Agenda Document Pack - Audit and Scrutiny Committee - 27/08/2026
North Ayrshire Council · 27 August 2026
Back to Audit and Scrutiny Committee — 27 August 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
North Ayrshire Council, Cunninghame House, Irvine KA12 8EE Audit and Scrutiny Committee A Meeting of the Audit and Scrutiny Committee of North Ayrshire Council will be held in the Council Chambers, Ground Floor, Cunninghame House, Irvine, KA12 8EE on Thursday, 27 August 2026 at 10:00 to consider the undernoted business. Meeting Arrangements - Hybrid Meetings This meeting will be held on a predominantly physical basis but with provision, by prior notification, for remote attendance by Elected Members in accordance with the provisions of the Local Government (Scotland) Act 2003. Where possible, the meeting will be live-streamed and available to view at https://north-ayrshire.public- i.tv/core/portal/home. 1 Declarations of Interest Members are requested to give notice of any declarations of interest in respect of items of business on the Agenda. 2 Minutes The accuracy of the Minutes of the Ordinary Meeting of the Audit and Scrutiny Committee held on4 June 2026 and the Special Meeting held on 15 June 2026 will be confirmed and the Minutes signed in accordance with Paragraph 7 (1) of Schedule 7 of the Local Government (Scotland) Act 1973 (copies enclosed). 3 Audit Scotland - Asset Management Best Value Report Submit report by the Head of Finance on the findings from the recent Best Value Audit on Asset Management (copy enclosed). 4 2025/26 Elected Member Requests Submit report by the Head of Democratic Services informing of the Council's performance relating to Elected Member requests handled in the Financial Year 2025/26 (copy enclosed). 1
Page 2
North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 5 2025/26 Complaint Report Submit report by the Head of Democratic Services on the Council's complaint performance and volumes and trends of complaints received in Financial Year 2025/26 (copy enclosed). 6 Elected Member Development Submit report by the Head of Democratic Services on the development sessions provided to Elected Members over the 12 months from September 2025 to August 2026, and on future planned development sessions (copy enclosed). 7 Internal Audit Reports Issued and Update Submit report by the Head of Finance on the findings of Internal Audit work completed since June 2026 (copy enclosed). 8 Internal Audit Plan 2026/27: Progress as at 31 July 2026 Submit report by the Head of Finance on the progress made in delivering the 2026/27 Internal Audit Plan (copy enclosed). 9 Accounts Commission’s Briefing: Local Government Budgets 2026/27 Submit report by the Head of Finance on the key messages identified within the recently published Accounts Commission’s Briefing (copy enclosed). 10 National Planning Improvement Framework (NPIF) Submit report by theExecutive Director (Communities and Housing) on the outcome of the Planning Service’s National Planning Improvement Framework (NPIF) (copy enclosed). 11 Standing Item of Business: Consideration of future business for scrutiny 12 Urgent Items Any other items which the Chair considers to be urgent. 2
Page 3
North Ayrshire Council, Cunninghame House, Irvine KA12 8EE Webcasting Please note: this meeting may be filmed/recorded/live-streamed to the Council's internet site and available to view at https://north-ayrshire.public- i.tv/core/portal/home,where it will be capable of repeated viewing. At the start of the meeting, the Provost/Chair will confirm if all or part of the meeting is being filmed/recorded/live-streamed. You should be aware that the Council is a Data Controller under the Data Protection Act 2018. Data collected during the webcast will be retained in accordance with the Council’s published policy, including, but not limited to, for the purpose of keeping historical records and making those records available via the Council’s internet site. Generally, the press and public will not be filmed. However, by entering the Council Chambers and using the press or public seating area, you acknowledge that you may be filmed and that any information pertaining to you contained in the video and oral recording of the meeting will be used for webcasting or training purposes and for the purpose of keeping historical records and making those records available to the public. In making this use of your information the Council is processing data which is necessary for the performance of a task carried out in the public interest. If you have any queries regarding this and, in particular, if you believe that use and/or storage of any particular information would cause, or be likely to cause, substantial damage or distress to any individual, please contact dataprotectionofficer@north-ayrshire.gov.uk 3
Page 4
North Ayrshire Council, Cunninghame House, Irvine KA12 8EE Audit and Scrutiny Committee Sederunt John Bell (Chair) Donald Reid (Vice Chair) Cameron Inglis Shaun Macaulay Tom Marshall Matthew McLean Davina McTiernan Donald L. Reid John Sweeney Chair: Apologies: Attending: 4
Page 5
Audit and Scrutiny Committee 4 June 2026 At a Meeting of the Audit and Scrutiny Committee of North Ayrshire Council at 10.00 a.m. involving participation by remote electronic means and physical attendance within the Council Chambers, Irvine. Present (Physical Participation) John Bell, Donald Reid and Cameron Inglis. Present (Remote Participation) Tom Marshall, Davina McTiernan, Donald L Reid and John Sweeney. In Attendance R. McCutcheon, Executive Director; L. Cree, Head of Sustainability, Transport & Corporate Property); and G. Wilson, Senior Manager (Engineering Services) (Place); D. Hammond, Executive Director (Communities and Housing); A. McClelland, Head of Service (Education); A. Johnson, Principal Manager (Business Support) (Health & Social Care Partnership); M. Boyd, Head of Service; A. Fenton, Team Manager (Audit); and A. Fitzharris, Team Manager (Risk) (Finance); F. Walker, Head of Service; and F. Carlyle, Team Manager (HR) (People & ICT); R. Lynch, Senior Manager (Legal); S. Wilson, Committee Services Officer, and E. Reid, Marketing & Digital Assistant, (Communications) (Democratic Services) (Corporate Services). Chair Councillor Reid in the Chair. 1. Declarations of Interest In the absence of the Chair, and in terms of Standing Order 6.6, the Members unanimously appointed Councillor Reid to the Chair. There were no declarations of interest by Members in terms of Standing Order 11 and Section 5 of the Code of Conduct for Councillors. Councillor Bell joined the meeting at this point. 2. Minutes The accuracy of (a) the Minutes of the Meeting of the Audit and Scrutiny Committee held on 12 March 2026 and (b) the Minutes of the Special Meeting of the Audit and Scrutiny Committee held on 14 April 2026 were confirmed and the Minutes signed in accordance with Paragraph 7 (1) of Schedule 7 of the Local Government (Scotland) Act 1973. Agenda Item 2 5
Page 6
3. Corporate Fraud Team Annual Report 2025/26 Submitted report by the Head of Finance providing an update on the work of the Corporate Fraud Team during 2025/26. Officers responded to Members’ questions and the Committee agreed to note the work carried out by the Corporate Fraud Team. 4. Internal Audit Annual Report 2025/26 Submitted report by the Head of Finance providing an annual report on the work of Internal Audit during 2025/26 and providing an opinion on the governance, risk management and internal control environment of the Council. The Internal Audit Annual Report 2025/26 was attached at Appendix 1 to the report. Officers responded to Members’ questions and the Committee agreed to note the content of the annual report on the Council’s governance, risk management and internal control environment. 5. Internal Audit Reports Issued Submitted report by the Head of Finance informing of the findings of Internal Audit work completed since March 2026. Further information on the Key Findings and Action Plans in regard to Capital Monitoring, Payroll Transaction Testing and Building and Estates Maintenance were attached at Appendix 1 to the report. Officers responded to Members’ questions and the Committee agreed to consider the outcomes from the Internal Audit work completed. 6. Internal Audit and Corporate Fraud Action Plans: Quarter 4 Update Submitted report by the Head of Finance advising on the progress made by Council Services in implementing the agreed actions from Internal Audit and Corporate Fraud reports as of 31 March 2026. Officers responded to Members’ questions and the Committee agreed to note the current position with the implementation of Internal Audit and Corporate Fraud actions. 7. Annual Governance Statement 2025/26 Submitted report by the Head of Finance seeking approval of the Council’s Annual Governance Statement for 2025/26 which will be included within the draft Annual Accounts. The Committee agreed to approve the draft Annual Governance Statement as outlined at Appendix 1 to the report. 6
Page 7
8. Strategic Risk Register 2026/27 Submitted report by the Head of Finance informing of the Council’s agreed Strategic Risk Register for 2026/27 attached at Appendix 1 to the report. Officers responded to Members’ questions and the Committee agreed to note the Strategic Risk Register for 2026/27 attached at Appendix 1 to the report. 9. Accounting Policies 2025/26 Submitted report by the Head of Finance seeking approval of the accounting policies which will be adopted in the preparation of the Council’s annual accounts for the year to 31 March 2026. The proposed Accounting Policies 2025/26 was attached at Appendix 1 to the report. Officers responded to Members’ questions and the Committee agreed to approve the proposed Accounting Policies 2025/26 attached at Appendix 1 to the report. 10. External Audit Action Plan Update 2024/25 Submitted report by the Head of Finance providing an update on the actions identified in the 2024/25 External Audit Action Plan attached at Appendix 1 to the report. Officers responded to Members’ questions and the Committee agreed to note the actions identified in the 2024/25 External Audit Action Plan attached at Appendix 1 to the report. 11. Disclosure Scotland Act Submitted report by the Head of People & ICT providing an overview of the recent legislative and procedural changes to the PVG Scheme and outlining how North Ayrshire Council has implemented and are managing these changes. The Service agreed to provide a copy of the presentation delivered by the Team Manager (HR), a list of regulated posts which require a PVG check as identified by Disclosure Scotland and the percentage of North Ayrshire Council employees who were subject to a PVG check under the Disclosure Scotland Act (2020). The Service agreed to undertake to arrange an Elected Members development session to provide all Members with an update on the work carried out as a result of the change of legislation. Officers responded to Members’ questions and the Committee agreed to note the content of the report. 7
Page 8
12. Roads Maintenance and Repairs: Policies and Procedures Submitted report by the Executive Director informing of the arrangements for monitoring and control of utility works on the public road network and for planning, scheduling and undertaking Council operations. Officers responded to Members’ questions and the Committee agreed to note the processes in place for undertaking, co-ordinating and monitoring street works. 13. Standing Item of Business : Consideration of Future Business for Scrutiny There were no future reports requested by the Committee. Councillor Sweeney thanked the Executive Director (Communities and Housing) for the briefing paper provided to Members on North Ayrshire Council Housing Policy which was requested at the meeting of the Audit and Scrutiny Committee held 12 March 2026. 14. Urgent Items There were no urgent items. 15. Investigation Reports Issued Submitted report by the Head of Finance informing of investigation reports finalised since the last meeting. The Committee agreed to note the outcomes of the investigations carried out. The meeting ended at 12.00 p.m. The full meeting proceedings can be viewed at https://north-ayrshire.public-i.tv/core/portal/home 8
Page 9
Audit and Scrutiny Committee 15 June 2026 At a Special Meeting of the Audit and Scrutiny Committee of North Ayrshire Council at 10.00 a.m. involving participation by remote electronic means and physical attendance within the Council Chambers, Irvine. Present (Physical Participation) John Bell, Cameron Inglis, Tom Marshall, Matthew McLean, Donald Reid, Donald L Reid and John Sweeney. Present (Remote Participation) Davina McTiernan and Shaun Macaulay. In Attendance D. Hammond, Executive Director and K. Bell, Team Manager (Housing Strategy) (Communities and Housing); S. Anson, Executive Service (Education) M. Boyd, Head of Service (Finance); L. Cree, Head of Service (Sustainability, Transport & Corporate Property) (Place); A. Craig, Head of Service, C. Stewart, Committee Services Officer, and H. Young, Senior Committee Services Office (Democratic Services) (Corporate Services). Also in Attendance Eleanor Collier, Joe Cullinane, Robert Foster, Christina Larsen, Jim Montgomerie and Ian Murdoch. Chair Councillor Bell in the Chair. 1. Declarations of Interest There were no declarations of interest by Members in terms of Standing Order 11 and Section 5 of the Code of Conduct for Councillors. 2. Call In: Revenue Budget 2025/26: Financial Performance to 31 March 2026 Submitted report by the Head of Democratic Services to consider a call-in request in respect of the decision taken by Cabinet at its meeting on Tuesday 2 June 2026 advising of the financial performance for the Council for 2025/26. The original Cabinet report and minute from the Cabinet meeting which took place on Tuesday 2 June 2026 was attached at Appendix 1 to the report. Appendix 2 to the report contained a briefing note provided by the Head of Finance in response to the matters raised in the call-in request form. The Cabinet, on 2 June 2026, considered a report on the financial performance for Council 2025/26. Cabinet amended the recommendation to the report by determining to allocate £1.496m of underspend to the 26/27 revenue budget with the funds to be used to create an Our Places, Our Communities fund designed to benefit all North Agenda Item 2 9
Page 10
Ayrshire communities with details of the fund being brought to council on the 24th of June for debate and approval. Subsequently, a call-in request was received from Councillors Cullinane, Foster and Montgomerie in the following terms:- Reason for Call-In “In passing its budget, the Council set Council Tax bands at a level required to fund its expenditure requirements, including prioritising investment in areas such as education and roads. The £1.496million underspend should therefore not be spent on another of the administrations pet projects, particularly when the evidence of the last four years shows that these pots of money are not used in a timeous manner. Instead, the underspend should be returned to council taxpayers.” Desired Outcome “That the £1.496million allocated to an ‘Our Places, Our Communities fund’ be re- allocated to provide a Council Tax rebate, reflecting the fact that our expenditure requirements for 2026/27 have already been funded. Although this outcome proposes a Council Tax rebate, we acknowledge officers' advice that as matters relating to setting Council Tax levels are reserved to Council and that for this outcome to be implemented it will require a decision of Full Council, including the suspension of 15.5 and 25.1 of Standing Orders Relating to Meetings and Proceedings of the Council, as Council Tax was set within the last six months. The Audit & Scrutiny Committee is asked to accept the call in and recommend that the matter is referred by Cabinet to Council for further consideration and determination.” The Head of Democratic Services summarised the procedure for considering the call-in request in terms of Standing Orders and referred to the Cabinet decision. Thereafter, the Members who had requested the call-in were invited to speak and Councillor Cullinane addressed the Committee in support of the call-in request and was heard in response to Members’ questions. The Chair then invited Councillor Larsen, as the Cabinet Member for Finance, to address the meeting. Councillor Larsen explained the reasoning for the Cabinet decision and referred to a briefing note from the Head of Finance provided at Appendix 2 to the report. She was also heard in answer to Members’ questions. The Head of Finance was then heard in relation to the report presented to Cabinet and on issues raised by the call-in. Councillors Cullinane and Larsen were heard in summing up. 10
Page 11
Councillor Sweeney, seconded by Councillor D. Reid, moved that the Committee agree to accept the terms of the call-in request and refer the matter to the Cabinet for further consideration, with the recommendation that the matter is referred to Council to determine the use of the underspend and that Council suspends Standing Orders to consider the proposal regarding a Council Tax rebate. As an amendment, Councillor Macaulay, seconded by Councillor McTiernan moved that the Committee agree not to support the call-in request and that the decision of Cabinet should stand. There followed questions, debate and summing up on the motion and amendment presented for consideration. Thereafter, on a division and a roll call vote, there voted for the amendment, Councillors Macaulay and McTiernan (2) and for the motion, Councillors Bell, D. Reid, Inglis, Marshall, McLean, D.L Reid and Sweeney (7). The motion was declared carried. Accordingly, the Committee agreed (a) to support the call-in request; and (b) that the matter be referred to Cabinet for further consideration, with the recommendation that the matter is referred to Council to determine the use of the underspend and that Council suspends Standing Orders to consider the proposal regarding a Council Tax rebate. 3. Call In: North Ayrshire Housing Acquisition Strategy Submitted report by the Head of Democratic Services to consider a call-in request in respect of the decision taken by Cabinet at its meeting on Tuesday 2 June 2026 on the proposed Housing Acquisition Strategy 2026- 2031. The original Cabinet report was attached at Appendix 1 to the report. Appendix 2 to the report contained a briefing note provided by the Executive Director (Communities and Housing) in response to the matters raised in the call-in request form. The Cabinet, on 2 June 2026, considered a report on the proposed Housing Acquisition Strategy 2026-2031. Subsequently, a call-in request was received from Councillors Cullinane, Foster and Montgomerie in the following terms:- Reason for Call-In “It is wrong to suggest this policy will have no impact on the Council’s Community Wealth Building (CWB) strategy. A key component of the strategy is to increase procurement spend with North Ayrshire, and Ayrshire, businesses creating economic and socio benefits from investing in the local economy. The fact that Ayrshire based companies have won our council house building contracts has made a significant contribution to us achieving the initial procurement targets set out in the first CWB strategy published in 2020. This policy is the opposite of this approach. It will see a significant proportion of our investment in Council housing, the majority of which comes from the Council with the 11
Page 12
rest from Holyrood, be transferred to private housing developers, many of which are large national developers. It will see that investment extracted from the Ayrshire economy. We remain as committed to Community Wealth Building as were in 2020. We therefore reject this policy.” Desired Outcome “That the Council reaffirms its commitment to Community Wealth Building by rejecting this policy and redoubling our efforts to ensure that Ayrshire based companies can bid for, and win, the contracts to build the next generation of Council houses in North Ayrshire.” The Head of Democratic Services summarised the procedure for considering the call-in request in terms of Standing Orders and referred to the Cabinet decision. Thereafter, the Members who had requested the call-in were invited to speak and Councillor Cullinane addressed the Committee in support of the call-in request. In the absence of Councillor Hill, as the Cabinet Member for Communities, Housing and the Islands, the Chair then invited Councillor Collier to address the meeting. She was also heard in answer to Members’ questions. The Executive Director and the Team Manager (Housing Strategy) (Communities and Housing) were heard in response to Members’ questions. Councillors Cullinane and Collier were heard in summing up. Councillor Sweeney, seconded by Councillor D. Reid, moved that the Committee agree to accept the terms of the call-in request and refer the matter to the Cabinet for further consideration with the recommendation that the policy be rejected. As an amendment, Councillor Macaulay seconded by Councillor McTiernan moved that the Committee agree not to support the call-in request and that the decision of Cabinet should stand. Thereafter, on a division and a roll call vote, there voted for the amendment, Councillors Inglis, Macaulay, Marshall, McTiernan and D.L Reid (5) and for the motion, Councillors Bell, D. Reid. McLean and Sweeney (4) and amendment was declared carried. Accordingly, the Committee agreed not to support the call-in request and that the decision of Cabinet should stand. 12
