- 1. Note the inclusion of the projects listed in Section 3.1 in the General Services Capital Plan (GSCP) 2. Approve the addition of the new projects to the GSCP, as outlined in Section 3.2, and the adjustments to project expenditure budgets in the GSCP as set out in Section 3.3; 3. Note the forecast outturn for expenditure, funding and borrowing, as outlined in Section 4. 2. Purpose of Report The purpose of this report is to provide Council with:- • An update of the GSCP incorporating information on further additions to the Capital Plan for approval and adjustments to existing project budgets (Section 3); • Information on the projected performance against budget for 2026/27 (Section 4); • Update on the Capital Fund (Section 5). Date 07 September 2026 Report Contact: Gary Thomson, Senior Finance Business Partner gary.thomson@midlothian.gov.uk Page 69 of 260
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3 Update of General Services Capital Plan 3.1 Projects endorsed by Council and to be added into the Plan The plan now incorporates the projects approved by Council on 23 June 2026 in respect of the following:- • Enhancing Midlothian’s Residential Care Capacity: Acquisition of three residential houses across Midlothian to provide internal residential care provision for children and young people. Capital expenditure budget of £2.115 million, phased fully in 2026/27, to be fully funded by prudential borrowing. 3.2 Projects presented for endorsement in the Plan The following projects are presented for endorsement to be fully adopted within the GSCP:- Capital Plan & Asset Management Board (CPAMB) 7 September 2026 • Active Travel Infrastructure Grant (ATIF) Tier 1: Active travel improvements across the County, including improved junctions, installation of new crossing facilities and traffic calming measures. Delivery of the North Midlothian Network, Shawfair Connections and a cycle route from Penicuik to Leadburn. Total capital expenditure budget of £1.048m million, fully phased in 2026/27 and fully funded by Scottish Government ATIF Tier 1 Capital Grant of £1.048 million. • Active Travel Infrastructure Grant (ATIF) Tier 2: For the provision of Loanhead Road Straiton Path. Capital expenditure budget of £0.369 million, fully phased in 2026/27 and fully funded by Scottish Government ATIF Tier 2 Capital Grant of £0.369 million. • Bus Infrastructure Fund (BIF) Tier 1: For the provision of replacement/upgraded Bus Shelters, the installation of new Real Time Passenger Information (RTPI) signs, and an enhanced bus pick up facility on the A702 near the Flotterstone Inn. Capital expenditure budget of £0.215 million, fully phased in 2026/27 and fully funded by Scottish Government BIF Tier 1 Capital Grant of £0.215 million. • Road Safety Improvement Fund (RSIF): For the enhancement of 20mph zones across Midlothian (Visible Message Signage, additional road markings and repeater signage and countdown marker), and road safety improvements (barrier improvements, resurfacing works and signage) to Roslin Glen. Capital expenditure budget of £0.246 million, fully phased in 2026/27 and fully funded by Scottish Government capital grant funding of £0.246 million. • People & Places Projects: For (i) the contribution of staffing time directly attributable to the delivery of ATIF Tier 1 capital projects, (ii) Tour De France 2027 infrastructure improvements on the A7 related to Active Travel, and (iii) the purchase of bikes. Capital expenditure budget of £0.037 million, fully phased in 2026/27 and fully funded by Scottish Government Local Authority Direct Award (LADA) Capital Grant of £0.037 million. Page 70 of 260
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3.3 Adjustments to existing project budgets The following adjustments to existing project expenditure and income budgets are included in the GSCP:- • FCC Zero Waste – Heat Offtake Facility: Additional £1.360 million capital expenditure budget (total capital expenditure budget of £2.400 million) to cover higher than expected costs in relation to the Council’s contribution to the Heat Offtake Facility, to be fully phased in 2026/27 and fully funded by prudential borrowing. Approved by full Council on 23 June 2026. • Recycling Improvement Fund: Additional £0.019 million capital expenditure budget, fully matched by £0.019 million of capital grant funding from Zero Waste Scotland, for the Council’s Recycling Improvement Fund project. Capital expenditure & capital grant funding fully phased in 2025/2 and approved by CPAMB on 3 June 2026. • Rosewell Development Trust: Additional £0.067 million capital expenditure budget, fully matched by £0.067 million of developer contributions, for improvement works to The Steading community building in Rosewell (Community History Wall and Disabled Gardening Group Meeting Shed Space/Workspace). Approved by CPAMB on 7 September 2026. • Acoustic Upgrades to Schools: Widening of scope to cover St. David’s & King’s Park primary schools. Page 71 of 260
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4 2026/27 Projection against budget 4.1 2026/27 Budget After accounting for the following:- • Rephasing of budgets from 2025/26 to 2026/27, and new projects added to the plan, both as reported to Council on 23 June 2026; • Including the new projects & adjustments to project budgets as outlined in Section 3; the capital plan expenditure budget for 2026/27 is £125.813 million. Page 72 of 260
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Table 1: Rephasing of project expenditure budgets Project Description of amendment to budget Previous 2026/27 Budget £000’s Revised 2026/27 Budget £000’s 2026/27 Budget Movement £000’s CHILDREN, YOUNG PEOPLE & ESTATES PROGRAMME BOARD Mayfield Learning Campus Current delay of c. 3 weeks in project programme with corresponding rephasing of project expenditure 28,054 24,742 -3,312 Beeslack Community High School Replacement Requirement to commence a new procurement process following the approved revision of scope of the project in May 2026 along with a further period of RIBA Stage 2 design has impacted the overall project programme by approximately 8 months, resulting in rephasing of project expenditure 10,653 2,415 -8,238 Penicuik High School The project is progressing well and is currently ahead of programme, resulting in expenditure being ahead of the original planning assumptions. Consequently, forecast spend has been rephased from future financial years into 2026/27 to align with the contractor's delivery programme and current progress on site. The revised profile therefore represents a more accurate assessment of expenditure timing and does not indicate an increase in the total approved project cost. 9,219 21,772 +12,553 Shawfair All-Through Campus Project planning application is now due to be determined in late October 2026 rather than the projected early September 2026. In addition, whilst the market testing exercise underway by the main contractor is progressing, the review/cleansing of those packages is taking longer than anticipated due to a number of issues. A 2026 start on site is still expected, with first works concentrating on enabling works following the successful completion of remediation works carried out by Shawfair LLP. 21,616 19,910 -1,706 Page 73 of 260
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Project Description of amendment to budget Previous 2026/27 Budget £000’s Revised 2026/27 Budget £000’s 2026/27 Budget Movement £000’s ASSET MANAGEMENT PROGRAMME BOARD Assistive Technology Service managers are currently considering various workstreams involving the use of technology, with firm plans being drawn up and spend reprofiled to 2027/28 485 150 -335 Total 70,027 68,989 -1,038 Based on the rephasing of budgets as shown in Table 1 above, the rephased budget for the GSCP is £124.775 million. In line with this, the expected level of funding available to finance the plan has also been rephased and totals £31.012 million. This results in an in-year budgeted borrowing requirement of £93.763 million. Page 74 of 260
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The projected performance against budget for 2026/27 is shown in table 2 below:- Table 2: GSCP Projected Performance against Budget 2026/27 – as at Quarter 1 Item 2026/27 2026/27 Actual 2026/27 2026/27 2026/27 Initial Rephased To Projected Variance Carry Budget*1 Budget 19.07.26 Outturn £000’s Forward £000’s £000’s £000’s £000’s £000’s Expenditure 125,813 124,775 16,062 124,763 -12 -1,038 Funding 34,189 31,012 6,523 31,627 +615 -3,178 Borrowing Required 91,623 93,763 9,539 93,136 -627 4.2 Expenditure Expenditure to 19 July 2026 is £16.062 million with a projected expenditure outturn of £124.763 million, £0.012 million less than the rephased budget. At this stage it is anticipated that all budgets for the projects detailed in Appendix 1 will be fully spent in the current year, other than:- • Easthouses Primary School: Project complete and final retention released to contractor. Minor overspend of £0.003 million against original £22.044 million project budget; • Mauricewood Road Bus Shelter: Installation of bus shelter in prior years and project fully complete, with underspend of £0.004 million against capital expenditure budget; • Community Bus Fund: Installation of Bus Trackers installed in prior years and project fully complete, with underspend of £0.004 million against capital expenditure budget; • Millerhill Pavilion: Demolition complete with minor project underspend of £0.007 million. The expenditure to Quarter 1 (£16.062 million) equates to 13% of the forecast outturn expenditure (£124.763 million). This means that the remaining £108.701 million, or 87% of expenditure, is projected to be incurred by the end of the financial year, with only 69% of the financial year remaining. The expenditure forecasts are based on the latest assessment of project expenditure by service leads and project managers. The risk in these forecasts is that expenditure is materially less than forecast, with overly optimistic forecasts from service leads and project managers resulting in underspends within the current financial year and/or rephasing from 2026/27 back to 2027/28. The actual outturn position will be presented as part of the General Services Capital Plan – Outturn 2026/27 report to Council in June 2027, with prior reporting, challenge and assessment at Capital Plan & Asset Management Board. 1 With new projects added Page 75 of 260
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4.3 Funding The funding available to finance the Capital Plan in 2026/27 is expected to total £31.627 million, £0.615 more than the rephased budget, which reflects additional General Capital Grant funding of £0.619m less £0.004 million of unapplied developer contributions as a result of the project expenditure underspend for the Mauricewood Road Bus Shelter project listed in section 3.2. Funding of £6.523 million has been received to 19 July 2026. 4.4 Borrowing The budgeted level of borrowing for 2026/27 is £93.763 million. Based on the forecast expenditure and funding levels as noted above, the revised estimate of the level of borrowing required for 2026/27 is forecast to be £93.136 million, reflecting the variances in expenditure and funding as noted in Sections 4.2 and 4.3. The impact on the Council’s borrowing costs is reflected in the Financial Monitoring 2026/27 General Fund Revenue report elsewhere on today’s agenda. 5 Capital Fund The Capital Fund at the start of the 2026/27 financial year was £18.333 million. £7.694 million of this is committed to fund the A701 City Deal project, with a further £7.061 million committed to support capital investment, and a further £0.604 million of developer contributions earmarked to fund specific projects. The forecast non-committed capital fund balance at 31 March 2027 is £3.514 million, as shown in the table below. Item Amount £000’s Balance at 01 April 2024 18,333 Forecast Capital Receipts 2026/27 540 Forecast Balance at 31 March 2027 18,873 Committed to fund City Deal Project -7,694 Committed to support Capital Investment -7,061 Developer Contributions earmarked for specific purposes -604 Forecast uncommitted balance at 31 March 2027 3,514 Page 76 of 260
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6. Report Implications 6.1 Resource The borrowing required to finance the planned investment in 2026/27 is reflected in the Financial Monitoring 2026/27 – General Fund Revenue report elsewhere on today’s agenda. 6.2 Digital There are no Digital Services implications arising from this report. 6.3 Risk The construction materials supply chain has already been subject to unprecedented disruption through a combination of the Coronavirus (COVID-19) Pandemic, the UK leaving the European Union, the conflict in Ukraine and the global inflationary picture. The Construction Leadership Council (CLC) continues to report shortages of construction materials and forecasts this disruption to continue for the foreseeable future. Ongoing engagement with suppliers confirms that materials shortages, longer lead times and steep price increases are highly likely to continue to impact the supply chain. This potentially exacerbates the inherent risk in the Capital Plan that projects will cost more than estimated thus resulting in additional borrowing, or will be subject to delay as project scope is reduced and value engineering is required to deliver to available budget and mitigate the impact on the Medium Term Financial Strategy. Strengthened financial monitoring & governance procedures have been approved by CP&AMB, which will ensure that significant variations can be captured and reported to Programme Boards and CP&AMB so that remedial action can be taken to mitigate the risks. In developing the strategy and taking cognisance of the longer term affordability gap it is clear that a number of potential projects which are currently included, will only be able to progress if they can be delivered on a spend to save basis (i.e. where income or cost savings more than offset the cost of funding the investment) or where they can be delivered on a cost neutral basis or through alternative funding mechanisms. The Capital Plan includes a provision for the return of contingencies of £10.220 million over the period 2026/27 to 2029/30, equating to 2.5% of all project expenditure. This includes a provision for the return of contingencies of £1.253 million in 2026/27. The risk is that projects throughout the plan are unable to deliver this which could be in part due to factors outwith the Council’s control. Capital Plan & Asset Management Board will review the level of return of contingencies against the £10.220 million provision on an ongoing basis to ensure that projects can, where possible, deliver against this provision and that the provision continues to be appropriate. Page 77 of 260
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6.4 Ensuring Equalities There are no equalities issues arising directly from this report. 6.5 Additional Report Implications See Appendix A. Page 78 of 260
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Appendix A: Report Implications A.1 Key Priorities within the Single Midlothian Plan Not applicable. A.2 Key Drivers for Change A.3 Key Delivery Streams Themes addressed in this report: One Council Working with you, for you Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above A.4 Delivering Best Value The report does not directly impact on Delivering Best Value. A.5 Involving Communities and Other Stakeholders No external consultation has taken place on this report. A.6 Impact on Performance and Outcome There are no issues arising directly from this report. A.7 Adopting a Preventative Approach Not applicable. A.8 Supporting Sustainable Development Not applicable. Background Papers: Appendix 1 – GSCP 2026/27 – Quarter 1 Monitoring Appendix 2 – Projects in Development Page 79 of 260
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Appendix 1: GSCP 2026/27 – Quarter 1 Monitoring Rephased 2026/27 2026/27 2026/27 2026/27 2026/27 2026/27 Note/ GENERAL SERVICES CAPITAL PLAN Budget Budget Actual Forecast Variance Carry Explanation P4 Monitoring Q1 to P4 Outturn Q1 Q1 Forward Q1 for £'000 £000's £000's £000's £000's £000's Variance/Carry Forward CHILDREN, YOUNG PEOPLE & ESTATES PROGRAMME BOARD Education - Primary Woodburn Primary Extension 135 135 12 135 - - Easthouses Primary School 292 292 0 295 3 - Project complete and final retention released to contractor. Minor overspend of £0.003 million against original £22.044 million project budget Mayfield Learning Campus 28,054 24,742 7,005 24,742 - 3,312 Current delay of c. 3 weeks in project programme with corresponding rephasing of project expenditure Bilston Primary School Extension 2,502 2,502 1,574 2,502 - - Roslin Primary School Modular Units 55 55 7 55 - - Mauricewood Primary School - Extension 4,181 4,181 2 4,181 - - Education - Secondary Beeslack CHS Replacement 10,653 2,415 72 2,415 - 8,238 Requirement to commence a new procurement process following the approved revision of scope of the project in May 2026 along with a further period of RIBA Stage 2 design has impacted the overall project programme by approximately 8 months, resulting in rephasing of project expenditure Penicuik High School 9,219 21,772 2,921 21,772 - (12,553) The project is progressing well and is currently ahead of programme, resulting in expenditure being ahead of the original planning assumptions. Consequently, forecast spend has been rephased from future financial years into 2026/27 to align with the contractor's delivery programme and current progress on site. The revised profile therefore represents a more accurate assessment of expenditure timing and does not indicate an increase in the total approved project cost. Shawfair All-through Campus 21,616 19,910 1,021 19,910 - 1,706 Project planning application is now due to be determined in late October 2026 rather than the projected early September 2026. In addition, whilst the market testing exercise underway by the main contractor is progressing, the review/cleansing of those packages is taking longer than anticipated due to a number of issues. A 2026 start on site is still expected, with first works concentrating on enabling works following the successful completion of remediation works carried out by Shawfair LLP. Education - ASN ASN Provision - Social Complex Needs 42 42 3 42 - - Education - Early Years Mount Esk Nursery Replacement @ Hawthornden 1,263 1,263 - 1,263 - - Vogrie Outdoor Early Learning Centre 105 105 12 105 - - Education - General Acoustic Upgrades 87 87 42 87 - - Learning Estate Strategy: Development Budget 361 361 - 361 - - TOTAL - CHILDREN, YOUNG PEOPLE & ESTATES PROGRAMME BOARD78,565 77,863 12,672 77,866 3 702 Page 80 of 260
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Rephased 2026/27 2026/27 2026/27 2026/27 2026/27 2026/27 Note/ GENERAL SERVICES CAPITAL PLAN Budget Budget Actual Forecast Variance Carry Explanation P4 Monitoring Q1 to P4 Outturn Q1 Q1 Forward Q1 for £'000 £000's £000's £000's £000's £000's Variance/Carry Forward ASSET MANAGEMENT PROGRAMME BOARD Digital Business Applications 140 140 - 140 - - Front Office - Hardware, Software & Services 334 334 (5) 334 - - Back Office - Hardware, Software & Services 131 131 - 131 - - Network, Software & Services 735 735 - 735 - - Schools - Hardware, Software & Services 292 292 - 292 - - Recharge of Staffing 329 329 - 329 - - Digital: Equipped for Learning Phase 1 300 300 1 300 - - Digital: Equipped for Learning Phase 2 451 451 - 451 - - Roads & Street Lighting Street Lighting and Traffic Signal Upgrades - New 880 880 16 880 - - Footway & Footpath Asset Management Plan - New 674 674 - 674 - - Road Upgrades - Asset Management Plan 1,984 1,984 59 1,984 - - Roads: Resurface Residential Schemes 3,183 3,183 247 3,183 - - Roads Asset Management Plan - Temple Ground Stabilisation309 309 - 309 - - Fleet Vehicle & Plant Replacement Programme 4,277 4,277 248 4,277 - - Property Property Upgrades 5,356 5,356 167 5,356 - - Property Upgrades - LES 144 144 23 144 - - Robotic Scrubber Driers 53 53 - 53 - - Open Spaces / Play Areas Mauricewood Road Bus Shelter 4 4 - - (4) - Installation of bus shelter in prior years and project fully complete, with underspend of £0.004 million against capital expenditure budget Welfare Park, Newtongrange 39 39 - 39 - - Play Park Renewal 2023/24+ - - - - - - Play Park Renewal 2024/25 476 476 29 476 - - Play Park Renewal 2025/26 495 495 - 495 - - Callander Park Play Equipment 50 50 3 50 - - Nature Restoration Fund 2023/24 4 4 - 4 - - Contaminated Land 70 70 30 70 - - Public Sector Housing Grants 291 291 214 291 - - Sport & Lesiure Bonnyrigg Rose Football Club: Engineering & Ground Works13 13 - 13 - - Adult Social Care Assistive Technology 485 150 17 150 - 335 TOTAL - ASSET MANAGEMENT PROGRAMME BOARD21,500 21,165 1,048 21,160 (4) 335 Page 81 of 260
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Rephased 2026/27 2026/27 2026/27 2026/27 2026/27 2026/27 Note/ GENERAL SERVICES CAPITAL PLAN Budget Budget Actual Forecast Variance Carry Explanation P4 Monitoring Q1 to P4 Outturn Q1 Q1 Forward Q1 for £'000 £000's £000's £000's £000's £000's Variance/Carry Forward TRANSPORT, ENERGY & INFRASTRUCTURE PROGRAMME BOARD Transport A701 Relief Road: Bush Loan Junction 5,554 5,554 10 5,554 - - A701 Relief Road: A701 Active Travel Corridor 1,569 1,569 9 1,569 - - Sustainable Transport A7 Urbanisation 213 213 130 213 - - Active Travel Infrastructure: Tier 1 1,048 1,048 120 1,048 - - Active Travel Infrastructure: Tier 2 369 369 - 369 - - Bus Infrastructure Fund: Tier 1 221 221 - 221 - - Community Bus Fund 4 4 - - (4) - Installation of Bus Trackers installed in prior years and project fully complete, with underspend of £0.004 million against capital expenditure budget Road Safety Improvement Fund 246 246 0 246 - - People & Places Projects - LADA Funded 37 37 - 37 - - Others FCC Zero Waste - Heat Offtake Facility 2,400 2,400 - 2,400 - - TOTAL - TRANSPORT, ENERGY & INFRASTRUCTURE PROGRAMME BOARD11,660 11,660 269 11,656 (4) - REGENERATION & DEVELOPMENT PROGRAMME BOARD Regeneration Place Based Investment Fund 2021/22 4 4 3 4 - - Place Based Investment Fund 2022/23 36 36 0 36 - - Place Based Investment Fund 2023/24 118 118 - 118 - - Place Based Investment Fund 2025/26 201 201 - 201 - - Rosewell Development Trust - The Steading Infrastructure Upgrades110 110 - 110 - - Penicuik THI: Public Realm Scheme 98 98 42 98 - - Development - - - Destination Hillend 1,944 1,944 551 1,944 - - Midlothian House RetroFit 8,576 8,576 1,004 8,576 - - Midlothian Life Care Facility 746 746 326 746 - - Day Care Centre 116 116 81 116 - - General Fund Share of Extra Care Housing 25 25 6 25 - - Enhancing Midlothian's Residential Care Capacity 2,115 2,115 - 2,115 - - Gorebridge Hub: Relocation of Library to Leisure Centre 485 485 9 485 - - Recycling Improvement Fund (Stobhill Recycling Depot) 226 226 2 226 - - TOTAL - REGENERATION & DEVELOPMENT PROGRAMME BOARD14,801 14,801 2,024 14,801 - - OTHER (PROGRAMME BOARD NOT YET DEFINED) PLACE Property/Development Midlothian & Fairfield House Shower Upgrades 2 2 - 2 - - Millerhill Pavilion 7 7 - - (7) - Demolition complete with minor project underspend of £0.007 million PEOPLE & PARTNERSHIPS - Education - Free School Meal Provision 186 186 - 186 - - Communities & Partnerships - Members Environmental Improvements 344 344 49 344 - - TOTAL NOT ALLOCATED TO PROGRAMME BOARDS540 540 49 533 (7) - SUBTOTAL - PRE RETURN OF CONTINGENCIES127,066 126,029 16,062 126,017 (12) 1,038 Provision for Return of Contingencies (1,253) (1,253) - (1,253) - - - GENERAL SERVICES CAPITAL PLAN TOTAL 125,813 124,775 16,062 124,763 (12) 1,038 Page 82 of 260
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Appendix 2 – Projects Under Consideration The General Services Capital Plan (GSCP) includes all projects that are currently fully approved or approved in principle. In addition, the following projects are being considered; and will be brought forward to Council for full approval and adoption in the GSCP if the project meets the Council’s statutory & policy drivers and an affordable business case has been developed. The following list is not an exhaustive list of projects but represents a wider suite of projects to those already approved. Projects Under Consideration Children, Young People and Partnerships Programme Board Gorebridge High School Lasswade High School – Enhancement of Core & Community Capacity Conversion of Mount Esk Nursery School to ASN provision (for Lasswade High School) St. David’s Primary Extension Asset Management Board Temple Ground Stabilisation B6372 Arniston Embankment Stabilisation Regeneration & Development Programme Board Stobhill Depot Masterplan Woodburn Community Hub Vogrie Renewal Strategy Masterplan Gorebridge Library Relocation Transport, Energy & Infrastructure Programme Board A701 Relief Road – Phases 4-8 Page 83 of 260
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Midlothian Council Tuesday 22 September 2026 Item No 8.4 Housing and Building Maintenance Update 2026 Report by Kevin Anderson, Executive Director Place Report for Noting 1 Recommendations It is recommended that Council notes: i. The ongoing development and delivery of Midlothian Council’s affordable housing programme. ii. Progress with service review for Housing Service and Building Maintenance Service. iii. Ongoing investment in digitally enabling Housing Services and Building Maintenance Services to enhance customer experience and performance. 2 Purpose of Report 2.1 To update the Council on the status of Midlothian Council’s affordable housing programme in 2025/2026 on approved sites and proposed new sites for the Council new build affordable housing programme and other initiatives, and highlight progress made on the respective investment in service teams and digital infrastructure. Date: 28 August 2026 Report Contact: Fiona Clandillon, Head of Development fiona.clandillon@midlothian.gov.uk Page 85 of 260
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3 Background 3.1 The Scottish Government’s housebuilding statistics published on 30th June 2026 reveal a picture of housebuilding decline across Scotland. 3.2 In 2025-26, there were 17,268 new-build completions in Scotland, 1,914 fewer (-10%) than in the same period a year ago. Within this period, private sector completions fell from 14,711 to 13,494 (-8%). The number of new-build starts was 14,955, an annual fall of 4.4%. Over the same period, private sector starts fell from 12,501 to 11,018 (-12%). 3.3 Statistics for the social housing sector in 2025-26 reveal that completions also fell but at a steeper rate from 4,471 to 3,774 (-16%), however, starts in the social sector increased from 3,147 to 3,937, which is an annual increase of 25%. Figure 1: New-build completions by sector: Scotland (2025-26) 3.4 It is important to note that the number of homes being constructed in Scotland across all tenures is in decline and is combined with reduced industry capacity to deliver new homes in the future. 3.5 In contrast, housebuilding in the wider Edinburgh and South East Scotland city region has been sustained and Midlothian has the highest level of housebuilding per 10,000 of population in Scotland. 3.6 In the Midlothian Council area, the total new housing supply is in contrast to the national figures for 2025-26. The total number of construction starts for Scotland was 14,955, the average per local authority area is 467 new homes starts, while in Midlothian this figure is well above the national average at 598 new homes construction starts. 3.7 This growth in housebuilding has resulted in a corresponding growth in the delivery of affordable homes in Midlothian. Page 86 of 260
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Figure 2: All housing completions in Scotland, per 10,000 of population Page 87 of 260
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4 Affordable Housing Delivery 4.1 On 25th March 2026, the Cabinet Secretary for Housing has confirmed £2.939 billion Resource Planning Assumptions (RPA) for the next four years to 2029-30, representing an increase of more than £486 million when compared to the last four years. For Midlothian Council, the housing programme budget/Resource Planning Assumptions (RPAs) allocation over the next four years is as follows: Table 1 Four Year RPA Midlothian Year Amount (£m) 2026-27 10.586 2027-28 10.904 2028-29 11.231 2029-30 11.568 Total 44.288 4.2 In addition to the four-year RPA funding confirmation, the Scottish Government’s More Homes Division updated the affordable housing investment benchmarks with immediate effect on 19th March 2026. These replace the benchmarks introduced in October 2024 which have been reviewed using data from the Scottish Social Housing Tender Price Index covering the full 2024 calendar year. This has led to a 4.6% increase across all benchmarks – except for the benchmark related to zero direct emissions heating systems, which has been increased by approximately 24.7%. Information provided by councils, Registered Social Landlords (RSLs), and their respective arms-length external organisations and subsidiaries shows that the average cost of installing a zero direct emissions heating system in 2024-25 was £12,002 per home (at the three-person equivalent level). Using management information which shows an average grant support level of 51% for these organisations in 2024-25, the new grant amount has been set for the updated benchmark for these installations at £6,121 per home (at the three-person equivalent level). Table 2 Benchmark Adjustment Provider & Tenure Type October 2024 Benchmark March 2026 Benchmark Increase (£) % Increase RSL Social Rent £95,741 £100,145 +£4,404 4.60% Council Social Rent £87,763 £91,800 +£4,037 4.60% Page 88 of 260
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4.3 Midlothian continues to experience exceptional housebuilding growth. This expansion, combined with economic pressures, including high inflation, labour shortages, supply chain disruptions, and the cost-of- living crisis, has placed unprecedented pressure on the Council's affordable housing delivery program. 4.4 Despite this challenging operating environment, Midlothian Council's strategic approach has successfully mitigated these risks. A notable outcome of this proactive programme management was securing an additional £2.139m of Scottish Government grant funding in 2025/26. This supplementary allocation was successfully captured from unspent capital redistributed from other local authorities, directly reflecting the strength and readiness of Midlothian's affordable housing programme. 4.5 The Scottish Government published its Housing Emergency Action Plan on 2nd September 2025, building upon the national housing emergency declared in May 2024. This overarching national intervention establishes clear operational milestones focused on three core objectives: • Ending children living in unsuitable accommodation: Driving forward the national mission to eliminate child poverty by removing families from temporary housing like B&Bs and hotels. • Supporting vulnerable groups: Addressing the distinct needs of vulnerable communities, including a national "fund to leave" for survivors of domestic abuse. • Growing and investing in the housing sector: Maximising long-term private and public infrastructure investment while accelerating the planning system. Specific National Actions and Targets • Affordable Housing Supply: The plan commits to the delivery of 36,000 all-tenure affordable units over the next four years of which 25,000 will be social rent homes by 2029/30. • Funding Package: A £4.9 billion investment package has been deployed over a four-year period to support delivery and double funding for local housing acquisitions. 4.6 For Midlothian Council, this national framework shapes local strategic delivery. In direct response to these national priorities and funding mechanisms, the Council formally approved and adopted its Local Housing Strategy (LHS) 2026/27 – 2030/31 on 31st March 2026. This newly implemented strategy embeds the Scottish Government’s funding distribution models to scale up the Council’s Strategic Housing Investment Plan (SHIP). By successfully aligning national resources with local infrastructure capacity, Midlothian Council is positioning its Affordable Housing Programme to maximise investment opportunities, expand high-quality social rent developments, and effectively meet the needs of the area's fast-growing communities. Page 89 of 260
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5 Housing Revenue Account Financial Model 5.1 For many years the Council have operated a 15-year rolling financial model which has provided the strategic financial backdrop to capital investment and rent levels. The model is refreshed on an annual basis, or more regularly if there are materially changing circumstances. 5.2 Financial projections are based on a combination of known events (e.g. agreed rent increase) and modelling assumptions. The main assumptions are: • Inflationary increases using published statistics. • Rental income streams based on agreed or estimated increase in annual rents. Currently a rental increase of 5.42% to the end of financial year 2028/29 is approved with a planning assumption of 4.8% thereafter to 2031/32 and 2.9% thereafter. • Borrowing costs from capital expenditure incurred or approved through to the end of phase 5 of the new build programme with continuing investment to meet Scottish Housing Quality Standards (SHQS), Energy Efficiency in Scottish Social Housing (EESSH) and Damp Remediation works. • Rent levels for new build properties will converge with those for existing stock 15 years from handover. • External funding via Scottish Government schemes. 5.3 The model forecasts a gradually eroding HRA reserve from its current projected balance of £28 million in 2026/27 to £2 million in 2040/41. 5.4 Midlothian Council approved an annual rent increase of 5.42% effective 1st April 2026. This strategy covers a three-year period from 2026/27 to 2028/29. The increase will fund ongoing maintenance, meet national energy efficiency standards, and support the construction of new affordable council homes. The rent strategy was finalised and agreed upon by the council in February 2026 following extensive public consultation with local residents, paper surveys, and tenant focus groups. Key initiatives and focus areas of the 2026 strategy include: • Energy Efficiency: Ensuring compliance with the Energy Efficiency Standard for Social Housing (EESSH2) to reduce fuel poverty. • Housing Upgrades: Continuing upgrades to maintain and improve existing Council properties in line with the Scottish Housing Quality Standard (SHQS). • New Builds: Funding the Strategic Housing Investment Plan (SHIP), which includes 300 new Council social rent homes in Midlothian. Page 90 of 260
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6 Affordable Housing Delivery 6.1 The risk that the Phases 5 and 6 New Social Housing Programme in Midlothian will become unaffordable has been substantially mitigated by the confirmation of a four-year funding package totalling £44.288 million spanning 2026-27 to 2029-30. This allocation provides £10.586 million in 2026-27, £10.904 million in 2027-28, £11.231 million in 2028- 29, and £11.568 million in 2029-30 as detailed in paragraph 4.1 above. 6.2 This multi-year baseline is supported by the Scottish Government’s announcement allowing project approvals against future allocations at declining risk-mitigation rates (80% for 2026/27, 60% for 2027/28, and 40% from 2028/29). While this framework significantly removes long- term funding uncertainty, a localised element of forward funding remains necessary for specific Phase 5 and 6 sites. Financial modelling confirms that the Housing Revenue Account (HRA) can successfully support these forward funding requirements up to 2027/28 (see Table 2). 6.3 In recent times, the construction industry in Scotland and across the UK has faced highly volatile market conditions, resulting in significant increases in tender prices for a wide range of materials. While previous evidence suggested severe inflation spikes of 10–15% above standard forecasts, current data from the Building Cost Information Service (BCIS) indicates a stabilising but upward trend, with the All-In Tender Price Index (TPI) projected to increase by 3.2% year-on-year. While measures such as value engineering are helping to partially offset accumulated historical cost pressures, there remains a persistent risk that the capital budgets allocated for delivery of the New Social Housing programme may require uplift, with consequent implications for the overall funding strategy. 6.4 The Council continues to achieve best value through robust procurement processes and successfully manages the transition into a more stabilised 3.2% inflationary environment. Consistent high tender responses from a healthy range of contractors validate this approach, maximising capital efficiency across the Phase 5 and 6 delivery timelines. Page 91 of 260