Page 13
4. Call In: Ardrossan Campus Project Update Submitted report by the Head of Democratic Services to consider a call-in request in respect of the decision taken by Cabinet at its meeting on Tuesday 2 June 2026 to note the current progress of the Ardrossan Campus project, including current projections in relation to costs and programme. The original Cabinet report was attached at Appendix 1 to the report. The Cabinet, on 2 June 2026, considered an update report on the current progress of the Ardrossan Campus project, including current projections in relation to costs and programme. Subsequently, a call-in request was received from Councillors Stalker, Murdoch and Stephen in the following terms:- Reason for Call-In “This decision is being called in because there are some real concerns about how the Ardrossan Campus project is progressing. The report shows a significant cost increase of around £10 million, along with delays pushing completion back to May 2028. There are also questions about how risks have been handled, especially around ground contamination and the challenges of building on a contaminated site. It’s not clear if these issues were fully understood early on, or if more could have been done to avoid the impact they have had. On top of that, using additional capital funding to cover the extra costs raises concerns about what this means for and the overall budget of the campus and what more flexibility funding will be made available in future budgets. Overall, this call-in is about getting reassurance that the project is still under control, that risks are being properly managed, and that it continues to represent good value for the Council and local communities.” Desired Outcome “To provide assurance on and seek greater information on the cost, programme, risk management, governance and wider capital implications of the Ardrossan Campus project, ensuring it remains deliverable, financially sustainable and represents value for money.” The Head of Democratic Services summarised the procedure for considering the call-in request in terms of Standing Orders and referred to the Cabinet decision. Thereafter, the Members who had requested the call-in were invited to speak and Councillor Murdoch addressed the Committee in support of the call-in request and was also heard in response to Members’ questions. As a point of clarification it was confirmed that the decision of Cabinet was to note the update provided in the report presented. 13
Page 14
The Chair then invited Councillor Collier, as the Cabinet Member for Green Environment and Economy, to address the meeting. Councillor Collier explained the reasoning for the Cabinet decision and was also heard in answer to Members’ questions. The Executive Director (Education) and the Head of Service (Sustainability, Transport & Corporate Property) (Place) were heard in answer to Members’ questions. Councillors Cullinane and Collier were heard in summing up. Councillor Inglis, seconded by Councillor McLean, moved that the Committee agree to accept the terms of the call-in request with a recommendation that a progress report is taken to a future meeting of Council in six months for consideration. There being no amendment the motion was declared carried. Accordingly, the Committee agreed (a) to support the call-in request; and (b) recommended to Cabinet that an update report is taken to a future meeting of Council in six months. The meeting ended at 12.10 p.m. The full meeting proceedings can be viewed at https://north-ayrshire.public-i.tv/core/portal/home 14
Page 15
NORTH AYRSHIRE COUNCIL 27 August 2026 Audit and Scrutiny Committee Title: Audit Scotland - Asset Management Best Value Report Purpose: To update committee on the findings from the recent Best Value Audit on Asset Management Recommendation: That committee notes the findings from the recent Best Value Audit report on Asset Management arrangements within North Ayrshire Council 1. Executive Summary 1.1 The focus of Best Value Audit work this year is on a thematic review of Asset management arrangements across Councils. Audit Scotland carried out the audit with support from officers in North Ayrshire Council. 1.2 The scope of the audit was to assess how well North Ayrshire Council is managing assets to achieve its corporate objectives and respond to challenges around financial sustainability and climate change. 1.3 The report on the audit findings is included within the appendix of the report for committee to consider. The findings are welcome and reflect robust asset management arrangements across the Council. It is also noted that the report does not include any improvement actions. Members of Audit Scotland will attend the meeting to present the findings. 2. Background 2.1 Full details of Audit Scotland’s Best Value thematic audit on asset management arrangements within North Ayrshire Council are included within the appendix of the report. 2.2 The details of the audit include an assessment of asset management planning arrangements, governance and performance, partnership working and community engagement 2.3 The key findings from the audit include: Agenda Item 3 15
Page 16
• North Ayrshire Council demonstrates an effective approach to its asset management. The strategic approach is outlined in its overarching Corporate Asset Strategy and Plans. This gives consideration to the changing needs of its population, new ways of working and also sets out how it will support the council to meet its net zero emission commitments. • There is clear strategic alignment between the Corporate Asset Strategy, service level asset management plans, the Capital Programme and the council’s priorities. • The council has sufficiently considered the affordability of its capital programme and asset management plans whilst navigating substantial financial pressures that are projected to widen budget gaps in the coming years. • The council’s reporting and monitoring arrangements enable good scrutiny and oversight of progress towards implementing its capital programme and asset management plans. • North Ayrshire Council is progressing well with the delivery of its capital programme and asset management plans. The council’s performance against the asset management Local Government Benchmarking Framework indicators has varied over time. The most recent data shows that the council is currently performing above the national average and is ranked within the top quartile nationally for these indicators • North Ayrshire Council works collaboratively with partners to optimise how assets are delivered. It has a clear approach to assessing Community Asset Transfer requests and can demonstrate how it has worked with communities to inform decision making in relation to specific assets. • No improvement actions have been identified or required by the council from the audit work. 3. Proposals 3.1 It is recommended that committee notes the findings from the recent Best Value Audit report on Asset Management arrangements within North Ayrshire Council. 4. Implications/Socio-economic Duty Financial 4.1 The asset management plans inform the annual budget programme and capital investment plans. Human Resources 4.2 None. 16
Page 17
Legal 4.3 None. Equality/Socio-economic 4.4 All required impact assessments are undertaken in the course of managing assets across the Council. Climate Change and Carbon 4.5 Asset management arrangements support the Council’s key priority in addressing climate change, demonstrated through investment in renewables, vehicles and energy efficiency improvements across the property estate. Key Priorities 4.6 The audit notes the linkages between the Council’s asset management planning arrangements and the Council’s key priorities. Community Wealth Building 4.7 A key focus of asset management arrangements including progress on community asset transfers, maintenance of community facilities etc. 5. Consultation 5.1 Audit Scotland have engaged with a number of Council officers throughout the course of the audit. Mark Boyd Head of Service (Finance) For further information please contact Mark Boyd, Head of Finance, on 01294 324560. Background Papers 0 17
Page 18
Best Value thematic work – Asset management North Ayrshire Council How well councils are managing assets to achieve their corporate objectives and respond to challenges around financial sustainability and climate change Prepared by Audit Scotland June 2026 18
Page 19
Contents | 2 Contents Contents 2 Key messages 3 Introduction 4 1. Asset management planning 6 2. Governance and performance 17 3. Partnership working and community engagement 23 Accessibility You can find out more and read this report using assistive technology on our website www.audit.scot/accessibility. 19
Page 20
Key messages | 3 Key messages 1 North Ayrshire Council demonstrates an effective approach to its asset management. The strategic approach is outlined in its overarching Corporate Asset Strategy and Plans (December 2025). This gives consideration to the changing needs of its population, new ways of working and also sets out how it will support the council to meet its net zero emission commitments. 2 There is clear strategic alignment between the Corporate Asset Strategy, service level asset management plans, the Capital Programme and the council’s priorities. 3 The council has sufficiently considered the affordability of its capital programme and asset management plans whilst navigating substantial financial pressures that are projected to widen budget gaps in the coming years. 4 The council’s reporting and monitoring arrangements enable good scrutiny and oversight of progress towards implementing its capital programme and asset management plans. 5 North Ayrshire Council is progressing well with the delivery of its capital programme and asset management plans. The council’s performance against the asset management Local Government Benchmarking Framework indicators has varied over time. The most recent data shows that the council is currently performing above the national average and is ranked within the top quartile nationally for these indicators 6 North Ayrshire Council works collaboratively with partners to optimise how assets are delivered. It has a clear approach to assessing Community Asset Transfer requests and can demonstrate how it has worked with communities to inform decision making in relation to specific assets. 7 We have not identified any improvement actions required by the council from our work. 20
Page 21
Introduction | 4 Introduction 1. Asset management directly impacts how councils provide services and achieve their own corporate priorities and longer-term financial sustainability. Limited capital budgets make it challenging for councils to maintain their existing assets and estates, invest in new assets and achieve net zero targets. Exhibit 1 sets out some principles for effective asset management, informed by CIPFA guidance and the Infrastructure Investment Plan for Scotland. Exhibit 1 Principles for effective asset management Principle What this looks like in practice Strategic alignment Councils’ asset management strategies align with their corporate objectives, financial plans, new ways of working, population needs and net zero commitments. Investment hierarchy To support sustainability and cost-effectiveness, asset management strategies prioritise: 1. maintaining and optimising existing assets 2. repurposing or upgrading existing assets to meet the needs of the community 3. new investment only when necessary Monitoring condition and performance Councils regularly assess the condition, suitability and performance of their assets, to help inform investment priorities and support continuous improvement. Governance and accountability Councils have clear roles and responsibilities for asset management, with regular, transparent reporting and senior oversight. Community asset transfers Councils have transparent and robust processes in place to assess and support requests for community asset transfers. Place-based approaches Councils collaborate across services and other public and third sector organisations to manage assets as a collective resource across their local area. This has the potential to achieve savings, better align service provision and create opportunities for joint working. Source: Audit Scotland 21
Page 22
Introduction | 5 2. The Code of Audit Practice sets out the requirements for Best Value audit work. This report covers the thematic aspect of the Best Value audit requirements. The Accounts Commission has directed auditors to report on how well councils are managing their assets. In carrying out the work, auditors have considered the following questions: • Part 1 – To what extent does the council have a clear asset management strategy and plans that are affordable, align with its corporate objectives, the changing needs of its population, and net zero commitments? • Part 2 –To what extent do the council’s governance and accountability arrangements support effective asset management? • Part 3 – To what extent does the council have a robust approach to working with partners and communities in managing its assets? 3. The coverage of the work is in line with the expectations for council’s arrangements for the seven Best Value themes in the Local Government in Scotland Act 2003, Best Value Statutory Guidance 2020. 22
Page 23
1. Asset management planning | 6 1. Asset management planning 4. Councils’ capital programmes are a necessary component of modernising services to improve outcomes for local communities. Doing this successfully requires good strategic medium- to long-term asset management and planning. The Accounts Commission’s Local government budgets 2025/26 briefing reported that capital funding for 2025/26 had increased but remained lower than in 2023/24 and that investing in new buildings and assets is increasingly expensive. Councils are relying on borrowing as the main source of funding for capital projects. In 2025/26, councils intend to borrow £3.13 billion, an increase from £2.67 billion in 2024/25. Findings and evidence relating to the council’s asset management strategic planning arrangements Judgements Evidence 1. The council has an up- to-date and well-informed asset management strategy that clearly sets out its approach and priorities for managing and developing its assets. It covers a sufficient period enabling strategic planning and is clear about how progress will be monitored and when priorities will be reviewed. 1. North Ayrshire Council’s overarching Corporate Asset Strategy (2025-2030) was updated and approved by Cabinet in December 2025. It provides a comprehensive overview of the Council’s key assets and includes individual asset management plans for six categories of asset including: property, housing, roads, fleet, open space and ICT to support the delivery of the Council’s priorities. It sets out clear aims and objectives including: • Aligning asset management with the council’s key strategic priorities • Making efficient and effective use of the council’s assets • Reviewing and rationalising the asset portfolio to ensure it is fit for purpose • Ensuring investment in assets is prioritised and managed through clear governance. 2. The Corporate Asset Strategy adequately considers how the organisation and the landscape in which council services are being delivered is changing. For example, it notes how the shift to more agile working patterns has changed how buildings are being used and the development of school campuses is cited as having created opportunities for some community services to be 23
Page 24
1. Asset management planning | 7 Judgements Evidence co-located. In addition, financial and climate pressures have placed a renewed focus on sustainability including asset decarbonisation, infrastructure requirements for active travel and opportunities for renewable energy generation. 3. The Corporate Asset Strategy is underpinned by six detailed asset management plans, each clearly linked to service delivery. For example, the Property Asset Management Plan explains how schools and education facilities are assessed for condition, suitability and utilisation and the Housing Asset Management Plan clearly links the housing stock and quality to tenant wellbeing, homelessness prevention, energy efficiency and climate targets. The Corporate Asset Strategy is aligned to financial planning through the 10-year Capital Programme which is updated annually. 4. The Corporate Asset Strategy sets out a clear approach to asset management, supported by defined governance arrangements and roles and responsibilities for key groups. The Capital Programme and Assets Group is chaired by the Head of Finance and has representation from senior officers across all services. It meets quarterly and its remit includes strategic asset management, investment prioritisation, business case assessment, capital programme delivery as well as developing and monitoring of performance across all assets. Each asset-specific plan includes its own governance arrangements. 2. The council’s Corporate Asset Strategy and Plans align with its corporate objectives, new ways of working, the changing needs of its population, and clearly sets out how net zero commitments will be met. 1. There is clear alignment between North Ayrshire Council’s key priorities and its Corporate Asset Strategy and Plans. The overarching Asset Management Strategy is reported to Cabinet annually to ensure alignment between high level council-wide priorities and individual asset management plans. This approach ensures priorities are interlinked and Chief Officers are allocated key responsibilities as part of this structure. 2. North Ayrshire’s Council Plan (2023-2028) sets out its four key priorities: wellbeing; communities and local democracy; climate change and sustainability. These priorities underpin the council’s strategic aim of a ‘North Ayrshire that is fair for all’. 3. North Ayrshire Council’s four priority themes are clearly reflected throughout its Corporate Asset Strategy and individual asset management plans. For example: 24
Page 25
1. Asset management planning | 8 Judgements Evidence • The theme of wellbeing is reflected under the council’s equality and socio-economic duties such as ensuring the availability of quality public open spaces for physical activity and health and wellbeing benefits. Wellbeing is also reflected within the vision for the Housing Asset Management Plan, whereby the council envisages that ‘everyone has a safe, affordable, and warm home that meets their needs and supports their wellbeing.’ Corresponding wellbeing aims within the Housing Asset Management Plan include using assets to support wellbeing in local communities, delivering homes that meet the needs of residents and ensuring spaces are well-maintained, inclusive and accessible for all. • Communities and local democracy is a defined priority within the Housing Asset Management Plan, whereby corresponding aims include developing strong relationships with communities and partners based on trust and shared aspirations using their experiences to inform service provision, actively supporting the aims of the Community Planning Partnership and the North Ayrshire Partnership Plan and strengthening collaboration with third sector and voluntary organisations. • Climate change is a priority within the Roads Asset Management Plan, with corresponding actions such as improvising resilience and reducing carbon by supporting supply chains where materials and goods are sources locally, developing and promoting active travel infrastructure, transitioning to low and zero carbon travel as well as costal adaptation work and flood risk management to address the most serious impacts of climate change. • Sustainability is reflected throughout the Property Asset Management Plan, for instance, there is a dedicated sustainability assets section detailing the council’s work to develop two solar farms, receiving an income for the renewable electricity generated (£0.5 million return on investment per year). 4. The Corporate Asset Management Strategy (2025-2030) is explicitly set over a five-year period from 2025 to 2030, providing a medium-term framework for asset planning and investment. Asset planning is also aligned to the 10- year Capital Programme which is updated annually and refreshed every three years, providing a basis for longer term planning and investment decisions. 25
Page 26
1. Asset management planning | 9 Judgements Evidence 5. The council has clearly considered how its assets can be optimised to reflect new ways of working, the changing needs of its population and demands for services. For example: • The ICT Asset Management Plan (2025-2028) discusses how agile working has become a permanent feature of the council’s work culture since the Covid-19 pandemic and that many staff now operate in a hybrid or fully remote capacity. This change has been supported by office rationalisation, the closing of underutilised buildings and the co-location of teams. In addition, it notes that IT services have also enhanced the council’s remote capabilities, including upgrading office Wi-Fi infrastructure to ensure fast and reliable connectivity for laptops and mobiles. • The Housing Asset Management Plan demonstrates strong consideration of demographic change addressing the needs of an ageing population through sheltered housing refurbishment and adaptations as well as planning for energy efficiency measures and net zero standards that affect future housing demands and requirements. For example, under Energy Efficiency Standard for Social Housing it states that the Council’s new build programme is a key area in delivering energy efficiency measures and that the new homes being constructed utilise the latest energy efficient technology including increased levels of thermal insulation, air tightness, air source heat pumps and solar panels. 6. There is evidence of demand forecasting across a range of individual asset management plans, including property, fleet, ICT and open space. Forecasting is influenced by a range of factors including climate change adaptation requirements, increased community use of buildings and financial pressures. In addition, the Housing Asset Management Plan includes a dedicated section on future demand which states that demand for council housing continues to be high, however it is recognised there are areas of ‘unpopular housing stock’ and ongoing work is focussed on understanding and addressing the factors that influence demand for specific housing types, ensuring that options available align with council priorities, including sustainability, accessibility and community regeneration. 7. The council clearly sets out how it intends to meet its net zero commitments. For example, the Corporate Asset Strategy states ‘The Council’s asset management plans 26
Page 27
1. Asset management planning | 10 Judgements Evidence recognise the opportunities to tackle climate change through efficient asset management, for example: investment in energy conservation measures in our houses and non-domestic buildings; using our assets to generate renewable energy; continued decarbonisation of our vehicle fleet; construction of new electric vehicle charging points; and journey reduction through the use of technology.’ 8. Detail about key programmes of work, actions to meet net zero commitments, as well as performance indicators detailing how progress will be monitored are set out within individual asset management plans. For example, the Fleet Asset Management Plan’s key programmes of work include fleet rationalisation, the use of telematics (described as an essential component of implementing zero emission vehicles), switching to low carbon alternatives, charging infrastructure in the workplace to support the expanding electric fleet, as well as plans for the procurement of zero emissions Heavy Duty Vehicles. The Plan incorporates two performance indicators to measure and monitor progress against its net zero commitments, including: • Fuel use (litres) 3-year trend data from 2022/23, 2023/24 and 2024/25 shows a steady decline each year, with a target of 1,400,000 litres for 2025/26 continuing this trend. • CO2 emissions (tonnes) 3-year trend data from 2202/23, 2023/24 and 2024/25 also shows a steady decline each year, however the 2025/26 target of 3,680 tonnes represents increasing emissions despite lower fuel use overall. 9. There is also a Fleet Asset Management action plan which incorporates actions and outcomes to support net zero commitments, including the reduction of fleet produced emissions and demand for vehicles and travel. 3. The council has clear asset management plans that align with the Corporate Asset Strategy and Capital Programme 1. The council has clear service-level asset management plans that include sufficient detail on actions, timescales and costs. We reviewed two asset management plans and found that these were well- aligned with the Corporate Asset Strategy and capital programme. Roads Asset Management Plan 2. The Roads Asset Management Plan includes an action plan that sets out specific actions, a dedicated staff member assigned to each action and high-level 27
Page 28
1. Asset management planning | 11 Judgements Evidence timescales. There are multiple examples of specific actions, including preparing a progress report on the Ayrshire local flood risk management plan. The dedicated staff member for this specific action is the Team Leader for flooding, and the timescale is noted as March 2026. The Roads Asset Management Plan also includes a dedicated section on finance, which sets out historical and planned investment, including predictions for future investment to 2030/31. For example, it notes £3.8 million of planned capital investment for carriageways annually until 2030/31. 3. Planned capital investment for Roads, structure and lighting is set out within the Council’s Capital Investment Strategy (2024-2034). It notes planned investment of £112.8 million until 2033/34. Key objectives for roads include improvements to roads and the street lighting network, flood prevention work and bridges infrastructure improvement. This demonstrates clear alignment in terms of key priorities within the Roads Asset Management Plan. There is also alignment with the broader ambitions in the overarching Corporate Asset Strategy. For example, the Corporate Asset Strategy aspires to reduce pressure on budgets and similarly one of the actions in the roads action plan commits to assessing the cost effectiveness of footway replacement options. Property Asset Management Plan 4. The Property Asset Management Plan includes an action plan with specific actions, desired outcomes, high- level timescales and a dedicated staff member assigned to each action. There are multiple examples of specific actions, including reviewing governance arrangements to ensure that strategic asset management reflects best practice. The desired outcome for this action is described as the council having a property estate which is being managed appropriately and in accordance with guidance. There is a dedicated member of staff for this specific action, and the timescale is marked as complete. The Property Asset Management Plan also includes a dedicated section on finance, setting out high level costs such as total revenue running costs for the Council’s operational estate, property running costs for 2024/25 and a summary of the current Capital Receipts Schedule. 5. Planned capital investment for property is set out within the Council’s Capital Investment Strategy (2024-2034). It notes planned investment of £18.6 million until 2033 to 2034. Key objectives for property include ensuring that 28
Page 29
1. Asset management planning | 12 Judgements Evidence council properties meet all legislative requirements and are sustainable, energy efficient and maintained to a high standard, as well as ensuring the physical environment can support both mobile and flexible work programmes. It also notes that further rationalisation and remodelling will progress through the Estates Strategy on a place-by- place basis. There is clear alignment in terms of high-level themes with the Property Action Plan, particularly in relation to efficiency, compliance and sustainability. This includes implementing new systems to improve workload efficiency, ensuring compliance with new legislative requirements, and improving energy efficiency in existing properties by replacing appliances with more environmentally friendly heating systems. The action plan also focuses on rationalisation with plans to undertake rationalisation reviews to consolidate buildings and create savings within council property. There is also clear alignment with the broader ambitions in the overarching Corporate Asset Strategy, which aims to create efficiencies, deliver sustainable change, reduce pressure on budgets and ensure clear governance and decision- making is in place for council assets. These themes are reflected throughout the Property Asset Management action plan. 4. North Ayrshire Council demonstrates a commitment to assessing affordability whilst navigating substantial financial pressures that are projected to widen budget gaps in the coming years 1. North Ayrshire Council, alongside other local authorities, is navigating substantial fiscal pressures that are projected to widen budget gaps in the coming years. The latest Medium Term Financial Outlook to 2027/28 has identified a structural funding gap of £46.7 million. Cost risks have been identified across a number of capital projects and long-term borrowing has increased in support of the council’s capital programme. As a result, the council updated their Strategic Risk Register in March 2024 to include a new strategic risk associated with the Council's property estate against a backdrop of financial challenges. The capital programme is expected to deliver a total programme of £406.459 million to 2033/34. Total available funding has been projected at £189.987 million. The balance of funding required to deliver the capital programme will be met through prudential borrowing and is anticipated at £216.472 million. A greater reliance on borrowing to fund capital programmes increases the pressures on revenue budgets over the longer term. The council understands the future revenue implications of servicing this debt. 29
Page 30
1. Asset management planning | 13 Judgements Evidence 2. The council has sufficiently considered the affordability of its capital programme and asset management plans. Maintaining capital plans that are ‘affordable, prudent and sustainable’ is a key consideration of North Ayrshire Council’s Capital Investment Programme (2026/27 to 2033/34), and the Treasury Management and Investment Strategy shows that the council is using formal prudential indicators to monitor affordability over time. 3. There is also evidence that the council is prioritising the investment hierarchy in its decision-making approach. For example: • The Capital Investment Programme sets out details on the long-term maintenance investments of assets, including £79.5 million on roads, structures and lighting until 2033/34 including roads resurfacing, upgrading bridges, street lighting and flood protection, as well as £21.6 million until 2033/34 on fleet procurement and maintenance to ensure sustainability and decarbonisation of the vehicle fleet. • All new projects undergo an options appraisal whereby any new investment is considered within the wider context of outcomes, affordability and balancing the need to invest to maintain current assets against the ambitions of acquiring new ones. • The Capital Investment Programme also notes that governance frameworks ensure all capital investment must demonstrate that it is aligned to the Council’s strategic priorities, with particular focus and priority given to capital investment opportunities that meet multiple strategic priorities. • In the 2024/25 Annual Audit Report, we reported that North Ayrshire Council had reviewed the phasing of expenditure within the approved Capital Investment Programme (2024/25 - 2033/34) to reflect historic expenditure patterns and organisational capacity. This resulted in the rephasing of approximately 19 per cent of the planned expenditure in both 2024/2025 and 2025/26 for delivery in later years, without impacting on the overall value of investment within the programme. 4. The council assesses a range of different funding sources to support its capital programme. For example, the Capital Investment Programme (2026/27 - 2033/34) includes a detailed breakdown of all funding sources. Key funding sources to support the delivery of £323.9 million capital investment to 2033/34 include: prudential 30
Page 31
1. Asset management planning | 14 Judgements Evidence borrowing, specific capital grants, general capital grant, reserve funds, capital receipts and other grants and contributions. 5. The council’s consideration of whole life costs of its assets is evident. There are a range of examples showing planned lifecycle investment, such as £9.1 million of planned investment for property lifecycle to ensure legislative compliance, sustainability and that council buildings are fit for purpose. 6. The Capital Investment Programme (2026/27 - 2033/34) analyses risks related to inflation, cost volatility and interest rates. For example, it states that the programme refresh takes account of the ongoing impact of construction industry inflation, cost volatility and supply chain issues across the overall capital investment programme. In addition, it notes that the council has created a £15 million flexibility budget (over a three-year period) to manage cost risks associated with inflation and supply chain issues. 7. Business case criteria include affordability tests to assess whether capital and borrowing plans are affordable. Key indicators include capital expenditure and financing; the capital financing requirement and total borrowing needed over time; borrowing limits (operational boundary and authorised limit) to ensure borrowing stays within safe and affordable limits, as well as the ratio of financing costs to net revenue stream. In addition, the Loans Fund Policy ensures that borrowing is repaid in a way which is affordable. According to the Capital Investment Strategy (2024-2034) this involves ensuring that unfinanced capital expenditure is financed over the expected life of the asset and that each year's repayment amount is in proportion to the period and pattern of benefits. There is an emphasis on ‘prudential borrowing’ to ensure that investment in assets to deliver on the council’s strategic priorities is sustainable in the long-term. 8. The Capital Investment Strategy (2024-2034) and Treasury Management and Investment Strategy (2026/27) show that the council considers its debt to expenditure ratio and is keeping borrowing within prudent and sustainable levels. For example, the council uses formal prudential indicators – in particular the ratio of financing costs to net revenue stream - as a key measure of affordability. The Council’s Capital Financing Requirement is monitored 31
Page 32
1. Asset management planning | 15 Judgements Evidence through the treasury management strategy and is projected to: • Increase to £821.544 million by 2030/31 • Reduce annually thereafter to 2033/34. 9. There is clear monitoring of debt in relation to financial capacity. For example, the council consider if debt is affordable relative to the revenue budget. The average ratio of debt servicing costs to net revenue for general services (over a three-year period) is 4.3 per cent for General Services (below the Scottish average of 5.4 per cent). For Housing Revenue Account this is 27.7 per cent, higher than the Scottish average of 21.4 per cent but the council explains this is linked to the scale of planned investment in the Capital Investment Programme. 5. The council has clear plans in place to mitigate significant building safety risks it has identified 1. There is clear evidence that surveys and assessments are being undertaken in relation to building safety risks, as well as remedial actions being taken to mitigate identified risks. For example: • An update taken to the Executive Leadership Team and Cabinet in November 2023 explains that surveys carried out by Structural Engineers have identified the presence of RAAC in two Council properties. As a precaution both properties have since been closed and contingency arrangements put in place to manage the impact of the closures. • Evidence from the Council’s response to the Grenfell tower fire in 2017 shows that the Council carried out an assessment to identify affected buildings and assess their construction and cladding systems. The review confirmed that that none of the North Ayrshire Council’s properties use the aluminium composite cladding associated with the Grenfell Tower fire. However, the assessment did identify a risk in relation to high rise residential buildings, where sprinkler systems were not installed because there was no statutory requirement at the time the buildings were constructed. The Council has since taken action to address this by progressing the installation of sprinkler systems, which was identified as the main mitigation measure. • North Ayrshire Council’s formal return to the Scottish Government for the High-Pressure Laminate (HPL) cladding data collection exercise in January 2020 (introduced following the Grenfell Tower fire) shows that 12 schools in the local area are recorded as having HPL cladding present. Fire Risk Assessments have 32
Page 33
1. Asset management planning | 16 Judgements Evidence been carried out at all 12 of these locations since the HPL cladding return. The Council are currently preparing to commence a programme of new FRAs across the estate. 2. Risk prioritisation, monitoring and reporting arrangements are clear at a strategic level. The council operates a three- tier risk management structure to ensure risks have appropriate oversight. Operational risks are identified and monitored at individual service level and corporate risks are considered through the Risk Management Group as well as being reported to the Executive Leadership Team. The process also considers risk escalation or deescalation to or from the Strategic Risk Register which is reported to the Cabinet and Audit and Scrutiny Committee. 3. The council has provided an example of its risk management approach in relation to the presence of RAAC at Mid-Dykes depot. Risks are assessed through a risk-based review of affected properties, supported by structural engineer inspections. Reporting arrangements are clear and involve notifying the Head of Sustainability, Transport and Corporate Property, regular updates through Place and Corporate Health and Safety Meetings, as well as external updates to the Scottish Government and Audit Scotland. Monitoring arrangements are clearly defined and require formal annual inspections, with responsibility assigned to a Team Manager within Assets and Property Rationalisation. 33
Page 34
2. Governance and performance | 17 2. Governance and performance 5. It is essential that the council has effective governance arrangements in place to enable transparency, oversight and scrutiny of progress with implementing its capital programme and asset management strategy. This enables better-informed decision making and corrective action where needed. Findings and evidence relating to the council’s governance arrangements and performance Judgements Evidence 6. North Ayrshire Council has established appropriate leadership arrangements, and reporting and monitoring arrangements enable good scrutiny and oversight of progress towards implementing the capital programme and asset management plans 1. North Ayrshire Council has established appropriate leadership arrangements for its capital programme and asset management plans. The governance framework is delivered through a range of officer and member represented groups and committees, each with clearly defined roles and responsibilities. For example, Cabinet approves the corporate framework and the council approves the medium and longer-term investment programme. The Executive Leadership Team, the Capital Programme and Assets Group (CPAG) and Directorate & Service Project Boards ensure officer co- ordination of corporate asset management and support the Council and Cabinet at chief officer and senior management levels. 2. CPAG is chaired by the Head of Finance and includes representation from senior officers across all Services. It meets on a quarterly basis with the remit of: • ensuring a strategic and corporate approach overview of asset management to ensure the Council’s resources are deployed effectively • developing and delivering the corporate asset management plans • developing and delivering the Council’s capital investment programme, minimising slippage on the delivery of the programme • developing clear criteria for investment of Council resources on asset matters and assessing all investment business cases 34
Page 35
2. Governance and performance | 18 Judgements Evidence • developing and monitoring performance across all asset classes • developing a capital receipts strategy • developing and implementing best practice in all asset matters. 3. Chief Officers and Senior Managers are responsible for: • working together to ensure a corporate approach to asset management is in place and delivering the Council’s asset management plans and associated investment programme • contributing to the development and delivery of asset strategies and plans; and • ensuring consultation on asset management is undertaken with all relevant stakeholders. 4. Directorate and Service Project Boards are responsible for: • Ensuring capital and asset plans are being implemented efficiently and effectively • Taking corrective action to ensure delivery plans remain with agreed parameters of time and budget • Escalating relevant issues to the Executive Leadership Team and and/or CPAG. 5. Reporting and monitoring arrangements are sufficiently regular and provide senior leadership with clear information about progress towards implementing the capital programme and asset management plans. For example, our review of CPAG meeting papers shows that the group meets on a quarterly basis and meetings following a standard structure, with papers including capital financial reports, business cases and draft minutes and action logs from service project boards. 6. During fieldwork, officers also highlighted that action plans for individual service level asset management plans are being monitored regularly through updates to Heads of Service and Senior Managers, as well as Council Plan quarterly assessments of performance which are reported through the Executive Leadership Team and fed into Cabinet and Audit and Scrutiny Committee. 7. Cabinet considers regular capital programme performance reports. These cover performance relating 35