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7 Strategic Local Programme Agreement 2025/26 7.1 The Strategic Local Programme Agreement (SLPA) for this Financial Year has been confirmed at £10.586m for Midlothian’s Affordable Housing Supply Programme (AHSP) grant allocation. 7.2 Sites that will draw down on Scottish Government funding this year are included in Table 1 below. Table 3 2026/27-2027/28 Affordable Housing Delivery Funding Drawdown Site Developer Number Tenure ASHP Grant Funding Auchendinny Phase 2 (MLC Ph1) - P43835 Midlothian Council 25 Social rent 2.361 Bonnyrigg, Dalhousie Phase 2B - P47190 Wheatley Group 24 Market rent 2.160 Mayfield, Oakwood Edge Phase 2 - P40161 Melville HA 28 Market rent 0.694 Millerhill, Old Craighall Road (Barratt) - P41759 Midlothian Council 30 Social rent 3.200 Newtongrange, Main Street - P43742 (Former Swimming Pool and Church Halls) Midlothian Council 23 Social rent 0.941 Open Market Purchases 2026-27 - P41760 Midlothian Council 10 Social rent 0.550 Shawfair Block 'P' - P43738 Midlothian Council 38 Social rent 1.750 Shawfair Block 'W2' (Woolmet) Phase 1 - P48667 Wheatley Group 10 Social rent 0.000 (£1.289m charitable bonds funding authorised) Shawfair Blocks 'R1'/'R2' - P43739 Midlothian Council 35 Social rent 2.076 Total 223 11.732 7.3 The Affordable Housing Supply Programme (AHSP) currently projects a grant over commitment of £1.146m for the current financial year. This will be mitigated through two primary strategic mechanisms: • Slippage Alignment: Offsetting the variance against projected project slippage, reallocating funds from schemes whose site commencement dates have shifted beyond the current financial year. • Additional Grant Funding: Targeting surplus Scottish Government grant allocations redistributed from under-spending local authorities, replicating the successful funding strategy achieved in the 2025/26 financial year. Page 92 of 260
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8 Phase 5 and 6 Funding 8.2 The confirmed four-year grant funding settlement allows Midlothian Council to transition from reactive site deferrals following grant cuts in 2024/25 to a structured, multi-phase delivery model. By locking in these precise allocations, the Council minimises funding volatility and can confidently align both its Revised Phase 5 completions and Phase 6 pipeline planning with the Local Housing Strategy (LHS) 2026/27 – 2030/31. The active delivery pipelines are structured as follows: • Revised Phase 5: Consists of finalised local priority developments and Section 75 acquisitions targeted for completion through 2027 (detailed in the table below). • Phase 6 Pipeline: Backed by a £97million capital allocation, this phase focuses on the next generation of social housing delivery via the Strategic Housing Investment Plan (SHIP), scheduling unapproved council sites to align with future funding releases. 8.3 In addition to Phase 5 and 6 funding, the stabilisation of the core RPA funding directly protects the £20 million capital budget earmarked for Housing-Led Town Centre Regeneration. Because core housing delivery is now insulated by the £44.289 million RPA settlement, the regeneration fund can remain exclusively dedicated to its primary objective. Feasibility and design frameworks are progressing into active planning phases within Dalkeith Town Centre, seamlessly combining urban renewal with high-density, energy-efficient social housing. Page 93 of 260
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Table 4 – Phase 5 and 6 MLC Housing Programme Update Phase 5 Sites Update Site Units Status Site 148 - Newton Church Road Leisure Centre and Pool Sites (MLC) 23 Smaller site, Council owned. Grant approval confirmed in SLPA 24/25 and due to complete at the end of September 2026 Site 153 - Newtongrange Church Hall and Swimming Pool Site (MLC) 23 Not on site, however grant allocated in form of site acquisition. Planning applications have been submitted in March 2026 and a planning decision expected by end of Aug 2026. Plot P, Shawfair (Lovell) 38 Developer due to target site start in 2026/27. The Brae Auchendinny (Bellway) 75 SG Grant funding has been approved which is phased over 3 years to manage grant allocation. Wellington Farm (Barratt Homes), Old Craighall Millerhill 30 Developer due to target site start in 2026/27. Cruden Shawfair R1/R2 Site 35 Developer due to target site start in 2026/27. Robertsons Shawfair S5 14 Developer due to target site start in spring 2027. Total 266 Phase 6 Sites Update Site Units Status Rullion Road, Penicuik (MLC) 46 No grant allocation approved, has received forward funding for site acquisition. Planning application submitted in March 2026. Moved to phase 6 to balance HRA funding and project delivery. Lingerwood (Barratt) 113 MLC to determine timing / phasing / costs and potential grant approval timing. Cauldcoats (PFP) 50 MLC to determine timing / phasing / costs and potential grant approval timing. Page 94 of 260
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Blackcot Drive, Mayfield 45 MLC owned site which will be taken forward for a social rent housing development subject LDP 2 approval. Bogwood Road, Mayfield 40 MLC owned site which will be taken forward for a social rent housing development subject LDP 2 approval. Old Craighall Road, Shawfair (Mactaggart and Mickel) (Bellway) 48 MLC to determine timing / phasing / costs and potential grant approval timing. Total 342 Page 95 of 260
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9 Ongoing Delivery 9.1 Midlothian Council's housing programme is delivering 159 new home handovers across key sites in 2026/27, including Morris Road, Newbattle Phase 1 where 90 new homes were completed in May 2026, Newbyres Crescent which completed 75 new homes in July 2026, Dundas Shawfair (28), and Newton Church Road (23). Table 5 – MLC Housing Programme Update 2026/27 Completions Site Name Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Totals Newbyres Crescent 36 8 31 75 Newbattle Phase 1 21 12 33 Dundas Shawfair, Danderhall 8 8 12 28 Newton Church Road, Danderhall 23 23 Total Handovers Nov 25 to Nov 26 21 56 16 43 0 23 0 0 159 Former Newbattle High School, Morris Road, Easthouses Page 96 of 260
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Intermediate Care and Extra Care Housing, Polton St Bonnyrigg Newbyres, Gorebridge Page 97 of 260
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S75 Homes, Dundas Building, Edmonstone Road, Shawfair Table 6 – Annual Delivery Over Time Year of completion No. of completed Council units 2006 0 2007 28 2008 172 2009 237 2010 88 2011 160 2012 170 2013 76 2014 0 2015 48 2016 41 2017 87 2018 0 2019 10 2020 31 2021 90 2022 122 2023 243 2024 111 2025 91 Total 1805 Page 98 of 260
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10 Energy Efficiency Standard for Social Housing (EESSH2) 10.1 In addition, the programme of upgrades to the Council’s existing housing stock to enhance energy efficiency has advanced. In 2025/26, energy efficiency measures were installed to 452 properties – 305 Council, 145 owner occupied and 2 privately rented homes. A range of measures were installed, with the main focus on external wall insulation (213 homes), solar panels with battery storage (368 homes), as well as air source heat pumps to 33 homes, and mechanical ventilation & heat recovery system (MVHR) with new windows and doors to 24 homes. The main areas in Midlothian which saw a benefit from these measures were Bilston, Bonnyrigg, Dalkeith, Pathhead, Penicuik and Rosewell. 10.2 In the 2025/26 Social Housing Net Zero Housing Fund (SHNZHF) programme, there was a spend of £592k in capital expenditure and £348k grant claimed via the Scottish Government. 10.3 The Energy Efficiency Scotland: Area Based Scheme (EESABS) 2025/26 programme saw a 100% spend of grant received, with £1.69m funding claimed – £1.1m of core funding with an additional £500k awarded by the Scottish Government. There was approximately £4.7m of capital spend alongside this to Council homes. 10.4 In 2026/27 there are planned continuation projects in Cuikenburn (Penicuik), Auchendinny, Bilston, Pathhead, and Bonnyrigg, which will see external wall insulation and solar panels with battery storage installed at 238 properties. The next SHZNHF project is planned for delivery to 50 Council homes around Cameron Crescent in Bonnyrigg, offering an air source heat pump alongside solar panels with battery storage. A feasibility study will be carried out to Eskdaill Court in Dalkeith, assessing suitability for various energy efficiency and upgrade measures. In Roslin, there are planned upgrades to 48 Council and 5 privately owned properties. Finally, a long-term retrofit project will begin in Mayfield & Woodburn with the aim of carrying out energy efficiency measures over a multiple year period. 11 Investment in Workforce 11.1 A Service Review for the Housing Service has been completed and approved by the Corporate Management Team. Consultation and implementation processes are now underway. The current proposal will see the creation of a number of new posts to support the service, with the focus on expanding administrative and partnership and compliance roles, to support and enable Housing, Homelessness and Temporary Accommodation Officers to focus on their customer facing work. New roles include: • Senior Manager of Housing and Building Maintenance Service • Housing Performance Manager • Housing Assistant team and Supervisor Page 99 of 260
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11.2 The overall ratio of dedicated housing officers plus support officers will move from 10 FTE to 15.1 FTE (10.5FTE + 4.6FTE) or 1 FTE per 567 homes, once housing stock reaches its post Phase 6 level of 8564 homes. Table 7 Cost of Proposed Structure Cost of New Structure 26/27 Budget Funding Required HRA 1,123,717 816,082 307,635 Homelessness 333,113 373,686 (40,573) RRTP(Homelessness) 69,217 0 69,217 Service Charge 308,068 249,695 58,373 Totals 1,834,115 1,439,463 394,652 11.3 A Service Review of the Building Maintenance Service, which maintains the Council’s housing stock, is also progressing. Impact on Rents 11.4 Assuming the mainstreaming of Rapid Rehousing Transition Plan (RRTP) (Homelessness Officer) posts currently funded externally, the additional cost of £307,635 for the Housing Service will be recharged to the Housing Revenue Account (HRA) as part of the recharging mechanism between the General Fund and the Housing Revenue Account that is currently in place. Rents would need to increase by an additional 0.11% per annum (from 2029/30) to support the additional cost of £307,635 for the restructure. 11.5 Future years projections are currently sitting at 4.8% increase 2029/30- 2031/32 and 2.9% thereafter therefore these would need to increase to 4.91% and 3.01% to support the restructure. At next rent review 2029/30-2031/32, rental levels will take into account these additional service improvements to the HRA, with current HRA reserve levels covering the additional cost in the meantime. Impact on General Fund 11.6 Homelessness and homelessness prevention are costs that are met from the general fund, as current guidance does not allow these costs to be met from the HRA. The restructure is projecting a saving to the homelessness service of £40,573, however if it is decided to mainstream the RRTP posts (working assumption), which currently costs £69,217, this would negate the saving and additional resources would be required of £28,644 per annum. Page 100 of 260
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11.7 The additional cost of £58,373 to support additional temporary accommodation resourcing requirements will be recovered through service charge income so would have no impact on the general fund. 12 Digital Investment Tenants Portal – Housing Services 12.1 ONE Housing is the main digital portal for the housing service, which contains a database of all tenants. 12.2 From Summer 2026, the Council will be implementing a new module onto the ONE Housing database called Tenants’ Portal. This tenant’s portal will provide Midlothian Council tenants with a digital platform for housing services for the first time. This portal will allow tenants to apply for Council homes through an online application form, check the progress of their application and manage location preferences and update change of circumstances. The portal will also collect tenants’ data electronically, ensuring there is an up to date contact database, which will assist housing processes significantly. Once that is achieved, Housing Services is seeking to bring additional functionality into the online portal, such as channelling communications from tenants through the portal, reducing email traffic and contact via phone. 12.3 The proposed new Housing Assistants roles will provide first time response assistance to help tenants access housing services, make service requests and follow up on delivery to these requests. This will allow housing officers to focus on delivery of housing services, offer guidance on registration and navigation and ensuring any early issues are addressed promptly. As a more digitally enabled service is delivered, they will continue to provide a first point of contact for tenants and help build tenant confidence in using a digital platform. 12.4 Further digital enablement is required to remove labour generating paper processes from the housing service. Equipping officers with mobile technology such as tablets is essential for fostering a more proactive, visible customer focused service delivery. This will support the need for enhanced engagement while driving operational efficiency. By enabling the team to work in an agile manner and remotely in homes eliminates duplication on taking paper notes in the home and then updating when in the office. It will also support potential data loss in the handwritten notes, driving improved customer service. Furthermore, as more functionality moves from paper based processes to electronic, this will provide more real time data on how the service is performing; enabling managers to direct resources in the most efficient way to better serve our tenants. Page 101 of 260
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Total Connect – Building Maintenance Services 12.5 The Building Maintenance Service is part way through the implementation of a new software solution. The 18 month project commenced at the end of 2025; and includes mobile working for all staff across the domestic and non-domestic estate (planned and reactive operatives), better quality data to manage performance and respond quicker to requests from tenants, a self service portal for tenants to report repairs 24/7, AI (Artificial Intelligence)overlay to reduce the time for operatives and planners to review individual cases and a range of back office functionality which will improve service delivery for our tenants and reduce time consuming tasks for staff. Implementation is in phases with full completion expected Spring 2027. 13. Report Implications (Resource, Digital and Risk) 13.1 Resource Resource implications of this report are presented in the quarterly Housing Revenue Account updates submitted separately to Council. 13.2 Digital There are no digital implications of this report. 13.3 Risk There is regular review of risk to ensure the retained risk in the new house building programme is of an acceptable and tolerable level to maximise opportunities and have full consideration of risk implications in achieving our aims and objectives. Risk across the affordable housing programme is monitored, reported and managed through the Housing Programme Board and Capital and Asset Management Board (CPAMB). 13.4 Ensuring Equalities Equality is central to all housing and housing services delivery. An Integrated Impact Assessment (IIA) has been undertaken on the Local Housing Strategy 2026-31 to ensure that the needs of local communities have been fully considered. The SHIP reflects identified needs and draws on findings from the IIA when considering the implications flowing from the translation of strategic aims into housing policies. 13.5 Additional Report Implications (See Appendix A) See Appendix A Page 102 of 260
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APPENDIX A – Report Implications A.1 Key Priorities within the Single Midlothian Plan Affordable housing, homelessness and health and social care outcomes through the provision of specialist housing. A.2 Key Drivers for Change Key drivers addressed in this report: Holistic Working Hub and Spoke Modern Sustainable Transformational Preventative Asset-based Continuous Improvement One size fits one None of the above A.3 Key Delivery Streams Key delivery streams addressed in this report: One Council Working with you, for you Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above A.4 Delivering Best Value We manage all aspects of our business so that tenants and other customers receive services that provide value for money in the rent and other charges they pay. A.5 Involving Communities and Other Stakeholders A full consultation in the current Rent Setting Strategy 2026/27 to 2028/29 and the Housing Allocation Policy 2024 was available to Midlothian Council tenants and waiting list applicants. Stakeholders are informed of outcomes at the regular Local Housing Strategy Forum meetings as well as the public consultation that is current ongoing for the new Local Housing Strategy for the period of 2026-2031. A.6 Impact on Performance and Outcomes Not applicable Page 103 of 260
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A.7 Adopting a Preventative Approach Not applicable A.8 Supporting Sustainable Development Good practice in relation to energy efficiency and sustainability is contained in the SHIP and Local Housing Strategy 2026-31. Midlothian Council has delivered the largest Passivhaus programme of affordable housing in Scotland. Background Papers: N/A Page 104 of 260
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Midlothian Council Tuesday 22 September 2026 Item No 8.5 Midlothian Strategic Housing Investment Plan 2027/28 - 2031/32 Report by Kevin Anderson, Executive Director Place Report for Decision 1 Recommendations i. Council is recommended to approve the Strategic Housing Investment Plan (SHIP) 2027/28 – 2031/32, which will be submitted to the Scottish Government on 30th October 2026 to meet the required dateline, subject to approval by Council. ii. Council is asked to note the commentary under Resources, highlighting the funding constraints the Council’s affordable housing supply programme is under and potential means to address this. 2 Purpose of Report/Executive Summary This report summarises the key points set out in Midlothian’s Strategic Housing Investment Plan (SHIP) 2027/28 – 2031/32, which details the priorities for investment in new affordable housing in Midlothian over the next five years. Date: 21st August 2026 Report Contact: Fiona Clandillon, Head of Development email: fiona.clandillon@midlothian.gov.uk Page 105 of 260
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3 Background/Main Body of Report 3.1 The Scottish Government requires all local authorities to prepare a Strategic Housing Investment Plan (SHIP) that identifies the main strategic investment priorities for affordable housing over a five-year period. This important document is required on an annual basis as the Scottish Government requires detail on the Affordable Housing Supply Programme in each regional area towards meeting the national target of supporting the development of 110,000 new affordable homes. 3.2 Midlothian Council currently manages 7,472 social rent council homes. The current distribution by property size is detailed below: 1-Bedroom: 1,082 homes 2-Bedroom: 4,042 homes 3-Bedroom: 1,991 homes 4+ Bedrooms: 357 homes 3.3 An analysis of the current housing waiting list reveals strong demand for smaller properties, while pressure on larger family homes has eased. • High Demand (82% total): Smaller properties represent the vast majority of registered needs. 1-bedroom homes account for 25% of applicant demand, while 2-bedroom properties are the most sought-after at 57%. • Low Demand (18% total): Larger homes see significantly less pressure from applicants. Only 13% of individuals on the housing list require a 3-bedroom property, and just 5% require a home with 4 or more bedrooms. 3.4 The delivery of more affordable housing remains a high priority for Midlothian Council; 864 properties were completed in phase one of the Council’s new social housing programme; 489 in phase two; 735 expected on completion of phases three and four; and an additional 311 are funded for delivery in phase five with 300 new homes proposed for phase 6, which is funded by the most recent rent review. 3.5 While the SHIP shows an increase in the number of lettings, in part as a result of Midlothian Council’s continued investment in a new build programme, the number of people on the Council’s waiting list increased by 11% in 2026, part of an overall upward trend. The number of households currently on the list is attributable to several nationwide economic factors as well as increased local awareness of Midlothian Council’s new build programme. Despite significant levels of investment in new housing, there is still a shortage against the demand for affordable housing in Midlothian with 6255 households now on the Council’s Housing List. Page 106 of 260
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3.6 Midlothian Council has proposed 470 homes in the SHIP which are not yet on site. Partner Registered Social Landlords (RSLs) have an additional 629 homes listed in the SHIP which are not yet on site. Some of these projects contain several phases of development, each having its own prioritisation and SHIP entry. 3.7 A total of £106.6m million of Scottish Government grant funding would be required by the Council and RSLs to deliver the identified units over the next five years. 3.8 The number of Midlothian Council new build properties to be built over the course of the SHIP is 440 with an additional 30 properties bought via the Open Market Purchase Scheme, bringing the total council allocation to 470 new homes. The number of RSL new build properties planned over the same period is 629. Overall, the SHIP will deliver 1099 new affordable homes to the Midlothian area. The table below illustrates that the Midlothian Council Affordable Housing Programme has reduced since last year’s SHIP. Mirroring this trend, the overall SHIP numbers have also decreased by 454 units. This downward revision directly reflects the impact of current high construction costs for new homes on investment plans from RSLs, some rephasing and stricter implementation of deliverability criteria for inclusion of a site in the SHIP. Table 1: Changes re SHIP 26/27 and SHIP 27/28 Midlothian Council New Build Programme Registered Social Landlord(s) New Build Programme Total number of new build affordable homes (MC + RSLs) SHIP 2026/27 2030/31 643 910 1553 SHIP 2027/28 2031/32 470 629 1099 Page 107 of 260
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4 Report Implications (Resource, Digital and Risk) 4.1 Resource Midlothian Council’s New Build Programme has been closely aligned with Housing Revenue Account affordability and the Rent Setting Strategy 2026/27 – 2028/29. Those elements not funded by grant are funded through the Housing Revenue Account, where delivered by Midlothian Council, or through affordable housing RSL partners. As detailed in the Council’s Housing and Building Maintenance Update 2025-2026, Midlothian is bucking the national trend of housebuilding decline, delivering a disproportionately high 598 construction starts compared to the Scottish local authority average of 467. Midlothian is actively carrying the obligation of delivery during a national housing downturn, yet funding to deliver affordable homes does not match that disproportionate contribution being made by Midlothian. Because national subsidy rates do not match the reality of Midlothian output, affordable housing grant is significantly overstretched, leaving housing sites with no grant to support subsidised affordable homes. Midlothian’s Resource Planning Assumption (RPA) from the Scottish Government for 2026/27 is £10.586m. In 2024/25, the RPA was £10.534m. However, over the course of the year, Midlothian Council and the Scottish Government’s More Homes team worked together to attract over £15m of grant into Midlothian’s programme. For 2026/27, the housing programme agreed with the Scottish Government is 35% over-committed. This over-commitment is done at risk, on the basis that, once again, additional grant can be secured during the year over the initial allocation. Looking ahead, Midlothian Council is restricted in committing of 80% of grant award in 2027/28 and 60% of grant in 2028/29. The cap on our ability to assigned future grant to housing sites constrains the affordable housing supply programme, as we cannot give certainty to RSLs that we will support them. The ability to assign 100% of grant in 27/28 and 80% in 28/29 as a minimum would enable more proactive planning of the programme ensure RSLs could plan for and bring sites forward more quickly and effectively. Given the exceptional performance of the housing sector in Midlothian and the pressure the affordable programme is under while grant levels are not increased to reflect increased delivery, it is recommended that Midlothian Council seeks an exemption from these caps in 2027/28 and 2028/29 at a minimum, to allow better forward programming and more affordable homes to be funded for those in housing need. Page 108 of 260
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In addition, the limitations to Midlothian Council’s grant does not reflect the Council’s very active house building sector and restricts the Council’s ability to act as a Housing Authority and plan meaningfully for a programme. Late, in-year, addition of grant is welcome, but requires all partners to hold back on commitments until that additional grant is confirmed. Where subsidy cannot be made available to housebuilders for the delivery of their homes, alternative approaches to the delivery of affordable housing should be considered. 4.2 Digital N/A 4.3 Risk If the Council does not support the development of new affordable housing, the level of housing need will increase with negative consequences for Midlothian’s communities. Risk across the affordable housing programme is monitored, reported and managed through the Housing Programme Board and the Capital Plan and Asset Management Board (CPAMB). Given Midlothian’s position as the highest-performing house builder per head of population in Scotland, the severe risks associated with securing Scottish Government grant funding to match the level and number of homes programmed to be constructed in Midlothian are magnified. 4.4 Ensuring Equalities (if required a separate IIA must be completed) Equality is central to all housing and housing services delivery. An Integrated Impact Assessment (IIA) has been undertaken on this year’s Midlothian Strategic Housing Investment Plan 2027/28 – 2031/32 to ensure that the needs of local communities have been fully considered. The SHIP reflects identified needs and draws on findings from the IIA when considering the implications flowing from the translation of strategic aims into housing policies. 4.5 Additional Report Implications (See Appendix A) See Appendix A Page 109 of 260
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Appendices Appendix A – Additional Report Implications Appendix B – Background information/Links Page 110 of 260
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APPENDIX A – Report Implications A.1 Key Priorities within the Single Midlothian Plan This Strategy aligns with Midlothian’s Single Midlothian Plan and with corporate priorities. A.2 Key Drivers for Change Key drivers addressed in this report: Holistic Working Hub and Spoke Modern Sustainable Transformational Preventative Asset-based Continuous Improvement One size fits one None of the above A.3 Key Delivery Streams Key delivery streams addressed in this report: One Council Working with you, for you Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above A.4 Delivering Best Value The AHSP delivers best value for Midlothian Council through the subsidisation of the construction of affordable homes to rent to those in housing need in Midlothian. Well built, high quality and energy efficient homes remain an asset for Midlothian Council over their lifetime, generating income and providing housing stability for tenants. A.5 Involving Communities and Other Stakeholders Extensive consultation was carried out for the Local Housing Strategy involving the input of key stakeholders, including local organisations such as housing associations and private landlords as well as the wider community. During consultation, it was widely recognised that investment in affordable housing a key priority. All developing Housing Associations have discussed their development plans with Council Officers. Private sector developers were also given the opportunity to discuss their future development plans with Council Officers. Page 111 of 260
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A.6 Impact on Performance and Outcomes The SHIP supports the following Local Housing Strategy (LHS) Outcomes, these are: • Households have improved housing options across all tenures. • Homeless households and those threatened with homelessness are able to access support and advice services and all unintentionally homeless households will be able to access settled accommodation. • The condition of housing across all tenures is improved. • The needs of households with particular needs will be addressed and all households will have equal access to housing and housing services. • Housing in all tenures will be more energy efficient and fewer households will live in or be at risk of fuel poverty. A.7 Adopting a Preventative Approach Setting out a programme for development in the SHIP enables the investment of affordable housing to be carried out in a balanced approach in order that any investment takes into account the needs of the community. This includes those with particular needs such as extra care housing for older people, wheelchair housing or those with complex physical or learning disabilities where provision of suitable housing would require less resourcing in comparison to traditional models of care. A.8 Supporting Sustainable Development All new build homes in the Strategic Housing Investment Plan 2027/28- 2031/32 are scheduled to meet green standards. Midlothian Council is delivering 208 homes built to Passivhaus standard, the largest such programme in Scotland. Page 112 of 260
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APPENDIX B Background Papers/Resource Links (insert applicable papers/links) Page 113 of 260
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1 Midlothian Council Strategic Housing Investment Plan 2027/28 – 2031/32 Page 115 of 260
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2 Front page photographs Top: Completed homes by Midlothian Council in Morris Road, Easthouses Bottom: Completed homes by Melville Housing Association in Mayfield Page 116 of 260
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3 Contents 1 Introduction and Strategic Links ........................................................................................... 4 Housing to 2040 ............................................................................................................... 4 Local Housing Strategy................................................................................................... 4 Rapid Rehousing Transition Plan .................................................................................. 4 Local Child Poverty Action Report ................................................................................. 5 2 Profile of Midlothian .................................................................................................................. 5 Housing Market Areas (HMAs) ....................................................................................... 5 Housing Tenure in Midlothian ........................................................................................ 6 Social Housing Demand .................................................................................................. 6 Affordable Housing Development in Midlothian ......................................................... 10 Open Market Purchases ................................................................................................ 11 Open Market Shared Equity .......................................................................................... 12 Mid-Market Rent (MMR) ................................................................................................. 12 3 Partnership Working ............................................................................................................... 13 Health and Social Care .................................................................................................. 14 Edinburgh and South East Scotland City Region Deal ............................................... 14 Methods of Construction .............................................................................................. 15 Town Centre Regeneration ........................................................................................... 15 4 Investment Priorities and Resources ................................................................................. 16 Council Development Priorities .................................................................................... 17 RSL Development Priorities ......................................................................................... 19 Addressing Potential Development Constraints ......................................................... 22 Scottish Government Affordable Housing Supply Funding Required ....................... 23 Specialist Housing ........................................................................................................ 23 Midlothian Council Resources ..................................................................................... 25 Commuted Sums ........................................................................................................... 26 Empty Homes, Second Homes and Council Tax Charges .......................................... 26 Gypsy Traveller Accommodation ................................................................................. 27 Non-Traditional Financial Models of Development ..................................................... 28 Housing Infrastructure Fund ..................................................................................... 28 5 Conclusion ................................................................................................................................. 28 Equality Impact Assessment (EIA) and Strategic Environmental Assessment ........ 29 Appendix 1: SHIP Project Tables .................................................................................................... 30 Page 117 of 260
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4 1 Introduction and Strategic Links The Strategic Housing Investment Plan (SHIP) is the key document for identifying strategic housing projects that will contribute to meeting the Government’s 110,000 affordable housing target. This document is updated annually to present up to date information on affordable housing investment plans. The SHIP provides an opportunity for the Council to: • Set out investment priorities for affordable housing and identifies how these will be delivered • Identify the resources required to deliver these priorities; and • Involve key partners in the delivery of new affordable housing. The SHIP will continue to inform the allocation of resources from the Scottish Government’s Affordable Housing Investment Programme, which primarily supports the delivery of affordable housing via the Council and Registered Social Landlords. In addition, other funding streams that support investment in affordable housing have also been evaluated. Housing to 2040 In March 2021, the Scottish Government published its first long-term housing strategy ‘Housing to 2040’ which set an ambition to deliver a further 110,000 affordable homes by 2032, with at least 70% of these for social rent. Meeting this target is ambitious and will require significant investment by the Scottish Government, Local Authorities and Registered Social Landlords and a step change in the pace of housebuilding in order that it is achieved. The delivery of more affordable housing remains a high priority for Midlothian Council, as reflected by our ongoing and ambitious development programme. Local Housing Strategy The purpose of Midlothian’s Strategic Housing Investment Plan (SHIP) is to set out strategic investment priorities for affordable housing over a five-year period to achieve the outcomes set out in the Local Housing Strategy (LHS). The SHIP priorities are clearly aligned with the LHS Outcomes Action Plan 2026/27 – 2030/31 which can be accessed here: Housing strategy documents | Local Housing Strategy 2026/27 - 2030/31 Rapid Rehousing Transition Plan The strategic housing priorities of the SHIP are aligned and consistent with the priorities and outcomes within the Rapid Rehousing Transition Plan and the annual updates to the document. The latest Rapid Rehousing Transition Plan can be found here: Rapid Rehousing Transition Plans | (midlothian.gov.uk) Page 118 of 260
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5 Local Child Poverty Action Report The latest report1, published in November 2025, notes that 25% of children in Midlothian are living in relative poverty (after housing costs). A key driver for reducing the level of poverty is reducing the cost of living for families. The Strategic Housing Investment Plan will continue to support this by: • Increasing the total number of affordable homes in Midlothian. For many households this will result in significantly reduced rental payments and an improved quality of life, for example, by alleviating overcrowding in a household and providing a home which costs less to heat. • The Open Market Purchase Scheme in 26/27 will focus on properties for larger families who require 3+ bedrooms • Full alignment with the Midlothian Local Housing Strategy outcome action plan which includes several actions to reduce poverty The SHIP is aligned with the strategic housing priorities of the Midlothian Local Child Poverty Action Report and the Rapid Rehousing Transition Plan which aims to: • Prioritise access to tenancy support for tenants and housing applicants with children who are living in, or at risk of poverty • Reduce the number of households with children in temporary accommodation. 2 Profile of Midlothian Housing Market Areas (HMAs) Midlothian is situated within the Edinburgh and South-East of Scotland City Region area and is therefore influenced by the wider region in terms of where households choose to live and work. The table below shows the two HMAs along with their corresponding towns and villages, while the map shows the geographical spread of the HMAs. The Midlothian West (A) HMA is denoted in purple while the Midlothian East (B) HMA is denoted in blue colour. Table 2.1: Main Settlements in Housing Sub Market Areas Housing Sub Market Area Main Settlements Midlothian West (A) Penicuik, Loanhead, Bilston, Roslin, Straiton, Auchendinny Midlothian East (B) Dalkeith, Bonnyrigg, Gorebridge, Rosewell, Mayfield, Easthouses, Pathhead, Newtongrange, Danderhall/Shawfair 1 Child Poverty Action Reports Page 119 of 260
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6 Figure 1: Map showing Midlothian Housing Sub Market Areas The Housing Market Areas are the core development areas in Midlothian which concentrates new development in Midlothian on: • The A701 Corridor • The A7/A68/ Borders Rail Corridor • Shawfair Most of the affordable housing units to be delivered are in the Midlothian East area, largely due to the population, and therefore housing need being greater in this housing market area. The Danderhall/Shawfair/Millerhill area continues to see a significant level of new development with an allocation of land for over 4,000 houses and a town centre including retail and school provision. The initial new sites for development have been completed with further sites under construction. Housing Tenure in Midlothian The most common housing tenure in Midlothian is owner occupied housing (65%) followed by social rented housing by the council (17%), privately rented homes (9%) and housing associations (8%)2. Social Housing Demand An analysis of social housing in Midlothian shows: • There are 7,472 Council homes in Midlothian. The majority of stock has two bedrooms (4,042 homes), followed by properties with three bedrooms (1,991 homes). There are fewer properties with one bedroom (1082 homes) and 4 or more bedrooms (357 homes). 2 Housing statistics: Stock by tenure - gov.scot Page 120 of 260
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7 • There is less demand for Midlothian Council homes with three and four bedrooms. One and two bedroom properties are most in demand from those on the housing list (25% and 57% accordingly) whilst only 18% of applicants require 3 and 4 bed homes (13% and 5% accordingly)3. • There are currently 3,646 RSL properties in Midlothian. Table 2.2 below, shows how many properties each landlord has. Table 2.2: Number of Registered Social Landlord (RSL) properties in Midlothian4 Registered Social Landlord (RSL) Number of properties Melville Housing Association 2071 Places for People Housing Association 1100 Wheatley Homes East Housing Association 242 Bield Housing Association 116 Trust Housing Association 35 Viewpoint Housing Association 33 Blackwood Housing Association 23 Link Housing Association 20 Ark Housing Association 6 Total 3646 3 Midlothian Council Pressure Analysis 2025/26 4 Scottish Housing Regulator June 2026 Page 121 of 260
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8 Figure 2 below illustrates the low demand for larger family homes in Midlothian; just 5% of waiting list applicants require a property with four or more bedrooms. Midlothian Council recognises the recommendations within the Scottish Government’s ‘Best Start, Bright Futures: tackling child poverty delivery plan 2022 to 2026’5 which states that ‘we will place the prioritisation of tackling child poverty at the heart of the Affordable Housing Supply Programme through further strengthening our housing planning processes to strengthen the focus on housing needs by size and location to ensure that larger family homes are delivered where they are required, including through the targeted purchase of appropriate ‘off the shelf’ properties’. Midlothian Council will continue to deliver new homes which focus on the housing needs of waiting list applicants by size and location. The Open Market Purchase Scheme also targets homes of a particular size and location when required. Figure 2: Waiting list demand by bedroom size Figure 3 below, shows the number of Midlothian Council lets in recent years. It shows that between 2015/16 and 2024/25 allocations increased by 102% due to changes to the Housing Allocation Policy, new build completions and the Open Market Purchase Scheme. In 2025/26 the number of lets fell to 497 due to completion delays for some new build sites. Whilst tenancy turnover remains low, it is expected that the annual number of lets will increase in future years as a result of the new build programme. 5 Executive Summary - Best Start, Bright Futures: tackling child poverty delivery plan 2022 to 2026 - gov.scot (www.gov.scot) 25% 57% 13% 5% 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms Page 122 of 260
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9 Figure 3: Number of Midlothian Council Lets Figure 4 shows that the number of households on Midlothian Council waiting lists increased by 66% between 2021 and 2024, reduced by 14% between 2024 and 2025 and then increased again by 11% in 2026. The number of households currently on the list is attributable to several nationwide economic factors as well as increased local awareness of Midlothian Council’s new build programme. Figure 4: Number of Households on Midlothian Council Housing List 2018 - 2026 Figure 5 below shows the number of homeless applicants on the waiting list since 2021/22. In 2024/25 and 2025/26 there were 646 homeless applications on the waiting 273 299 319 320 306 359 431 475 552 588 497 0 100 200 300 400 500 600 700 No. of Midlothian Council lets 4664 4645 4007 3930 4237 4468 6517 5637 6255 0 1000 2000 3000 4000 5000 6000 7000 2018 2019 2020 2021 2022 2023 2024 2025 2026 No. of households on Midlothian Council waiting lists Page 123 of 260
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10 list which was a slight decline from the 662 applications in 2023/24. The number of households experiencing homelessness is synonymous with the nationwide housing affordability and cost of living crises. Figure 5: Number of Homeless Applications by year Affordable Housing Development in Midlothian Table 2.3 shows the level of investment in new affordable homes in Midlothian since 2006 (when the Council began building new homes again). It shows that 1,805 Council homes have been built, and a total of 2,549 Council and RSL affordable units have been built overall. It should be noted that these figures report completions by calendar year up to December 2025 and don’t include open market purchases or shared equity purchases which have been recorded seperately. 634 600 662 646 646 560 570 580 590 600 610 620 630 640 650 660 670 2021/22 2022/23 2023/24 2024/25 2025/26 Page 124 of 260
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11 Table 2.3: New Affordable Housing in Midlothian since 20066 Year of completion No. of completed Council units (Social Rent only) No. of completed RSL units (Social Rent and Mid Market Rent) 2006 0 19 2007 28 12 2008 172 42 2009 237 10 2010 88 20 2011 160 33 2012 170 121 2013 76 6 2014 0 20 2015 48 0 2016 41 28 2017 87 0 2018 0 103 2019 10 39 2020 31 0 2021 90 48 2022 122 0 2023 243 149 2024 111 25 2025 91 69 Total 1805 744 Open Market Purchases Midlothian Council has an Open Market Purchase Scheme whereby ex-council properties are purchased and returned to housing stock, helping to meet immediate housing requirements. Table 2.4 below details the number of Open Market Purchases carried out in recent years. Table 2.4: Number of Open Market Purchases7 Financial year No. of Open Market Purchases 2017/18 7 2018/19 13 2019/20 42 2020/21 14 2021/22 22 2022/23 21 2023/24 26 2024/25 7 2025/26 10 Total 162 6 Housing statistics quarterly update: new housebuilding and affordable housing supply - gov.scot (www.gov.scot) 7 Midlothian Council Housing Strategy and Performance statistics Page 125 of 260
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12 Open Market Shared Equity A number of Midlothian residents have been able to purchase affordable homes using the Scottish Government’s Open Market Shared Equity Scheme (OMSE) whereby purchasers pay for the biggest share of a property, and the Scottish Government hold the remaining share under a shared equity agreement. Table 2.5 below shows the number of successful home purchases in Midlothian using the Open Market Shared Equity Scheme (and predecessor schemes which operated similarly). Table 2.5: No. of OMSE home purchases in Midlothian8 Financial Year No. of OMSE home purchases 2006/07 45 2007/08 62 2008/09 8 2009/10 41 2010/11 28 2011/12 3 2012/13 13 2013/14 42 2014/15 53 2015/16 93 2016/17 126 2017/18 104 2018/19 72 2019/20 16 2020/21 13 2021/22 15 2022/23 27 2023/24 36 2024/25 4 2025/26 6 Total 780 Mid-Market Rent (MMR) Mid-market rent (MMR) is a type of affordable housing with rents being lower than in the private market, but higher than in the social housing sector. MMR aims to help households on modest incomes, who have difficulty accessing social rented housing, buying their own home, or renting privately. Mid-market rent properties are delivered by housing associations and local authorities through arm’s length vehicles and some private developers. MMR is aimed at households who have a consistent income and have a local connection. MMR tenancies are let under a Private Residential Tenancy Agreement. 8 Scottish Government More Homes Division Page 126 of 260
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13 Midlothian’s Mixed Tenure Strategy was approved by Council in 2024 and includes three MMR action points: • Deliver Mid-Market Rent (MMR) units within Midlothian Council developments, initially through partnership with RSL. This should only be done where the RSL partner has an allocation policy that aligns with prioritisation of Midlothian residents. • Continue to explore potential for establishment of Arm’s Length External Organisation, if resources allow, for directly delivered MMR homes by Midlothian Council. • Agree development of a business case by Scottish Futures Trust (SFT), the Scottish Government’s Infrastructure agency, on advantage of leveraging in institutional investment for delivery of MMR by Midlothian Council via a potential lease-based model. Means of delivering MMR in the Council’s plans for the redevelopment of Dalkeith Town Centre have been incorporated into the Outline Business Case under development. In addition, Midlothian Council has set up workshops on a regional approach to MMR delivery working with City Deal partners on this initiative. This SHIP includes details of MMR projects currently under development by RSLs in Midlothian. 3 Partnership Working Partnership working is crucial to the delivery of high-quality housing and housing related services across all tenures in Midlothian. As part of the development of this SHIP, Council Officers have engaged and consulted with all delivery partners on their proposals and priority projects. In order to identify suitable investment priorities council officers have worked with the Scottish Government, Housing Associations, tenants groups, private developers and colleagues in the planning, finance, estates and construction teams to determine the level of housing need in the region, the level of demand for different tenures of affordable housing and the mix of suitable house sizes and types in order to agree a five year programme of development, informed by the current housing needs and demand assessment (HNDA) and the National Planning Framework 4 (NPF4). The development priorities in the SHIP will be monitored in several ways including: • Monitoring and reviewing of the actions in the Local Housing Strategy • Annual assessment of the Council’s Housing Supply Targets • Annual assessment of RSLs’ housing delivery • Monitoring of housing need and demand. • Reports and returns submitted to the Scottish Government SHIP consultation methods are cyclical throughout the year and include: • Quarterly Local Housing Strategy Forum meetings with RSLs, Shelter, the Scottish Government and council stakeholders from Environmental Health, Housing and Planning. Page 127 of 260
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14 • Quarterly More Homes Division RSL liaison meetings • Attendance at community events/open days/tenant meetings • Representation at City Region Deal meetings • Representation at Health and Social Care meetings Health and Social Care Housing providers in Midlothian work collaboratively with health and social care colleagues to ensure that housing provision in Midlothian can better meet the needs of households who may require specialist housing provision to be able to live independently. The types of outcomes that this will facilitate include: • Increased specialist housing provision because of improved understanding of the future needs of the population, such as developing extra care housing which provides an alternative to living in a care home for some people. • Increased number of wheelchair accessible housing • Identification of the level of need for, and funding of, adaptations to ensure that people living in private sector housing and council housing can continue to live independently. • Improving the health outcomes for homeless households, many of whom currently have poorer levels of physical health and mental health than the general population. • Taking action to improve the energy efficiency of housing and reducing fuel poverty which would lessen the risk to a household’s health and wellbeing. More information is contained in the Midlothian Health and Social Care Partnership Strategic Plan 2025 - 2035, available here: Midlothian Integration Joint Board Strategic Plan 2025-2035 - Midlothian Health and Social Care Partnership Edinburgh and South East Scotland City Region Deal The Edinburgh and South East Scotland City Region comprises the six local authorities of City of Edinburgh, Fife, East Lothian, Midlothian, Scottish Borders and West Lothian. Officers from these Councils collaborate with the UK and Scottish Governments respectively to deliver a transformational and inclusive city deal for the region which will attract investment of up to £1.5 billion over 15 years. This includes investment and collaboration on housing. Housing is included within the City Region Deal as it is recognised as being an area of pressure but also an opportunity for accelerated economic growth while reducing social exclusion. Most Councils in the South East of Scotland face the same pressures when addressing housing need with the most recent housing need and demand assessment for the region estimating at least 67,000 new homes are required by 2030. Key housing investment areas in Midlothian that are being supported through the City Region Deal include: Page 128 of 260
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15 • Supporting a 10-year affordable housing programme across the region with Scottish Government grant funding. • Supporting local authority borrowing and share financing risk of infrastructure delivery for key development sites. • Provision of a £50 million housing infrastructure fund of predominantly private sector loans to be spent on projects that will unlock housing in strategic development sites across the region. • Collaborating to develop innovative approaches which increase the use of offsite construction methods. • Establishing a council-owned regional housing company to deliver mid-market and private rented sector housing (City of Edinburgh Council’s Edinburgh Living). Methods of Construction The SHIP explicitly details the deployment of varied construction methods—including open panel timber frame, closed or partially closed panel timber frame, modular systems, and projects currently categorised as not yet determined—to accelerate the delivery of local affordable housing priorities. As part of this strategy, the Council is piloting modular construction for the Newtongrange housing project for 23 homes, specifically targeting a reduction in overall construction time and minimising disruption to the surrounding local residential area. To maximise efficiency and scalability across all these construction typologies, Midlothian Council actively facilitates strategic collaboration focused on design and mass customisation to standardise high-quality housing archetypes, and joint procurement strategies that aggregate demand, secure supply chains, and drive cost-efficiencies for all construction methodologies. Town Centre Regeneration The Town Centre First Principle was agreed by the Scottish Government and the Convention of Scottish Local Authorities in July 2014 and asked that government, local authorities, the wider public sector, businesses and communities put the health of town centres at the heart of decision making. It seeks to deliver the best local outcomes, align policies, and target available resources to prioritise town centre sites, encouraging vibrancy, equality and diversity. In response to the COVID-19 pandemic and other pressures being experienced by town centres, a New Future for Scotland’s Town Centre was published in February 2021 by the Scottish Government. This document and NPF4 support town centre living (TCL) and recognise that the development of homes in town centres is critical to achieving sustainable places. Town Centre Living requires a collaborative approach which strengthens the long-term plan for each town centre. Work is underway by Midlothian Council and partner organisations to regenerate Dalkeith9 and Newtongrange10 town centres to provide 9 Have your say: Dalkeith Town Centre Regeneration | Creating a fresh vision for Dalkeith town centre | Midlothian Council 10 Newtongrange and Stobhill and Lady Victoria | Masterplans | Midlothian Council Page 129 of 260
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16 more and better housing, enhance their role as 20-minute neighbourhoods and allow greener buildings and town centres to become net zero by 2030. Midlothian Council is current engaging withTown Centre Living Partnership to assist in the delivery of Dalkeith Town Centre regeneration. 4 Investment Priorities and Resources In order for the SHIP to deliver strategic investment priorities for affordable housing in Midlothian, the Council has engaged with RSLs and relevant delivery partners in setting out Midlothian’s investment priorities for affordable housing. To ensure that available resources are prioritised in delivering affordable housing, each project is scored against a set of criteria: Housing Need; Land Availability; Ability to Start on Site; Constraints; Equalities Needs and Environmental Impact, as shown in the tables below. In total, a project can be awarded a maximum score of 30 points and a score of less than 18 indicates a ‘low priority project’, 18-22, ‘a medium priority project’ and over 22, a ‘high priority project’. Table 4.1: Project Prioritisation Scoring Criteria Explanation Score Area Housing Need Housing need rankings are based on a waiting list demand study. 1 would indicate no housing need in an area, whilst 5 indicates the highest level of need. 1-5 Land Availability Sites ranked most highly are those owned by the Council or RSL. Also ranked highly are sites with Planning Permission in place. Sites owned by a private developer should not be ranked as highly as those owned by the LA or RSL e.g. a site owned by the LA will full planning permission would score 5 1-5 Ability to Start on Site A site with a high score indicates that the work could start on site once funding was approved. A project would only score 5 if all permissions are in place and the site has been acquired e.g. the site could start immediately once funding is approved 1-5 Constraints Issues such as Section 75 requirements that have yet to be resolved would be given a lower score. Infrastructure constraints should be included. A site should only score full marks if it is fully unconstrained. 1-5 Equalities Needs All sites will score at least a good rating (3) due to Housing for Varying Needs. Additional points would be awarded for specialist provision housing. Three is the minimum score, sites should only be scored higher if they include 'specialist housing provision' units. Sites which include 'specialist housing provision' units enable the LA to meet the Wheelchair Accessible Housing Targets. These sites will be monitored to ensure their inclusion in the Midlothian Integration Joint Board Strategic Plan Housing Contribution Statement 1-5 Page 130 of 260
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17 Criteria Explanation Score Environmental Impact All sites which have been allocated through the Midlothian Local Plan would not be considered as having a negative environmental impact. Use of renewable technology and building on Brownfield sites would score more points. Consideration should be given as to whether the units will be Passivhaus standard or whether the site will be brownfield or greenfield e.g. passivhaus units on a brownfield site should be scored a 5, units on greenfield sites should score less 1-5 Table 4.2: Area Project Prioritisation Score Area Points Bonnyrigg, Lasswade, Poltonhall, Loanhead, Newtongrange, Danderhall, Shawfair, Dalkeith 5 Gorebridge, Mayfield, Easthouses, Penicuik 4 Small Settlements including Pathhead, Roslin, Rosewell, Bilston, Auchendinny, Temple, Carrington, North Middleton and Cousland 3 The sections below show both Council and RSL housing development priorities over the next five years. It should be noted that sites indicated are subject to change as some sites have not yet been approved by the developing organisation, received planning permission or land ownership has not been secured. More detail on each site is shown in Appendix 1. Council Development Priorities The table below sets out the priorities for proposed Council projects over the next five years. Key notes: • Nine development projects are currently proposed by Midlothian Council over the next five years. • Projects which are currently onsite and in receipt of government funding do not need to be prioritised. • Following analysis, four of the nine proposed projects by Midlothian Council met the criteria required to be considered high priority whilst five are medium priorities. There are no projects assessed as be low priority. The table below is a photo image and as such is not accessible to everyone. The original Midlothian Council Development Prioritisation table 2027/28 – 2031/32 (in excel format) can be found here: Housing strategy and performance | Midlothian Council Page 131 of 260
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18 Table 4.3: Council Housing Development Priorities Housing Need Land Availability Ability to Start on Site Constraints Equalities Needs Environmental Impact Total 2027/28 Shawfair, Old Craighall Road, plot AE (Bellway): P41836 5 3 4 4 3 3 22 Auchendinny, Phase 2 (Bellway): P48309 3 5 5 5 3 3 24 Open Market Purchases (MC) 5 5 5 5 3 5 28 Lingerwood (Barratt): P41724 4 3 3 4 3 3 20 Millerhill, Cocklerow Gardens (Robertsons) 5 3 4 4 3 3 22 2028/29 Mayfield, Blackcot Drive (MC) 4 4 3 3 3 3 20 Auchendinny, Phase 3 (Bellway): P43810 3 5 5 5 3 3 24 Rullion Road, Penicuik (MC): P46386 4 4 4 4 4 3 23 2029/30 None 0 0 0 0 0 0 0 2030/31 Mayfield, Bogwood Road (MC) 4 4 3 3 3 4 21 2031/32 None 0 0 0 0 0 0 0 Page 132 of 260
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19 RSL Development Priorities The table below sets out the priorities for proposed RSL projects over the next five years. It should be noted that each RSL prioritised their proposed sites using Midlothian Council guidelines. Key notes: • 21 development projects are proposed by RSLs over the next five years. • Some of these projects contain several phases of development, each having its own prioritisation and SHIP entry. • Projects already in receipt of government funding do not need to be prioritised. • Twelve of the projects were assessed as being high priority while nine scored as medium priority. No projects scored as a low priority. • Six RSLs have indicated their plans to develop during this period including: - Places for People (8 projects) - Melville Housing Association (3 projects) - Wheatley Homes East (5 projects) - Link Housing Association (1 project) - Viewpoint Housing Association (1 project) - Lar Housing Trust (3 projects) The table below is a photo image and as such is not accessible to everyone. The original Midlothian Council Development Prioritisation table 2027/28 – 2031/32 (in excel format) can be found here: Housing strategy and performance | Midlothian Council Page 133 of 260
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20 Table 4.4: RSL Housing Development Priorities Housing Need Land Availability Ability to Start on Site Constraints Equalities Needs Environmental Impact Total 2027/28- Projects Melville - Bilston 3b (TW) 3 4 5 5 3 4 24 Melville - Bannock Wood, Bonnyrigg Ph1 (TW) 5 4 4 4 3 4 24 PFP - Shawfair Town Centre North Bellway Plots E2 - SR 5 3 3 4 3 4 22 PFP - Shawfair Town Centre North Bellway Plots E2 - MMR 5 3 3 4 3 4 22 PFP - Cauldcoats Phase 1 - SR 5 4 3 4 4 4 24 PFP - Cauldcoats Phase 1 - MMR 5 4 3 4 4 4 24 Lar- Wester Cowden-MMR 5 5 4 4 4 4 26 Lar- The Brae, Auchendinny MMR 3 4 3 3 4 4 21 WHE - Shawfair Woolmet 2 Ph2 5 4 3 4 3 4 23 WHE - Millerhill R 5 4 3 4 3 4 23 WHE - Dalhousie Ph 3 5 4 5 5 3 4 26 WHE - Wellington School 5 3 2 5 5 4 24 Link - Thornybank 5 2 2 2 3 4 18 Page 134 of 260
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21 2028/29 Projects Melville - Bannock Wood, Bonnyrigg Ph 2 (TW) 5 4 4 4 3 4 24 WHE - Millerhill B/C2 5 4 3 4 3 4 23 2029/30 Viewpoint - Glenesk, Dalkeith 5 5 3 3 5 4 25 Lar- Fordel MMR 5 4 2 2 4 4 21 2030/31 PFP - Cauldcoats Phase 2 - SR 5 3 2 4 4 4 22 PFP - Cauldcoats Phase 2 - MMR 5 3 2 4 4 4 22 2031/32 PFP - Cauldcoats Phase 3 - SR 5 3 2 4 4 4 22 PFP - Cauldcoats Phase 3 - MMR 5 3 2 4 4 4 22 Scottish Government Resource Planning Assumption Allocations for the Midlothian area (including RSL delivery) for four years have been confirmed and are shown in the table below. Table 4.5: Midlothian Resource Planning Assumption Allocations 2026/27 – 2029/30 2026/27 £10,586,000 2027/28 £10,904,000 2028/29 £11,231,000 2029/30 £11,568,000 Total £44,288,000 Midlothian Council sites not yet approved for Scottish Government funding have been carefully scheduled and cross referenced with phase 5/6 budgets and rent setting timelines. The prioritisation process will enable these sites to be considered for funding approval on release of future RPAs during regular Scottish Government liaison meetings. Page 135 of 260
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22 Addressing Potential Development Constraints Midlothian Council and developing partners are assured that the SHIP can be delivered given the actions and initiatives undertaken to date by the Council and its strategic partners to source suitable sites for development and access funding. However, several challenges need to be addressed by the Council and its partners in order that the pace of development can be continued. These challenges include: • The reduced Affordable Housing Supply Programme budget in 2024/25 resulted in developing landlords ‘front funding’ sites until further Scottish Government funding was available. This has led to a ‘bottleneck’ of sites requiring funding. • In recent times, the construction industry in Scotland and across the UK has faced unprecedented adverse market conditions, resulting in significant increases in tender prices for a wide range of materials. While previous evidence suggested severe inflation spikes of 10–15% above standard forecasts, current data from the Building Cost Information Service (BCIS) indicates a stabilising but upward trend, with the All-In Tender Price Index (TPI) projected to increase by 3.2% year-on- year. While measures such as value engineering are helping to partially offset these pressures, there remains a risk that the capital budgets allocated for delivery of the New Social Housing programme may require uplift, with consequent implications for the overall funding strategy. • In Midlothian, this position is further challenged by rising levels of private housebuilding, which generate more sites where a 25% affordable housing requirement must be met. In addition, evolving national policy and regulatory changes — including updated building standards and Scottish Government requirements on zero-emissions heating — continue to drive additional costs across projects. Ongoing construction price inflation compounds these pressures. • Difficulty acquiring, designing and delivering affordable housing sites out with section 75 provision • Managing landowner value expectations • RSL uncertainty surrounding housing site allocation within Midlothian Local Development Plan 2 • Obtaining required planning approval. • A diminishing number of Midlothian Council owned sites mean that many future sites will be controlled by a third party. • Building and procurement constraints. • Environmental and design issues. • The commencement of affordable housing sites is dependent on developers’ timescales and the economic conditions of the housing market. • Unknown site ground conditions. • The rural nature of some areas in Midlothian can mean that development is constrained in these areas, particularly in relation to available land for housing and the requirements for additional infrastructure prior to development commencement. Ongoing activities to resolve these issues include: Page 136 of 260
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23 • Housing Revenue Account financial planning in conjunction with Midlothian Council Rent Setting Strategy timescales. • Rephasing delivery to align with funding availability. • As per Midlothian Council’s Mixed Tenure Strategy, alternative models of affordable housing will be considered to ensure units continue to be delivered while minimising subsidy requirements e.g. MMR, Golden Share. • Exploring alternative opportunities including land acquisition. • Managing developer expectations regarding timing and nature of affordable housing delivery. Scottish Government Affordable Housing Supply Funding Required The Strategic Housing Investment Plan details potential sites for 1,099 new affordable homes to be built between 2027/28 and 2031/32, of which: • House types: 1,041 are general needs homes and 58 are specialist provision homes. • Built form: 1,069 will be new build housing and 30 will be ‘off the shelf purchases’ • Tenure type: 470 homes will be Midlothian Council housing and 629 will be social rented housing by an RSL of which 232 will be Mid-Market Rent (MMR) • This reflects the fact that the affordable housing tenure with the highest demand is social rented housing. • 178 units will be developed in sub-area A (Midlothian West) • 891 units are to be developed in sub-area B (Midlothian East). A total of £106.596 million of Scottish Government grant funding is required by the Council and RSLs to deliver the identified units over the next five years: • The year which requires the most grant funding is 2028/29, with a requirement of £43.659 million. • 470 of the units will be Council housing requiring £36.240 million grant funding. • 629 of the units will be RSL housing requiring £70.356 million Government funding. • The required level of grant funding to deliver this number of units greatly exceeds the stated level of funding available. • The average cost of a Midlothian Council new build home is £288,000 with the average minimum Scottish Government benchmark grant of £91,000 per unit. This will leave a funding gap of 68% to be financed by the Housing Revenue Account. Council Officers will continue to discuss resource requirements with the Scottish Government to ensure that projects receive appropriate levels of grant funding. • It is important to note that a project’s inclusion within the SHIP is not a guarantee of Scottish Government funding. Specialist Housing The Strategic Housing Investment Plan includes sites which will deliver 58 specialist provision housing units. Different categories of specialist housing are planned including: • Wheelchair accessible housing • Amenity housing • Properties with wet floor showers • Specialist provision for older people Page 137 of 260
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24 In March 2022 Midlothian Council carried out a resident survey prior to setting Wheelchair Accessible Housing Targets. Survey results have enabled the local authority and RSL partners to prioritise building ‘specialist provision’ housing in areas highlighted by respondents including Bonnyrigg, Dalkeith, and Gorebridge11. The survey results also illustrated that certain housing characteristics should be prioritised: • House types – bungalows and houses • Tenure – owner occupancy and social housing (LA and RSL) • Type – Midlothian Council specialist provision unit types are determined by community health specialists • Size – two- and three-bedroom properties Midlothian Council set Wheelchair Accessible Housing Targets of 20 per annum between 2022/23 and 2026/27. Fifty percent of these should be provided by the private sector. The Midlothian Local Housing Strategy 2026/27 – 2030/31 contains an action to ensure that RSLs include a minimum percentage of wheelchair accessible homes in their annual SHIP returns: ‘Housing Associations/RSLs to include a minimum of 5% wheelchair accessible homes in annual Strategic Housing Investment returns to Midlothian Council’. Some RSLs have been unable to increase the number of wheelchair accessible housing units in this year’s SHIP as planning permission for the sites has been granted with house types and sizes confirmed prior to SHIP submission. Midlothian Council officers will liaise with planning officers to implement an agreement where proposals submitted for section 75 sites must have an RSL partner’s confirmation on mix, size and tenure before planners will accept an application. Since August 2022 Midlothian Council has completed 93 wheelchair accessible properties as shown in table 4.6 below. 11 Housing strategy documents | Wheelchair Accessible Housing Targets 2022/23 - 2026/27 (midlothian.gov.uk) Page 138 of 260