Page 36
2. Governance and performance | 19 Judgements Evidence to the General Services capital programme and Housing Revenue Account. Reports capture: • Movement in the General Services capital budget in- year • In-year changes to funding and alterations to the phasing of projects • Projected capital expenditure to 31 March 2026. 8. Reports also include an appendix covering project expenditure by service area, broken down by the type of project. This outlines total project budget, total expenditure to date, total project forecast expenditure and projected over/underspend. It also covers budget and expenditure for the current year. Detailed updates are also given for each project in the General Services capital programme and HRA. This covers budget and expenditure along with completion dates and current project status. A RAG rating is also given for both financial and ‘physical’ delivery status. Of the three reports reviewed, two of these also included an assessment of estimated performance against the Prudential Indicators set out in the Treasury Management and Investment Strategy. 7. North Ayrshire Council is progressing well with the delivery of its capital programme and asset management plans North Ayrshire Council’s performance against the relevant LGBF asset management indicators has varied over time. The most recent data shows that the council is currently performing above the national average and is ranked within the top quartile nationally for these indicators 1. The latest capital programme performance report shows that the council is progressing well with the delivery of its General Services capital programme. For example, in November 2025, of 164 projects, 59 were complete, 100 were on target (green), 1 was amber and 4 were classified as ‘holding code’ or ‘on hold’. These classifications relate to both financial and physical delivery status of the projects. For Housing Revenue Account (HRA) delivery, status is not recorded for some projects, but where delivery status is recorded the majority of projects were on track. For example, 33 were on target (green) for financial delivery and 30 were on target (green) for physical delivery. 1 project was classified as being slightly off target (Amber) for financial delivery and 1 amber for physical delivery, with 2 categorised as significantly off target (Red) for financial delivery and 3 significantly off target (Red) for physical delivery. 11 were complete for financial delivery and 13 complete for physical delivery. 2. Internal performance indicators for asset management referenced in the Best Value Thematic Audit 2025/26 and the Council Plan Year End Progress Reporting (September 2025) show that the council reports 36
Page 37
2. Governance and performance | 20 Judgements Evidence performance against 31 internal asset management indicators. Not all indicators have data or RAG statuses reported, but of the 21 where RAG statuses are assigned: • 13 indicators were reported as green • 5 indicators were reported as amber • 3 indicators were reported as red. 3. Examples of indicators with a green status include: the proportion of operational buildings that are suitable for their current use; percentage of council dwellings that are energy efficient (LGBF) and the number of trees planted under the North Ayrshire 2030 Tree Planting Strategy. Examples of amber indicators include the percentage of council dwellings that meet the Scottish Housing Quality Standard (LGBF); overall carbon emissions (tonnes) (non-domestic council estate) and the number of council assets under community management (cumulative). Examples of red indicators include: the total installed capacity of low-carbon heat and electricity generation across the council estate; percentage of total household waste recycled and the number of new build housing units reaching completion (non-cumulative). 4. Specific asset management actions are reported regularly within the Council’s corporate performance management system. Screenshots provided by the council show examples of actions and performance indicators for the Fleet, Roads and Open Space Asset Management Plans. Details such as start date, status, progress and next update date are being logged and monitored for actions within the performance management system. We can also see that targets, expected outcomes, results and trend of performance indicators are also reported within the Performance Management System. 5. North Ayrshire Council has demonstrated mixed trend performance over time against the relevant Local Government Benchmarking Framework (LGBF) asset management indicators. The most recent data shows that the council is currently performing above the national average and is ranked within the top quartile nationally for these indicators. For example: • In 2024/25, 95.2 per cent of the council’s operational buildings were deemed suitable for their current use. Performance against this indicator has shown a 6.6 percentage point improvement since 2013/14 - which 37
Page 38
2. Governance and performance | 21 Judgements Evidence is above the Family Group average of 90.5 per cent and the national average of 85.74 per cent. Performance has been consistently high with the council ranked in the top quartile for the last three years. • The council’s performance in relation to the percentage of the internal floor area of operational buildings in a satisfactory condition has shown a decline of 4 percentage points however it has consistently been above the Family Group (88.4 per cent) and national (90.3 per cent) averages since 2013/14. The Council ranked seventh in 2024/25 - an improvement from the previous year. • In 2024/25, 94 per cent of council dwellings met the Scottish Quality Housing Standards. This represents a small decline of 2.3 percentage points since 2013/14. It followed the national trend but experienced a steeper decline with the onset of the Covid-19 pandemic than other councils and is yet to fully recover to pre-covid performance levels. The council has displayed sharp improvement in the previous three years and is above the Family Group average of 85.9 per cent and the National average of 82.9 per cent. Performance improvement in the most recent year was 17.1 per cent, above the national average of 5.1 per cent. The council is currently ranked third nationally against this indicator. • Data for the proportion of council dwellings that are energy efficient has not been collected since 2021/22. Energy efficiency targets for social housing are temporarily on hold pending the development of a new standard that aligns with Scotland's net zero target. Reported performance for North Ayrshire Council in 2021/22 was 97.67 per cent, following the national improvement trend. The Council remains consistently above the Family Group average of 91.8 per cent and the national average of 87.6 per cent. It ranked fourth nationally against this indicator. 38
Page 39
2. Governance and performance | 22 Exhibit 2 Trend in performance against Local Government Benchmarking Framework indicators North Ayrshire Council has demonstrated mixed trend performance over time against the relevant Local Government Benchmarking Framework (LGBF) asset management indicators. The most recent data shows that the council is currently performing above the national average and is ranked within the top quartile nationally for these indicators. Source: Audit Scotland using Local Government Benchmarking Framework 39
Page 40
3. Partnership working and community engagement | 23 3. Partnership working and community engagement 6. It is essential that councils consider how they can collaborate across services and with other public and third sector organisations to manage assets. This has the potential to achieve savings, better align service provision and create opportunities for joint working. Councils should also have transparent and robust processes in place for supporting and assessing community asset transfer requests and engaging with their communities on asset management plans and priorities. Findings and evidence relating to the council’s partnership working and community engagement arrangements Judgements Evidence 8. North Ayrshire Council works collaboratively with a range of partners to optimise how assets are used to provide services 1. Partnership working is a key theme throughout North Ayrshire Council’s Corporate Asset Strategy and Plans (December 2025). The council has demonstrated that it works collaboratively with a range of partners to optimise how assets are used to provide services, as well as considering new and collaborative ways of using its assets through place-based approaches. For example: • North Ayrshire Council is working in partnership with the Scottish and UK Governments, and neighbouring councils to coordinate over £250 million of investment through the Ayrshire Growth Deal. The deal aims to strengthen local and national economies creating around 7,000 new jobs and positioning Ayrshire as a world class business region for space, energy, marine, manufacturing and tourism industries. Confirmed funding includes £103 million from each government, as well as £45.5 million from the three Ayrshire Councils, with delivery over a 10-year period and the potential to attract around £300 million of private investment. • As part of the Ayrshire Growth Deal, there are a range of assets being developed including the i3 Digital Process Manufacturing Centre and Flexible Business Space. This investment aims to deliver a Digital Process Manufacturing Centre alongside approximately 8,830 square meters of flexible, energy efficient 40
Page 41
3. Partnership working and community engagement | 24 Judgements Evidence manufacturing space, building on existing life sciences activity. The development is intended to support research and development, start-up activity, the growth of life sciences businesses and other advanced manufacturing opportunities. Delivery of the Digital Process Manufacturing Centre is being taken forward in partnership with the University of Strathclyde and the Centre for Process Innovation. The Centre will provide manufacturing businesses with access to digital and data driven manufacturing expertise for developing new technology. It will also act as a pilot for larger, permanent facilities within the region. • Early projects at the Digital Process Manufacturing Centre have demonstrated benefits such as improvements in productivity, broad industry participation, outreach and education for young people and an anticipated £2 million boost to the local economy. 9. North Ayrshire Council has a clear and transparent approach to supporting and assessing Community Asset Transfer requests and can demonstrate how it has worked with communities to inform decision making in relation to specific assets. 1. North Ayrshire Council supports communities to take ownership of assets through the Community Asset Transfer (CAT) process. For example, there is a clear and transparent process in place to engaging with communities in asset management planning through its Community Asset Transfer policy. The CAT policy is publicly available on the council’s website and was recently updated in June 2024. The policy also sets out clear aims of CAT requests including benefits to the local community, voluntary organisations and community groups, as well as leverage to attract new funding and opportunities for partnerships with access to resources out with the council. There is a clear assessment process in place whereby applicants must provide a sustainable business proposal, demonstrate clear demand for proposed activity, demonstrate capacity to manage the asset, as well as showing they have good governance and robust financial systems in place. The proposal must also contribute to the achievement of the Council’s outcomes and not duplicate activities already provided within the local community. The process of making a formal application for transfer is set out in a clear two stage decision making process, stage one being the formal application for transfer, followed by stage two the Cabinet decision. The council will then support successful applicants to develop viable proposals during the implementation and handover stage, whereby a contract will be drawn up between the council and applicant setting 41
Page 42
3. Partnership working and community engagement | 25 Judgements Evidence out support provided by the council (eg, economic development, finance etc) to enable the group to meet its responsibilities. 2. The council has also provided recent examples of Community Asset Transfer requests to show how the policy is being applied in practice. These requests demonstrate transparency against the CAT policy criteria including community benefit, sustainability and the impact on council services. The examples also provide clear evidence that community engagement has influenced decision making regarding the transfer of specific assets. For example: Community Asset Transfer: Brisbine Centre in Largs • In February 2025, Cabinet approved plans for a Community Asset Transfer of the Brisbine Centre in Largs, responding to a community-led initiative and application from Clyde Coast and Cumbraes Men’s Shed to acquire the building from the council. The rationale for the asset transfer is clear, with ownership enabling the Men’s Shed to enhance the facility, support the expansion of its membership and increase opportunities for community engagement, as well as generating wider local benefits such as maintenance undertaken by local businesses, contributing to the local economy and supporting the principles of Community Wealth Building. • Community outcomes such as reduced isolation, improved wellbeing, increased volunteering and local economic benefits are explicitly cited as reasons for approving the transfer and applying a 95 per cent discount to the property valuation under powers to dispose of assets below market value where community benefit is demonstrated. The report states that this reflects the condition of the facility, the organisation’s investment to date, savings made against future upkeep and the potential social return on investment, noting that the group are in a position to fund the requested amount of £3,700. These factors are translated into formal Cabinet recommendations, with the report clearly setting out how the Men’s Shed proposal supports the council’s key priorities with alignment to wellbeing, communities and local democracy, climate change and Community Wealth Building priorities. Community Asset Transfer: Toilet block and land at Ardrossan South Beach 42
Page 43
3. Partnership working and community engagement | 26 Judgements Evidence • A January 2023 Cabinet report seeks approval for a 25- year lease of the toilet block and adjacent land at Ardrossan South Beach to Ardrossan Community Development Trust (ACDT). There is a clear rationale for the Community Asset Transfer which is to enable community led regeneration of Ardrossan South Beach, maximise social value, and support delivery of accessible facilities, economic activity and community wellbeing. In particular, the report states that the CAT will enable ACDT to deliver an agreed programme of regeneration work, supported by secured funding from the National Lottery Communities Fund, Scottish Government Regeneration Capital Grant Fund and North Ayrshire Council. The Community Asset Transfer will also provide a sustainable base for local community activity, including modern beach visitor facilities, an accessible play area, cafe space, beach huts for community and social enterprise use as well as improved public amenities. • The report shows that community engagement has directly influenced decision making, informing the proposed use of the asset and shaping the design and delivery choices. Extensive community consultation was carried out, including a two-day community workshop in February 2020, community engagement days in August and September 2021 attended by almost 200 people, and a community survey of 438 local people in September 2021. The survey results show strong public support for the project, anticipated improvements in wellbeing and accessibility as well as expected economic and social benefits. A social return on investment forecast, informed by stakeholder consultation, concludes that every £1 invested would create £5.68 of social value. These factors are translated into Cabinet recommendations to inform their decision about the transfer. The report also clearly sets out how the proposals within the CAT support North Ayrshire Council Plan priorities as well as the key pillars of Community Wealth Building. 43
Page 44
Best Value thematic work – Asset management North Ayrshire Council How well councils are managing assets to achieve their corporate objectives and respond to challenges around financial sustainability and climate change Audit Scotland, 4th Floor, 102 West Port, Edinburgh EH3 9DN Phone: 0131 625 1500 Email: info@audit.scot www.audit.scot AS.5.0 44
Page 45
PUBLIC INFORMATION PUBLIC INFORMATION NORTH AYRSHIRE COUNCIL 27 August 2026 Audit and Scrutiny Committee Title: 2025/26 Elected Member Requests Report Purpose: To inform the Audit and Scrutiny Committee of the Council's performance relating to Elected Member requests handled in Financial Year 2025/26. Recommendation: That the Committee notes the report and the information provided. 1. Executive Summary 1.1 This report details Elected Member requests information covering the period 1 April 2025 to 31 March 2026 (referred to in the report as 2025/26). 2. Background 2.1 This section contains information and commentary on Elected Member requests handled by the Council during Financial Year 2025/26. Volume of Elected Member requests actioned during the year (including MP/MSP) Volume of requests actioned during year 3,107 Councillor requests can be handled by Services under two stages: Stage One – non-complex requests with a timescale to action of 5 working days Stage Two – complex requests with a timescale to action of 20 working days Agenda Item 4 45
Page 46
PUBLIC INFORMATION PUBLIC INFORMATION 2.2 The table below details all Councillor requests actioned during the year: 2025/26 Total Actioned 2,101 Stage One requests actioned 2,096 Stage One requests actioned on time 1,764 % Stage One requests actioned on time 84% Stage Two requests actioned 5 Stage Two requests actioned on time 5 % Stage Two requests actioned on time 100% Total % of requests actioned on time 84% 2.3 The table below shows a comparison of the volume of Councillor requests received and actioned over the last three years: Councillor Requests 2023/24 2024/25 2025/26 Total Actioned 2,307 2,287 2,101 Stage One requests actioned 2,305 2,284 2,096 Stage One requests actioned on time 2,003 2,010 1,764 % Stage One requests actioned on time 87% 88% 84% Stage Two requests actioned 2 3 5 Stage Two requests actioned on time 2 3 5 % Stage Two requests actioned on time 100% 100% 100% Total % of requests actioned on time 87% 88% 84% 46
Page 47
PUBLIC INFORMATION PUBLIC INFORMATION 2.4 Volume of requests per Directorate 2.4.1 Councillor Stage One requests (5 working day timescale to action) Directorate Department No. of requests actioned No. actioned on time % actioned on time Average no. of days to resolve Stage Ones Target (days) Corporate Services Chief Executive Service 1 1 100% 4 5 Committee Services 2 2 100% 2 5 Customer Services 24 17 71% 6.8 5 Finance 4 4 100% 1 5 Legal Services 9 8 89% 3.1 5 Communities & Housing Community Facilities 4 4 100% 3.2 5 Community Learning & Dev. 7 5 71% 5.6 5 Sports & Activity 11 8 73% 5.5 5 Building Services 79 67 85% 3.5 5 Housing 417 376 90% 3.9 5 Planning 24 22 92% 2.1 5 Protective Services 28 24 86% 3.3 5 Education Education 51 50 98% 2.3 5 Facilities Management 10 7 70% 4.3 5 Place Roads 543 500 92% 2.9 5 Streetscene 323 263 81% 3.5 5 Waste 224 202 90% 2.8 5 Regeneration 15 10 67% 6 5 Energy/Sustainability 2 2 100% 3 5 Property Mgmt & Investment 145 119 82% 4.2 5 Transport 2 2 100% 2 5 Health & Social Care Partnership Children, Families & Justice 6 3 50% 11.8 5 Finance & Transformation 3 3 100% 4 5 Health & Community Care 135 51 38% 8.8 5 Mental Health 19 9 47% 8.4 5 Other (Money Matters etc) 8 5 63% 4.4 5 2,096 1,764 84% 3.8 5 2.4.2 Councillor Stage Two requests (20 working day timescale to action) Directorate Department No. of requests actioned No. actioned on time % actioned on time Average no. of days to resolve Stage Ones Target (days) Communities & Housing Building Services 2 2 100% 3 20 Planning 1 1 100% 7 20 Community Facilities 1 1 100% 15 20 Property Mgmt & Investment 1 1 100% 3 20 5 5 100% 6.2 20 47
Page 48