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25 Table 4.6: Midlothian Council wheelchair accessible homes completed since 2022 Location No. of homes House type Normandy Drive, Dalkeith & Bonnet Drive, Mayfield 14 Wheelchair accessible houses Normandy Court, Dalkeith & St Cuthbert’s, Bonnyrigg 60 Amenity house – wheelchair accessible Normandy Drive, Dalkeith 6 Ambulant disabled with wet floor showers Newbyres Crescent & Newbyres Village, Gorebridge 13 Houses - bungalows Table 4.7 includes details of a further 69 homes which are close to completion and are therefore not included in the SHIP. Table 4.7: Midlothian Council wheelchair accessible homes in development Location No. of homes House type Polton Street, Bonnyrigg 46 Wheelchair accessible homes Newton Church Road, Danderhall 23 Wheelchair accessible homes Table 4.8 includes details of the 22 wheelchair accessible homes planned during the five-year period of this SHIP. Table 4.8: Wheelchair accessible homes planned in SHIP 2027/28 – 2031/32 Location No. of homes Housing Provider Rullion Road, Penicuik 1 Midlothian Council Blackcot Drive, Mayfield 3 Midlothian Council Thornybank, Dalkeith 3 Link HA Glenesk, Dalkeith 3 Viewpoint HA Cauldcoats 10 PFP HA Wellington School, Penicuik 2 WHE HA Progress made towards meeting the private sector target is being monitored via the Local Development Plan draft process. Work is underway to set the wheelchair accessible housing targets for 2027/28 – 2031/32 with public consultation exercises scheduled to take place throughout October 2026. Midlothian Council Resources This section contains details of Midlothian Council’s own resources which are helping to support the delivery of affordable housing. Page 139 of 260
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26 Commuted Sums In some circumstances the Council may consider accepting commuted sums from private developers instead of the delivery of affordable housing units on some sites. The funds are then used to support the delivery of housing on other sites. In 2023/24, 2024/25 and 2025/26 no commuted sums were received from private housing developers. Midlothian Council’s Affordable Housing Supplementary Planning Guidance contains details of the commuted sum policy: Supplementary planning guidance | Planning advice and guidance | Midlothian Council Empty Homes, Second Homes and Council Tax Charges Under the Local Government in Scotland Act 2003 as amended by the Housing (Scotland) Act 2025 and subsequent regulations, Midlothian Council updated the Council Tax charges applicable on empty and second homes, effective from 1st April 2026: • A 100% discount applies for a maximum of 6 months for empty properties • Standard Council Tax rate is charged for empty homes between 6 and 12 months • There is a varying levy on long term (longer than 12 months) empty homes as follows – additional 100% on homes empty between 12 months and 24 months, additional 300% on homes empty between 24 and 36 months, additional 500% on homes empty longer that 36 months • A varying levy applies to second homes as follows – additional 100% charges on second homes, increased to additional 300% from 24 months to 36 months, additional 500% after 36 months. The exceptions are purpose-built holiday homes and job-related properties, where 50% discount applies. • Relevant exemptions may still apply in certain circumstances e.g. where the property is fully owned by the estate of a deceased person. Whilst it is too soon to report on the revenue generated by this increased levy, it has been estimated that revenue of £200k could be achieved in 2026/27. Midlothian Council recruited an Empty Homes and Retrofit Case Officer in January 2026. 0.5 FTE of that role is dedicated to bringing empty homes back into residential use across all tenures. This role is part funded by the Scottish Government and part funded by Council Tax raised against empty and second homes in Midlothian. An Empty Homes Strategy is in the process of being produced. Until this recruitment we have advocated the use of the Scottish Empty Homes Advice Service which looks at the different options and the support available for properties which have been empty for over 6 months. Neither Midlothian Council nor the Scottish Empty Homes Advice Service have an overview of the number of empty homes brought back into use in Midlothian over the last three financial years. Going forward, the Empty Homes and Retrofit Officer will be able to report on this. Midlothian Council has a target of returning 10 homes to residential use within the first year through the Empty Homes Officer role, with three of these being returned to use as social rented properties. To date six homes have Page 140 of 260
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27 been brought back into use, including five into use as Council tenancies through the Open Market Purchase Scheme. Table 4.9 below, illustrates the number of long-term empty homes and second homes in Midlothian and compares them to the Scottish average. It is evident that the number of long-term empty properties and empty second homes is significantly below average. In 2025 the figures for Midlothian were just 33% and 22% of the Scottish average respectively. The most recent figures from the Scottish Empty Homes Partnership show that whilst Midlothian accounts for 1.64% of Scotland’s housing stock, it accounts for 1.03% of Scotland’s empty homes12. Table 4.9: Number of Second Empty and Long-Term Empty Properties 2022- 202513 Long-term empty and second homes 2022/23 2023/24 2024/25 2025/26 No. of long-term empty properties - Midlothian 359 423 332 332 No. of long-term empty properties - Scottish average 865 884 987 1011 No. of second homes (empty) - Midlothian 416 477 389 450 No. of second homes (empty) - Scottish average 2153 2196 2036 2043 Despite the low number of second and empty homes, Midlothian Council’s Council Tax levy protocol exists to financially support affordable housing in the area by encouraging owners of empty and second homes to return these to residential use. Gypsy Traveller Accommodation Improving the lives of Gypsy/Traveller communities is a significant human-rights commitment for Midlothian Council and is crucial if we are to tackle deep-rooted inequalities and deliver a fairer society. The Scottish Government and COSLA’s joint action plan, ‘Improving the Lives of Scotland’s Gypsy/Travellers 2’ (GTAP2) included a commitment by the Scottish Government to make funding for Gypsy/Traveller accommodation available alongside housing under the Affordable Housing Supply Programme from April 2026. To date Midlothian Council has not sought Gypsy/Traveller Accommodation Funding and will continue to monitor budgetary guidance for doing so. The Gypsy/Traveller site managed by East Lothian Council on behalf of East and Midlothian Councils closed in June 2021 following extensive vandalism. East Lothian and Midlothian Councils are now in the process of determining future accommodation options for Gypsy/Travellers. Midlothian’s Local Development Plan 2 (LDP2)14 is currently being drafted with the Evidence Report including Gypsy/Traveller housing need and demand reports and details of the community engagement process which will help influence future accommodation options. The LDP2 process includes a ‘Call for Ideas and Opportunities’ to provide individuals, communities, landowners, 12 Where are Scotland's Empty Homes? - Scottish Empty Homes Partnership 13 Housing statistics: Empty properties and second homes - gov.scot (www.gov.scot) 14 Midlothian Local Development Plan 2 | Development plans and policies | Midlothian Council Page 141 of 260
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28 developers or any other interested people, businesses or organisations with the chance to put forward ideas, opportunities or suggestions on matters or sites they would like to have included in MLDP2. At time of writing there is a 12-week public consultation on the proposed Midlothian Local Development Plan 2 (MLDP2) with the final document scheduled for adoption in 2027. Non-Traditional Financial Models of Development The use of innovative financial models is being encouraged in Midlothian to accelerate the development of new affordable housing. Innovative approaches to development often do not require traditional grant funding and can therefore increase the total number of new affordable homes built. Between 2023/24 and 2025/26 several new build sites benefitted from the Charitable Bond Programme; a loan scheme for Registered Social Landlords (Housing Associations) to finance new development, with the interest then reinvested as grants into the social rented sector. This allowed traditional Affordable Housing Supply Programme investment to be targeted towards Midlothian Council sites. Housing Infrastructure Fund The Scottish Government’s Housing Infrastructure Fund (HIF) is aimed at supporting housing development through loans and grants with priority being given to those projects which will deliver affordable housing. The fund enables funding for housing developments that have stalled or can’t proceed due to the excessive cost or nature of the infrastructure works to be delivered. Eligible works for HIF could include on-site and off-site elements. Works will include physical infrastructure generally required to start a project, such as roads, sewers, SUDS ponds, decontamination, flood remediation and demolition work. Where a Section 75 obligation requires it, certain off-site infrastructure is also eligible. The fund does not support the provision of community infrastructure required as a consequence of new housing development, for example, funding for schools. As part of developing the SHIP, Midlothian Council will work with partners to identify and prioritise those sites which are of strategic importance and cannot proceed or have stalled due to the extent and costs/financing of infrastructure works involved, and with HIF’s support, unlock these sites for the delivery of housing15. The Council will work with partners in examining the identified projects to ensure that such projects are eligible for the fund16. Further information on the Housing Infrastructure Fund can be found here: Housing Infrastructure Fund - More homes - gov.scot (www.gov.scot) 5 Conclusion Midlothian Council officers continue to actively manage the new build housing programme through funding shortages, adverse market conditions and rising levels of private housebuilding generating more sites where a 25% affordable housing 15 https://www.gov.scot/policies/more-homes/housing-infrastructure-fund/ 16 https://www.gov.scot/publications/housing-infrastructure-fund-guidance-for-applications/ Page 142 of 260
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29 requirement must be met. In addition, evolving national policy and regulatory changes continue to drive additional costs across projects. Funding the social housing programme remains challenging, strengthening the argument for an increased Midlothian Resource Planning Assumption. The Midlothian Strategic Housing Investment Plan 2027/28 – 2031/32 identifies the priorities for the development of affordable housing and where development will be undertaken over the next 5 years. It identifies sites which can deliver 1,099 units during the next 5 years to meet the increasing level of housing need in Midlothian. This will not only ensure best value in the use of resources but also ensure the delivery of the right mix of houses in the most pressured areas. If you have any comments or queries on the content of this document, please contact the Housing Development Section at Midlothian Council for more information. Development Midlothian Council Fairfield House 8 Lothian Road Dalkeith EH22 3AA housing.enquiries@midlothian.gov.uk Telephone: 07808 903454 Equality Impact Assessment (EIA) and Strategic Environmental Assessment Midlothian Council is committed to ensuring equality of opportunity and combating discrimination through a series of equal opportunities and anti-discriminatory policies. The Council has embedded equalities principles into strategic planning as well as service delivery. Housing policies and services are regularly monitored, reviewed and reported on to ensure that they comply with equalities requirements. An Integrated Impact Assessment (IIA) has been undertaken for this Strategic Housing Investment Plan and can be found here: Housing strategy and performance | Midlothian Council Page 143 of 260
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Appendix 1: SHIP Project Tables Table 1 - AFFORDABLE HOUSING SUPPLY PROGRAMME 2027/28-2031/32 The table below is a photo image and as such is not accessible to everyone. The original Strategic Housing Investment Plan 2027/28 – 2031/32 (in excel format) can be found here: Housing strategy and performance | Midlothian Council Page 144 of 260
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Midlothian Council Tuesday 22 September 2026 Item No 8.6 Midlothian Council’s Housing Services Assurance Statement 2026 Report by Kevin Anderson, Executive Director Place Report for Decision 1 Recommendations Council is recommended to approve the Annual Assurance Statement (AAS) attached at Appendix 1 for submission to the Scottish Housing Regulator by 31 October 2026 and authorise the signing off the statement by the Cabinet Member for Housing. 2 Purpose of Report/Executive Summary To seek Council approval to comply with the Scottish Housing Regulator’s (SHR) Regulatory Framework, and in particular, the requirement for the Council to produce an AAS each year, providing assurance that it is meeting legislative and regulatory standards for social housing in Scotland during the reporting year April 2025 - March 2026. This AAS confirms the Council’s compliance with the Regulatory Requirements set out in Chapter 3 of the Framework, the Scottish Housing Charter, and relevant legislative duties and discloses one area of non-compliance relating to the Homeless Persons (Unsuitable Accommodation) (Scotland) Order 2014 (as amended). Following Council approval, the AAS will be published on the SHR and Midlothian Council websites. Date 20th August 2026 Report Contact: Claire Douglas, Housing Services Manager 0131 271 6685 Email: Claire.Douglas@midlothian.gov.uk Page 147 of 260
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3 Background 3.1 The Housing (Scotland) Act 2010 sets out the requirement for a Scottish Social Housing Charter (SSHC) and the statutory objectives, functions, duties and powers of the SHR. 3.2 The SSHC sets the standards and outcomes that all social landlords should aim to achieve when performing their housing activities. The SHR monitors, assesses and reports on the SSHC. The SHR’s statutory objective is to safeguard and promote the interests of current and future tenants, people who are homeless, factored owners and Gypsy/Travellers. Scottish Social Housing Charter November 2022 - gov.scot (www.gov.scot) 3.3 A Regulatory Framework sets out the approach to regulation. Regulatory Framework | Scottish Housing Regulator The SHR monitors, assesses, reports and intervenes (as appropriate) in relation to Scottish social landlord performance and housing activities. The framework requires all social landlords to submit an Annual Assurance Statement each year, confirming compliance with the relevant requirements of section 3 of the Framework and relevant legislative duties. 3.4 The statement must be approved by the governing body, or relevant committee with delegated authority and submitted to the SHR by 31st October each year. Where a landlord does not fully comply with a requirement, the Statement must set out the area of non-compliance and the improvement actions for achieving compliance. 4. Assurance Statement Summary 4.1 The Council can confirm that, with the exception noted below, it complies with its duties, obligations and responsibilities as a social landlord, including standards and outcomes in the Scottish Social Housing Charter, and its statutory and legal obligations relating to housing and homelessness, equality and human rights, tenants and resident safety and rights of children and young people. 4.2 The Council’s systems of control and assurance meet the Regulatory Standards for tenant safety, including gas safety checks, electrical safety checks, mould and dampness frameworks, legionella testing, fire safety checks, asbestos management and lift safety. Area of Non-Compliance - Temporary Accommodation 4.3 During 2025/26, pressure on temporary accommodation remained high, with demand and supply constraints across the service. Midlothian Council breached the Homeless Persons (Unsuitable Accommodation) (Scotland) Order 2014 (as amended), in relation to length of stay in unsuitable accommodation on 30 occasions. 4.4 The Council recognises its duties under UNCRC (Incorporation) (Scotland) Act 2024, which came into force in July 2024, and considers Page 148 of 260
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the impact of decisions, including those relating to temporary accommodation, on the rights of children and young people as part of its ongoing improvement action. 4.5 The improvement action currently under implementation is to introduce a new structure to support the Council’s commitment to prioritising tenants’ safety, bringing in expertise, training and improved monitoring and reporting. The Council is also reviewing its housing advice and assistance framework to promote informed housing options. It is expected that this will deliver a reduction in breaches. Equalities and Human Rights 4.6 The Council’s compliance with quality and human rights duties is supported by Integrated Impact Assessments undertaken on relevant housing and homelessness policies and services, ensuring impacts on tenants and service users are identified and addressed. Tenants and Resident Safety Notifications 4.7 The Council is not aware of any reports or investigations by the Health and Safety Executive, the Information Commissioners Office or other regulatory or statutory authorities relating to tenant or resident safety, or date protection concerns, during the reporting period. 5 Evidence base 5.1 The statement has been informed by the Council’s ongoing engagement with tenants and service users throughout the year and is supported by the Council’s Annual Return on Charter submission to the Scottish Housing Regulator, which provided ongoing performance evidence across the relevant Charter outcomes. 5.2 Sufficient evidence has been considered, compromising a bank of reports, policies, and advice and information, which the Council monitors and oversees on an ongoing basis, to provide continuous assurance. 6 Policy and Legal Implications 6.1 The current SHR Midlothian’s Engagement Plan 2026/27 details are as follows: • the provision of temporary accommodation by Midlothian to people who are homeless; and • outcomes for people who are homeless. What Midlothian must do: • Send information in relation to its homelessness service; • Report emerging issues preventing it from fulfilling its statutory duty to provide temporary accommodation when it should and comply with the Unsuitable Accommodation Order; and • Improve its emergency repairs performance and tell us when it has delivered the necessary improvements. Page 149 of 260
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6.2 Failure to submit an Annual Assurance Statement, or submission of a Statement that doesn’t not accurately reflect the Councils level of compliance, may result in further regulatory engagement. 6.3 The Council has an ongoing statutory duty to notify the SHR of any material changes to the level of assurance set out in its statement during the year, whether this represents improvement or non-compliance. Report Implications (Resource, Digital and Risk) 7.1 Resource There are no additional resource implications related to this report. 7.2 Digital None 7.3 Risk The evidence bank combines reports, policies, advice and information which the Council monitors and oversees on an ongoing basis through the year to provide continuous evidence that our landlord duties are compliant and assurance with safety requirements. 7.4 Ensuring Equalities (if required a separate IIA must be completed) An IIA is not required as this report doesn’t not affect the wellbeing of the community or have a significant impact on equality and human rights; tackling socio economic disadvantage and poverty; climate change, the environment and sustainability; the Council’s role as a corporate parent, or the storage/collection of personal data. The statement will be published on the SHR website and the Council website. 7.5 Appendices Appendix 1 – Annual Assurance Statement Appendix 2 – Annual Assurance Statement Assessment of Compliance Page 150 of 260
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APPENDIX A – Report Implications A.1 Key Priorities within the Single Midlothian Plan Delivering housing services in accordance with legislation, regulatory standards and best practice guidance contributes to reducing the gap in health outcomes and economic circumstances. Improving the quality of life for Midlothian’s citizens and safeguarding housing assets for future generations. A.2 Key Drivers for Change Key drivers addressed in this report: Holistic Working Hub and Spoke Modern Sustainable Transformational Preventative Asset-based Continuous Improvement One size fits one None of the above A.3 Key Delivery Streams Key delivery streams addressed in this report: One Council Working with you, for you Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above A.4 Delivering Best Value The AAS supports the delivery so that tenants and other customers receive services that provide best value for money for the rent and other service charges they pay. We continue to secure continuous improvement in performance while maintaining an appropriate balance between quality and cost. A.5 Involving Communities and Other Stakeholders Information sharing and consultation takes place with the Midlothian Tenants Panel. The AAS will be made available on the Council’s website along with the SHR’s Landlord Performance Report and Engagement Plan. A.6 Impact on Performance and Outcomes The SHR requires all social landlords to submit an AAS providing and evidencing assurance. Page 151 of 260
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A.7 Adopting a Preventative Approach Not applicable. A.8 Supporting Sustainable Development Not applicable. Page 152 of 260
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Place Directorate Midlothian Council Midlothian House 40-46 Buccleuch Street Dalkeith Kevin Anderson EH22 1DN Executive Director Place Midlothian Council Annual Assurance Statement 2026 Midlothian Council confirms to its tenants and the Scottish Housing Regulator that it complies with its duties, obligations and responsibilities placed on landlords set out in Chapter 3 of the Scottish Housing Regulatory Framework, except as set out below. This includes that we: • Achieve the standards and outcomes set out in the Scottish Social Housing Charter for tenants, people who are homeless and others who use our services; • Comply with our statutory and legal obligations related to housing and homelessness, equality and human rights and tenants and resident safety. We confirm our systems of control and assurance meet the Regulatory Standards for tenant safety in, gas safety checks, electrical safety checks, mould and dampness frameworks, legionella testing, fire safety checks, asbestos management and lift safety. Area of Non-Compliance: During 2025/26, pressure on temporary accommodation remained high, with demand and supply constraints. Midlothian Council breached the Homeless Persons (Unsuitable Accommodation) (Scotland) Order 2014 (as amended) in relation of length of stay in unsuitable accommodation, as a result of pressure on temporary accommodation 30 times. The improvement action currently under implementation is to introduce a new service structure to support our commitment to prioritising tenants needs, bringing in resource, expertise, training, improved monitoring and reporting. We are also reviewing our housing advice and assistance framework to promote informed discussion of housing options at an early stage for those at risk of homelessness. Tenant and Resident Safety Notifications: We confirm we are not aware of any reports or investigations by the Health and Safety Executive, the Information Commissioner’s Office, or other regulatory or statutory authorities relating to tenant or resident safety, or data protection concerns, during the reporting period. Our compliance with equality and human rights is supported by Integrated Impact Assessments undertaken on relevant housing and homelessness policies and services, ensuing impacts on tenants and service users are identified and addressed. Page 153 of 260
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Your Ref: Tel: 0131 270 7500 Our Ref: QUOTE/22/25 Tenants Satisfaction Survey www.midlothian.gov.uk We recognise our duties under the UNCRC (Incorporation) (Scotland) Act 2024 and consider the impact of decisions on the rights of children and young people. I can confirm I have considered sufficient evidence, which consists of Annual Return on the Charter submission to the Scottish Housing Regulator, a bank of reports, policies, advice and information which the Council monitors and oversees on an ongoing basis, to provide continuous evidence and which, to the best of my knowledge and belief, gives assurance of compliance with the Regulatory Framework. We will notify the Scottish Housing Regulator of any material changes to the assurance set out in this Statement during the year. We approved our Annual Assurance Statement at the Council meeting held on 22 September 2026. Signed: Date of Signing: Councillor Stuart McKenzie, Cabinet Member for Housing Services Page 154 of 260
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Appendix 2 Assured Scottish Housing Regulator (SHR) - Annual Assurance Statement (AAS) Assessment of Compliance Gas safety checks, electrical safety checks, mould and dampness frameworks, legionella testing, fire safety checks, asbestos management and Lift safety Subject/Issue SHR Requirement Status Evidence Contact Actions Annual Return of the Charter (ARC) and EESSH ARC return 2025/26 - Midlothian Council | Scottish Housing Regulator Fiona Clandillon Upload May. Updating monthly EICRs. Annual Assurance statement by 31st October Executive Director meets Cabinet member for housing weekly. Governance and performance reporting. As a minimum once a year we hold a housing briefing session for elected members. Agenda and shared documents Kevin Anderson Annual Landlord Report Report 2024/2025 Housing strategy documents | Landlord report to tenants 2024-25 Claire Douglas Housing Statistics Return to Scottish Government Scottish Government Annual Return Housing statistics - gov.scot Performance Officer Scotland's Housing Network Returns Scotland Housing Network (SHN) returns 2025/6. Benchmarking against other landlords Charter preparation - Scotland's Housing Network Performance Officer upload annuallty in May Regular internal performance monitoring of KPIs Weekly and monthly KPIs. In addition to published quarterly performance data reported to the Council's Cabinet and also the Performance, Review and Scrutiny Committee, the annual performance report provides a comparison with other councils based on the Scottish Housing Network's peer group system. The report compares the Council's performance with the Scottish average and if performance has improved or deteriorated over the previous year. A narrative is provided highlighting key points and identifies areas for improvement. F: Drive Performance Officer Three yearly tenants satisfaction survey Completed December 2025. Knowledge Partnership report. Housing strategy and performance | Midlothian Council Claire Douglas Complaints monitoring and handling Complaints handling - Granicus system Complaints procedure | Midlothian Council Performance Officer Financial monitoring and reporting Quarterly forecasting and monitoring Quarterly reports to Council Finance lead Ongoing investment in expansion of affordable housing stock Monitoring of affordable homes budget and spend Housing Board Fiona Clandillon Ongoing investment in housing stock condition Monitoring of asset condition Stock condition surveys Fiona Clandillon Estate safety group Monitoring risk Monthly meetings Chief Officer Place Care inspectorate review and report Supported accommodation units managed by our contractor Care Support Scotland. Care services Claire Douglas Management of public protection matters through MAPPA process Housing involvement and attendance at meetings. MAPPA meetings - Guidance & Protocols Claire Douglas Strategic Housing Investment Plan (SHIP) Strategic Housing Investment Plans (SHIP) Strategic Housing Investment Plans (SHIP) Housing Strategy Officer Regular contract meetings Monthly, quarterly and 6 monthly supplier performance meetings F Drive Claire Douglas/Alan Ramage Business continuity plan Per service reports to DMT F Drive Claire Douglas/Alan Ramage/Charles Savage Risk register Per service on Pentana Pentana Claire Douglas/Alan Ramage/Charles Savage Data protection, equalities and human rights Per service data systems. Includes DPIAs and integrated impact assessments Search results | Midlothian Council Claire Douglas/Alan Ramage/Charles Savage Tenant Participation TP Strategy 2024-27. Rent Review Strategy and consulation Tenant participation | Midlothian Council Claire Douglas Rapid Rehousing Transition Plan Rapid Rehousing Transition Plans Rapid Rehousing Transition Plans Matthew Mcglone SHR engagement plan Website - http://www.midlothian.gov.uk/info/917/housing/323/housing_strategy_and_performance Landlord performance | Scottish Housing Regulator Fiona Clandillon Health and Safety Spheracloud risk assessments and maintenence data management systems Claire Douglas/Alan Ramage/Charles Savage Information on significant performance failures Housing performance reporting Housing strategy and performance | Midlothian Council Fiona Clandillon / Performance Officer Data collection of protected characteristics Recorded on ONE housing Tenancy management One housing system Performance Officer Tenant safety Gas safety checks, electrical safety checks, mould and dampness frameworks, legionella testing, fire safety checks, asbestos management and Lift safety We work in partnership with Police Scotland and the Scottish Fire and Rescue Service on tenant and resident safety (e.g. joint fire safety inspections, Multi Agency meetings and community initiatives). Our Gas team supported by contractors carry out gas repairs, servicing and gas safety checks. Asbestos is managed through current procedures and allocated to an asbestos contractor. All lifts are serviced regularly, timescales are depending on type and age. Water Hygiene testing is carried out as required. Electrical Safety register. Mould and dampness framework. Alan Ramage Health and Safety reports Notify the SHR of any tenant and resident safety matters which have been reported to, or are being investigated by, the Health and Safety Executive, or reports from regulatory or statutory authorities, or insurance providers, relating to safety concerns. No health and safety matters have been required to be reported to the Health and Safety Executive in the last 12 months. Fiona Clandillon Whistleblowing policy Have effective arrangements and a policy for whistleblowing by staff and elected members, which it makes easily available and which we promote through staff newletter. The Council's Whistleblowing Policy is currently under review as was last updated 17th August 2018. Details are available for staff on the Council's intranet site. Policies in respect of fraud, corruption and bribery are also available to members of the public on the Council's website and staff undertake mandatory eLearning training. Concerns can be reported by telephone and email. https://www.midlothian.gov.uk/forms/form/57/en/report_a_possible_crime_fraud_or_similar_ concern Fiona Clandillon Material changes Advise SHR, of material changes. Notification of statutory or insurance safety concers. Fiona Clandillon Internal Audit Rent compliance Started March 2026 however there are regular audits of aspects of the housing services Fiona Clandillon Gypsy Traveller No site available for G/T at present Fiona Clandillon Page 155 of 260
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Midlothian Council Tuesday 22 September 2026 Item No 8.7 All Through School and its Associated Catchment Areas at Shawfair Consultation Report Report by Derek Oliver, Executive Director Children, Young People & Partnerships Report for Decision 1 Recommendations Council is recommended to approve the following: • New primary and secondary school catchment areas will be established for the proposed Shawfair 2-18 Education Campus, and the catchment areas of Danderhall Primary School, and Dalkeith High School will be realigned; • A new all through school with early learning, primary and secondary learning, and specialist additional support needs (ASN) provision will be established for the proposed Shawfair 2-18 education campus catchment area; • The new all through school will open on its permanent site on the completion of the new building in August 2028 or as soon as possible thereafter; • A realignment of the Danderhall Primary School Catchment Area and Dalkeith High School Catchment Area from August 2027. 2 Purpose of Report This report advises the outcome of the statutory consultation on the proposal to establish a new all through school and its associated catchment areas within the land at Shawfair and to realign the catchment areas of Danderhall Primary School and Dalkeith High School, and seeks approval for the recommendations outlined above. The statutory consultation on the proposal began on Thursday 26 March 2026 and ended on Wednesday 27 May 2026. The statutory report on the outcome of the consultation was published on Monday 31 August 2026 and provides full details of the process undertaken, representations made and His Majesty’s Inspectorate of Education in Scotland (HMIES)’s independent report on the proposal. Date: Thursday 20th August 2026 Report Contact: Katy Maclean, katy.maclean@midlothian.gov.uk Derek Oliver, Executive Director Children, Young People & Partnerships Page 157 of 260
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3 Background 1. The Education (Scotland) Act 1980 places a legislative duty on the Council to make adequate and efficient provision of school education across its area. This duty applies in respect of both the current school population and anticipated pattern of demand. 2. Section 3D of the Standards in Scotland’s Schools etc. Act 2000 (as inserted by Section 2 of the Education (Scotland) 2016 Act) introduces a requirement on education authorities to carry out their duty to ensure the delivery of improvement in the quality of school education, which is provided in the schools they manage, with a view to achieving the strategic priorities of the National Improvement Framework. It is, therefore, the duty of the education authority to ensure that the education it provides is directed to the development of the personality, talents and the mental and physical abilities of the children to their fullest potential. 3. In addition, Councils have a statutory duty to secure best value in terms of the Local Government in Scotland Act 2003 by continuous improvement in performance of the local authority’s functions, while maintaining an appropriate balance between quality and cost and having regard to economy, efficiency, effectiveness, equal opportunities and the achievement of sustainable development. 4. The statutory consultation on the proposal began on Thursday 26 March 2026 and ended on Wednesday 27 May 2026. The statutory report on the outcome of the consultation was published on Monday 31 August 2026 and provides full details of the process undertaken, representations made and His Majesty’s Inspectorate of Education in Scotland (HMIES)’s independent report on the proposal. The report is available on the Council’s Citizen Space Consultation page: Shawfair 2-18 Education Consultation - Midlothian Council - Citizen Space 5. The Education Service held a Public Meeting at Danderhall Primary School on Thursday 21 May 2026. Six members of the public attended the public meeting. 6. The Education Service held two Pupil Voice sessions, one at Danderhall Primary School on Tuesday 19 May 2026, and one at Dalkeith High School on Monday 25 May 2026. 7. One member of the public attended a virtual drop-in session, which were available on Tuesday 12 May 2026, and Thursday 14 May 2026. 8. A total of 321 responses to the consultation were received during the period of the statutory consultation. Page 158 of 260