PUBLIC INFORMATION PUBLIC INFORMATION 2.5 MP/MSP requests 2.5.1 MP and MSP requests have a set timescale of 10 working days to action and the table below details the requests actioned during the period: 2025/26 Requests actioned 1,006 Requests actioned on time 798 % of requests actioned on time 79% 2.6 Elected Member requests analysis 2.6.1 There was an 8% decrease in Councillor requests compared to the previous year. 2.6.2 Whilst there was a 5% decrease in MP and MSP requests being closed on time, there was an uplift of 41% in requests received during the year. 2.6.3 Elected Member requests that did not meet timescale was due to multiple factors, including: • administrative errors • employee/officer availability for reviewing/approving responses prior to issue • reduced resources, causing delays investigating requests • further information required to respond to requests (including from third parties) • operational pressures • in July 2025 the Council replaced EMPro (previously Lagan) with a new CRM system. During Implementation there were some preliminary issues that caused some delays in requests being actioned. 2.7 Recording Councillor requests 2.7.1 The table below shows how Councillor requests were logged throughout the year: Volume % Volume of Councillor requests recorded 2,101 Volume logged by Councillors 1,116 53% Volume logged via other channels (Member Services, the Services directly, the Contact Centre etc.) 985 47% 2.7.2 Of the 2,101 requests logged by Councillors during the period, 16 Councillors used their NAC online Member accounts to log requests themselves. 48
Page 49
PUBLIC INFORMATION PUBLIC INFORMATION 2.8 Follow up actions for Councillor requests 2.8.1 At a previous Audit and Scrutiny Committee it was noted that that some Councillor requests that required follow up actions were being closed with no further updates being provided, causing difficulties for Councillors relaying closure information to constituents. 2.8.2 To address this, additional questions were added to the Elected Member request form (from 1 October 2024) allowing services to record if a request had outstanding/follow up actions, what these were and when they would be completed by. 2.8.3 The number of Councillor requests in 2025/26 that had follow up actions was 55. 17 of these were scheduled to be completed in the 2026/27 financial year and the remaining 38 were all completed in the 2025/26 financial year. 3. Proposals 3.1 It is proposed the Committee approves the report and recognises the Council’s performance in handling Elected Member requests in relation to Section 2 above. 4. Implications/Socio-economic Duty Financial 4.1 None. Human Resources 4.2 None. Legal 4.3 None. Equality/Socio-economic 4.4 None. Climate Change and Carbon 4.5 None. Key Priorities 4.6 None. Community Wealth Building 4.7 None. Islands Communities Impact Assessment (ICIA) 4.8 None. 49
Page 50
PUBLIC INFORMATION PUBLIC INFORMATION United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None. 5. Consultation 5.1 None. Aileen Craig Head of Service for Democratic Services For further information please contact Darren Miller, Complaint Manager, on (01294) 322988. Background Papers None 50
Page 51
NORTH AYRSHIRE COUNCIL 27 August 2026 Audit and Scrutiny Committee Title: 2025/26 Complaint Report Purpose: To inform the Audit and Scrutiny Committee of the Council's complaint performance and volumes and trends of complaints received in Financial Year 2025/26. Recommendation: That the Committee notes the report and the information provided. 1. Executive Summary 1.1 This report details complaint information relating to North Ayrshire Council during Financial Year 2025/26, covering the period 1 April 2025 to 31 March 2026. 1.2 To allow comparisons to be made the report also details some complaint data relating to previous years. 1.3 Performance is measured through several Scottish Public Services Ombudsman (SPSO) performance indicators, some of which have national targets. 2. Background 2.1 This section contains statistical information and commentary on key complaint performance indicators. More information relating to the indicators can be found in the attached report. 2.2 Volume of complaints received Year Volume of complaints 2022/23 2,576 2023/24 1,948 2024/25 2,039 2025/26 2,066 2.2.1 A slight increase in complaints received when compared to 2024/25 but a sizeable 20% drop when compared with 2022. Agenda Item 5 51
Page 52
2.3 Complaints closed within timescale in 2025/26 Stage % closed on time Target Stage One 93% 80% and above Stage Two 92% 85% and above 2.3.1 The volume closed on time includes extended complaints that met their new due dates. 2.3.2 Further details of complaints not closed on time are contained in the attached report. 2.3.3 For comparison purposes, the table below shows the percentage of complaints closed on time at both stages over the last three years: Year Stage One % closed on time Stage Two % closed on time 2023/24 87% 88% 2024/25 92% 93% 2025/26 93% 92% 2.4 Complaint outcomes for closed complaints in 2025/26 Stage One Outcome % closed as Resolved* 39% % closed as Upheld 35% % closed as Partially Upheld 10% % closed as Not Upheld 16% Stage Two Outcome % closed as Resolved* 9% % closed as Upheld 11% % closed as Partially Upheld 36% % closed as Not Upheld 44% 2.4.1 *Resolved complaints are where the Council has taken action to address a problem or issue without deciding whether there were any failings (this would happen where we agree a solution with the complainant at the outset without needing to investigate the complaint). 2.4.2 Complaint outcome analysis can be found in the attached report. 2.5 Average time in working days for a full response at each Stage Stage One Average number of working days to close Target 2023/24 3.8 5 workings days or less 2024/25 3.3 5 workings days or less 2025/26 2.9 5 workings days or less 52
Page 53
Stage Two Average number of days to close Target 2023/24 16.8 20 working days or less 2024/25 15.5 20 working days or less 2025/26 16.4 20 working days or less 2.5.1 The average number of days to close Stage One and Stage Two complaints is better than the national targets. 2.6 Changes or Improvements made as a result of complaints 2.6.1 Services cannot always implement improvements because of complaints due to several factors, including the feasibility of making changes and resource/budget considerations. That said, improvements were made in some Services and a selection are noted in the attached report. 2.7 Compliments 2.7.1 The Council received and recorded many compliments during the year. Some praised specific individuals or teams, some related to more than one Service and some were raised by employees complimenting other employees. A selection can be found in the attached report. 3. Proposals 3.1 It is proposed the Committee notes the report and recognises the Council’s complaint handling performance in relation to Section 2 above. 4. Implications/Socio-economic Duty Financial 4.1 None. Human Resources 4.2 None. Legal 4.3 None. Equality/Socio-economic 4.4 None. Climate Change and Carbon 4.5 None. 53
Page 54
Key Priorities 4.6 The Two Stage Complaint Handling Procedure supports the Council's key priority of delivering more effective and efficient service provision. It demonstrates commitment by identifying trends and focussing on service improvements whenever possible for North Ayrshire residents, customers and visitors. Community Wealth Building 4.7 None. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 If a young person under the age of 18 makes a complaint, or an adult makes a complaint on behalf of a young person or about an issue that affects them, we will use an enhanced child-friendly complaints process. This process ensures the young person's views are heard and considered and follows the SPSO Child Friendly Complaints Handling Principles and Child Friendly Complaints Handling Process Guidance. Consumer Duty 4.10 None. 5. Consultation 5.1 None. Aileen Craig Head of Service for Democratic Services For further information please contact Darren Miller, Complaint Manager, on (01294) 322988. Background Papers North Ayrshire Council 2025/26 Complaint Report 54
Page 55
1 PUBLIC INFORMATION North Ayrshire Council Annual Complaint Report 2025 to 2026 55
Page 56
2 PUBLIC INFORMATION Introduction 3 1 Volume of complaints closed 4 2 Volume of complaints closed on time at both Stages 6 3 Volume of complaints not closed on time per Directorate 6 4 Key complaint topics 9 5 Average time in working days for a full response 10 6 Extended complaints 11 7 Complaint Outcomes 12 8 Improvements made from complaints 14 9 Compliments 15 10 SPSO complaint referrals 16 11 Glossary 18 56
Page 57
3 PUBLIC INFORMATION Introduction North Ayrshire Council always seeks to deliver the best services possible to its tenants, residents and customers but it is recognised that dissatisfaction will sometimes occur. When it does, we want to know what went wrong, why it went wrong and what we can do to make things right. The Council recognises that valuable lessons can be learned from complaints which are defined as being expressions of dissatisfaction from members of the public about actions, or lack of actions, or about the standard of service provided by or on behalf of the Council. The Council’s complaint handling procedure (CHP) has two stages for handling complaints from the public. Stage One complaints (also known as Frontline Resolution) are straightforward, non-complex complaints the Council can resolve at the initial point of contact or as close to the point of service delivery as possible. The Council has up to 5 working days to resolve these. Stage Two complaints (also known as Investigations) are complaints the Council is typically unable to resolve at Stage One and needs more time to carry out further investigation. This may be because the nature of the complaint is complex, serious or high risk. The Council has up to 20 working days to resolve these. This report details the Council’s complaint handling performance covering financial year 2025 to 2026 (1 April 2025 to 31 March 2026). Performance is measured via several Scottish Public Services Ombudsman indicators (some of which have national targets) and complaint data relating to previous years has been included in certain sections to allow comparisons to be made. Reporting complaints is a statutory requirement and is monitored by Audit Scotland. This report will meet accessibility requirements when published. 57
Page 58
4 PUBLIC INFORMATION 1 Volume of complaints closed The Council received 2,066 complaints during the year and closed 2,067. The table below provides a breakdown of the closed complaints per Directorate: Directorate Volume Communities & Housing 417 Corporate Services 155 Education 216 Health & Social Care 312 Place 959 Multi-Service 8 The following tables highlight complaint volumes per Directorate under each Stage: Corporate Services Team Stage One Stage Two Chief Executive Service 1 0 Customer Services 124 12 Finance 7 1 IT 2 0 Legal Services 6 2 Total 140 15 Communities & Housing Team Stage One Stage Two Building Services 190 17 Community Facilities 9 0 Community Learning and Development 3 0 Housing 131 31 Information & Culture 2 0 Planning 4 5 Protective Services 17 5 Sports and Activity 3 0 Total 359 58 Education Team Stage One Stage Two Education (HQ) 9 12 Education (Schools) 110 70 Facilities Management 15 0 Total 134 82 58
Page 59
5 PUBLIC INFORMATION Health & Social Care Team Stage One Stage Two Children, Families & Justice 39 36 Finance & Transformation 17 2 Health & Community Care 138 45 Mental Health 12 13 Support Services 8 2 Total 214 98 Place Team Stage One Stage Two Property Management & Investments 95 16 Regeneration 2 0 Roads 87 13 Streetscene 55 2 Sustainability 3 0 Transport 5 0 Waste Services 680 1 Total 927 32 Multi-Service Team Stage One Stage Two Complaints involving more than one Service 2 6 Total 2 6 Although there is no target for the volume of complaints handled under each Stage, the Council seeks to maximise closure at Stage One wherever possible and 86% were handled at this stage during the period. Some Services handled all their complaints at Stage One. Some Services that received high complaint volumes handled few of them at Stage Two, notably Customer Services, Building Services, Property Management & Investments, Roads, Streetscene and Waste Services. This will be due to the straightforward nature of the complaints received. Regarding Waste Services complaints, the Waste Operations team has an improvement plan in place and monitors and reviews all complaints received to identify issues and take appropriate action with them. In the last three years, complaints in respect of Waste Operations have reduced from 1,371 in 2022/23 to 680 in 2025/26. This equates to a 50% reduction in complaints over the three-year period. Year on Year comparison The table below shows a comparison of the volume of complaints received over the last four years: 59
Page 60
6 PUBLIC INFORMATION Year Volume of complaints 2022/23 2,576 2023/24 1,948 2024/25 2,039 2025/26 2,066 Whilst there has been a slight increase in complaints received when comparing 2025 with 2024, it is still a 20% drop when comparing 2024 with 2022. The sustained lower volume could be partly attributable to the complaint page on the Council’s website being enhanced in 2023, which now includes more information on what the Council does not consider a complaint and offers appropriate routes to raise such matters. 2 Volume of complaints closed on time at both Stages Stage Percentage closed on time Target Stage One 93% 80% and above Stage Two 92% 85% and above The volume closed on time includes complaints that had their timescales extended and met the new due dates. To allow comparisons to be made, the table below shows the percentage of complaints closed on time at both stages over the last three years: Year Stage One % closed on time Stage Two % closed on time 2023/24 87% 88% 2024/25 92% 93% 2025/26 93% 92% 3 Volume of complaints not closed on time per Directorate This section provides details of complaints not closed on time under each Stage and includes extended complaints that did not meet their new timescales. Stage One 123 complaints did not meet timescale during the year and the volumes are noted below. Corporate Services Department Volume Customer Services 6 Finance 1 Legal Services 1 60
Page 61
7 PUBLIC INFORMATION Communities & Housing Education Department Volume Education (HQ) 1 Education (Schools) 9 Facilities Management 3 Health & Social Care Department Volume Children & Families 3 Finance & Transformation 2 Health & Community Care 16 Mental Health 1 Support Services 1 Place Department Volume Property Management 18 Roads 5 Streetscene 5 Sustainability 1 Transport 2 Waste Services 6 Multiple reasons were noted as to why the above complaints did not meet timescale, including administrative errors, information awaited to conclude complaints, employee availability, resourcing issues and operational pressures. Of the 123 Stage One complaints that did not meet timescale, 18 had their timescales extended the additional five working days however none met the new due dates so these complaints could have been escalated and handled as Stage Twos. In relation to the 105 complaints that did not have their timescales extended, 73% would have been closed within the five additional working days had extensions been applied. Stage Two 22 complaints did not meet timescale during the year and the volumes are noted below. Department Volume Building Services 11 Community Facilities 3 Community Learning & Dev 1 Housing 22 Planning 2 Protective Services 3 61
Page 62
8 PUBLIC INFORMATION Communities & Housing Department Volume Building Services 3 Housing 6 Protective Services 3 Education Department Volume Education (Schools) 2 Health & Social Care Department Volume Children & Families 2 Health & Community Care 2 Mental Health 3 Place Department Volume Roads 1 Reasons noted as to why the above complaints did not meet timescale are similar to those that did not meet timescale at Stage One. 62
Page 63
9 PUBLIC INFORMATION 4 Key complaint topics Key topics for upheld and partially upheld complaints for Services are listed below. Services will not be listed where there were low complaint volumes that did not allow meaningful analysis. Corporate Services Service Key complaint topic Customer Services Incorrect information provided Customer Services Employee Actions (alleged or perceived) Communities & Housing Service Key complaint topic Building Services Quality issues (work incomplete or poor workmanship) Building Services Employee Actions (alleged or perceived) Education Service Key complaint topic Education (schools) Sensitive issues relating to teachers and/or pupils Education (schools) Service delivery Education (schools)) Employee Actions (alleged or perceived) Health & Social Care Service Key complaint topic All HSCP Services Service delivery All HSCP Services Employee Actions (alleged or perceived) Place Service Key complaint topic Property Management & Investment Gas Central Heating (contractors, maintenance etc.) Streetscene Tree/grass/verge/hedge cutting issues Waste Services Missed waste bin/assisted collections (all colours) Waste Services Employee Actions (alleged or perceived) Employee Actions (alleged or perceived) appears as a key topic for some Services but the definition is broad and has been used where complainants allege or believe employee actions and/or behaviour to be unacceptable. Whilst investigations may determine this is not always the case, if unacceptable behaviour is identified appropriate action will have been taken by services to address. 63
Page 64
10 PUBLIC INFORMATION 5 Average time in working days for a full response The average time in working days to close complaints under both Stages during the year is noted below. Values for previous years have been included to allow comparisons to be made. Any complaints that had their timescales extended have been excluded from the calculations. Stage One Average number of working days to close Target 2023 3.8 5 workings days or less 2024 3.3 5 workings days or less 2025 2.9 5 workings days or less Stage Two Average number of days to close Target 2023 16.8 20 working days or less 2024 15.5 20 working days or less 2025 16.4 20 working days or less The average number of days to close Stage One and Stage Two complaints is better than the national targets. The tables below detail Services that did not meet the average time in working days for a response under either Stage. Services that met the target are not listed and any complaints that had their timescales extended have been excluded from the calculations. Communities & Housing Stage One Average number of working days to close Target Community Learning & Development 7 5 workings days or less Protective Services 6.4 5 workings days or less One CL&D complaint was closed on working day 13 which resulted in the average days target being breached. No reason was given as to what caused the delay. One Protective Services complaint was closed on working day 43 because the complaint was inadvertently overlooked and the complainant was not engaging with the service regarding the complaint. Stage Two Average number of working days to close Target Protective Services 29.6 20 workings days or less Three Protective Services complaints were closed at 30, 33 and 50 working days, resulting in the average days target being breached. Various reasons were noted as to why the due dates were not met and at least one of the complaints could have had its due date extended. 64
Page 65
11 PUBLIC INFORMATION Place Stage One Average number of working days to close Target Sustainability 10.5 5 workings days or less Transport 7.4 5 workings days or less One Sustainability complaint was closed on working day 20, resulting in the average days target being breached. The delay was due to a processing issue and the complaint being sent to an incorrect service initially. Two Transport complaints were closed on working days 16 and 17, resulting in the average target days not being met. Given the circumstances, both complaints could have been escalated and handled at Stage Two. Health & Social Care Stage Two Average number of working days to close Target Mental Health 26 20 workings days or less Three Mental Health complaints were closed at 31, 51 and 59 working days, resulting in the average days target being breached. Various reasons were noted as to why the due dates were not met and all of them could have had their due dates extended given the circumstances. 6 Extended complaints 159 complaints had their timescales extended during the year (112 at Stage One and 47 at Stage Two). The complaints related to various Services across all Directorates. There were various reasons for extending, including complainants, third parties and employees being unavailable to assist or support with investigations and/or response letter approvals, obtaining additional information to support investigations and resourcing/operational issues. Of the 159 complaints that had their timescales extended, 89% were closed within their new target due dates. 65
Page 66