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9. 87.2% responses to the consultation were in favour of the proposal to establish a new all through school with early learning, primary and secondary learning, and specialist additional support needs (ASN) at Shawfair, while 10.0% were not in favour and 2.8% had no opinion or did not answer the question. 10. 88.5% of responses to the consultation were in favour of the proposal to create new primary and secondary school catchment areas for the proposed Shawfair 2-18 Education Campus, 7.5% were not in favour and 4.0% had no opinion or did not answer the question. 11. 82.9% of responses to the consultation were in favour of the proposal to realign the catchment areas of Danderhall Primary School, and Dalkeith High School, 10.0% were not in favour, and 7.2% had no opinion or did not answer the question. 12. His Majesty’s Inspectorate of Education in Scotland (HMIES)’s (HM Inspectors) prepare a report in accordance with the terms of the Schools (Consultation) (Scotland) Act 2010 (“the 2010 Act”). The purpose of the report is to provide an independent and impartial consideration of Midlothian Council’s proposal (Appendix C). 13. The HMIES report summary states: HM Inspectors agree that Midlothian Council’s proposal to build a new school at Shawfair has potential education benefits. These include opportunities for smoother transitions for children and young people and improved provision for those with additional support needs. The proposal has the potential to provide an integrated approach to the delivery of the curriculum and ease the pressure on other schools in the area. However, HM Inspectors consider that should the proposal be approved, the issues raised by stakeholders regarding the practical arrangements for the new school need to be addressed. That the council should work with stakeholders to mitigate their concerns and should ensure that staff and parents are kept fully informed about the project progress. 14. The consultation report was published on 31 August 2026 leaving the required period of at least three weeks for further representations to be made prior to Council’s consideration of the report and its decision regarding the recommendations: • New primary and secondary school catchment areas will be established for the proposed Shawfair 2-18 Education Campus, and the catchment areas of Danderhall Primary School, and Dalkeith High School will be realigned; Page 159 of 260
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• A new all through school with early learning, primary and secondary learning, and specialist additional support needs (ASN) provision will be established for the proposed Shawfair 2-18 education campus catchment area; • The new all through school will open on its permanent site on the completion of the new building in August 2028 or as soon as possible thereafter; • A realignment of the Danderhall Primary School Catchment Area and Dalkeith High School Catchment Area from August 2027. 15. The recommendation of the consultation report is for Council to approve the establishment of a new all through school and its associated catchment areas within the land at Shawfair and to realign the catchment areas of Danderhall Primary School and Dalkeith High School. 4 Report Implications (Resource, Digital and Risk) 4.1 Resource 1. The proposed Shawfair all-through school will be led and managed by a Head Teacher appointed prior to the new school opening. 2. The staffing levels will principally be determined by the number of children in the school. 3. New staff posts will be recruited when required following the normal Midlothian Council recruitment procedures. We anticipate the need to recruit will be an incremental process reflecting the increase in the school roll year by year. 4. If this proposal is implemented, the Council does not envisage any adverse effects from the proposal in respect of staffing. Should issues arise however, these will be mitigated through the Council’s Education Leadership Team support structure and HR policies. 5. The capital cost associated with the new school building was previously agreed at full Council. 6. There will be a revenue cost associated with equipping the new school. 4.2 Digital The school will be equipped with standard digital resources, and the pupils will be issued with devices as agreed in our Equipped for Learning Policy. Page 160 of 260
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4.3 Risk Rapid population growth, housing development and increased placing requests have contributed to capacity pressures at schools in the Danderhall and Shawfair area. There is a risk that Midlothian Councill will be unable to deliver its legislative duty as laid out in The Education (Scotland) Act 1980. 4.4 Ensuring Equalities (if required a separate IIA must be completed) An Integrated Impact Assessment has been carried out and published, Appendix D. 4.4 Additional Report Implications See Appendix A. Appendices Appendix A – Additional Report Implications Appendix B – Consultation Report, August 2026 Appendix C - His Majesty’s Inspectorate of Education in Scotland (HMIES) Report Appendix D – Integrated Impact Assessment Appendix E – Consultation Proposal Document Page 161 of 260
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APPENDIX A – Report Implications A.1 Key Priorities within the Single Midlothian Plan Not applicable A.2 Key Drivers for Change Key drivers addressed in this report: Holistic Working Hub and Spoke Modern Sustainable Transformational Preventative Asset-based Continuous Improvement One size fits one None of the above A.3 Key Delivery Streams Key delivery streams addressed in this report: One Council Working with you, for you Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above A.4 Delivering Best Value The implementation of the recommendation of this report will enhance best value in the delivery of Council services. A.5 Involving Communities and Other Stakeholders This report provides details of the statutory consultation undertaken with communities and all stakeholders regarding the proposal to establish a new all through school and its associated catchment areas within the land at Shawfair and to realign the catchment areas of Danderhall Primary School and Dalkeith High School. A.6 Impact on Performance and Outcomes The report does not directly impact on Midlothian Council’s performance and outcomes. A.7 Adopting a Preventative Approach Not applicable A.8 Supporting Sustainable Development Not applicable Page 162 of 260
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Midlothian Council Tuesday 22 September 2026 Item No 8.8 Education Annual Plan and Report Report by Derek Oliver, Executive Director Children, Young People and Partnerships Report for Decision 1 Recommendations • Note the statutory duties of the education authority for annual planning and reporting. • Approve the progress report for 2025/26 and the plan for Midlothian for 2026/27. • Thank all those who have contributed to the successes of 2025/26. 2 Purpose of Report/Executive Summary This report presents the 2025/26 Standards & Quality report and the Education service improvement plan for 2026/27 for Council approval. 21 August 2026 Report Contact: Michelle Strong Chief Education Officer michelle.strong@midlothian.gov.uk Page 163 of 260
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3 Background 3.1 Education authority duties Under the provisions of the Standards in Scotland’s Schools etc. Act 2000 (section 13) places a duty on education authorities to prepare and publish annual plans. These plans need to describe the steps taken to enhance equity and support improvement within schools, early learning settings and across education services. • Education authorities must prepare and publish annual reports setting out the steps they have taken, over the course of the planning period: ➢ with a view to reducing inequalities of outcome experienced by pupils as a result of socio-economic disadvantage; ➢ to comply with the duties imposed on it by section 3B(3) (to seek and have regard to the views of the persons listed in section 3B(4) and to provide any advice and support the authority thinks appropriate to those persons in relation to its consideration of decisions of a strategic nature about the carrying out of its functions relating to school education, and; ➢ in pursuance of the NIF for Scottish education; ➢ the report must also set out any educational benefits for pupils that the authority considers have resulted from taking those steps. Annual reports and plans must be published by 31 August each year or as soon as possible after that date. Plans must also be shared with Scottish Ministers once plans are published. As well as producing an annual report for Midlothian, the education authority is responsible for ensuring that headteachers produce annual plans for their school or setting. These plans are built on consultation with pupils, Parent Council, teachers and volunteers working in the school. A summary of the plan, or an accessible version, should be available for learners, parents and interested parties. The legislation is intentionally silent on the format that annual plans/reports should take. 3.2 The Midlothian Plan The annual plan details the progress and achievements made during academic session 2025-26 as well as the improvements planned for session 2026-27. The plan is based on self-evaluation and consultation with stakeholders. The timelines and impact measures are detailed throughout the plan. An accessible version of the plan has been produced and widely circulated https://read.bookcreator.com/Zv9dmRMUH1Wt8CwHD73O6oU3In32/h50eN6t8R nOGJ8nDnfi6vA Page 164 of 260
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3.3 Summary of Midlothian Plan Key Successes and Achievements 2025-2026 Midlothian Education Service demonstrated strong progress in attainment, inclusion, digital innovation and quality improvement during 2025-2026. Inspection evidence, attainment data and stakeholder feedback indicate improving outcomes for learners, a narrowing poverty-related attainment gap, increasing digital capability across the workforce, and stronger partnerships supporting children and young people. Inspection Outcomes • Education Scotland inspections reported strong performance across Midlothian schools, with most evaluations rated Good or Very Good. • Rosewell Primary School achieved Very Good evaluations in leadership, learning, teaching, wellbeing and inclusion. • King's Park Primary School achieved Very Good ratings in leadership, wellbeing and attainment. • Newbattle High School was recognised as having the capacity to continue improving, with no further inspection visits required. • Across Early Learning and Childcare settings, 93% of funded children attended settings graded Good or better, an increase of 3% from the previous year. Raising Attainment and Reducing the Poverty-Related Gap • The 2025 Broad General Education attainment results were the strongest on record. • Scottish Government stretch aims were achieved in: o Primary Literacy (76.6%) o Primary Numeracy (80.2%) o S3 Literacy (89.7%) o S3 Numeracy (93.9%) • Secondary attainment improved across most measures, with literacy and numeracy outcomes consistently above virtual comparator averages. • The poverty-related attainment gap narrowed significantly in primary literacy and numeracy, reaching its lowest post-pandemic levels Inclusive Learning and Support • The enhanced collaboration between the Raising Attainment Team, schools and Early Years settings strengthened inclusive learning, teaching and assessment. • Over 98% positive feedback was received for professional learning in writing. • New dyslexia guidance led to a 26.8% increase in identified learners, improving support and consistency for families and schools. • Learner Voice Groups helped shape the refreshed concept of "A Midlothian Learner 2.0". Digital Innovation • Nearly 500 teachers participated in a generative AI pilot programme. • AI tools were introduced to school leaders to reduce workload and support improvement planning. • 314 support staff received iPads and associated training. • All primary pupils completed a digital learning programme, with 97.8% reporting they learned something new. • Digital practice was recognised as a strength in 100% of HMIE inspections during the year. • The Equipped for Learning programme was showcased internationally at BETT 2026. Page 165 of 260
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Leadership and Workforce Development • Secondary and primary leadership networks strengthened collaboration and consistency in learning, teaching and assessment. • Professional learning continued to receive approval ratings above 90%. Wellbeing, Inclusion and Participation • A new Relationships for Learning Policy was implemented across all settings. • Youth Cabinet and School Parliament participation expanded to almost all schools, strengthening learner voice in decision-making. • GIRFEC and partnership frameworks were refreshed to improve consistency of support for children, young people and families. • Attendance improvement initiatives and mentoring programmes showed positive impacts on engagement and relationships. 3.4 Priorities for 2026/27 Midlothian education service is committed to ensuring all our children and young people are supported to be the best they can be. 2026-27 is the final year of 4- year plan to improve the attainment and achievement of learners. We will be focused on: • Ensuring high-quality provisions promote engagement and improved outcomes • We build a confident workforce that promotes leadership at all levels • Individuals, schools and ASG are data-informed and use this to make decisions • The curriculum at all stages is inclusive, relevant and inspiring • Relationships are positive and respectful • Learners are equipped with skills for aa digital world • Children and young people are fully engaged in decisions that affect them 4 Report Implications (Resource, Digital and Risk) 4.1 Resource Resource implications have been considered and identified during individual Service Plan development 4.2 Digital Specific Digital issues are considered within individual Service Plans as appropriate. 4.3 Risk This report seeks to ensure that the Council and partners have strategic and sustainable plans for future service delivery. Chief Officers will consider, on an ongoing basis, possible risk exposures to the successful achievement of all priorities. 4.4 Ensuring Equalities (if required a separate IIA must be completed) 4.5 Additional Report Implications (See Appendix A) See Appendix A Page 166 of 260
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Appendices Appendix A – Additional Report Implications Appendix B – Education Service Plan 2026/27 Page 167 of 260
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APPENDIX A – Report Implications A.1 Key Priorities within the Single Midlothian Plan The Single Midlothian Plan informs all Service Plan activity with a key requirement that all plans demonstrate the services contribution to the SMP outcomes and priorities. A.2 Key Drivers for Change Key drivers addressed in this report: Holistic Working Hub and Spoke Modern Sustainable Transformational Preventative Asset-based Continuous Improvement One size fits one None of the above Service Plans identify activities which deliver across the key drivers for change streams. A.3 Key Delivery Streams Key delivery streams addressed in this report: One Council Working with you, for you Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above Service Plans identify activities which deliver across the key delivery streams. A.4 Delivering Best Value Service Plans demonstrate the services delivery of Best Value and provide the basis for ongoing oversight and management of Best Value duties. A.5 Involving Communities and Other Stakeholders Service Plans demonstrate the services contribution to the SMP outcomes and priorities which are identified following a range of consultation and engagement activities with communities and stakeholders. A.6 Impact on Performance and Outcomes Service Plans demonstrate the services contribution to the SMP outcomes and priorities and will provide the basis for ongoing performance management. Page 168 of 260
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A.7 Adopting a Preventative Approach All plans consider the adoption of a preventative approach to service delivery. A.8 Supporting Sustainable Development The development of the Single Midlothian Plan and Service Plans represent a robust approach to supporting sound planning of council services. Page 169 of 260
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APPENDIX B – Education Service Plan 2026/27 CLLE Annual Reports - CLLE annual reports Page 170 of 260
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Page 1 of 39 OFFICIAL Education Service Improvement Plan 2026-2027 Improving Outcomes for Learners through an Empowered System Derek Oliver Executive Director Children, Young People and Partnerships Midlothian Council Fairfield House 8 Lothian Road Dalkeith EH22 3ZG Page 171 of 260
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Page 2 of 39 OFFICIAL Table of contents Section 1: Introduction ....................................................................................................... 4 1.1 Our Children, Young People & Partnerships Directorate Vision ............................................................ 4 1.2 Our Education Service Priorities ............................................................................................................ 4 1.3 Improvement Drivers .............................................................................................................................. 4 1.4 Our Improvement Outcomes .................................................................................................................. 5 2.1 Our Context............................................................................................................................................ 5 Ethnicity 5 • 9.6% of young people in schools in Midlothian were from a minority ethnic group. ............................. 5 Attainment .................................................................................................................................................... 6 • In 2025, Midlothian’s average attainment levels were in line or above the Virtual Comparator at the end of S4, S5, and S6. ................................................................................................................................. 6 • The rate per 1,000 of Looked after Children in Midlothian is 7.9, below the national average of 12.1. This has been decreasing since 2018. ......................................................................................................... 6 Source: Midlothian Profile (2025) ................................................................................................................. 6 • The rate per 1,000 of children on the Child Protection Register is 3.7 in Midlothian, with a national average of 2.3. The rate in Midlothian is higher than our comparator Councils. ........................................... 6 Source: Midlothian Profile (2025) ................................................................................................................. 6 Exclusions .................................................................................................................................................... 6 • During 2024/25, there were 293 temporary exclusions in Midlothian schools. This is equivalent to 20 incidents per 1,000 pupils. ........................................................................................................................... 6 Section 3: Key Successes and Achievements (2025-2026) Evidence for the Education Service Improvement Plan evidence is gathered through: 8 3.1 Inspections ............................................................................................................................................. 8 Education Scotland inspections 2025-2026 ................................................................................................. 8 Primary 9 10 National Thematic Inspection Visits from Education Scotland ................................................................... 10 Early Learning and Childcare settings - Care Inspectorate and HMIE Inspections .................................... 10 Twelve early years settings were inspected by the Care Inspectorate and HMIE in session June 2025 – June 26. A range of funded providers were inspected including private nurseries and local authority settings. “A quality improvement framework for the early learning and childcare sectors” is now being used by both Care Inspectorate and HMIE to inspect Early Learning and Childcare settings.................................................. 10 3.2 Evaluation of Education Service Improvement Priorities ...................................................................... 13 Page 172 of 260
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Page 3 of 39 OFFICIAL 3.3 Use of digital tools to enrich, enhance and improve learning, teaching and assessment .................... 16 Expected outcomes 2025-2026 ................................................................................................................. 18 From workstream 1 18 Expected outcomes 22 2025-2026 22 From workstream 2 22 Section 4: Education Service Improvement Plan 2026-2027 .......................................... 25 APPENDIX 1 ...................................................................................................................... 29 APPENDIX 2 ...................................................................................................................... 36 Page 173 of 260
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Page 4 of 39 OFFICIAL Section 1: Introduction 1.1 Our Children, Young People & Partnerships Directorate Vision is: All children, young people, adults, and communities in Midlothian are supported to be the best they can be. This will be achieved through a nurturing, respectful and collaborative approach that promotes wellbeing, equity, inclusion, and lifelong learning. 1.2 Our Education Service Priorities The Education Service Improvement Plan is a forward planning document and details how the Education Service contributes to the delivery of Midlothian Council and National Improvement Framework priorities. These priorities include: Fig 1 Scottish National Improvement Framework Outcomes Scottish National Improvement Plan priorities Our National Improvement Framework 2026 outcomes are outlined in Figure 1 and our Education Service Plan takes account of these and the national wellbeing indicators: safe, healthy, achieving, nurtured, active, respected & responsible. Midlothian Single Plan priorities: Individuals and communities have improved health and skills for learning, life, and work. No child or household living in poverty. Significant progress is made towards net zero carbon emissions by 2030. Midlothian Education Service outcome: We will raise attainment and achievement to ensure that all children and young people in Midlothian achieve outcomes which lead to positive and sustained destinations. 1.3 Improvement Drivers Our Service Improvement Plan has 3 drivers for improvement: Page 174 of 260
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Page 5 of 39 OFFICIAL • Getting It Right For Every Child • Inclusive Learning, Teaching, Assessment & Curriculum • Leadership At All Levels 1.4 Our Improvement Outcomes Quantitative measures are given in section 3 below. We want to achieve the following. • Children and young people have improved attainment and achievement and reach ambitious outcomes. • Children and young people will feel fully engaged in decisions that affect them. Children and young people receive their entitlement to high-quality universal provision which promotes engagement and improved outcomes. • Children and young people benefit from a skilled and confident workforce promoting leadership at all levels to deliver excellent learning, teaching & assessment for all learners, in line with professional standards. • Children and young people experience, and contribute to, positive, respectful relationships within a culture of dignity and respect. • Children and young people benefit from data-informed ASGs collaborating with partners to improve outcomes for all 3-18 learners. • Children and young people are equipped with skills to navigate and thrive within a rapidly evolving digital landscape • Children and young people benefit from an inclusive and relevant curriculum, that prepares them for their future. Section 2: Midlothian’s Demographic Context 2.1 Our Context Pupil numbers • 2262 children attend funded Early Learning and Childcare • 8131 pupils attend Primary Schools • 6202 pupils attend Secondary Schools • 100 pupils (Saltersgate) attend Special Education (Saltersgate) Source: Summary Statistics for Schools in Scotland (2025) Ethnicity • 9.6% of young people in schools in Midlothian were from a minority ethnic group. Page 175 of 260
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Page 6 of 39 OFFICIAL Source: Summary Statistics for Schools in Scotland (2025) Young Carers • There are 515 young carers (aged 5 – 18 years) registered in Midlothian Schools. Source: Midlothian Young Carers Project Attainment • In 2025, Midlothian’s average attainment levels were in line or above the Virtual Comparator at the end of S4, S5, and S6. Source: Insight Child Protection • The rate per 1,000 of Looked after Children in Midlothian is 7.9, below the national average of 12.1. This has been decreasing since 2018. Source: Midlothian Profile (2025) • The rate per 1,000 of children on the Child Protection Register is 3.7 in Midlothian, with a national average of 2.3. The rate in Midlothian is higher than our comparator Councils. Source: Midlothian Profile (2025) Disabilities • 483 pupils are assessed and/or declared as having a disability or long-term health condition. Source: Midlothian Profile (2025) Exclusions • During 2024/25, there were 293 temporary exclusions in Midlothian schools. This is equivalent to 20 incidents per 1,000 pupils. Source: SEEMIS Poverty Page 176 of 260
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Page 7 of 39 OFFICIAL • 23% of pupils live in poverty after housing costs. Source: End Child Poverty – Child Poverty After Housing Costs 2015-2023 (Published June 2024) • 74.9% of primary pupils are registered for free school meals. Source: Summary Statistics for Schools in Scotland (2025) • 13.7% of secondary pupils are registered for free school meals. Source: Summary Statistics for Schools in Scotland (2025) Participation • 93.9% annual participation rate for 16-19 year olds. Source: SEEMIS Additional Support Needs • 45.8% of pupils have a recognised additional support need. Source: Summary Statistics for Schools in Scotland (2025) Page 177 of 260
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Page 8 of 39 OFFICIAL Section 3: Key Successes and Achievements (2025-2026) Evidence for the Education Service Improvement Plan evidence is gathered through: • Education Scotland inspection reports. • Care Inspectorate reports. • Quality Improvement activities, including − School improvement planning and reporting − Analysis of data − Direct observation − Gathering staff, parent/carer and young people’s views. 3.1 Inspections Education Scotland inspections 2025-2026 School Leadership of change Learning, teaching & assessment Ensuring wellbeing, equality & inclusion Raising attainment & achievement / securing children’s progress Rosewell Primary School Very Good Very Good Very Good Good St David’s RC Primary School Good Good Good Good Tynewater Primary School Very Good Very Good King’s Park Primary School Very Good Good Very Good Very Good Cuiken Primary School Nest Education Scotland is confident the Complex Needs provision at Cuiken Primary (the NEST) has the capacity to improve – report published on Education Scotland website on Tuesday 23 June here. Newbattle High School Progress Report Education Scotland is confident the school has the capacity to continue to improve and will make no further visits in connection with the 2023 inspection. Education Scotland inspection ELC ELC setting Curriculum Learning, Teaching and Assessment Inclusion and Equality Page 178 of 260
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Page 9 of 39 OFFICIAL Tynewater Primary ELC Satisfactory Satisfactory Satisfactory King’s Park Primary ELC Very Good Good Very Good Care Inspectorate and Education Scotland ELC inspections ELC setting Saff skills, knowledge, values and deployment Learning, teaching and assessment Nurturing care and support Children’s progress Rosewell Primary ELC Very good Good Good Good The following key strengths were indicated by the inspection teams. Primary • Children who are polite, happy, kind, respectful, friendly, hard-working and engage well in their learning. Children who are proud of their school. • Children learning through play, developing independence and creativity. • Staff understanding of children’s needs. Staff taking effective action to remove barriers for children and families. Positive, warm relationships. • Improving attendance. • Staff supporting children with complex needs to improve communication. • Staff support to improve outcomes for children with additional support needs. • Staff improving the teaching of reading. Staff who are enthusiastic to lead change to improve outcomes for children and young people. Improving consistency in teaching. • Staff creating a strong digital culture and children developing digital skills. • Headteacher leadership, culture of continuous improvement, collaborative approaches to leading change. Secondary • Staff creating a welcoming and nurturing environment where young people feel safe, respected and included. Page 179 of 260
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Page 10 of 39 OFFICIAL • Clear lines of communication between staff, young people and their families. This enables families to be more involved in their child’s education and helps staff to address successfully any issues that young people are experiencing. • Staff identifying and meeting young people’s needs and helping them to improve their social skills. They support young people to have a more positive approach to education which is improving attendance and achievement. National Thematic Inspection Visits from Education Scotland • Mauricewood Primary School participated in the National Thematic Review of Literacy and English. The report can be viewed here. Early Learning and Childcare settings - Care Inspectorate and HMIE Inspections Twelve early years settings were inspected by the Care Inspectorate and HMIE in session June 2025 – June 26. A range of funded providers were inspected including private nurseries and local authority settings. “A quality improvement framework for the early learning and childcare sectors” is now being used by both Care Inspectorate and HMIE to inspect Early Learning and Childcare settings. The settings that were inspected in this period were: Local Authority Settings: Service Name Town date of inspection Burnbrae Primary School Nursery Bonnyrigg 09/09/2025 Rosewell Primary School Nursery Rosewell 08/12/2025 Bonnyrigg Primary School Nursery Class Bonnyrigg 15/12/2025 Mauricewood Primary School Nursery Penicuik 26/01/2026 Page 180 of 260
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Page 11 of 39 OFFICIAL Funded Provider Settings: Service Name Town date of inspection Gorebridge FLC - Small Steps Gorebridge 20/06/2025 Pinocchio's Children's Nursery Lasswade Bonnyrigg 24/07/2025 Start Bright Nursery Bonnyrigg Bonnyrigg 08/08/2025 Penicuik Family Learning Centre Penicuik 10/10/2025 Hopefield Castle Nursery Bonnyrigg 14/10/2025 LASC Childcare Services Ltd (Rosewell) Rosewell 03/11/2025 Little Hawthorn Loanhead Loanhead 09/03/2026 Summary of inspection grades Quality Indicator from June 22 – Sept 25 Total no. of settings inspected Excellent Very good Good Adequate Weak Unsatisfactory 1.1 Nurturing care and support 5 1 3 1 1.3 Play and learning 5 1 3 1 2.2 Children experience high quality facilities 5 2 2 1 3.1 Quality assurance and improvement are led well 5 2 2 1 4.3 Staff deployment 5 3 1 1 Page 181 of 260
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Page 12 of 39 OFFICIAL Quality Indicator from Oct 25 Total no. of settings inspected Excellent Very good Good Adequate Weak Unsatisfactory Not Assessed Leadership and management of staff and resources 7 2 4 1 Children thrive and develop in quality spaces 7 2 5 Children play and learn 7 1 6 Children are supported to achieve 7 2 5 The following common key strengths were indicated by the inspection teams. 1. Nurturing Care and Relationships • Children consistently experience warm, responsive, and respectful interactions • There is evidence of strong attachment, emotional wellbeing, and an inclusive ethos • Children feel safe, secure, valued and supported 2. Inclusive Practice and Wellbeing aligned with the GIRFEC principles • Effective support for children with additional needs • There is evidence of personalised, trauma-informed approaches • Strong focus on dignity, independence and participation 3. Child Engagement and Play-Based Learning • High levels of child-led play, independence and creativity • Responsive planning approaches developing across settings • Rich experiences supporting curiosity and collaboration Page 182 of 260
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Page 13 of 39 OFFICIAL 4. Positive Relationships with Families • Families feel welcomed, valued and confident in staff • Strong day-to-day communication and trust • Increasing opportunities for engagement and participation This session, 93% of the children accessing funding were attending settings that had at least good evaluations across the key inspection themes. This is an increase of 3% from 2024/25. 3.2 Evaluation of Education Service Improvement Priorities The Excellence and Equity Board has oversight and accountability for all outcomes relating to the Education Service priority above. The Board is chaired by the Education Chief Operating Officer. Page 183 of 260
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Page 14 of 39 OFFICIAL 3.2.1 We use the following outcome measures Last Published Data Feb 2026 National Average Stretch aims June 2025 Stretch aims June 2026 Stretch aims June 2027 Stretch aims currently being updated. ACEL P1-S3 Combined Health and Wellbeing Not available ACEL P1, P4, P7 Combined Literacy 76.6% 74.5% 73.00% 76.00% 77.50% ACEL P1, P4, P7 Combined Numeracy 80.2% 80.3% 79.00% 82.00% 82.00% S3 Literacy 3rd level or better 89.7% 89.8% 88.00% 90.00% 91.00% S3 Literacy at 4th level 59.3% 63.1% 65% 71% 75% S3 Numeracy 3rd level or better 93.9% 90.9% 93.00% 94.00% 95.00% S3 Numeracy 4th level 72.0% 68.0% 66% 69% 70% Leavers Literacy @ Level 5 82.02% 81.90% 79.50% 82.00% 83.00% Leavers Numeracy @ Level 5 73.74% 73.43% 73.50% 75.00% 75.00% Leavers 1+ @ Level 5 86.87% 87.97% 88.00% 90.00% 90.00% Leavers (ASN over time) 1+ @ Level 5 78.08% 79.18% 78% 81% 82% Leavers (Care Experienced) 1+ @ Level 5 64.29% 53.21% 79% 81% 81% Leavers1 @ Level 6 68.79% 68.29% 64.00% 67.00% 67.00% % Positive Destinations 95.35% 95.67% 96.50% 98.00% 98.00% % Initial Destination in Higher Education 38.48% 42.31% 40.00% 43.00% 45.00% Attendance Rate Primary 94.0% 93.1% 93.50% 95.00% 95.50% Attendance Rate Secondary 88.0% 88.4% 89.00% 91.50% 92.00% Participation Measure 3 years post initial destination rate % 93.9% 93.3% 94.5% 96% 95% Exclusion Rate per 1,000 Primary 9.7 4.5 (22/23 last pub) 2.00 1.50 1.00 Exclusion Rate per 1,000 Secondary 28.7 31.5 (22/23 last pub) 22.50 17.50 15.00 % of schools & ELCs with validated Good or better QI 1.1 77% Not available 84% 89% 90% Page 184 of 260