12 PUBLIC INFORMATION 7 Complaint Outcomes The Council has four categories of complaint outcomes. • Resolved complaints are complaints where the Council has taken action to address a problem/issue without needing to decide if there were any failings. • Upheld complaints are complaints where something has gone wrong/not happened and the Council needs to take steps to address. • Partially Upheld complaints are complaints that have multiple complaint elements, some of which are upheld, the rest not. • Not Upheld complaints are complaints that have not been upheld for the following reasons: • they related to internal or external policies • they related to external regulations • upon investigation they were proven to be unfounded/unsubstantiated The tables below detail the number of complaints upheld, partially upheld, not upheld or resolved under both Stages. Stage One Outcome Percentage Closed as Resolved 39% Closed as Upheld 35% Closed as Partially Upheld 10% Closed as Not Upheld 16% Of the 807 complaints that were upheld and partially upheld at Stage One, the three services that had the highest volume were Waste Services with 45%, Building Services with 13% and Education (HQ and schools) with 9%. 33% of all Resolved complaints related to Waste Services (mainly missed bin collections), indicating those complainants simply wanted their bins collected without any need for investigation. The other complaints closed as Resolved related to various services across all Directorates. Complaints that were not upheld related to internal/external policies, regulations and complaints that were found to be unfounded. Stage Two Outcome Percentage Closed as Resolved 9% Closed as Upheld 11% Closed as Partially Upheld 36% Closed as Not Upheld 44% 66
Page 67
13 PUBLIC INFORMATION Stage Two complaints that were upheld or partially upheld related to various services across all Directorates. The reasons for Stage Two complaints being closed as not upheld are the same as those for Stage One. The tables below detail the outcomes at each stage covering the last three years: Stage One complaints Year Resolved Upheld Partially Upheld Not Upheld 2023/24 39% 32% 12% 17% 2024/25 47% 21% 11% 21% 2025/26 39% 35% 10% 16% Stage Two complaints Year Resolved Upheld Partially Upheld Not Upheld 2023/24 4% 13% 39% 44% 2024/25 10% 9% 26% 53% 2025/26 9% 11% 36% 44% 67
Page 68
14 PUBLIC INFORMATION 8 Improvements made from complaints Council Services continually seek to identify improvements in service delivery and complaint information is analysed regularly to inform service improvements. Some improvements were implemented as a result of complaints received during the year and a selection is noted below. What happened What we did A complaint was received regarding a parent’s concerns over the safeguarding of their child while attending school. The matter was investigated and a parental meeting held with the Head Teacher and others to discuss all concerns raised. The parent was happy with the actions agreed and the pupil was taken through all safeguarding procedures. Key Adults, safe places and various supports throughout the pupil’s timetable were shared with a summary card of support actions to be completed by the pupil. The pupil accepted the card and agreed it would be helpful. A complaint was received that a window cleaner working on behalf of the Council asked a tenant in a sheltered housing complex if they could gain access to the inside of the complex via the tenant’s property to clean the windows. It was determined it was a window cleaner from a contracted company and the contract only covers the outside of the windows plus communal areas. The Council now receive a list of dates in advance from the company, stating when they will be carrying out cleaning in each housing complex. We also now have a system in place that they can gain access to the front door (public areas only) of housing complexes without having to call any flats or houses. A resident set up a mygov.scot account but was unable to link two properties to the Council Tax system. The issue was investigated and it was discovered there was a problem within the system that prohibited more than one property being added. This was fixed and the resident was thanked for bringing this matter to our attention. A resident complained that rats were causing damage to their garden and the nest was on unattended waste ground between the resident’s property and a Council property boundary. The relevant services attended the area to ensure access could be gained to clear it and the Council is now reviewing its land ownership plans to make sure maintenance responsibilities are established going forward. 68
Page 69
15 PUBLIC INFORMATION 9 Compliments Over 300 compliments were recorded cross-Council during the year. Whilst they cannot all be highlighted in this report, a selection is noted below (any employee names that were provided have been redacted). • “I would like to thank the plumber that attended my property today. He provided a fantastic service. My husband is restricted in movement and he even came into the room to speak to him. Such a lovely young man” • “I would like to thank X from the Council Tax department. She was excellent at her job, very helpful and very kind. She dealt with my query immediately and went above and beyond for me. You have a great employee there” • “Big thank you to X and Y at Largs Library today who made me feel so welcome and went over and above to provide excellent customer service. Both show that they care about people that visit the library and give a great service to the community” • Caller wanted to thank the team that dealt with an abandoned car. It was handled very quickly and a fantastic service was given. Praise was also given to X in the Contact Centre that took the original call. • “My dad has recently been admitted to long term care. Before he was admitted we were really pleased with the fantastic services we received from Care at Home, Dementia Support, Stevenson Day Care and Anam Cara respite unit. These services all helped us to look after dad and keep him at home for as long as possible. Support from the social worker to transition to long term care was also exceptional. We are very grateful to everyone.” • “A huge thank you to North Ayrshire Council for the improvements made outside Beith Primary School. The pavement is kept very clean and there’s a new bin and a sign to remind people to pick up after their dog. It had been a problem for a while but is now so much better. Thank you.” • “Would just like to say how amazing it was going to Bartonholm Recycle Centre today via the booking system. So easy to do, no waiting to enter, straight in to be greeted by 2 lovely gentleman who directed me to skips. Once I moved round I was met by a young guy who was also friendly and helpful.” • “Can you please pass on my thanks to X in the Roads department for assisting in carrying out pavement repairs near my home. I am delighted. Thanks.” • “This is for the Refugee Housing Team in North Ayrshire Council. They are doing the best job for all of us who are looking for homes here in Scotland. Really thankful for the help and support. The best people and the best team ever. Thank you so much” • “To Streetscene - really happy with the grass cutting at the High Road in Saltcoats - the place looks so nice and so tidy. Look superb” 69
Page 70
16 PUBLIC INFORMATION 10 SPSO complaint referrals The Scottish Public Services Ombudsman (SPSO) is the final stage for complaints about Local Authorities in Scotland. The SPSO has published its 2025/26 referral statistics and the table below details the volume of complaints relating to North Ayrshire Council that were referred to the SPSO during the year: Type of complaint Volume Building Control 0 Consumer Protection 0 Economic Development 0 Education 6 Environmental Health and Cleansing 1 Finance 6 Fire & Police Boards 0 Housing 17 Land and Property -0 Legal and Admin 3 Local Authority 0 Other 0 Personnel 0 Planning 1 Recreation and Leisure 0 Roads and Transport 6 Social Work 4 Subject unknown or Out of Jurisdiction 5 Valuation Joint Boards 0 Welfare Fund - Community Care Grants 1 Welfare Fund - Crisis Grants 0 Total 50 • The SPSO received 2,143 complaints about Scottish Local Authorities during 2025/26 and 2.3% related to North Ayrshire Council. This referral rate is consistent with previous years (typically between 2% to 3%). • The highest number of referrals made to the SPSO about the Council related to Housing but this was not unexpected given 31% of all Local Authority referrals made to the SPSO during the year related to housing or housing services. The outcomes of the North Ayrshire Council complaints referred to the SPSO are noted below. Stage Outcome Volume Advice/Assessment Complaint submission - mature 2 Complaint submission - premature 7 Enquiries 12 70
Page 71
17 PUBLIC INFORMATION Early Resolution Discretion – Good complaint handling 6 Discretion – Insufficient benefit would be achieved by investigation 1 Preliminary Investigation Discretion – Good complaint handling 10 Discretion – Insufficient benefit would be achieved by investigation 6 Discretion – Referred back 1 Subject matter not in jurisdiction 4 Time limit 1 Investigation Fully upheld 0 Not duly made or withdrawn 0 Not upheld 0 Partially upheld 0 • All referrals made by North Ayrshire complainants were resolved by the SPSO at their advice, early resolution or preliminary investigation stages. No complaints were taken to investigation. • Most complaint referrals handled at early resolution and preliminary investigation were discretionary and it is pleasing to note many were considered ‘good complaint handling’ complaints, meaning the SPSO was satisfied with the way the Council handled them. More details regarding complaint referrals for North Ayrshire Council can be found on the SPSO website at Our findings | SPSO. 71
Page 72
18 PUBLIC INFORMATION 11 Glossary Terms & Explanations Stage One Stage One (also known as Frontline Resolution) complaints are complaints that are straightforward to address and require little or no investigation. Any employee may deal with complaints at this stage and they can be concluded via any channel. The main principle is to seek resolution at the earliest opportunity and as close to the point of service delivery as possible. Stage One complaints must be responded to within five working days unless an extension (a maximum of five additional working days) is requested and approved by a senior manager or above. The Council should, however, always aim to conclude these types of complaints within five working days. Stage Two Not all complaints are suitable for Stage One and not all complaints will be satisfactorily concluded at that stage. Complaints therefore handled at Stage Two (also known as Investigations) typically require a detailed examination before the Council can state its position. These complaints may already have been considered at Stage One, or they may have been identified from the outset as being complex, serious or high risk and needing immediate investigation. Stage Two complaints must be responded to within 20 working days unless an extension is approved by senior manager in conjunction with the customer. Stage Two complaints require a written response, signed by a senior manager or above. Complaint criteria When an expression of dissatisfaction is received the Council determines if the issue falls into one (or more) six complaint categories: • A service the Council should be providing is not being provided or is not available • A request for a service was provided but not to an appropriate standard • A request for service has not been answered or actioned within the agreed timescale • A Council employee was rude, unhelpful or unprofessional • A Council employee did not attend an appointment or call-out on a date/time agreed • The complaint relates to an internal or external policy (but only where the complaint relates specifically to the way the matter was administered) If the issue being raised relates to one or more of the above, the matter is considered a complaint and will be recorded and handled as such. If not, it is deemed to be something else and will be actioned under the relevant process. 72
Page 73
NORTH AYRSHIRE COUNCIL 27 August 2026 Audit and Scrutiny Committee Title: Elected Member Development Purpose: To provide information and seek views on the development sessions provided to Elected Members over the 12 months from September 2025 to August 2026, and on future planned development sessions. Recommendation: That the Committee notes the report and provides feedback (a) on the Elected Member Development sessions held in the period September 2025 to August 2026 (b) on means to support Elected Member attendance (c) on how future programmes might be improved (d) the future development sessions scheduled to date and (e) to suggest additional topics for the next year. 1. Executive Summary 1.1 This report provides information on development support provided to Elected Members during the period September 2025 - August 2026, on attendance rates, feedback from current activities and on future planned development. 2. Background 2.1 An annual report is provided to Audit & Scrutiny which details the Council's learning events programme for Elected Members and individual Elected Member attendance figures. This report provides information for the period September 2025 until August 2026 inclusive. 2.2 The Audit Commission report on “Roles and Working Relationships - Are you still getting it right?” emphasised that Councillors need the skills and tools to carry out their role. This includes training in relation to both Council and ALEO responsibilities, as well as scrutiny, audit and financial decision making. Finally, it noted that training and development should be an ongoing process, not a one-off induction. 2.3 North Ayrshire Council has continued to offer a full training programme for Members in addition to e-learning and the opportunity to attend Improvement Service events and webinars. The number of internal development sessions from September 25 – August 26 was 14 sessions. Agenda Item 6 73
Page 74
2.4 Appendix 1 contains details of the internal development that has taken place between Sep 25 and Aug 26. Individual Member attendance from Sep 2025 to Aug 2026 varied between attendance at 13 sessions to attendance at none. 2.5 Elected members also have access to e-learning modules on the iLearn system. Take up of this learning is low although one Councillor has completed four courses from Sep 2025 to Aug 2026. 2.6 Overall there were 137 separate Member attendances at development sessions between Sep 25 and Aug 26. These figures include those aimed at specific committee members (i.e. Appeals). 2.7 The Council offers Members an annual 1-2-1 Personal Development Plan (PDP) discussion to discuss their development needs. Whilst take up for this is historically low, any requests from Members have been actioned. For example, the Planning Awareness session was previously limited to Planning Committee Members only. This has now been opened up to all Members after a Member request. 2.8 Council previously agreed that all Members who sit on the Appeals Committee should receive training before they sit on the Committee. An externally facilitated session was held in May 2026 for three new panel Members, but open to any of the existing panel. Two Members were in attendance. 2.9 Members can provide feedback by electronic means on sessions attended. For the period Sep 25 – Aug 26 the feedback response rate was 20%. The sessions are rated 1-5 by respondents on content, presentation, friendliness of tutor, relevance and overall service provided. The feedback is primarily positive with only four ratings of 3 or less and everything else a 4 or 5. Generally training is well received with Members confirming that for the majority of sessions their skills/knowledge has increased by attending the training. A breakdown of the 28 evaluations received for all sessions for this 12 month period is included in Appendix 2. 2.10 In addition to provision offered by the Council, there is learning available from the Improvement Service (IS) in the form of Briefing notes, masterclasses, newsletters and more recently webinars. Our own intranet Connects site also hosts information, such as the slides from learning events. 2.11 We are currently at the early stages of planning for the 2027 Elected Member Induction Programme. In June 2026, a survey was issued to Elected Members to gather feedback on the effectiveness of the 2022 Induction Programme in preparing them for their role, and to seek views and suggestions on the development of the 2027 programme. Five responses were received. The feedback provided will be taken into account in the design and delivery of the 2027 Induction Programme. 2.12 Members and Officers are consulted on future training topics and any views from the Committee are also welcome. The Elected Member Learning and Development Event Schedule for the latter half of 2026 is still in development and will be published in due course. A draft copy of the sessions already planned is included in Appendix 3. 2.13 In conclusion, the Council continues to offer an extensive development programme for Members. While attendance levels vary from one session to another and between individual councillors, on average Members attend a significant volume of 74
Page 75
development, particularly when on-line and external events are included. Nevertheless, it is important that the Committee has the opportunity to review the current development arrangements and suggest improvements. 3. Proposals 3.1 The Committee is recommended to note the report and to provide feedback a) on the Member Development sessions held in the period September 2025 to August 2026, b) on means to support Member attendance c) on how future programmes might be improved d) the future development sessions scheduled to date and e) to suggest additional topics for the next year. 4. Implications/Socio-economic Duty Financial 4.1 Investment in development produces more informed decisions and better outcomes. As this supports good governance and better decision making, Elected Member development continues to be an area of focus in terms of Best Value activity. Human Resources 4.2 Effective development is key to keeping North Ayrshire Council as a high performing Council. Legal 4.3 Effective development is a key component of good governance, leading to better decisions. Equality/Socio-economic 4.4 Effective equalities training is essential for Members. Training in equalities assists Members to develop policy and inform decision making processes whilst ensuring that appropriate equalities impacts are taken into account. Climate Change and Carbon 4.5 None. Key Priorities 4.6 Sharing of information and knowledge through briefings and development sessions with Elected Members supports the delivery of all priorities outlined in the Council Plan. Community Wealth Building 4.7 There are no direct community wealth building impacts although trained and skilled Members will be better placed to support their communities. A session on the Community Wealth Building refresh is planned for next year. 75
Page 76
Islands Communities Impact Assessment (ICIA) 4.8 There are no direct island communities impacts although trained and skilled Members will be better placed to support their island communities. A session on the Islands Programme & National Islands Plan is planned for September. United Nations Rights of the Child (UNCRC) 4.9 There are no direct impacts on UNCRC although there is an e-learning module on iLearn available to Elected Members. Consumer Duty 4.10 None. 5. Consultation 5.1 The Learning and Organisational development team have been involved in the preparation of this report. All sessions have been evaluated Aileen Craig Head of Democratic Services For further information please contact Paul Houston, Learning and Organisational Development Adviser, by email on phouston@north-ayrshire.gov.uk. Background Papers None 76
Page 77
Appendix 1 - Learning & Development Attendance Sep 25 - Aug 26 Community Justice Parental Employment Connected for Change Supporting Children with Additional Needs Community and Locality Planning Code of Conduct Cyber Security Update Planning Considering Statutory Impact Duties Councillor Duties on Outside Bodies Using MyNAC Appeals Panel Cyber Security Update Disclosure Scotland and PVG Alan Hill Y Y Y Y Y 5 Amanda Kerr 0 Angela Stephen 0 Anthea Dickson Y Y Y Y Y Y Y Y Y Y 10 Anthony Gurney Y Y Y Y Y Y 6 Cameron Inglis Y Y Y Y Y Y Y Y 8 Charles Currie Y Y Y Y Y 5 Chloe Robertson Y Y 2 Christina Larsen Y Y Y Y Y Y Y Y Y 9 Davina McTiernan Y Y Y Y Y Y Y Y Y Y 10 Donald L Reid Y Y Y Y Y Y Y Y Y Y Y Y Y 13 Donald Reid Y Y Y Y Y Y Y Y Y Y Y 11 Eleanor Collier Y Y Y Y Y Y Y 7 Ian Murdoch Y Y Y Y Y 5 Jean McClung Y 1 Jim Montgomerie 0 Joe Cullinane 0 John Bell Y Y Y Y Y Y Y Y 8 John Sweeney Y Y Y Y Y Y Y Y Y Y 10 Louise McLaughlan 0 Margaret Johnson Y Y Y Y Y Y Y Y Y Y Y 11 Marie Burns Y Y Y 3 Mary Hume Y Y Y Y Y Y Y Y Y Y 10 Matthew McLean 0 Nairn - AngusMcDonald 0 Robert Foster 0 Ronnie Stalker 0 Scott Davidson Y 1 Scott Gallacher 0 Shaun Macaulay 0 Stewart Ferguson Y Y 2 Todd Ferguson 0 Tom Marshall 0 Totals 9 9 10 9 11 12 10 14 12 12 7 2 10 10 137 77
Page 78