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Page 15 of 39 OFFICIAL % of schools & ELCs with validated Good or better QI 1.3 72% Not available 84% 89% 90% % of schools & ELCs with validated Good or better QI 2.3 77% Not available 77% 85% 90% % of schools & ELCs with validated Good or better QI 3.1 74% Not available 79% 85% 90% % of schools & ELCs with validated Good or better QI 3.2 56% Not available 69% 79% 90% Excellence Ave. (21-24) 2024/25 Target 24/25 Target 25/26 Target 26/27 Primary combined Literacy 69.5% 76.6% 73.00% 76.00% 77.50% Primary combined Numeracy 75.6% 80.2% 79.00% 82.00% 82.00% S3 Literacy 83.5% 89.7% 88.00% 90.00% 91.00% S3 Numeracy 90.2% 93.9% 93.00% 94.00% 95.00% Leavers Literacy & Numeracy @ Level 5 66.82% 70.20% 70.00% 72.00% 74.00% Leavers 1+ @ Level 5 86.33% 86.87% 88.00% 89.00% 90.00% Leavers 1+ @ Level 6 62.26% 68.79% 64.50% 66.00% 67.00% % school leavers initial destination positive 95.35% 95.35% 96.50% 97.00% 98.00% Equity* (the poverty related attainment gap) Ave. (21-24) 2024/25 Target 24/25 Target 25/26 Target 26/27 Primary combined Literacy 29.2% 22.6% 24.00% 22.50% 21.00% Primary combined Numeracy 27.1% 16.5% 22.50% 21.00% 20.00% S3 Literacy 22.94% 23.15% 23.00% 22.00% 20.50% S3 Numeracy 16.35% 19.97% 16.50% 16.50% 15.50% Leavers Literacy & Numeracy @ Level 5 35.60% 32.66% 35.50% 32.50% 30.00% Leavers 1+ @ Level 5 22.7% 23.78% 29.00% 27.50% 25.00% Leavers 1+ @ Level 6 30.52% 31.04% 38.00% 37.00% 35.00% % school leavers initial destination positive 5.44% 6.41% 3.0% 2.5% 2.0% Page 185 of 260
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Page 16 of 39 OFFICIAL Secondary Schools’ attainment In most cases, the attainment outcomes for leavers show improvement compared to the previous year. The percentages of school leavers achieving SCQF Level 3, 4 or 5 in Literacy were significantly higher than the Virtual Comparator (VC). The same applies for Level 3, 4 or 5 in Numeracy. The percentage of leavers achieving five or more awards at SCQF Levels 5 and 6 has been consistently above the VC for the past four years, with a clear improving trend over the past three years. The percentage of leavers in a positive destination remains at just over 95%, in line with the national and VC figures. * Equity measures show the attainment gap as the difference in attainment levels between pupils that are registered for free school meal registered and those learners not registered for free school meals. 3.3 Use of digital tools to enrich, enhance and improve learning, teaching and assessment The fifth year of the Equipped for Learning (EfL) digital transformation project has brought continued progress in ensuring digital technology is used to positively impact learning, teaching and assessment. Year Four stakeholder surveys provided a data set to inform Year Five priorities, including an increased focus on artificial intelligence, digital safety and collaborative approaches to digital pedagogy. Nearly 500 teachers are engaging in a generative AI tool in education pilot, negotiated through the Equipped for Learning project. All school leaders in primary and secondary schools are engaging with an AI research product to explore how this technology can reduce workload for leadership teams and streamline school improvement work. This has now been extended to middle leaders. The Equipped for Learning project was part of an international showcase of good practice at Bett 2026, held in the ExCel Centre, London in January 2026. 314 support staff have now been equipped with a 1:1 staff iPad, ensuring the workforce has access to technology and training to ensure best use. All primary age pupils have undertaken a three-week package of in-class digital support, designed to support them to use technology safely and with purpose. Page 186 of 260
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Page 17 of 39 OFFICIAL 97.8% of pupils strongly agreed they had learned something new. 100% of HMIe inspections this session have highlighted strengths in the effective use of digital technology. An independent research impact study is due to be published in June 2026, reviewing the efficacy of the first five years of Equipped for Learning and showcasing practice in schools. Standards and Quality review of 25-26 outcomes Page 187 of 260
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Page 18 of 39 OFFICIAL Expected outcomes 2025- 2026 How do we know we achieved the workstream outcomes? (accurate at the time of writing Next Steps From workstream 1 All learners receive their entitlement to high-quality universal provision (staged intervention levels 1 & 2) which promotes engagement and improved outcomes. • Inclusive Learning, Teaching & Assessment : The Raising Attainment Team has strengthened collaboration with schools and the Early Years Team, improving inclusive LTA practices across all ASGs. Progress includes enhanced early number sense and targeted strategies to improve writing. Professional learning in writing has received highly positive feedback (over 98%). • Mathematics & Numeracy: Midlothian is one of five authorities leading work on effective maths pedagogy. Early implementation, led by the Raising Attainment Teacher (Numeracy), shows improved learner engagement and participation. The University of Glasgow Spatial Reasoning project (P4–P7, 60+ classes across 16 schools) demonstrated above-average gains in learner progress. • Leadership & Collaboration: Secondary DHT LTA Networks, with primary representation, have strengthened support for middle leaders in delivering inclusive LTA and universal support. Improved alignment between primary and secondary LTA Leads is supporting consistent implementation of the Midlothian iLTA Framework. • Learner Voice & Curriculum Development: Learner Voice Groups contributed to shaping A Midlothian Learner 2.0, Review the Midlothian Inclusive Learning, Teaching, Assessment & Curriculum Strategy in line with the national Curriculum Improvement Cycle (CIC) as this develops. Implement Year 2 of the Core Numeracy Building Thinking Classrooms pilot. Implement the Early Reading Programme bespoke to Midlothian Quality assure Meta Skills across LTA and Curriculum. Refine the Professional Learning (PL) offer to support highly effective inclusive Learning, Teaching, Assessment and Curriculum (iLTAC) Page 188 of 260
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Page 19 of 39 OFFICIAL highlighting priorities including digital learning, metaskills, and outdoor learning opportunities. • Dyslexia Support & Inclusion: New dyslexia guidance and professional learning are being successfully implemented with strong engagement from schools and parent councils. SEEMiS registrations for dyslexia have increased by 26.8% since August 2025, indicating improved identification. Feedback highlights clearer processes, reduced workload, improved consistency, and better support for families. Parent feedback confirms a positive impact on outcomes for dyslexic learners. . Review school guidance on Interdisciplinary Learning (IDL) in line with the CIC. Support settings working on Ed Scotland Play Pedagogy Programme. Roll out school guidance to support effective play pedagogy. An effective assistive technology offer tackles digital inequity and reduces barriers to accessing learning. • 163 three-week support packages on using accessibility tools to access and personalise learning, delivered across schools to provide bespoke small group support for identified pupils, an increase of 49 pupils on last quarter • New assistive technology passports devised to enhance transition within and between schools to ensure clarity of hardware and software used and make training requirements clear • Regular updates to ASN network and Support for Learning network to ensure staff are signposted to latest updates and best practice guidance • All support staff offered a 1:1 iPad and training to ensure technology is used effectively to meet the needs of learners. 331 support staff accepted the offer and engaged with onboarding in its first phase Continue to review and iterate as required. Maintain assistive technology focus through the lens of innovations like AI to ensure this is leveraged to maximise impact on learning Page 189 of 260
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Page 20 of 39 OFFICIAL • Assistive technology cohort supported to ensure team around the child is well-equipped to implement, review and iterate technology solutions to best meet the needs of the child • Stages of Intervention framework updated with service partners in NHS and Sight Scotland to ensure it meets best practice and signposts to relevant resources and guidance • Scoping work with CALL Scotland to inform an assistive gaming long term project, commencing in 26/27 A skilled and confident workforce promotes leadership at all levels to deliver excellent learning, teaching & assessment for all learners, making best use of digital technology and in line with professional standard • 532 teachers engaging in a generative AI tool in education pilot, negotiated through the Equipped for Learning project. • All school leaders in primary and secondary schools are engaging with an AI research product to explore how this technology can reduce workload for leadership teams and streamline school improvement work. This has now been extended to middle leaders, totalling 143 school leaders • All schools engaged with professional learning offer via the Digital Discovery brochure to ensure bespoke support at the point of need • 314 support staff have now been equipped with a 1:1 staff iPad, ensuring the workforce has access to technology and training to ensure best use. • All primary age pupils have undertaken a three-week package of in-class digital support, modelled for teachers and designed to support pupils and staff to use technology safely and with purpose. 97.8% of pupils strongly agreed they had learned something new. Further develop a digitally- skilled, Artificial Intelligence (AI) literate workforce to support children and young people to navigate AI. Update the Digital Skills Framework to include a new AI literacy track and a new digital habits track, specifically in relation to screentime/ distraction to better equip young people to develop their own boundaries around proportionate use of technology. Robust quality improvement and quality assurance at school & local authority level show validated self- • 71% of schools were “Good” or better in QI 2.3 (learning, teaching and assessment) • 64% of schools were graded “Good” or better for QI 3.2 (attainment and achievement) Continue to improve the % of schools graded “Good” or better. Page 190 of 260
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Page 21 of 39 OFFICIAL evaluation gradings for 2.3 and 3.2 are improving. • School inspection results have improved Effective use of data at all levels shows attainment has improved and gaps have reduced (see Appendix 1) • Our June 2025 Broad General Education (BGE) results were the best on record. • The gap between the most and least disadvantaged learners is reducing in the BGE. Continue to improve year on year BGE attainment results. Continue to improve secondary attainment results. Evaluations indicate that professional learning is specific and relevant to job roles, builds confidence, deepens knowledge, develops skills and leads to improved outcomes for learners. • There is a 90%+ approval rating in all professional learning feedback. Continue to offer high- quality professional learning based on job role. Continue to ask our workforce what training needs exist. Integrate our professional learning where possible, with our partners. Robust school tracking and monitoring systems that inform universal and targeted support offers. • Early Learning and Childcare settings (ELCs) are tracking learner progress. • Primary school dashboards are now up to date and used as focus for termly QI data visits. • Secondary school dashboards are being scoped. • Special schools and ASN Provisions use an agreed system to track learner progress. • Robust attainment tracking processes are in place in all Associated School Groups (ASGs) • Central officer tracking of a wide range of school performance data, supports a proportionate approach to support & challenge. Ensure partner provider ELCs are tracking learner progress and this information forms part of the transition to primary schools. Continue to develop primary dashboard functionality and use for QI challenge visits. Decide on a secondary dashboard solution. Continue to embed the ASN tracking system. Page 191 of 260
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Page 22 of 39 OFFICIAL Quality assurance activity evidences excellent learning, teaching & assessment, as defined in the Midlothian Learning, Teaching & Assessment Framework. • Inspection evidence is pointing to greater consistency and improvement in learning, teaching and assessment. • 71% of schools were “Good” or better in QI 2.3 (learning, teaching and assessment) Build on development of inclusive LTA to ensure universal offer is strong. Planned and responsive use of learner voice in improvement is evidenced through school and local authority pupil groups. • Midlothian's education service now has almost all-school engagement in our Youth Cabinet and School Parliament approach. Continue to support the Youth Cabinet and School Parliament approach to enable all young people to have a voice in major decisions about education in Midlothian. Develop political education across the curriculum. Pilot ASG BGE projects are established. All ELCs, schools and ASGs have a revised curriculum rationale. • All ASGs have a revised curriculum rationale. • Almost all schools have a revised curriculum rationale. Continue to develop curricula in line with the national Curriculum Improvement Cycle. Expected outcomes 2025-2026 How do we know we achieved the workstream outcomes? Next Steps From workstream 2 Culture, relationships and systems ensure that children, young people, and staff feel valued and supported to succeed. • The Midlothian Relationships for Learning Policy was launched in August 2025 following extensive engagement and co- production with children, families and staff. Almost all school staff engaged in an introductory policy briefing in August. • A Relationships for learning self-evaluation tool was completed by most settings with analysis informing key actions to support schools in the ongoing policy implementation. • The Relationships for Learning Community of Practice met 4 times over the year with representation from almost all settings Strengthening of wellbeing data analysis and interventions at targeted and crisis levels. Ongoing support for schools in strengthening practice in Page 192 of 260
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Page 23 of 39 OFFICIAL and key partners, strengthening our rights-based, relational approach and targeted wellbeing interventions. • Revised guidance was launched around physical intervention in line with revised national guidance. • Models of ‘reflecting teams’ have been trialled across a number of settings to support staff in complex decision-making and promoting staff wellbeing with very positive feedback. • Our new Pupil Leadership Structure continues to become embedded, ensuring user voice groups represent the children and young people of Midlothian. • A partnership with Enquire has involved professional learning for EPs, ASN central team and principal teachers on promoting the meaningful participation of children with complex needs in decisions that affect them. de-escalation and post- incident support in line with guidance. Continue to embed the role of the pupil parliament within strategic decision making. Roll out of professional learning on the meaningful participation of children with complex needs in planning and decision making. Collaboration, partnerships and shared learning at ASG level leads to an improvement in learner outcomes through a data- informed allocation of resources. • Following consultation, we reviewed and clarified the purpose of the Executive Education Group (EEG). The refreshed Terms of Reference provides opportunities for empowered Headteachers and senior officers to lead change and drive continuous improvement, with a strong focus on collaboration and informed decision-making. • A GIRFEC Practice Framework has been developed to provide a consistent and shared approach for all practitioners working with children, young people and their families in Midlothian. • Three GIRFEC network sessions have been developed and will be delivered from August to November 2026, providing updates and to ensure the right staff receive the right information on a regular basis. Provide and share good practice – building on case examples with positive outcomes. Based on National and local priorities, the EEG will focus on specific priority tasks, assign clear leadership roles and establish short-life working groups. Develop and agree a Single Child/Young Person's Planning format for use across services in Midlothian. Page 193 of 260
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Page 24 of 39 OFFICIAL • The Midlothian Single Point of Access for mental health and wellbeing supports for children and young people has been designed and streamlined with a new online request system. This will be piloted in 2026-27 as part of the GIRFEC framework, linking with the Team Around the Child meetings and Family Wellbeing Service. Attendance • 8 schools participated in the Pareto approach to strengthen a data-driven approach to improving attendance through targeted, responsive interventions. • A test of change on Mentoring for Engagement in Education was developed through partnership with schools, families, Educational Psychology, Home School Practitioners and Family Wellbeing Service. Evaluation showed improvements in attitude, relationships and engagement. • Strengthened inclusive practice for neurodivergent children and young people through My Predictable Day professional learning. • Reviewed and analysed use and impact of SCERTS across Midlothian and developed an implementation plan for Complex Needs Provisions for 2026-27. Continue to develop a Midlothian website for all services to access relevant updates and resources. New Single point of access to be piloted in 2026-27. Professional learning and support to be rolled out to support young people presenting with emotionally- based absence. Ongoing strengthening of assessment and intervention in relation to the needs of learners with neurodivergence. SCERTS to be rolled out across Complex needs provisions in 2026-27. Page 194 of 260
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Page 25 of 39 OFFICIAL Section 4: Education Service Improvement Plan 2026-2027 National Improvement Framework Outcomes 2026-2027 Midlothian Education Service Outcomes 2026-2027 Midlothian Education Service Outcome Measures 2026-2027 Outcome 1 A globally respected, empowered and responsive education and skills system with clear accountability at every level that supports children, young people, and adult learners to thrive. The system enables the development of their knowledge, skills, values and attributes that give them the best opportunity to succeed and contribute to Scotland’s society and economy. Outcome 4 High levels of achievement across the curriculum for all learners, with action to close the poverty-related attainment gap. Outcome 5 Highly skilled teachers and school-leaders driving excellent learning, teaching and assessment for all, especially those with additional support needs. Children and young people have improved attainment and achievement and reach ambitious outcomes. Children and young people receive their entitlement to high-quality universal provision which promotes engagement and improved outcomes. Children and young people benefit from a skilled and confident workforce promoting leadership at all levels to deliver excellent learning, teaching & assessment for all learners, in line with professional standards. Attainment and attendance reaches or exceeds stretch aims. All schools are "Good" or better in the measured Quality Indicators. For 2026-2027, we will carry out validated self-evaluation in key themes within QI 1.3, 2.3 and 2.4 and the correlated Early Years Framework quality indicators. All schools and ELCs have confident and competent leaders who develop leadership at all levels that improve outcomes for all learners. Midlothian professional learning continues to be evaluated at 90%+ in relation to relevant skills and confidence. Robust school tracking and monitoring systems will inform universal and targeted support offers and measure the impact for learners. Outcome 2 Young people experience the benefit of schools and early years settings working in excellent partnerships with wider children’s services and other partners, families, and communities, in line with the Getting It Right For Every Child (GIRFEC) approach. Children and young people benefit from data-informed ASGs collaborating with partners to improve outcomes for all 3-18 learners. All learners receive their full statutory entitlement to an education. Evaluation of ASG improvement plans shows strengthened partnerships to improve learner outcomes. Page 195 of 260
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Page 26 of 39 OFFICIAL Outcome 3 Inclusive and relevant curriculum and assessment which gives young people the knowledge and skills necessary to contribute to society, shape a sustainable future, while celebrating and supporting progression for all. Children and young people benefit from an inclusive and relevant curriculum, that prepares them for their future. Effective implementation of the Curriculum Improvement Cycle is leading to an engaging curriculum that supports children and young people to achieve their best. Outcome 6 Improving relationships and behaviour, and attendance, with increased engagement in learning and a culture of dignity and respect for all Children and young people experience, and contribute to, positive, respectful relationships within a culture of dignity and respect. Feedback from pupil voice groups indicates learners are meaningfully engaged in decisions that affect them. Outcome 7 An education system engaging in digital technology to enhance all aspects of learning and teaching, supported by a digitally-skilled workforce, and tackling digital inequality. Children and young people are equipped with skills to navigate and thrive within a rapidly-evolving digital landscape. Children and young people feel fully engaged in decisions that affect them. There is a robust Artificial Intelligence offer for education staff with adoption rates increasing towards 75%. Page 196 of 260
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Page 27 of 39 OFFICIAL How is our work organised in 2026-2027? Inclusive Learning, Teaching, Assessment & Curriculum Wellbeing, Targeted Support & Partnerships Launch Keys for Communication in Council and Partner Provider Early Learning Centres (ELCs) Prepare our leaders and workforce to develop quality environments and experiences for under 3s in identified ELCs. Review the Midlothian Inclusive Learning, Teaching, Assessment & Curriculum Strategy in line with the national Curriculum Improvement Cycle (CIC) as this develops. Develop 3-18 curriculum pathways in line with the CIC. QA Meta Skills across LTA and Curriculum. Further develop a digitally-skilled, Artificial Intelligence (AI) literate workforce to support children and young people to navigate AI. Update the Digital Skills Framework to include a new AI literacy track and a new digital habits track, specifically in relation to screentime/ distraction to better equip young people to develop their own boundaries around proportionate use of technology. Refine the Professional Learning (PL) offer to support highly effective inclusive Learning, Teaching, Assessment and Curriculum (iLTAC) Implement Year 2 of the Core Numeracy Building Thinking Classrooms pilot. Implement the Midlothian Early Reading Programme. Review school guidance on Interdisciplinary Learning (IDL) in line with the CIC. Fully embed the refreshed Getting It Right For Every Child (GIRFEC) framework and the single Child's Plan. Strengthen the impact of wellbeing interventions and support across the Staged Intervention Matrix. Improve the Sphera and bullying tracking systems to ensure accurate recording, tracking and action planning that supports adults in our schools in relation to violent and bullying incidents. Develop and share an Inclusion Statement which details a shared understanding of inclusion across Midlothian schools and communities, aligned with the principles of GIRFEC. Bring together our policy, guidance and processes that support leading an inclusive school. Re-engage all staff with the Staged Intervention Levels Matrix. Establish structures of professional support that promote staff wellbeing at all levels. Establish staff well-being measures with our Human Resources (HR) team. Review the strategic focus for the Midlothian Relationships and Behaviour Group, in line with the guidance from the national Strategic Action Group for Relationships and Behaviour in Scottish Schools (SAGRABIS) Page 197 of 260
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Page 28 of 39 OFFICIAL Roll out school guidance to support effective play pedagogy. Leadership at all levels • Establish structures of professional support that promote wellbeing at all levels. • Strengthen the effectiveness of our approaches to an empowered education system including the review of the Education Executive Group (EEG), opportunities for wider involvement of school leaders in system improvements, strengthen Headteacher Trios and Middle Leadership development. • Develop a senior leadership pathway • Update the Quality Improvement (QI) Framework and develop a PL offer for school and ELC leaders that improves self- evaluation of QI 1.3, 2.3 & 2.4 and corelated Early Years Framework themes. • Continue to strengthen the effective use of data for improvement to improve all transitions. Ensure schools & ASGs have data they need. • Quality assure the implementation of the Data Timeline through the Data & Performance Group. • Implement a school data tracking and monitoring solution. • Strengthen tracking attainment for Quintile 1 & 2 learners at Local Authority level. • Analyse violent incidents and bullying incidents to inform planning, professional learning, and support. • Use cumulative attendance data to track trends and inform next steps. • Share effective leadership practice including self-evaluation and distributed leadership at all levels. • Support HT and DHT leadership of ELCs and ASN Provisions. • Establish staff well-being measures with HR team to enable tracking and monitoring of employee wellbeing. Our detailed workstream plans can be found in Education Service Microsoft Teams folders and will not be available externally. This is a link to our Parent Friendly Service Plan Page 198 of 260
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Page 29 of 39 OFFICIAL APPENDIX 1: Data we use to measure progress • Attendance data • Analysis of VSE reports, school and ELC improvement plans • Attainment data • Exclusions data • Part-time timetable data • Gap and stretch aims data • Complaints data • Sphera reports • Learner and staff wellbeing data • Staff absence data • PL evaluation data • Workforce survey data • Care Inspectorate and Education Scotland reports • Stretch Aims analysis • Staff wellbeing data once this is defined during 2026-27 Improving Attainment within the Broad General Education Stages Midlothian DATA 2021 2022 2023 2024 2025 Target* Primary Literacy 65.8% 68.2% 71.6% 72.3% 76.6% 73% Primary Numeracy 72.8% 76.1% 76.8% 76.8% 80.2% 79% S3 Literacy (Third Level or better) 80.7% 85.4% 84.4% 89.7% 88% S3 Numeracy (Third Level or better) 88.5% 90.5% 91.6% 93.9% 93% The Stretch Aims for these areas have been met for 2025. Page 199 of 260
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Page 30 of 39 OFFICIAL There have been significant increases across all areas since 2024 and the figures for 2025 are the highest on record, post-pandemic. The 2025 figures are also above the national and comparator figures for 2024, with the exception of Primary Numeracy, which is just below the national figure (by 0.1 percentage points). Page 200 of 260
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Page 31 of 39 OFFICIAL Improving Attainment within the Senior Phase Literacy and Numeracy for School Leavers Leaver attainment in Literacy and Numeracy at SCQF Levels 4 & 5 is greater than the Virtual Comparator (VC) and above the National. At Level 5, Numeracy remains above the VC, it has increased by 3 and a half percentage points compared to 2024. Literacy has increased by over 4 percentage points since 2024; this is an improvement on previous years where it was in line with the VC. Page 201 of 260
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Page 32 of 39 OFFICIAL Average Complementary Tariff Scores for School Leavers, Grouped by Attainment Year Lowest-Attaining 20% Middle-Attaining 60% Highest-Attaining 20% Midlothian VC National Midlothian VC National Midlothian VC National 2025 118 106 120 598 582 622 1213 1248 1276 2024 111 104 118 540 532 610 1213 1225 1269 2023 129 95 127 520 501 612 1243 1217 1286 2022 131 123 137 588 582 643 1279 1265 1304 2021 111 120 144 584 600 691 1339 1289 1339 Page 202 of 260
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Page 33 of 39 OFFICIAL Senior Phase Qualifications: Percentage of Leavers with 1 or more, or 5 or more awards at SCQF Levels 5 and 6 (or better) The figures for Midlothian in all four measures have been above the VC for the past three years. Compared to 2024, there have been notable improvements at one or more and 5 or more at Level 6 or better (5+ percentage points. Page 203 of 260
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Page 34 of 39 OFFICIAL Senior Phase: Leavers in Positive Initial Destinations Establishment 2021 2022 2023 2024 2025 Midlothian 94.44% 95.50% 95.30% 95.27% 95.35% Virtual Comparator 95.20% 95.38% 94.82% 95.17% 95.44% National 95.48% 95.74% 95.87% 95.71% 95.67% The percentage of leavers in a positive destination has been above the VC for the past five years and has been within a percentage point of the national figure for the last four years. Page 204 of 260
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Page 35 of 39 OFFICIAL Equity Attainment Gap: Achievement of Curriculum for Excellence Levels (Pupils registered for Free School Meals versus those who are not) ACEL gap - FMR v Non FMR 2021 2022 2023 2024 2025 Literacy - P1/P4/P7 combined 32.24% 26.83% 26.53% 31.32% 22.65% Numeracy - P1/P4/P7 combined 27.98% 24.29% 25.11% 30.60% 16.62% S3 Literacy - Third Level or better 28.88% 28.57% 17.96% 16.66% S3 Numeracy - Third Level or better 22.19% 16.51% 7.63% 8.65% The gap between primary pupils registered for free school meals and those not, narrowed significantly in 2025 compared to 2024 for both Literacy and Numeracy, and the current gaps are the smallest on record, post-pandemic. For secondary pupils, the gap narrowed very slightly for Literacy at Third Level or better, and increased slightly for Numeracy, although the gap for Numeracy remains the smallest overall across primary and secondary. In both sectors, the gaps for Literacy remain wider than for Numeracy. Equity Attainment Gap: School Leavers at SCQF Levels 4, 5 and 6 (Pupils registered for Free School Meals versus those who are not) Year 1+ @ SCQF Level 4 1+ @ SCQF Level 5 1+ @ SCQF Level 6 FSM Non-FSM Gap FSM Non-FSM Gap FSM Non-FSM Gap 2025 89.76% 96.76% 7.00% 66.14% 89.92% 23.78% 41.73% 72.77% 31.04% 2024 86.72% 92.46% 5.74% 60.16% 89.86% 29.70% 25.78% 67.81% 42.03% 2023 96.90% 98.23% 1.33% 72.09% 89.16% 17.07% 31.78% 60.90% 29.12% 2022 96.97% 97.91% 0.94% 66.67% 89.75% 23.08% 26.52% 67.89% 41.37% 2021 92.55% 95.91% 3.36% 67.02% 86.85% 19.83% 28.72% 63.73% 35.01% The gaps between Free School Meals (FSM) registered and non-FSM registered leavers at SCQF Level 4 increased in 2025, to its highest in five years. The gap at SCQF Levels 5 & 6 has decreased significantly in 2025. Page 205 of 260
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Page 36 of 39 OFFICIAL APPENDIX 2: Children’s Rights and Wellbeing Impact Assessment (CRWIA) Requirement for a CRWIA Article 4 of the UNCRC requires governments ‘to undertake all appropriate legislative, administrative and other measures for the implementation of the rights recognised in the UNCRC’. CRWIAs are one of the general measures of implementation under the Convention. The UN Committee on the Rights of the Child recommends that all levels of government - national, regional and local – should complete a CR[W]IA as part of their policy development. Child Rights and Wellbeing Screening Sheet for Midlothian Council Education Service Improvement plan 2024-2025 Midlothian Council’s Education Service Improvement Plan 2024-2025 outlines the improvements we will make to learner outcomes. This contributes to the National improvement Framework in Scotland. The Education Service Improvement Plan 2024-2025 will affect the following UNCRC Articles GIRFEC wellbeing indicators: Article 2 (non-discrimination) Article 3 (best interests of the child) Article 6 (life, survival and development) Article 12 (respect for the views of the child) Article 19 (protection from violence, abuse and neglect) Article 20 (children unable to live with their family) Article 21 (adoption) Article 23 (children with a disability) Article 24 (health and health services) Article 28 (right to education) Article 29 (goals of education) Article 31 (leisure, play and culture) Article 39 (recovery from trauma and reintegration) Article 40 (juvenile justice) Article 41 (respect for higher national standards) Article 42 (knowledge of rights) Safe Healthy Achieving Nurtured Active Respected Responsible Included The likely impact on children and young people of the Midlothian Education Service Improvement Plan includes: The improvement of outcomes for all learners (eg attendance, exclusion, attainment) The plan will impact all children and young people who attend Midlothian Council schools and ELCs. Page 206 of 260
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Page 37 of 39 OFFICIAL A CRWIA will be carried out for the following reasons: To check that children and young people have been consulted. To check on the impact on children’s rights, of the Service Improvement Plan. To assess the impact on different groups of children and how we will communicate this to children. To check any negative impacts are necessary and proportionate and can be mitigated against. To check how the plan will effect the UNCRC implementation in Scotland. To check how we will monitor the impact of the plan. Child Rights and Wellbeing Impact Assessment (CRWIA) for Midlothian Council Education Service Improvement Plan There are two key considerations when undertaking a CRWIA: Participation: The United Nations Convention on the Right of the Child (UNCRC) sets out that children have the right to participate in decisions which affect them. When assessing the impacts of the policy/measure, we are recommended to consult with children and young people. We can do this directly, through organisations that represent children and young people or through using existing evidence on the views and experiences of children where relevant. Participation of children and young people should be meaningful and accessible. Evidence: We are recommended to gather evidence when assessing the impact of the policy/measure on children’s rights and also for measuring and evaluating the policy/measure. If we identify any gaps in the evidence base, we are recommended to discuss how we will address these with analytical colleagues. Which articles of the UNCRC does this policy/measure impact on? UNCRC Articles GIRFEC wellbeing indicators: Article 2 non-discrimination Article 3 best interests of the child Article 6 life, survival and development Article 12 respect for the views of the child Article 19 protection from violence, abuse and neglect Article 23 children with a disability Article 28 right to education Article 39 recovery from trauma and reintegration Safe Healthy Achieving Nurtured Active Respected Responsible Included Page 207 of 260
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Page 38 of 39 OFFICIAL What impact will your policy/measure have on children’s rights? Positive Neutral Negative Key learner outcomes will improve (e.g. attendance, exclusions attainment) Support for children with additional support needs will improve. Children will have a voice in learner conferences, focus groups and other types of consultation. Staff will be able to promote positive relationships and nurturing approaches. 3. Will there be different impacts on different groups of children and young people? Not applicable 4. If a negative impact is assessed for any area of rights or any group of children and young people, can you explain why this is necessary and proportionate? What options have you considered to modify the proposal, or mitigate the impact? Not applicable If options to modify the policy/measure are included here, include associated resource implications where relevant. Not applicable 5. How will the policy/measure give better or further effect to the implementation of the UNCRC in Scotland? The Midlothian Education Service Improvement Plan 2024-2025 will further improve the outcomes for all learners and therefore underpin the highlighted Articles above. 6. How have you consulted with relevant stakeholders, including involving children and young people in the development of the policy/measure? Children and young people were consulted during The National Conversation focus groups. Quality Improvement visits to schools (learner focus groups). Council-wide representative groups for children and young people (eg learner conferences). 7. What evidence have you used to inform your assessment? See below. Page 208 of 260
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Page 39 of 39 OFFICIAL 8. How will the impact of the policy/measure be monitored? The Midlothian Education Service Improvement Plan has outcome measures that we use to evaluate the impact of the plan. These are clearly laid out in Section 1.5. The Education Senior Leadership Team reports on progress towards our outcome measures every 3 months. The Excellence & Equity Board monitors our outcomes. 9. How will you communicate to children and young people the impact of the policy/measure on their rights? At the start of the school year, the Education Senior Leadership Team provides a child-friendly summary of the Service Improvement Plan. This can be used by teachers to discuss our improvement plan, and its impact on children’s rights, with children and young people. It can also be used to gather views from children and young people about what is going well and what could improve. 10. Sign & Date Policy Lead Signature & Date of Sign Off: Once signed off, please send to CRWIA@gov.scot Photos courtesy of Midlothian schools’ websites, February 2026 Page 209 of 260
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Midlothian Council Tuesday 22 September 2026 Item No 8.9 Edinburgh and South East Scotland City Region Deal (ESESCRD) - Regional Partnerships Proposition Report by Kevin Anderson Executive Director Place Report for Noting 1 Recommendations Council is recommended to: 1.1 Note that the drafted proposition document, included at Appendix B, was presented to the ESESCRD Joint Committee meeting on 4 September 2026 before it is considered by each of the six constituent local authority partners; 1.2 Note that feedback and direction was received at the ESESCRD Joint Committee meeting and is now sought from each of the six Local Authority meetings; and 1.3 Note that the proposition will be shared with Scottish Government subject to progress with the recommendations above. 2 Executive Summary On Friday 28 November 2025, the First Minister highlighted the Scottish Government’s intention to introduce (in the next parliament) enabling legislation, which will allow regional groupings to seek formal legal status as a “Regional Partnership”, with a range of powers and responsibilities. Including skills, economic development and planning. Capacity funding was made available from Scottish Government to regional partnerships to consider how they will respond to the First Minister’s announcement. The ESESCRD Partnership used this funding to commission Metro Dynamics to develop a proposition that helps partners better understand the range of options that could be available to strengthen and fiscally empower our regional partnership, building on the region’s successful track record of collaboration. On Friday 23 January 2026 the Joint Committee approved the Regional Partnership Working report. Members were asked to agree the approach for developing a draft proposition and for engagement with partner authorities. The new UK Government has publicly stated their desire to deliver greater devolution to drive economic growth across the UK. Page 211 of 260
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On 29 July 2026, the Convener of the Edinburgh and South East Scotland City Region Partnership and Chair of the Glasgow City Region Cabinet co- wrote a letter to the new Prime Minister highlighting the economic importance of Scotland’s two biggest city regions and to request a meeting with him to discuss how the UK Government can provide support similar to that being afforded to English City Regions to deliver greater sustainable growth. Date 24 August 2026 Report Contact: Kevin Anderson, Executive Director Place kevin.anderson@midlothian.gov.uk Page 212 of 260
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3 Background 3.1 Utilising Scottish Government capacity funding, consultants Metro Dynamics were asked to undertake four key work packages: Gathering Evidence - Review current policy landscape by reviewing local, regional, Scottish and UK existing plans and strategies as well as canvassing opinion from stakeholders. Stakeholder Engagement - Work with key regional stakeholders, including both Governments, all city regional deal partners, and others to understand barriers to success in key policy areas and what enabling powers, legislative change, financial innovation etc are required to overcome these challenges. Engage key national agencies including Transport Scotland, Skills Development Scotland and Scottish Enterprise. UK Comparator Research Report - Produce Case Studies to help consider existing exemplar UK Regional Partnerships and what enablers, powers and resources have been key to their success and, conversely, what has proved problematic Recognise that there will be no one size fits all solution, consider what has worked elsewhere and how this could best work with existing ESES regional governance arrangements Options Report – including but not restricted to: • Powers – areas of competence currently in prospect, which are skills, economic development, planning and consider what other policy areas are essential for a successful, functioning regional economy now and in the future. • Financial and resource requirements • Fiscal powers and freedoms to fund and delivery plans, strategies and infrastructure • Governance and decision-making models including the existing regional governance arrangements 3.2 These four work packages were designed to inform a completed proposition document developed in collaboration with ESESCRD partners and key stakeholders. 3.3 The work packages have now been completed and the drafted, emerging regional proposition report has been produced. 3.4 This work aims to enable partners to better understand the range of options that could be available to strengthen and fiscally empower our regional partnership to better deliver sustainable economic growth. 3.5 The areas of exploration in the proposition respect the proper competence of Local Authorities in addressing matters of local concern. Focus is given to issues that cross local authority boundaries and where there is clear added value in working together to address shared challenges and opportunities, in Page 213 of 260
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line with the subsidiarity principle that decisions should be taken as closely as possible to the citizens or stakeholders most affected. This ongoing work is about potential devolution from the UK and Scottish Governments, exploring the potential to draw powers down to the regional level. It is not about losing existing powers that sit with local authorities or impinging on their individual sovereignty. 4. Next Steps 4.1 The Proposition document was presented to the ESESCRD Joint Committee meeting on 4 September 2026 seeking feedback and direction. 4.2 Following this, further feedback and direction is sought from each of the six constituent local authority partners with agreement sought to develop a further detailed proposition. This will be developed with continued engagement with the Scottish and UK Governments, SOLACE and COSLA. 4.3 A detailed proposition would then require to be individually and collectively agreed following the 2027 Council Elections. 5 Report Implications (Resource, Digital and Risk) 5.1 Resource Scottish Government capacity funding has been utilised to undertake this work. The proposition does not commit resources from the six constituent local authorities. 5.2 Digital Not applicable 5.3 Risk This work aligns closely with the Scottish Government’s intention to launch a consultation, this calendar year, on advancing enabling legislation to empower regional groupings with devolved competencies and direct responsibility for local priorities. The aims of this work to advance sustainable economic growth and to enable communities to shape their own futures 5.4 Ensuring Equalities (if required a separate IIA must be completed) Not applicable 5.5 Additional Report Implications (See Appendix A) Page 214 of 260
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APPENDIX A – Report Implications A.1 Key Priorities within the Single Midlothian Plan A.2 Key Drivers for Change Key drivers addressed in this report: Holistic Working Hub and Spoke Modern Sustainable Transformational Preventative Asset-based Continuous Improvement One size fits one None of the above A.3 Key Delivery Streams Key delivery streams addressed in this report: One Council Working with you, for you Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above A.4 Delivering Best Value Not applicable A.5 Involving Communities and Other Stakeholders Not applicable A.6 Impact on Performance and Outcomes Not applicable A.7 Adopting a Preventative Approach Not applicable A.8 Supporting Sustainable Development Not applicable Page 215 of 260
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Appendix B - Edinburgh and South-East Scotland | Emerging Devolution Proposition Page 216 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY Edinburgh and South- East Scotland | Emerging Devolution Proposition A report from Metro Dynamics to ESES Authorities August 2026 1Page 217 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY The purpose of this pack This pack sets out an outline proposition for devolved collaboration across Edinburgh and South East Scotland (ESES). It has been developed by Metro Dynamics on behalf of ESES local authorities and with funding support from the Scottish Government, and as a result does not reflect agreed policy from either local or national Government. The propositions in here have been based on discussions and engagement with elected members, council officers, and key partner organisations over the preceding months. As this pack sets out, there is a narrow window of opportunity for ESES to think carefully about future priorities. With the right interventions, devolution offers the potential to capitalise on the economic trends that are reshaping the region, and avoid the risk of falling behind comparator places within and beyond the UK. Following engagement with ESES stakeholders and governance forums, this emerging proposition is now set for discussion among ESES local authorities for feedback ahead of the development of a full detailed proposition, as set out in the bullet points overleaf. 2 What next – an opportunity to move fast: ➢ September 2026: Joint Committee, for feedback and direction ➢ September–November 2026: individual council consideration for feedback, direction and agreement to develop detailed proposition ➢ November–March 2027: Making this real: theme development, governance & funding proposition workstreams ➢ March 2027: Consideration for approval in principle of detailed proposition by Joint Committee, subject to approval from individual councils ➢ May 2027: Council Elections ➢ Autumn 2027: Expected introduction within Scottish Parliament of enabling legislation to give regional partnerships legal status ➢ Autumn 2027: Consideration of detailed proposition by individual councils Page 218 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY Key questions for ESES local authorities to shape this emerging proposition? ➢Have we captured the right sense and scale of the economic prosperity opportunity for ESES? ➢Does the emerging proposition reflect your strategic priorities for collaboration through ESES, and are there any policy areas the draft proposition ought to cover but doesn’t currently? ➢Are there any specific policy asks in this emerging devolution proposition that would require further consensus building before committing to further development? ➢What role should ESES seek to play in the oversight, steering and delivery of the functions currently carried out by arms-length Scotland-wide agencies? ➢To what extent should ESES look to adopt existing UK governance models (such as English Mayoral Strategic Authorities), develop entirely new approaches and structures, or adapt existing joint governance models (such as Welsh Corporate Joint Committees) ➢Where next – what should the next steps be to expand the scoping work? What questions are currently unresolved from the current proposition? 3Page 219 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY Introduction and Executive Summary 4Page 220 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY Introducing regional devolution in ESES 5 • A narrow window to secure meaningful powers: John Swinney speech from November 2025: “We will introduce enabling legislation in the next Parliament to allow regional partnerships to seek legal status, unlock new powers, and design delivery models tailored to local priorities.” • An opportunity to deepen the powers held locally through a regional economic partnership: taking powers and funding held by the Scottish Government and agencies, plus UK level funding, and bringing them closer to the level where the impact of decisions are held. • Building on 8 years of successful delivery of the ESES City Region City Deal, with £3bn of GVA added, 22,000 job opportunities created, and 1,000 businesses supported by deal activities. But this was a time-bound deal that will soon be coming to an end. Now ESES must decide the regional priorities that best capitalise on these opportunities for the region, and the level and depth of collaboration that could enable new powers and funding. W hat regional devolution is about ➢ More local control over funding and programmes as opposed to national decision making ➢ Longer term funding certainty with multi-year settlements ➢ Drawing down powers and flexibilities which are not currently available locally to deliver local benefits ➢ Increased visibility for ESES and greater policy and investment influencing within a Scotland and UK-wide policy context ➢ Different ways of working; new deeper approaches to collaboration focused on growth and reform W hat regional devolution isn’t about ➢Taking powers off local authorities; powers will be exercised in co-ordination across ESES ➢Asking permission for what you can already do ➢Just about extra money; devolution is about powers, unblocking and new flexibilities ➢The local government finance settlement – this is in addition to funding for ESES local authorities ➢A new upper tier structure; this is about different ways of working and collaboration Page 221 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY The change proposition on one page: Unlocking and sustaining prosperity via deepened devolution 6 ESES City Deal Theme Housing Transport Skills Culture Innovation Housing delivery Transport, Infrastructure and planning Skills and Labour Markets Culture and Tourism Innovation and enterprise Public Service Reform Long term pooled funding and Fiscal devolution Enhanced governance & ways of working Underpinned by Devolved leadership and decision making through a maintained and broadened remit across six core thematic policy areas: Energy and electrific ation Trade, Investment and Internationa lisation Potential future policy areas: Other adjacent policy remits? Powers and funding: No additional powers and a time-limited pot of investment funding that is now coming to an end Powers and funding: New additional powers devolved from the Scottish government and from the UK Government, with longer-term, integrated and flexible funding settlements that allow for certainty and efficiencies in delivery Climate Resilience and Natural Capital Delivering broad-based prosperity for all ESES residents Poverty reduction Page 222 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY 7 Why devolution matters now for ESES Continued economic growth in ESES will be essential for the prosperity of Scotland. However, ESES faces significant and growing constraints on growth, including housing, transport, and skills. These could dampen the recent positive economic momentum. Indicative economic modelling suggests that if ESES were to grow in line with the Scottish economy as a whole, at the lower Scotland- wide rate of 1.1%, then the Scottish economy will be £12.3bn smaller relative to current trends today. Five pressures make this moment decisive: • Infrastructure is under intense strain – 5 of the 6 local authorities have declared a housing emergency, and transport is congested and fragmented • Skills shortages are growing – leading to bottlenecks in key sectors that will hold back growth • The city region deal is time bound, and the First Minister has asked ESES to define what powers are needed for a new phase • The ongoing rationalisation of Public Bodies, as part of the PSR strategy • The devolution opportunity is now, with English cities seeing more powers and funding to deliver locally set growth plans Without ESES devolution • Fragmented decision-making across a single economic area • Reduced influence over Scottish & UK investment and policy • Risk of falling behind as other areas secure funding, powers and profile With ESES devolution • Ability to direct growth-enabling interventions to where they are most needed, addressing inequalities between and within communities • Ability to develop ESES’s own priorities (which could include poverty reduction, affordable housing, innovation) with the levers to deliver • Ability to align transport, skills, housing and economic development at the scale of the real economy • Turn major investments into connected, high-value clusters, not isolated developments • A stronger platform to attract and shape investment, with a single, credible voice to Scottish Government and industry • Greater capacity to broker partnerships and coordinate delivery across institutions, sectors and places Page 223 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY The case for change 8Page 224 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY 9 Devolution to ESES is a response to a time-limited opportunity This proposition has been developed through extensive engagement with stakeholders across Edinburgh and South East Scotland. Across Place Directors, third sector, and senior executives and Members, there is a recognition that the case for devolution has been strengthened in recent years as a result of wider economic, policy and fiscal trends (see overleaf). There are also strong and consistent views that the next phase of devolution must move beyond a programme-based City Region Deal toward a functional regional system with: ➢ Clear powers and accountability at regional level ➢ Long-term, flexible funding ➢ Clear outcomes defined by the region, setting out what will change through enhanced collaboration and devolution ➢ Ability to integrate policy, delivery and investment ➢ Strong connection to hyper-local delivery and community outcomes Across ESES stakeholders, there is broad appetite for this shift, but conditional on the “prize being big enough”, particularly in terms of powers and funding certainty. The principles based on this engagement have been embedded into the proposition, and are reviewed in depth further on. Insights from our engagement What factors are driving the case for enhanced devolution? 1 ESES represents a nationally significant engine of inclusive growth. Edinburgh and South East Scotland (ESES) represents a critical economic engine whose continued success is essential to prosperity for all Scotland’s residents. But the region is being held back by infrastructure, skills and housing constraints which need an empowered regional response not fragmented funding and decision making. 2 Increasing fiscal constraint and the imperative for public service reform is driving the need for more fundamental reform of how public services are organised and delivered, including reducing duplication, improving efficiency and maximising the impact of existing resources. 3 The current delivery landscape is overlapping, duplicative, and inefficient, with too many actors and unclear roles. National agencies do not always reflect regional priorities or operate effectively at local level and growth opportunities can be missed. The key takeaway: Unlocking continued inclusive growth now requires moving beyond a fragmented, programme-based model towards a more coherent system of strategic regional economic governance, aligned to the scale of the functional economy and capable of integrating policy, prioritising investment and driving delivery. Figure: Insights drawn from 1-1 engagement with key ESES stakeholders over Summer 2026: Page 225 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY Increased economic inter-dependence has policy implications for ESES The designation of the City-Region deal in 2018 recognised that Edinburgh and South East Scotland increasingly functions as a set of interdependent local economies, with residents living, working and socialising across local authority borders. This reflects wider economic trends, with urban centres playing an increasingly important role in producing value. As a result, transport infrastructure and associated planning – strategic roads, rail, and mass transit – is increasingly important in connecting residents and businesses to wider opportunities, and requires co-ordination. Likewise, housing delivery is an area where markets operate across functional economic areas, and where co-ordinated action is required to avoid uneven distribution of demand, congestion and shortages. Skills and labour support will have to change to reflect the growing integration of local labour markets, as with innovation and enterprise reflecting the need for new firms to benefit from cross- border clustering. Finally, culture and tourism is another area where collaboration can add value, especially when viewed as part of wider economic infrastructure and collaboration. This won’t replace the need for locally-led growth programmes; regeneration of local centres will be an essential component of any devolved collaboration of programme, to ensure that all ESES residents and constituent places benefit from regional growth. But some form of regional collaboration will be required if ESES is not to fall behind the places that are seeing similar economic trends and are working together to capitalise on them. 10 Figure: Housing and Strategic Infrastructure in ESES Page 226 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY ESES represents a recent economic success story within both the Scotland and the UK-wide context Over the last decade, Edinburgh and South East Scotland has seen relatively high rates of economic growth, substantially above both the Scottish (1.1%) and UK-wide (1.6%) averages. Had ESES grown in line with the Scottish economy as a whole over the last decade, at the lower rate of 1.1%, then the Scottish economy would be £5.7bn smaller today. This would, in turn, have significant implications for the tax revenues available to the Scottish Government, and the spending priorities that national devolved government could pursue. One of the challenges for ESES is not only to maintain this growth, but to make sure it is more inclusive for residents and builds wealth for communities across the region, many of whom have not yet seen the benefits of recent economic growth. 11 £0 £10,000 £20,000 £30,000 £40,000 £50,000 £60,000 Economic growth (GVA) in Edinburgh and South East Scotland, 1998-2023 Actual ESES growth trends 1998-2023 Low growth scenario - ESES grows in line with Scottish economy Page 227 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY Despite this growth, not all places within ESES are seeing the same benefits in terms of household incomes The impact of economic growth on ESES households shows significant differentiation between places. The outer suburbs of Edinburgh and regeneration focal points like Leith have seen rapid incomes growth, while towns like Dunfermline or Livingstone have seen slower or even negative growth in incomes for residents. However, rapid income growth also puts pressure on housing affordability and private rents, with housing supply failing to keep pace with demand in certain neighbourhoods. Taken together, this suggests a need to collaborate to ensure the benefits of growth are more evenly felt across all of ESES’s communities, and to ensure that all ESES residents have good access to economic opportunities. 12Page 228 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY If the ESES growth story loses momentum, then the Scottish economy is set to substantially lose out over coming decades Continued economic growth in ESES will be essential for the prosperity of Scotland and the tax revenues associated. However, ESES faces significant and growing constraints on growth, including housing, transport, and skills. These could dampen the recent positive economic momentum. Indicative economic modelling suggests that if ESES were to grow in line with the Scottish economy as a whole, at the lower Scotland-wide rate of 1.1%, then the Scottish economy will be £12.3bn smaller relative to current trends today. Devolution is therefore a dual opportunity; to continue momentum as an economic powerhouse, and to prioritise a more inclusive growth model. Please note that the scenario provided on the right-hand side is indicative only, and does not represent a projection, but a range of growth outcomes based on the precedent of the recent decade. 13 £20,000 £30,000 £40,000 £50,000 £60,000 £70,000 £80,000 1998200020022004200620082010201220142016201820202022202420262028203020322034203620382040 Projected economic growth in ESES, present day to 2040 2. Continued high growth scenario, based on ESES 2013- 2023 trend (2.28% CAGR) 3. Low growth scenario, based on Scotland 2013- 2023 trend (1.1% CAGR) 1. Growth in ESES, 2013-2023 trend (2.28% CAGR) £12.3bn gap by 2040 Page 229 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY Seizing the prize: Collaboration and Finance 14Page 230 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY 15 Key lessons learned (Summary of wider comparator review undertaken by Metro Dynamics) The profile of place should shape institutional ambition and design. Governance models work best where they reflect how economies function in practice: where economic activity concentrates, how labour markets operate, where structural growth pressures emerge and what forms of coordination are required to support long-term prosperity. Across the strongest regional systems, collective alignment around shared purpose drives institutional ambition. Successful institutions rarely emerge through singular governance moments. More often, they develop gradually through sustained partnership working, long periods of collaboration and collective agreement around a small number of shared economic priorities. Institution-building begins long before formal devolution itself. Partnerships often create the initial platform for coordination, bringing together public institutions, businesses and wider system actors around a shared economic proposition, and the strongest systems increasingly move beyond local government alone Long-term pooled investment frequently becomes the mechanism through which institutional capability begins to deepen. Over time, sustained investment builds delivery credibility, strengthens institutional confidence and allows institutions to move beyond programme delivery towards increasingly sophisticated economic leadership. As responsibilities deepen, institutional capability compounds over time. The strongest systems progressively develop the capacity needed to make increasingly sophisticated investment decisions, coordinate more complex economic systems and intervene strategically, increasingly beginning to shape the wider system of place and long-term economic outcomes Successful devolution is never simply about acquiring powers. As institutional maturity deepens, governance complexity rises and increasingly requires stronger strategic capability to manage effectively. Building and maintaining collective agreement remains a continuous condition of institutional success. Successful governance models cannot simply be transplanted between places. Metropolitan economies, capital city-regions and more dispersed multi-centre economies face fundamentally different structural growth challenges and therefore require different institutional responses. Stronger systems emerge where governance evolves around the distinct economic realities of place. Key devolution lessons from UK and international comparators Page 231 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY The enhanced partnership already has a clear policy framework; now is an opportunity to reaffirm inclusive growth outcomes The Regional Prosperity Framework (RPF) provides the long-term strategic context for economic, social and environmental development across ESES, setting a 20- year vision to 2041. It builds directly on the delivery and governance foundations established through the City Region Deal, but marks a shift in emphasis; from implementing a defined portfolio of capital projects towards an ambition to coordinate a broader, place-based approach to regional growth and inclusion. The RPF brings together analysis of regional economic performance, sectoral strengths, productivity and labour markets alongside assessment of demographic change, housing need, connectivity, inequality and the climate risk, which underpins the identification of nine inter-dependent ‘Big Moves’ (see below) 16Figure: Nine “Big Moves” for Regional Prosperity The Regional Vision: Our aim is to become the data capital of Europe. We will ensure the social and economic benefits of this capability extend to all. All sections of the community will have the opportunity to develop the key skills that will help to end inequalities in our society. We will protect our environment and make best use of our extraordinary built and natural assets, ensuring that the Edinburgh and South East Scotland City Region delivers a just transition to a net zero economy. Our institutions, ancient and modern, will deliver positive outcomes that enhance our local, national and international reputation. With a new ESES devolution drive, it will be essential to recalibrate shared objectives across the city-region to set a clear marker of ambition for devolved collaboration. This could build on the existing policy framework, while potentially broadening out target outcomes to include key policy areas like poverty reduction, community wealth building, and innovation. Page 232 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY Current ESES governance arrangements are partnership and voluntary 17 The ESES City Region operates under a non-statutory, partnership- based governance model established through the 2028 City Deal, within which the Joint Committee serves as the central decision-making body. The Joint Committee, comprising primarily of the Leaders of the six constituent local authorities, alongside key partners, provide strategic direction, approves major decisions and oversees programme delivery, operating on a consensus basis that reflects the voluntary nature of the arrangement. • Joint Committee (decision-making core): central authority for strategic direction, approvals and oversight, composed of council leaders and partners, operated by consensus • Executive Board: Provides collective executive leadership, aligns organisational activity across partners, and develops and escalates recommendations for JC decision • Policy/ Advisory Boards: Provide evidence, technical expertise and stakeholder insights, with forums like the Regional Enterprise Council providing valuable private sector input. • Programme Management Office: PMO (hosted by City of Edinburgh Council) provides coordination, assurance and financial administration across the system Page 233 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY 18 Governance will evolve to take on new powers and funding It is essential that governance delivers stronger, more accountable regional body with legal and financial capacity, while maintaining local democratic legitimacy. In doing so, any structure should retain governance strength to enable borrowing and shared liabilities; “skin in the game” is needed to ensure successful collaboration. Several routes have been highlighted in recent discussions, but as a new Scottish city-region devolution model will require primary legislation (and ESES will be a primary platform in which to make one work), there is substantial freedom and flexibility to shape a model to align with local needs. Reference points could include the Welsh Corporate Joint Committee model, the English Mayoral Combined Authority model, or looking further afield – for example, to the Metropole model in France or the Barcelona Provincial Council. There is no one “best-fit”, and we have heard that it will be essential to maintain the best of ESES governance options. Irrespective of the final legal form, governance approaches could include: • Each of the constituent councils appoints a number of elected members to the authority (typically the council leader and cabinet members), with substitute members available when required. This could range from 1 per authority to more as appropriate depending on balance considerations. • A Chair and one or more Vice-Chairs appointed annually from among the membership. • No Directly Elected Mayor, with a Cabinet-style model with distributed leadership across portfolios • Include sub-boards to cover portfolios, evolving from the current city deal thematic boards • Include an Enterprise Board to advise on investment decisions and strategic direction, this can include businesses and Voluntary, Community and Social Enterprise (VCSE) employers alongside higher and further education through a streamlined advisory structure • An intentional “triple helix” approach, embedding university and enterprise decision-makers Insights from engagement: Governance Criteria We have heard existing arrangements were designed for coordination and programme delivery, not primarily for decision- making across integrated policy systems, and therefore require evolution to remain effective, legitimate and accountable at a regional scale. Key criteria proposed include the below: • New devolved powers require governance arrangements capable of taking binding decisions and coordinating delivery across interconnected systems • Deeper devolution introduces greater fiscal and policy discretion, necessitating stronger and more visible mechanisms of democratic and executive accountability • Have powers to hold funding, borrow, and take binding decisions • Have the capacity to hire personnel, hold money, and deliver • Effective regional growth depends on a clear mechanism for aligning investment, strategy and delivery across policy domains • To be inclusive in its voices, with a different model of engagement, funding access, and co-delivery with business and the third sector • Successful devolution depends on governance evolving alongside capability, allowing the organisation to manage increasing complexity and strategic responsibility Page 234 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY Public service reform as a catalyst for change, with a set of implementation principles 19 Figure: The Scottish Government published Scotland's Public Service Reform Strategy: Delivering for Scotland in June 2025. The strategy argues that public services should become: more preventative rather than reactive; better integrated across organisations; more efficient in how resources are used; and more community-focused and locally designed. As part of this, the Scottish Government is looking at reducing duplication between national organisations and creating more streamlined delivery structures. This momentum is an opportunity to grip via devolution proposals, with key public service opportunities highlighted below. We suggest that supporting public service reform ambitions should be at the heart of the ESES devolution proposals, using a set of principles to implement change: 1. Building from what’s already here: Scale and ambition must be sufficient to justify change – we should build on what works from the City Deal but move beyond its constraints. However, reform should be ambitious and proceeded by staged capability-building. 