Appendix 2 – Evaluation Feedback from Sep 2025 – Aug 2026 Development Session Content Presentation Tutor Relevance Overall Has the session increased your knowledge and/or skills? 6 Oct 2025 - Community Justice - Working Together 4 4 4 4 4 Yes 6 Oct 2025 - Community Justice - Working Together 5 5 5 5 5 Yes 22 Oct 2025 - Parental Employment Support 4 4 5 4 4 No 22 Oct 2025 - Parental Employment Support 5 4 5 5 5 Yes 22 Oct 2025 - Parental Employment Support 5 5 5 5 5 Yes 30 Oct 2025 - Connected For Change 4 4 5 4 4 Yes 30 Oct 2025 - Connected For Change 5 5 5 5 Yes 6 Nov 2025 - Supporting Children With Additional Needs 5 5 5 5 5 Yes 6 Nov 2025 - Supporting Children With Additional Needs 5 5 5 5 Yes 10 Nov 2025 - Community and Locality Planning 5 5 5 2 3 No 10 Nov 2025 - Community and Locality Planning 5 5 5 5 Yes 12 Nov 2025 - Code of Conduct 5 5 5 5 Yes 19 Nov 2025 - Cyber Security Update 4 4 4 4 4 Yes 19 Nov 2025 - Cyber Security Update 5 5 5 5 5 Yes 19 Nov 2025 - Cyber Security Update 5 5 5 5 5 Yes 8 Dec 2025 - Planning Awareness Update 5 5 5 5 5 Yes 8 Dec 2025 - Planning Awareness Update 5 5 5 5 5 Yes 8 Dec 2025 - Planning Awareness Update 4 4 4 4 4 Yes 10 Dec 2025 - Considering Statutory Impact Duties 4 4 4 4 4 Yes 10 Dec 2025 - Considering Statutory Impact Duties 5 5 5 5 5 Yes 26 Jan 2026 - Councillor Duties on Outside Bodies 5 5 5 3 4 No 26 Jan 2026 - Councillor Duties on Outside Bodies 5 5 5 5 5 Yes 27 Apr 2026 - Using MyNAC to Log Constituent Requests 3 4 4 2 3 No 27 Apr 2026 - Using MyNAC to Log Constituent Requests 5 5 5 5 5 Yes 27 Apr 2026 - Using MyNAC to Log Constituent Requests 4 4 4 5 4 Yes 27 May 2026 - Cyber Security Update 5 5 5 5 5 Yes 27 May 2026 - Cyber Security Update 4 4 4 4 4 Yes 22 Jun 2026 - Disclosure Scotland and the PVG Scheme 5 5 5 5 5 Yes Note The scale runs from 1 (Dissatisfied) to 5 (Satisfied) on all of these ratings, with the exception being Overall which is presented as 1 (Dissatisfied) to 5 (Delighted). 78
Page 79
Appendix 3 – Elected Member Development Schedule Sep – Dec 2026 (DRAFT) Date Topic Delivered by Lead Comments TBC Roads Update Graeme Robin (Asset and Strategy Manager, Roads), Stewart Walker (Network and Operations Manager, Roads) Thomas Reaney (Head of Service, Neighbourhood Services) TBC 9 Sep 2026 3pm – 4pm Islands Programme & National Islands Plan – Progress and Next Steps Sarah Baird (Senior Officer, Islands) Louise Kirk (Director, Regional Economy) This session will update Elected Members on the North Ayrshire Islands Programme and the new National Islands Plan, including progress to date, key developments and the proposed next steps to progress delivery and maximise impact for our island communities. 15 Sep 2026 10am - 11am Supporting Needs: The Placement Process Lindsay Morris (Executive Manager), Xanthe Wylie (Principal Psychologist), Angela Merrylees- Stalker (Quality Improvement Officer) Andrew McLelland (Head of Service, Education) Many children have their needs well supported by their local mainstream school. In some cases, an alternative placement is considered. This session will take members through our process for ensuring appropriate placement in specialist provision, from identifying needs, to making a referral to the Inclusion Group and beyond. We will cover the range of universal supports available in our establishments as well as targeted and specialist provision. We will also outline the appeals process. 79
Page 80
Date Topic Delivered by Lead Comments 5 Oct 2026 (2pm – 3pm) Community Grants and Funding Jacqueline Greenlees (Senior Manager, Policy, Performance & Community Planning) Rhonda Leith (Head of Service, Connected Communities) TBC 2 Nov 2026 3pm – 4pm Cyber Security Update Gavin Alston (Team Manager, ICT and Cyber Security), Fraser Cunningham (Cyber Security Officer) and Stephen Quigley (Cyber Security Officer) Fiona Walker (Head of Service, People and ICT) In this session the Cyber Security Team will give an overview of the cyber security threats facing the Council and the action being taken to meet these challenges. Elected Members are at an increased risk of targeted cyber attack, the team will give practical advice on how to keep yourself safe online. Finally, there will be time for discussion and any questions. 9 Nov 2026 10am – 11am Code of Conduct Update Aileen Craig (Head of Service, Democratic Services) This session will provide an update on the Councillor Code of Conduct and recent cases. 18 Nov 2026 (10am – 11am) Youth Employment Laura Neill (Senior Manager) Sam Anson (Executive Director, Education) TBC 7 Dec 2026 (2pm – 3pm) Planning Awareness Update Allan Finlayson (Senior Manager Aileen Craig (Head of Mandatory training for elected members was included in the Planning (Scotland) Act 2019 and North Ayrshire’s Planning and Legal service have provided this training to Planning Committee 80
Page 81
Date Topic Delivered by Lead Comments (Planning) / Raymond Lynch (Senior Manager (Legal) Service, Democratic Services) members. The latest opportunity to do so again has now arrived and the invitation to participate in training is being widened to all elected members. This is to raise awareness of the Council’s National Planning Improvement Framework which will be subject to consultation and engagement with all Community Councils. The training session will provide elected members with an overview of the following aspects of the Planning system in Scotland and how this affects communities. • An introduction to the Planning service • What is Planning? • Introduction to the Council’s Planning team • Development Planning – the Local Development Plan and National Planning Framework (NPF4) • Development Management – the assessment of planning applications by officers and the Planning Committee • Enforcement • Other Planning roles TBC Child Poverty Laura Kayes (Policy Officer) Child Poverty) Sam Anson (Executive Director, Education) TBC 81
Page 82
82
Page 83
NORTH AYRSHIRE COUNCIL 27 August 2026 Audit and Scrutiny Committee Title: Internal Audit Reports Issued and Update Purpose: To inform the Committee of the findings of Internal Audit work completed since June 2026 and the progress made by Council Services in implementing the agreed actions from Internal Audit as at 30th June 2026 Recommendation: That the Committee considers the outcomes from the Internal Audit work completed and the current position with the implementation of Internal Audit actions. 1. Executive Summary 1.1 The Council's local Code of Corporate Governance requires effective arrangements to be put in place for the objective review of risk management and internal control. Internal Audit is an important element in this framework as it reviews internal controls and offers Elected Members and officers an objective and independent appraisal of how effectively resources are being managed. 1.2 The remit of the Audit and Scrutiny Committee includes the monitoring of Internal Audit activity. The submission of regular reports assists the Committee in fulfilling this remit. 1.3 Since the previous Committee meeting, one audit has been finalised and issued with a Substantial Assurance opinion. No high priority recommendations were raised. Two medium priority improvement actions were agreed with management. In addition, as at 30 June 2026, there were no overdue Internal Audit recommendations requiring separate reporting to Committee. 2. Background 2.1 This report provides information on Internal Audit work completed since June 2026. Internal control reviews have been completed in respect of the areas detailed in Appendix A to this report. The aim of these reviews is to provide assurance that the internal control framework within the areas examined is appropriate and operating effectively. 2.2 The findings from each audit assignment have been notified in writing to the Chief Executive, the Section 95 Officer and the relevant Executive Director and Head of Service on the completion of each assignment. Where appropriate, this has included an action plan with recommendations for improving internal control. Appendix A includes the report and action plan from each audit. 2.3 Whilst only one final audit report is presented within this report, a number of additional reviews have reached the draft reporting stage and are currently progressing through Agenda Item 7 83
Page 84
management clearance processes. These audits are expected to be reported to a future meeting of the Committee and include Social Work Establishments, ICT Asset Management, Information Security, IJB Financial Sustainability and Neighbourhood Services – Overtime. 2.4 The findings from the audit assignment completed are detailed at Appendix A to this report and the levels of assurance for each are noted in the table below: Audit Title Assurance Level ELC Payments to Partner Providers Substantial 2.5 The audit identified a generally effective control framework within the area reviewed. The recommendations raised relate to opportunities to strengthen ongoing contract monitoring arrangements and do not materially affect the overall assurance opinion. 2.6 There are no overdue Internal Audit recommendations requiring reporting to Committee. 3. Proposals 3.1 It is proposed that the Committee notes the outcomes from the Internal Audit work completed since June 2026 and the current position with respect to the implementation of Internal Audit Actions. 4. Implications/Socio-economic Duty Financial 4.1 None. Human Resources 4.2 None. Legal 4.3 None. Equality/Socio-economic 4.4 None. Climate Change and Carbon 4.5 None. Key Priorities 4.6 The work of Internal Audit helps to support the efficient delivery of the strategic priorities within Our Council Plan 2023-2028. Community Wealth Building 4.7 None. 84
Page 85
Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None. 5. Consultation 5.1 The relevant Services are consulted on Internal Audit findings during each audit assignment. Mark Boyd Head of Service (Finance) For further information please contact Paul Brown, Senior Manager (Audit, Fraud, Health, Risk & Insurance), on paulbrown1@north-ayrshire.gov.uk. Background Papers None. 85
Page 86
Appendix A ELC Payments to Partner Providers 1 Background 1.1 The Scottish Government provided local authorities with additional funding of £9.7 million in 2025-26 to enable childcare workers delivering funded Early Learning and Childcare (ELC) in private and third sector services to be paid at least the new Real Living Wage rate of £12.60 per hour from April 2025. Local authorities are required to pass this additional funding to funded providers through a minimum 3.75% uplift to all 2024-25 sustainable rates. The uplift reflects the estimated increase in the average staff cost element of the sustainable rate, approximately 75%, required to meet the real Living Wage uplift from April 2025. North Ayrshire Council opted to apply an uplift of 4% to the sustainable rate in light of this, along with the variations in cost circumstances across its partner funded providers. This resulted in rates of £6.77 per hour for 3–5-year-olds and £7.08 for eligible 2-year-olds from April 2025-March 2026. 1.2 North Ayrshire Council currently contracts with 16 funded provider nurseries and 51 childminders to deliver up to 1140 hours of funded early learning and childcare to families. The current contracts commenced in August 2025 for 5 years. Funded providers enter a contract with North Ayrshire Council requiring them to meet the National Standard for Early Learning and Childcare Providers. In return, North Ayrshire Council pay an hourly (sustainable) rate for up to a maximum of 1140 hours per annum per child. 2 Objectives and Scope 2.1 The main objectives for this audit were: • To ensure that there are suitable policies and procedures in place regarding the provision of early years childcare. • To ensure that conditions of Scottish Government Funding are being adhered to. • To ensure that payments to providers are made correctly and promptly and reflect the agreements made with providers. 2.2 The scope of this audit is focussed on partner providers of early years learning and childcare. This includes childminders and partner nurseries. It excludes nurseries run by North Ayrshire Council directly. 3 Findings Policies and Procedures 3.1 The auditors reviewed relevant policies and procedures relating to the provision of early years childcare, including Early Learning and Childcare Model Terms and conditions, to ensure that they are suitable and fit for purpose. 3.2 It was noted that the Terms and Conditions document, which forms part of the latest 5-year contracts with partner early years providers, included links to Scottish Government guidance which has been superseded. Education confirmed that Terms and Conditions documents, incorporating the up-to-date Scottish Government guidance, were prepared in September 2025, but had not yet been issued to providers. A contract amendment was issued near the end of the audit process to require providers to adhere to the latest Scottish Government guidance. 86
Page 87
Appendix A Scottish Government Funding 3.3 Cabinet reports presented on 30 April 2024 and 3 June 2025 set out how the Council were using the funding from the Scottish Government to increase the rates paid to external providers and financial documentation provided showed the applicable budget calculation. In June 2025, providers were asked to agree to pay childcare workers a minimum of £12.60 an hour in return for the increase in the hourly rate paid to the provider by NAC. All providers agreed to this rate increase. 3.4 From August 2025, the contracts with providers require them to pay all individuals delivering the funded hours at least the Real Living Wage. The questionnaire for the annual review of contract compliance asks providers to confirm that this is the case. The service agreed that the Link Officer will also spot-check compliance with this requirement during quality improvement visits. (Action a) Payment of Providers 3.5 A procedure note for processing claims from providers, including processes to check the payment and authorisation, was provided but found to be designed for someone with a high level of understanding of the existing process. Another procedure note for approval of payments was provided and found to be suitable for the part of the process it covers. There were no other procedure notes for other processes. However, the service were already in the process of implementing new procedures and preparing accompanying notes. The new procedures were provided near the end of the audit period and were found to be clearly presented and comprehensive. 3.6 The auditors tested a sample of 30 payments to partner providers to ensure that: • payments reflected the agreement with the provider, including the uplift for the payment of the Real Living Wage. • payments reflected the arrangements agreed for the individual children. • all uplift agreements for the sample had been completed and signed. • all payments were arithmetically correct. • all payments had been checked and authorised properly. 3.7 There were some discrepancies regarding the agreements with the individual children in the registration forms provided by the partner providers. However, none had a material or financial impact. These have been highlighted and either corrected or will be addressed in the new process. 3.8 The majority of payments were checked and authorised in line with the correct procedure at the time of payment. In one instance, a payment was not authorised in line with the current procedure as the authoriser had not been copied into the email to Accounts Payable and the payment went ahead regardless. However, Accounts Payable have since amended their process so that authorisations must be submitted directly from the authoriser, with copied in approvals no longer accepted. As a result, this type of error should not recur. 3.9 Contract monitoring arrangements, including compliance and provider sustainability, were discussed with the service. The service have regular contact with all the providers, including monthly meetings, Council-led training sessions (including for child protection) and quality improvement visits. Teacher Team visits are undertaken across all providers, reviews of the nursery providers take place and childminders receive Link Officer visits. These visits and reviews are delivered as part of a rolling programme. 87
Page 88
Appendix A 3.10 The service also monitor reports issued by the Care Inspectorate, as one of the Terms and Conditions requires that providers must not fall below a level 4 in any category of the Care Inspectorate ratings. Where a provider falls below this standard, the Council issues notice of a Service Improvement Period (SIP) requiring them to make improvements in order to regain the required grade from the Care Inspectorate. Evidence was shared with the auditors of such an instance. The service had supported the provider to create and implement an improvement plan which had allowed them to achieve the required standard when the Care Inspectorate re-visited them. Therefore, the Council had formally notified them of the conclusion of the SIP. 3.11 The contracts are still in their first year, but plans are in place to commence an annual review of contract compliance via a questionnaire asking providers to confirm compliance with various aspects of the Terms and Conditions and to provide up-to- date copies of documentary evidence. The auditors noted when looking at the questionnaire that the section entitled "Insolvency, Conflicts of Interests or Professional Misconduct” didn’t include a question on Conflicts of Interest. This was corrected during the audit. 3.12 Financial sustainability of the providers is checked as part of the procurement process but there is currently no pro-active checking of sustainability during the contract period. Therefore, the service added a reference to the Council getting access to annual business accounts into the annual self-assessment questionnaires. The Senior Manager also agreed that the Link Officer would discuss sustainability with the providers as part of the quality improvement visits. The service have prepared a procedure for the event of a provider ceasing trading, which they would follow to place any children who lost their placement in such an event. (Action b) 4 Internal Audit Opinion 4.1 Overall, substantial assurance was obtained with regard to the management of payments to partner ELC providers. Generally, processes for managing ELC partner providers are operating effectively but a few points for improvement were identified. Errors identified during sample testing were not material and improvements being made to the processes should reduce the risk of recurrence. The service have started to implement the suggestions for improvement discussed during the audit. Definitions of Assurance Levels: Substantial A sound system of governance, risk management and control exist, with internal controls operating effectively and being consistently applied to support the achievement of objectives in the area audited. Reasonable There is a generally sound system of governance, risk management and control in place. Some issues, non-compliance or scope for improvement were identified which may put at risk the achievement of objectives in the area audited. Limited Significant gaps, weaknesses or non-compliance were identified. Improvement is required to the system of governance, risk management and control to effectively manage risks to the achievement of objectives in the area audited. 88
Page 89
Appendix A None Immediate action is required to address fundamental gaps, weaknesses or non-compliance identified. The system of governance, risk management and control is inadequate to effectively manage risks to the achievement of objectives in the area audited. NB The level of assurance given is at the discretion of Internal Audit. 89
Page 90
Appendix A KEY FINDINGS AND ACTION PLAN ELC PAYMENTS TO PARTNER PROVIDERS Action a Finding Checking of the compliance with the requirement to pay the Real Living Wage to employees delivering funded hours is currently based on self-declaration during the annual compliance questionnaire. Action Description The Link Officer should spot-check that employees delivering funded hours are paid the Real Living Wage during quality improvement visits. Risk The Real Living Wage is not being paid to employees delivering funded hours. This would be a breach of the provider’s contract with North Ayrshire Council and the Scottish Government guidance. Priority (1, 2, 3) 2 Paragraph Reference 3.4 Managed by Head of Service (Education) Assigned to Senior Manager (Education) Due Date 31 October 2026 Management Comment The link officer has added this to her QIF agendas and will be completed through her planned QIF visits throughout the year. Action b Finding Financial sustainability of the providers is checked as part of the procurement process but there is currently no pro-active checking of sustainability during the contract period. Action Description The Link Officer should include discussion of provider sustainability as part of the quality improvement visits. Risk The Council has no warning of providers that face sustainability issues and potentially cease trading, leading to a requirement to find new placements for children at short notice with associated costs. Priority (1, 2, 3) 2 Paragraph Reference 3.12 Managed by Head of Service (Education) Assigned to Senior Manager (Education) Due Date 31 October 2026 Management Comment The link officer has added this to her QIF agendas and will be completed through her planned QIF visits throughout the year. Priority Key used in Action Plan 1 (High) Control weakness where there is a material impact on the achievement of the control objectives, generally requiring prompt attention. 2 (Medium) Control weakness which needs to be rectified, but where there is no material impact on the achievement of the control objectives. 3 (Low) Minor weakness or points for improvement. 90