2. Regional role should integrate systems, not duplicate them. Devolution must transfer powers from national to regional level and not centralise or dilute local authority powers, and delivery should remain local and community-based where appropriate. 3. A model that works for all of ESES. Any devolution model must reflect the region’s mixed urban-rural geography and reflect the significant distinctiveness of the places within ESES. 4. Focused on outcomes, not governance structures. ESES should move quickly to define priority outcomes (which could include growth, inclusion and efficiency), and focus devolution on their delivery. 5. Aligned with community activity. Public service reform in ESES should play an additive strategic role to activity already happening on the ground, particularly in the prevention space, and joining up the two should be a focus of subsequent work to develop this proposition. Page 235 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY And funding reform and new fiscal powers can enable investment which ESES is unusually well-placed to unlock 20 At the heart of the devolution proposal is a move to multi-year, flexible, single-pot funding with fiscal levers, enabling strategic, flexible and revolving investment. Based on economic strengths and growth potential, ESES is unusually well-positioned within a Scottish policy context to deliver and re-invest returns on investment. Given ESES’s national economic importance, proposals should be developed with both Scottish and UK Government, including: ➢ A three- or five-year single integrated funding pot, with outcomes agreed with Scottish and UK Government ➢ Greater flexibility to reallocate funds across priorities ➢ Presumption of devolution of funding that enables equivalent outcomes to English city regions ➢ Closer collaboration with, influence over, and eventually full devolution of part or all of the financial transaction resources of UK Public Financial Institutions (PUFINS) Over time, this approach should be deepened as governance and collaboration matures, potentially including a flexible and creative approach to fiscal levers, including: ➢ Retention of local growth uplift (e.g. non-domestic rates/TIF/GAM) ➢ Expanded land value capture powers, closely aligned with integrated planning, housing and transport functions ➢ Locally designed Infrastructure levy ➢ Evergreen or revolving investment fund models ➢ Revenue assignment to a newly legally constituted body Insights from engagement: Finance From our conversations with ESES officers, political leaders and stakeholders, we have heard repeatedly that: • Current funding is short-term, fragmented, and restrictive, limiting planning and delivery • Annual allocations and ringfencing create inefficiency and risk, particularly for infrastructure and housing • Programmes require repeated bidding and cannot be aligned with long-term outcomes • Multi-year and flexible settlements across programmes and core capacity would allow for additional capacity and proper planning at the local level which is currently impossible Reforming funding and fiscal structures could significantly address some of these challenges Page 236 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY Multi-year and flexible spending approaches can help spend existing money more efficiently A limited number of “established” English Mayoral Strategic Authorities have flexible Integrated Settlements, that combine existing funding streams into a multi-year allocation. This can help spend the same money to better impact; longer term funding allows for better planning, attracting and retaining key personnel, and building up a pipeline of delivery that allows for efficiencies of scale and specialisation. This approach should not necessarily represent the ceiling of ambition for Scottish ambitions, and there are certain components (for example, the visible back-weighting towards the end of the parliament as a result of UK fiscal rules visible overleaf, or the relative shortfall in revenue funding relative to capital funding) that we would not recommend emulating in the Scottish policy context. However, it is essential that Scottish city-regions do not fall behind their English counterparts in their ability to flexibly respond to and address local challenges and opportunities. For this reason, multi-year settlements are a core feature of this devolution proposition. 21 MSA Name Population 2026-2027 2027-2028 2028-2029 Total South Yorkshire (Inc Sheffield) 1.430m £279m £319m £392m £990m Liverpool City Region 1.607m £352m £374m £439m £1,165m North East (Inc Newcastle) 2.047m £419m £451m £550m £1,420m West Yorkshire (Inc Leeds) 2.435m £468m £512m £600m £1,580m Greater Manchester 3.009m £640m £677m £760m £2,077m West Midlands (Inc Birmingham) 3.036m £660m £688m £743m £2,091m Figure: English MSAs and the Integrated Settlement. For reference, please note that Edinburgh and South East Scotland has a total population of 1,423,000 as per the latest ONS population estimates. Four more English Mayoral Strategic Authorities have recently been announced as future recipients of the Integrated Settlement - Cambridgeshire and Peterborough, East Midlands, West of England, and York and North Yorkshire – with full funding settlements set to be announced shortly. Page 237 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY Towards policy priorities, devolved powers and funding 22Page 238 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY The change proposition on one page: Unlocking and sustaining prosperity via deepened devolution 23 ESES City Deal Theme Housing Transport Skills Culture Innovation Housing delivery Transport, Infrastructure and planning Skills and Labour Markets Culture and Tourism Innovation and enterprise Public Service Reform Long term pooled funding and Fiscal devolution Enhanced governance & ways of working Underpinned by Devolved leadership and decision making through a maintained and broadened remit across six core thematic policy areas: Energy and electrific ation Trade, Investment and Internationa lisation Potential future policy areas: Other adjacent policy remits? Powers and funding: No additional powers and a time-limited pot of investment funding that is now coming to an end Powers and funding: New additional powers devolved from the Scottish government and from the UK Government, with longer-term, integrated and flexible funding settlements that allow for certainty and efficiencies in delivery Climate Resilience and Natural Capital Delivering broad-based prosperity for all ESES residents Poverty reduction Page 239 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY Housing delivery 24 Activities Powers Funding ➢ Use of an infrastructure-first approach to unlock large housing sites for sustainable development ➢ Use of long-term funding certainty to underwrite investment and manage risk over time ➢ Pilots of place-based business cases ➢ Strategic capacity to identify where regional intervention is needed to unlock strategic sites that are too large or complex for individual councils alone (capacity) ➢ Planning co-ordination, potentially including a non-statutory spatial development strategy ➢ ESES wide principles approach to Section 75 agreements to provide certainty for prospective investors ➢ Potential power to shape or integrate any future housing agency with regional and council delivery structures ➢ Devolution of public sector land including commercial development of railways and stations and utility-owned land ➢ Development Corporation powers and collectively exercised CPO/land assembly powers with funding to back development incentives ➢ Longer-term certainty over affordable housing (building over time from co-ordination of existing funds to full devolution of delivery) ➢ Fiscal tools that take forward an Infrastructure Levy, allowing upfront infrastructure investment to be repaid from future growth or value uplift (ranging from BRR to the development of a specific Council Tax supplement) ➢ Devolution of brownfield funding streams and enabling infrastructure Outcomes: Improving housing affordability and affordable housing delivery; Support for labour markets and public sector/key workers; Reduced viability gaps for major sites; Closer alignment between housing growth and infrastructure The case for change: ➢ Housing affordability and supply constraints are becoming barriers to economic growth and public sector recruitment ➢ Infrastructure costs are holding back housing delivery, with transport and enabling infrastructure often sitting outside developer viability ➢ Misaligned incentives over who pays / benefits & complex governance Page 240 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY 25 Activities Powers Funding ➢ Alignment between planning and transport, with an integrated non-statutory spatial development plan ➢ Co-ordination and mapping of digital infrastructure opportunities and barriers, including in rural areas ➢ Deliver the Regional Transport Strategy and build a transport masterplan ➢ Existing regional transport partnership being integrated, with enhanced powers, into the proposed new regional structures and governance ➢ Develop and fund a long-term regional transport programme working towards a regional mass transit network, including future light rail / tram extensions, regional bus strategy, and EV collaboration, while progressing rail station and rail schemes where business cases are strong but funding is unresolved ➢ Stronger local decision-making role on key transport and infrastructure projects, including modal shift priorities. ➢ Devolution of control (or joint co-ordination) of local rail stations ➢ Ability to deliver end to end S75 contributions, monitor progress, and accountability ➢ Multi-year integrated transport infrastructure investment funding rather than annual grant letters, with integration of funding from existing Scotland-wide agencies, in particular Transport Scotland. This should include potential funding for mass transit, active and sustainable travel, and bus and road-based infrastructure ➢ Multi-year and sustainable revenue funding settlement, including current revenue funding lines for bus programmes ➢ Fiscal tools to retain or capture some fiscal upside from transport-enabled growth (link to housing, transport-specific infrastructure levies, LVC mechanisms) and an infrastructure levy Outcomes: Reduced congestion and improved public transport reliability; Better alignment between transport, housing and employment; Greater modal shift where viable, reducing car dependency; More visible value for residents from public investment, increased economic inclusion The case for change: ➢ Fragmented responsibility across Transport Scotland, Network Rail, ScotRail, councils and landowners makes delivery slow and complex, holding up major projects like the Sheffihall Roundabout ➢ Major infrastructure decisions are not sufficiently aligned with housing growth, economic sites or public service needs. ➢ Existing regional bodies like SESTran can identify priorities and develop strategies but do not have the powers to deliver, while key public transport operators (including Lothian buses) struggle to secure joined-up decision-making on, for example, new route development to suburban developments Transport, infrastructure and planning Page 241 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY 26 Activities Powers Funding ➢ Continue to strengthen delivery at the LA level by retaining and expanding Local Employability Partnerships, with regional co-ordination and commissioning (see right-hand side), and gradually expanding role over time ➢ Deliver IRES 2027+ ➢ Align apprenticeships and FE provision with sectors experiencing shortages ➢ A stronger role for ESES in labour market forecasting, health and social outcomes, and economic intelligence ➢ Reduce duplicated advisory or brokerage functions where councils or regional partners could perform them more efficiently ➢ Devolved control over apprenticeships planning, the apprenticeship levy and identification of priority shortage sectors such as green construction skills ➢ Leadership and development of skills planning functions held at the regional level, aligning provision with real local job market demand ➢ Regional commissioning or stronger regional influence over FE and skills provision, including over overall training volumes, course allocations and course provision ➢ Increased access to individual learner data and client tracking ➢ Longer-term multi-year funding settlements for skills and employment programmes (including any successor to UKSPF and programmes focused on NEETs) to deliver IRES2027+ Outcomes: Better alignment between skills supply and employer demand; More efficient use of public skills funding; Improved labour market participation and stronger employment pathways for residents across the whole region The case for change: ➢ Persistent skills shortages are a constraint on growth, including in construction and other growth-enabling sectors. ➢ As highlighted by the Withers Report, the skills landscape is fragmented, with duplication between national bodies, and local/regional actors, and not aligned with regional labour market needs ➢ Short-term and siloed funding limits delivery ability and capacity building Skills and Labour Market Page 242 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY 27 Activities Powers Funding ➢ Build strong evidence base on the region’s strengths and economic narrative, supported through a regional intelligence hub ➢ Develop a stronger regional inward investment proposition for high-growth sectors, including AI and other sectors where the region has existing or emerging strengths ➢ Use regional scale to package investable propositions, including strategic sites, innovation assets, energy opportunities and sector clusters, and joint collaboration with Glasgow City-Region on innovation ➢ Development of public-private infrastructure funding partnerships for major sites ➢ Greater regional influence over innovation and enterprise programmes and commissioning delivered via Scottish and UK government. This should include the ability to integrate innovation funding with skills, infrastructure and economic development priorities ➢ Integration of delivery of innovation and business support into regional partnership structrues, with a stronger role for ESES and accompanying capacity for inward investment and internationalisation policy for ESES ➢ Direct devolution of a proportion of Innovate UK and UKRI funding and deepened collaboration, embedded capacity and data sharing with the two UK-wide innovation bodies, and reducing the role of competitive bidding processes in assigning funds ➢ Fiscal powers or funding freedoms that allow the region to invest in strategic sites, innovation infrastructure and sector propositions ➢ Regionalisation of R&D tax incentives to align with specific costs and commercial space challenges in Edinburgh ➢ Devolution of next phase of Local Growth Funding (UK Shared Prosperity Fund Successor) to ESES ➢ Patient capital/revolving investment fund controlled at the regional level Outcomes: Increased international competitiveness in cutting edge fields; Place-centered innovation ecosystem development; More coherent support for growth sectors, with less duplication across agencies The case for change: ➢ Underperforming in attracting major high-growth investment, including in AI ➢ Existing economic development and innovation activity fragmented across agencies, funding pots and geographies ➢ Too much generic enterprise support and not enough strategic investment focus Innovation and Enterprise Page 243 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY 28 Activities Powers Funding ➢ Investing in natural capital and assets to support public health, workforce productivity, better amenities and environmental resilience. ➢ Aligning heritage as part of the effective management and enhancement of the ecological and cultural network. ➢ Collaboration with public utilities providers on major infrastructure and planning for energy and water usage at the ESES footprint. ➢ Capacity-building and policy development in adjacent policy fields, including circular economy, the growth of the low-carbon goods and services and Green Tech sectors. ➢ A named role and remit for ESES in planning and co- ordinating climate resilience and risk management for the region ➢ Devolution of existing funding streams on natural capital and nature restoration to the ESES footprint ➢ Greater influence over climate adaptation funding streams delivered Scotland-wide, including retrofit funding programmes Outcomes: Improved nature restoration and biodiversity with associated health benefits, increased climate resilience, safeguarding critical infrastructure from climate-related disruption, improved value for money in delivery of climate resilience programmes and activities The case for change: ➢ Climate resilience, adaptation and management requires co-ordination across wider geographies, with impacts from climate disruption spanning across local authority boundaries ➢ Climate change poses a significant threat to economic prosperity and to ESES residents, including through flooding, heatwaves and wildfires ➢ Regional delivery can bring closer co-ordination with infrastructure and planning, achieving better value-for-money and efficiencies in delivery Climate Resilience and Natural Capital Page 244 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY 29 Activities Powers Funding ➢ Coordinate tourism and cultural infrastructure so that visitor growth is connected to transport, place- making and local economic development, as part of a broader growth framework. ➢ Develop a regional visitor economy strategy focused on spreading benefits beyond Edinburgh, by building stronger regional propositions around rural, coastal, border, heritage, cultural and visitor economy assets that complement Edinburgh’s international draw. ➢ Working with UK (including DCMS ALBs) and Scottish Government to capitalise on internationally significant cultural assets such as Edinburgh International Festival. ➢ Greater regional influence over funding, promotion, infrastructure, sustainable tourism and destination development ➢ Greater influence around creative, cultural and visitor economy skills provisions via skills programmes and fundings (see Skills and Labour markets section) Outcomes: Reduced pressure from over-concentration of visitors in Edinburgh; Better distribution of visitor spend and cultural economy benefits across the wider region The case for change: ➢ Uneven pressure across ESES in terms of visitor economy demand ➢ Visit Scotland operates at national footprint without a significant focus on regional visitor economy role ➢ No clear single owner for driving tourism and visitor economy growth Culture and Tourism Page 245 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY In summary: Proposition key powers and funding 30 Theme Key devolved powers and funding requests Housing delivery ➢ Longer-term certainty over affordable housing (building over time from co-ordination of existing funds to full devolution of delivery) ➢ Devolution of brownfield funding streams and enabling infrastructure ➢ Devolution of public sector land including commercial development of railways and stations and utility-owned land ➢ Development Corporation powers and collectively exercised CPO/land assembly powers with funding to back development incentives Transport, infrastructure and planning ➢ Multi-year integrated transport infrastructure investment funding rather than annual grant letters ➢ Multi-year and sustainable revenue funding settlement, including current revenue funding lines for bus programmes ➢ Fiscal tools to retain or capture some fiscal upside from transport-enabled growth Skills and Labour Market ➢ Longer-term multi-year funding settlements for skills programmes (including any successor to UKSPF) ➢ Devolved control over apprenticeships planning, the apprenticeship levy and identification of priority sectors ➢ Regional commissioning or stronger regional influence over FE and skills provision ➢ Leadership and development of skills planning functions held at the regional level Innovation and Enterprise ➢ Devolution of UK and Scottish remits on inward investment, business support and innovation delivery ➢ Devolution of next phase of Local Growth Funding (UK Shared Prosperity Fund Sucessor) to ESES ➢ Direct devolution of a proportion of Innovate UK and UKRI funding and deepened collaboration, embedded capacity and data sharing with the two UK-wide innovation bodies ➢ Patient capital/revolving investment fund controlled at the regional level Climate Resilience and Natural Capital ➢ Collaboration with public utilities providers on major infrastructure and planning for energy and water usage at the ESES footprint ➢ Greater influence over local implementation of climate adaptation funding streams that are currently delivered Scotland-wide, including retrofit funding programmes Tourism and Culture ➢ Greater regional influence over funding, promotion, infrastructure and destination development ➢ Greater influence around creative, cultural and visitor economy skills provisions via skills programmes and fundings Page 246 of 260
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EMERGING PROPOSITION – DOES NOT REFLECT AGREED POLICY Finlaison House 15-17 Furnival Street London EC4A 1AB 020 3865 3082 1 St Peter’s Square Manchester M2 3DE 0161 8833736 At Metro Dynamics, we care about places, our clients, and our colleagues. We are an independent organisation, curious about our work, and collaborative in our approach. We strive to make a difference in all that we do. Page 247 of 260
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Midlothian Council Tuesday 22 September 2026 Item No 8.10 Schedule of Meeting Dates: August 2027 - June 2029 Report by Saty Kaur, Chief Officer Corporate Solutions Report for Decision 1 Recommendations Council is recommended to approve the schedule of meetings dates for 2027/28 and 2028/29 as detailed in Appendix B. 2 Purpose of Report/Executive Summary To update the future meeting schedule for the next two academic years for the meetings of Council and its Committees. Date Monday 24 August 2026 Report Contact: Nicola Thorburn, Democratic Services Team Leader Nicola.Thorburn@midlothian.gov.uk Page 249 of 260
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3 Background/Main Body of Report 3.1 Appendix B presents the proposed meeting cycle for two years, August 2027 - June 2028 and August 2028 - June 2029. The schedule takes into account the academic holidays and has been drafted to not hold meetings during Christmas/New Year, February and October midterms, Easter and summer holidays. Where possible it is drafted so papers are not issued during these times, with some exceptions where papers are issued on the last day of the holidays in order to meet Standing Orders for notice of meetings. 3.2 The Council currently operates on a six-weekly cycle of most of its governance meetings, with the exception of Audit Committee and Police and Fire and Rescue Board which meet 4 times per annum. 3.3 The schedule includes entries pertaining to Licensing. These are not included in the Scheme of Administration but have been contained in the schedule for information and ease of planning. Council should note that the approval of these dates will be by Licensing Board. 3.4 Council should note that meetings of the Midlothian Integration Joint Board (MIJB) and its sub-Committees are not included. The schedule of dates for these meetings is approved by the MIJB. Page 250 of 260
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4 Report Implications (Resource, Digital and Risk) 4.1 Resource None 4.2 Digital Covered by existing digital solutions. 4.3 Risk Good governance requires Standing Orders to be kept up to date and meeting schedules to be prepared in advance. 4.4 Ensuring Equalities (if required a separate IIA must be completed) This report does not recommend any change to policy or practice and therefore, does not require an Equalities Impact Assessment. 4.4 Additional Report Implications (See Appendix A) See Appendix A Appendices Appendix A – Additional Report Implications Appendix B – Proposed Schedule of Meeting Dates August 2027/June 2028 and August 2028/June 2029 Page 251 of 260
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APPENDIX A – Report Implications A.1 Key Priorities within the Single Midlothian Plan Not applicable A.2 Key Drivers for Change Key drivers addressed in this report: Holistic Working Hub and Spoke Modern Sustainable Transformational Preventative Asset-based Continuous Improvement One size fits one None of the above A.3 Key Delivery Streams Key delivery streams addressed in this report: One Council Working with you, for you Preventative and Sustainable Efficient and Modern Innovative and Ambitious None of the above A.4 Delivering Best Value The report does not directly impact on Delivering Best Value but the absence of a schedule of meetings may result in delays in the ability to carry out proper scrutiny and ensure Best Value is secured in decisions made by the Council. A.5 Involving Communities and Other Stakeholders The report does not directly relate to involving communities A.6 Impact on Performance and Outcomes The absence of a schedule of meetings may impact on Midlothian Council’s performance and outcomes. A.7 Adopting a Preventative Approach Not applicable A.8 Supporting Sustainable Development Not applicable Page 252 of 260
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Proposed Schedule of Meetings Dates for August 2027 – June 2028 _________________________________________________________________________ Date Time Meeting Weeks since last meeting Comments School Holidays: Wednesday 29 June 2027 – Wednesday 18 August 2027 (inclusive) August 2027 Wednesday 18 11.00 Business Transformation Steering Group First Meeting after Recess In advance of Sep Council Monday 23 10.00 Planning Site Visits “ Tuesday 24 11.00 Cabinet “ Tuesday 24 13.00 Planning “ 2 weeks before LRB Tuesday 31 10.00 JCG “ 1 week prior to Council School Holidays: Friday 17 September 2027 – Monday 20 September 2027 (inclusive) September 2027 Monday 6 10.00 Local Review Body Site Visits “ Monday 6 13.00 Local Review Body “ 2 weeks after Planning Tuesday 7 11.00 Midlothian Council “ Wednesday 8 11.00 Licensing Board - Tuesday 14 11.00 Performance Review and Scrutiny Committee First Meeting after Recess 3 weeks after August Cabinet Monday 20 11.00 Police Fire and Rescue Board “ Tuesday 21 11.00 General Purposes “ Monday 27 11.00 Business Transformation Steering Group 6 In advance of Oct Council Tuesday 28 11.00 Audit Committee First Meeting after Recess Q1 reporting October 2027 Monday 11 10.00 Planning Site Visits - Tuesday 12 11.00 Cabinet 7 Q1 reporting Tuesday 12 13.00 Planning Committee 7 3 weeks before LRB Thursday 14 11.00 JCG 6 October School Holidays: Monday 18 October 2027 – Monday 25 October 2027 (inclusive) Tuesday 26 11.00 Midlothian Council 7 November 2027 Monday 1 10.00 Local Review Body Site Visits - Monday 1 13.00 Local Review Body 7 3 weeks after Planning Page 253 of 260
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Date Time Meeting Weeks since last meeting Comments Tuesday 2 11.00 Performance Review and Scrutiny Committee 7 Q1 reporting Tuesday 9 11.00 General Purposes 7 Monday 15 10.00 Planning Site Visits - Tuesday 16 13.00 Planning 5 2 weeks before LRB Monday 22 11.00 Business Transformation Steering Group 8 In advance of Dec Council Tuesday 23 11.00 Cabinet 6 Q2 reporting Wednesday 24 11.00 Licensing Board - Monday 29 10.00 Local Review Body Site Visits - Monday 29 13.00 Local Review Body 4 2 weeks after Planning Tuesday 30 11.00 Audit Committee Q2 reporting December 2027 Monday 6 11.00 Police Fire and Rescue Board Meets quarterly Tuesday 7 11.00 Performance Review and Scrutiny Committee 5 Q2 reporting Tuesday 7 14.30 JCG 8 Tuesday 14 11.00 Midlothian Council 7 School Holidays: Wednesday 22 December 2027 – Wednesday 5 January 2028 (inclusive) January 2028 Tuesday 11 11.00 Business Transformation Steering Group First Meeting after Recess In advance of Feb Council Monday 17 10.00 Planning Site Visits “ Tuesday 18 11.00 Cabinet “ Tuesday 18 13.00 Planning “ 2 weeks before LRB Tuesday 25 11.00 General Purposes “ Monday 31 10.00 Local Review Body Site Visits “ Monday 31 13.00 Local Review Body “ 2 weeks after Planning February 2028 Tuesday 1 11.00 Performance Review and Scrutiny Committee “ Monday 7 11.00 Business Transformation Steering Group 4 In advance of February Council (additional) Tuesday 8 11.00 Police Fire and Rescue Board “ Meets quarterly Wednesday 9 11.00 Licensing Board - Page 254 of 260
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Date Time Meeting Weeks since last meeting Comments Thursday 10 11.00 JCG “ In advance of Feb Council Midterm School Holidays: Monday 14 February 2028 – Friday 18 February 2028 (inclusive) February 2028 continued Monday 21 11.00 Audit Committee Q3 reporting Tuesday 22 11.00 Midlothian Council “ Budget setting Monday 28 11.00 Business Transformation Steering Group 3 In advance of March Council Tuesday 29 11.00 General Purposes 5 March 2028 Monday 6 10.00 Planning Site Visits - Tuesday 7 11.00 Cabinet 7 Q3 reporting Tuesday 7 13.00 Planning Committee 7 2 weeks before LRB Tuesday 14 14.30 JCG 5 1 week prior to Council Monday 20 10.00 Local Review Body Site Visits - Monday 20 13.00 Local Review Body 7 2 weeks after Planning Tuesday 21 11.00 Performance Review and Scrutiny Committee 7 Q3 reporting Tuesday 28 11.00 Midlothian Council 5 Easter School Holidays: Friday 31 March 2028 – Monday 17 April 2028 (inclusive) April 2028 Tuesday 18 11.00 Cabinet 6 Thursday 20 11.00 Business Transformation Steering Group 7 In advance of May Council Monday 24 10.00 Planning Site Visits - Tuesday 25 10.00 General Purposes 8 Tuesday 25 13.00 Planning Committee 7 2 weeks before LRB May 2028 Tuesday 2 10.00 Performance Review and Scrutiny Committee 6 Tuesday 2 14.30 JCG 7 1 week prior to Council Monday 8 10.00 Local Review Body Site Visits - Monday 8 13.00 Local Review Body 7 2 weeks after Planning Tuesday 9 11.00 Midlothian Council 6 Page 255 of 260
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Date Time Meeting Weeks since last meeting Comments Wednesday 10 11.00 Licensing Board - Tuesday 23 11.00 Business Transformation Steering Group 5 In advance of June Council Monday 29 11.00 Police Fire and Rescue Board Meets quarterly Tuesday 30 11.00 Cabinet 6 Q4 reporting June 2028 Monday 5 10.00 Planning Site Visits - Tuesday 6 11.00 General Purposes 6 Tuesday 6 13.00 Planning 6 2 weeks before LRB Tuesday 13 11.00 Performance Review and Scrutiny Committee 6 Q4 reporting Tuesday 13 14.30 JCG 6 1 week prior to Council Wednesday 14 11.00 Licensing Board - Monday 19 10.00 Local Review Body Site Visits - Monday 19 13.00 Local Review Body 6 2 weeks after Planning Monday 26 11.00 Audit Committee Q4 reporting Tuesday 27 11:00 Midlothian Council 6 Term Ends: Friday 30 June 2028 Page 256 of 260
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Proposed Schedule of Meetings Dates for August 2028 – June 2029 _________________________________________________________________________ Date Time Meeting Weeks since last meeting Comments School Holidays: Monday 3 July 2028 – Tuesday 15 August 2028 (inclusive) August 2028 Monday 21 11.00 Business Transformation Steering Group First Meeting after Recess In advance of September Council Tuesday 22 11.00 Cabinet “ September 2028 Monday 4 10.00 Planning Site Visits “ Tuesday 5 13.00 Planning “ 2 weeks before LRB Tuesday 12 11.00 Performance Review and Scrutiny Committee “ School Holidays: Friday 15 September 2028 – Monday 18 September 2028 (inclusive) Tuesday 19 10.00 Local Review Body Site Visits “ Tuesday 19 13.00 Local Review Body “ 2 weeks after Planning Wednesday 20 11.00 Licensing Board - Wednesday 20 14.30 JCG “ 1 week prior to Council Monday 25 14.00 Audit Committee “ Q1 reporting Tuesday 26 11.00 Midlothian Council “ October 2028 Monday 2 11.00 Police Fire and Rescue Board “ Tuesday 3 10.00 General Purposes “ Monday 9 11.00 Business Transformation Steering Group 7 In advance of Nov Council Tuesday 10 11.00 Cabinet “ Q1 reporting October School Holidays: Monday 16 October 2028 – Monday 23 October 2028 (inclusive) Tuesday 24 10.00 Planning Site Visits - Tuesday 24 13.00 Planning Committee 7 2 weeks before LRB Tuesday 31 11.00 Performance Review and Scrutiny Committee 7 Q1 reporting Tuesday 31 14.30 JCG 6 One week prior to Council November 2028 Wednesday 1 11:00 Licensing Board - Monday 6 10.00 Local Review Body Site Visits - Page 257 of 260
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Date Time Meeting Weeks since last meeting Comments Monday 6 13.00 Local Review Body 7 2 weeks after Planning Tuesday 7 11.00 Midlothian Council 6 Tuesday 14 10.00 General Purposes 6 Monday 20 10.00 Business Transformation Steering Group 6 In advance of Dec Council Tuesday 21 11.00 Cabinet 6 Q2 reporting Monday 27 10.00 Planning Site Visits - Tuesday 28 13.00 Planning 5 2 weeks before LRB December 2028 Monday 4 11.00 Police Fire and Rescue Board Meets quarterly Tuesday 5 11.00 Audit Committee Q2 reporting Monday 11 10.00 Local Review Body Site Visits - Monday 11 13.00 Local Review Body 5 2 weeks after Planning Tuesday 12 11.00 Performance Review and Scrutiny Committee 6 Q2 reporting Tuesday 12 14.30 JCG 6 One week prior to Council Tuesday 19 11.00 Midlothian Council 6 School Holidays: Monday 25 December 2028 – Monday 8 January 2029 (inclusive) Date Time Meeting Weeks since last meeting Comments January 2029 Monday 22 10.00 Planning Site Visits “ Tuesday 23 10.00 Business Transformation Steering Group First Meeting after Recess In advance of Feb Council Tuesday 23 13.00 Planning “ 2 weeks before LRB Tuesday 30 10.00 General Purposes “ Wednesday 31 11.00 Licensing Board - February 2029 Monday 5 10.00 Local Review Body Site Visits “ Monday 5 13.00 Local Review Body “ 2 weeks after Planning Tuesday 6 11.00 Cabinet “ Tuesday 6 13.00 Audit Committee “ Q3 reporting Page 258 of 260
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Date Time Meeting Weeks since last meeting Comments Thursday 8 11.00 JCG “ Prior to Feb Council Midterm School Holidays: Monday 12 February 2029 – Friday 16 February 2029 (inclusive) February 2029 continued Monday 19 11.00 Police Fire and Rescue Board “ Meets quarterly Tuesday 20 11.00 Midlothian Council “ Budget setting Monday 26 11.00 Business Transformation Steering Group 5 In advance of March Council Tuesday 27 11.00 Performance Review and Scrutiny Committee “ March 2029 Monday 5 10.00 Planning Site Visits - Tuesday 6 13.00 Planning Committee 6 2 weeks before LRB Tuesday 13 11.00 General Purposes 6 Monday 19 10.00 Local Review Body Site Visits - Monday 19 13.00 Local Review Body 6 2 weeks after Planning Tuesday 20 11.00 Cabinet 6 Q3 reporting Tuesday 20 14.30 JCG 6 1 week prior to Council Tuesday 27 11.00 Midlothian Council 5 Easter School Holidays: Friday 30 March 2029 – Monday 16 April 2029 (inclusive) April 2029 Tuesday 17 11.00 Performance Review and Scrutiny Committee 8 Q3 reporting Monday 23 10.00 Planning Site Visits - Tuesday 24 10.00 Business Transformation Steering Group 8 In advance of May Council Tuesday 24 13.00 Planning Committee 7 1 week before LRB Wednesday 25 11.00 Licensing Board - Monday 30 10.00 Local Review Body Site Visits - Monday 30 13.00 Local Review Body 6 1 week after Planning May 2029 Tuesday 1 11.00 General Purposes 7 Tuesday 15 11.00 Midlothian Council 7 Tuesday 29 11.00 Cabinet 10 Q4 reporting – longer gap due to Easter Page 259 of 260
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Date Time Meeting Weeks since last meeting Comments June 2029 Monday 4 10.00 Planning Site Visits - Monday 4 13.00 Business Transformation Steering Group 6 In advance of June Council Tuesday 5 13.00 Planning 6 2 weeks before LRB Monday 11 11.00 Police Fire and Rescue Board Meets quarterly Tuesday 12 11.00 Performance Review and Scrutiny Committee 8 Q4 reporting Monday 18 10.00 Local Review Body Site Visits - Monday 18 13.00 Local Review Body 7 2 weeks after Planning Tuesday 19 11.00 General Purposes 7 Tuesday 19 14.30 JCG 13 Wednesday 20 11.00 Licensing Board Monday 25 10.00 Audit Committee Q4 reporting Tuesday 26 11.00 Midlothian Council 6 School Holidays: Term Ends Friday 29 June 2029 Note: the following dates are not included: Midlothian Integration Joint Board (MIJB) and the MIJB Audit and Risk Committee Page 260 of 260