Page 91
PUBLIC INFORMATION NORTH AYRSHIRE COUNCIL 27 August 2026 Audit and Scrutiny Committee Title: Internal Audit Plan 2026/27: Progress as at 31 July 2026 Purpose: To provide an update on progress made in delivering the 2026/27 Internal Audit Plan. Recommendation: That the Committee notes progress against the first six-month Internal Audit Plan as at 31 July 2026. 1. Executive Summary 1.1 The first six-month plan within the 2026/27 Internal Audit Plan was approved by the Audit and Scrutiny Committee in March 2026. The Plan sets out the areas of work which Internal Audit intends to cover during the first half of the financial year. A further six- month plan will be presented to the Committee in November 2026 as part of the Council’s rolling internal audit planning arrangements. 1.2 The Global Internal Audit Standards (GIAS) recognise that the internal audit plan should be dynamic and updated in response to changes in the organisation’s business, risks and control environment. Accordingly, the Chief Audit Executive (Senior Manager) is required to review and revise the internal audit plan as necessary and to report such changes to the Committee. 1.3 Progress against the approved 2026/27 Internal Audit Plan is summarised in Appendix A. As of 31 July 2026, seven of the ten assignments included in the six-month plan had commenced. One assignment has been completed, one draft report has been issued, three assignments were at the fieldwork stage, two at planning stage and three had yet to commence. The position will be reviewed as part of the Mid-Year Update Report, including any adjustments required to maintain delivery of the Audit Plan and support the Annual Internal Audit Opinion. 1.4 The Mid-Year Update will report the final position against the first six-month plan and present the proposed plan for the remainder for 2026/27. It will identify any changes required to maintain sufficient coverage of key risks and support the Annual Internal Audit Opinion. 1.5 At this stage, the current delivery position is not expected to have a material impact on the Senior Manager’s ability to provide the Annual Internal Audit Opinion. This will be reassessed as part of the Mid-Year Update. Agenda Item 8 91
Page 92
PUBLIC INFORMATION 2. Background 2.1 In line with GIAS, the audit plan should be reviewed and revised as necessary. 2.2 The Audit and Scrutiny Committee has responsibility for overseeing the effectiveness of Internal Audit, including monitoring delivery of the approved Internal Audit Plan. Periodic progress reporting enables the Committee to obtain assurance on the extent to which planned audit work is being delivered and to understand any material changes to the plan. 2.3 Appendix A to this report summarises progress against the approved 2026/27 Internal Audit Plan and provides an overview of the current status of each audit assignment. 3. Proposals 3.1 It is proposed that the Committee notes progress against the first six-month Internal Audit Plan as at 31 July 2026, as specified in Appendix A. 4. Implications/Socio-economic Duty Financial 4.1 None. Human Resources 4.2 None. Legal 4.3 None. Equality/Socio-economic 4.4 None. Climate Change and Carbon 4.5 None. Key Priorities 4.6 The work of Internal Audit helps to support the efficient delivery of the strategic priorities within the Council Plan 2023-2028 Community Wealth Building 4.7 None. 92
Page 93
PUBLIC INFORMATION 5. Consultation 5.1 Relevant services continue to be consulted throughout the planning, fieldwork and reporting stages of individual audit assignments. Mark Boyd Head of Service (Finance) For further information please contact Paul Brown, Senior Manager (Audit, Fraud, Safety, Risk and Insurance, on paulbrown1@north-ayrshire.gov.uk Background Papers None. 93
Page 94
Appendix A PUBLIC INFORMATION Position as of 31 July 2026 Audit Assignment Title Planned Quarter Current Progress Grants Compliance Q1 To Start General Ledger Q2 To Start Accounts Payable Transactions Q2 Fieldwork Ongoing ICT – Incident Detection Q1 Fieldwork Ongoing School Inventory Management Q1 Planning Stage Neighbourhood Services – Overtime Q1 Draft Report Issued Absence Management Q2 Planning Stage Headstone Inspections Q1 Fieldwork Ongoing Business Continuity Planning Q2 To Start Tenants and Residents Association Q1 Complete 94
Page 95
NORTH AYRSHIRE COUNCIL 27 August 2026 Audit and Scrutiny Committee Title: Accounts Commission’s Briefing: Local Government Budgets 2026/27 Purpose: To inform the Audit and Scrutiny Committee of the key messages identified within the recently published briefing. Recommendation: That the Committee notes the key messages within the recent Accounts Commission briefing. 1. Executive Summary 1.1 In June 2026 the Accounts Commission published a briefing on Local Government Budgets 2026/27. This briefing provides a high-level analysis of the 2026/27 budgets agreed by all 32 Councils highlighting the challenges faced in achieving a balanced budget and long-term financial sustainability. A link to the report is attached below: Local government budgets 2026/27 | Audit Scotland 1.2 The report provides an analysis of the level of Scottish Government funding provided to Councils, the remaining budget gaps, the steps taken by Councils to bridge these and the ways in which Councils consulted with their communities. 2. Background 2.1 The briefing provides an analysis from Audit Scotland of the budgets set by local authorities for 2026/27. The report is included in appendix 1 and is in three parts: • Part 1 outlines the Scottish Government’s 2026/27 funding allocation to councils and highlights trends in revenue and capital settlements compared with previous years. • Part 2 assesses how councils have balanced their 2026/27 budgets, including the use of reserves and other measures. This is based on data returns submitted to Audit Scotland by all councils in March and April 2026, shortly after agreeing their 2026/27 budgets. Agenda Item 9 95
Page 96
• Part 3 reviews how councils engaged with stakeholders and considered equality impacts when making budget decisions. 2.2 The key messages within the briefing are summarised below: • Despite a small real terms increase in Scottish Government funding for 2026/27, councils still face major risks to their financial sustainability as funding fails to keep pace with rising demand and increasing costs. Councils identified a combined budget gap of around £529 million for 2026/27, representing a gap of around three per cent of total General Fund revenue budgets across Scotland. • A 15 per cent decrease in capital funding is limiting councils’ capacity to sustain and develop infrastructure, resulting in greater dependence on borrowing and heightened long-term financial risk. • To achieve a balanced budget in 2026/27, councils are implementing a range of local measures, including planned savings of one per cent of the combined net revenue budget across services and the use of reserves. All councils increased council tax for a second consecutive year by an average of 7.7 per cent and collectively expect to raise more than £1.2 billion through fees and charges for local services. North Ayrshire Council raised Council tax by 8.5%. • Projected reductions in Scottish Government funding over the medium term are expected to intensify financial pressures and increase the risk of councils becoming financially unsustainable, unless they stop, reduce or significantly redesign services. Funding for social care, mainly through Integration Joint Boards (IJBs), represents a high proportion of council spend, with increasing demand for these services, putting pressure on council budgets. Councils continue to forecast short-term budget gaps to 2028/29 and are considering a wide range of measures to achieve balanced budgets in future years. As savings options increasingly focus on changes that impact on services offered to people, effective and consistent consultation with communities will be essential. North Ayrshire continues to incorporate a community engagement programme annually as part of the Budget process. 3. Proposals 3.1 It is proposed that the Committee notes the key messages within the recent Accounts Commission briefing. 4. Implications/Socio-economic Duty Financial 4.1 The Accounts Commission briefing highlights the reliance of local government on Scottish Government grant funding and the need for further action to bridge anticipated future funding gaps and achieve financial sustainability. North Ayrshire Council develops medium term financial plans on a three year rolling basis and agrees annual Revenue, Capital and HRA budgets. The financial sustainability of the Council is monitored regularly and reported to Cabinet throughout the year. 96
Page 97
Human Resources 4.2 As part of a sustainable financial strategy the Council continues to actively manage the size of its workforce. Legal 4.3 None. Equality/Socio-economic 4.4 Equality impact assessments are carried out for all options identified as part of the annual budget proposals. Climate Change and Carbon 4.5 None. Key Priorities 4.6 In addressing the financial challenges which it faces, the Council seeks to minimise the impact on delivering its key priorities. Community Wealth Building 4.7 None. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None. 5. Consultation 5.1 Executive Directors are consulted in the development of the Medium and Long term Financial plans. Extensive community engagement was undertaken as part of the development of the 2026/27 budget proposals. Mark Boyd Head of Service (Finance) 97
Page 98
For further information please contact Mark Boyd, Head of Service (Finance), on 01294 324551 or markboyd@north-ayrshire.gov.uk. Background Papers None 98
Page 99
Prepared by Audit Scotland June 2026 Bulletin Local government budgets 2026/27 99
Page 100
2Local government budgets 2026/27 Contents Key facts 3 Key messages 5 Commission expectations 7 Introduction 8 1. Scottish Government funding to councils 10 2. Council budgets 15 3. Consulting with communities 31 Appendix 1 35 Appendix 2 36 Accessibility You can find out more and read this report using assistive technology on our website www.audit.scot/accessibility. 100
Page 101
3Key facts Key facts Local government budgets 2026/27: £15.7 billion total funding from the Scottish Government 1 per cent real terms increase in funding (revenue and capital) to councils in 2026/27 compared to 2025/26 2 per cent real terms increase in revenue funding to councils in 2026/27 compared to 2025/26 15 per cent real terms reduction in capital funding to councils in 2026/27 compared to 2025/26 £18.9 billion councils’ approved net revenue budgets £5 billion councils’ approved capital budgets (General Fund £3.5 billion; Housing Revenue Account £1.5 billion) 7.7 per cent average council tax increase (varies between four and ten per cent across councils) £529 million revenue budget gap identified by councils at time of setting 2026/27 budgets (around three per cent of councils’ General Fund revenue budgets) £4.3 billion councils’ revenue contributions to Integration Joint Boards (IJBs), (around 24 per cent of councils’ General Fund revenue budgets) a real terms increase of £220 million compared to 2025/26 101
Page 102
Key facts 4 Budget actions: £221 million increase to council tax £17 million increase to income (including fees and charges) £168 million agreed savings (recurring) £12 million agreed savings (non-recurring) £122 million use of reserves 30 the number of councils that carried out a budget consultation to inform 2026/27 budget-setting 31 the number of councils that carried out equality impact assessments as part of budget-setting 102
Page 103
5 Key messages Key messages 1 Despite a small real terms increase in Scottish Government funding for 2026/27, councils still face major risks to their financial sustainability as funding fails to keep pace with rising demand and increasing costs. Much of the recently baselined General Revenue Grant funding is still effectively directed towards specific existing commitments, restricting flexibility. Councils identified a combined budget gap of around £529 million for 2026/27, representing a gap of around three per cent of total General Fund revenue budgets across Scotland. 2 A 15 per cent decrease in capital funding is limiting councils’ capacity to sustain and develop infrastructure, resulting in greater dependence on borrowing and heightened long-term financial risk. Nevertheless, overall, councils are expanding their capital budgets for housing, with all councils committing to investment in new housing for 2026/27. 3 To achieve a balanced budget in 2026/27, councils are implementing a range of local measures, including planned savings of one per cent of the combined net revenue budget across services and the use of reserves. All councils increased council tax for a second consecutive year by an average of 7.7 per cent and collectively expect to raise more than £1.2 billion through fees and charges for local services. 103
Page 104
Key messages 6 4 Projected reductions in Scottish Government funding over the medium term are expected to intensify financial pressures and increase the risk of councils becoming financially unsustainable, unless they stop, reduce or significantly redesign services. Funding for social care, mainly through Integration Joint Boards (IJBs), represents a high proportion of council spend, with increasing demand for these services, putting pressure on council budgets. Councils continue to forecast short-term budget gaps to 2028/29 and are considering a wide range of measures to achieve balanced budgets in future years. As savings options increasingly focus on changes that impact on services offered to people, effective and consistent consultation with communities will be essential. 104
Page 105
7Commission expectations Commission expectations This is our third bulletin on council budgets. Within our previous bulletins we acknowledged variation in how budgets are presented and set out a range of expectations relating to the transparency of council budget papers. There has been good progress against most of the expectations set out in Local government budgets 2025/26 (Appendix 2). However, further improvements could be made in the transparency of budget papers and the financial monitoring provided to elected members, and how communities are consulted about budget decisions. With financial pressures forecast to remain, and the continued need to identify savings through stopping, reducing and redesigning services to address these, it is more important than ever for budget-setting to be clear and well managed. The decisions taken by councils when setting their budgets impact us all. Without clear and transparent reporting, however, it is difficult for elected members and communities to fully engage and participate in making these decisions. We have therefore set out the commission’s expectations for councils’ annual budget-setting as a checklist (Supplement) for elected members in order to assist them when making decisions on setting budgets. 105
Page 106
8Introduction Introduction 1. Audit Scotland has prepared this budget bulletin on behalf of the Accounts Commission to summarise key issues arising from our analysis of the 2026/27 budgets recently agreed by Scotland’s 32 councils. 2. Councils are legally required to set a balanced budget for each upcoming financial year. This means that a council’s funding and income must cover their anticipated expenditure. Councils might identify a budget gap as they are preparing their budgets. This is the difference between their anticipated expenditure for the year and the funding and income they expect to receive. Councils will identify and agree actions, including savings measures or using reserves, to allow them to set a balanced budget. 3. The wide range of approaches councils take to budget-setting and the level of information, and the way that it is publicly reported, make it challenging to report a definitive national position. Some of the variation between councils is due to differing approaches to budgeting. We have added caveats to the exhibits and text where caution is required. 4. This report is in three parts: • Part 1 outlines the Scottish Government’s 2026/27 funding allocation to councils and highlights trends in revenue and capital settlements compared with previous years. • Part 2 assesses how councils have balanced their 2026/27 budgets, including the use of reserves and other measures. This is based on data returns submitted to us by all councils in March and April 2026, shortly after agreeing their 2026/27 budgets. We welcomed the positive engagement from councils and auditors in completing and returning their data return. • Part 3 reviews how councils engaged with stakeholders and considered equality impacts when making budget decisions. 5. As part of the data return, we asked councils to identify the assumptions they made when calculating projected revenue budget gaps over the short term. As expected, these assumptions varied across the country and across a range of factors although there are no identified outliers. 106
Page 107
Introduction 9 6. This year’s budget bulletin provides increased emphasis on: • the impact that challenging capital settlements have on councils’ ability to invest in local infrastructure • the level of savings required by Integration Joint Boards (IJBs) in setting their 2026/27 budgets, including the proportion that relates specifically to social care services and the impact this has on council budgets • the share of council’s capital budgets that sits within the Housing Revenue Account (if applicable), where that money comes from, and planned expenditure. 7. When looking at trends, we convert some financial data into real terms, adjusting it for inflation to make trend information comparable. We have used the March 2026 deflators published by HM Treasury to adjust financial information from past or future years into 2026/27 prices. 8. The report is part of a series of overview outputs produced for the Accounts Commission. These reports provide an independent overview of the financial and operational performance of Scotland’s local government sector. The next reports will be our annual financial bulletins on councils, and IJBs, assessing their financial performance in the most recently audited financial year. 107
Page 108
10 1. 1. Scottish Government funding to councils 1. Scottish Government funding to councils Overall Scottish Government funding to councils is increasing slightly, in real terms, in 2026/27 compared to last year. However, rising demand and a significantly lower capital allocation in 2026/27 will continue to challenge councils’ financial sustainability if they continue to operate under the current model of service delivery. Total Scottish Government funding to councils is increasing slightly in 2026/27 9. The Scottish Government will provide a total of £15.7 billion of funding (revenue and capital) to local government in 2026/27 (Exhibit 1), a one per cent real terms increase compared to 2025/26. 10. The funding going to councils will likely change throughout the year as the Scottish Government reprioritises resources from other portfolios to local government or additional funding becomes available. For example, councils received £177 million of additional funding during 2025/26, confirmed through the autumn and spring budget revisions. It is therefore likely that the 2026/27 budget to local government will also change. Exhibit 1. Scottish Budget initial local government settlement 2024/25 to 2026/27 Overall Scottish Government funding to local government is increasing in 2026/27 despite a reduction in the capital settlement. Cash terms (£ million) Real terms (£ million) 2024/25 2025/26 2026/27 2024/25 2025/26 2026/27 Total local government funding 13,913 15,165 15,687 14,652 15,469 15,687 Total revenue funding 13,257 14,397 15,018 13,961 14,686 15,018 Total capital funding 656 767 669 691 783 669 Note: Real terms funding has been adjusted into 2026/27 prices using March 2026 GDP deflators. Source: Analysis of Scottish Government Finance Circulars The Scottish Government adjusts its budget during the year. This generally takes place during the annual autumn and spring budget revisions which are approved by the Scottish Parliament and may include allocating additional funding for specific purposes, as well as in- year transfers between spending portfolios. 108
Page 109
1. Scottish Government funding to councils 11 Revenue funding to all councils is increasing in 2026/27 11. The finance circular outlines the revenue and capital funding that councils will receive from the Scottish Government in 2026/27. Revenue funding contributes to the day-to-day costs incurred by councils, such as employing staff. The Scottish Government is allocating £15 billion of revenue funding to local government in 2026/27, a real terms increase of £331 million (two per cent) from last year (Exhibit 2, page 12). All councils will receive a real and cash terms increase in revenue funding from the Scottish Government in 2026/27. 12. The settlement differs from the figures presented in the draft Scottish Budget due to changes made prior to it receiving parliamentary approval. For example, the Scottish Government provided councils with £20 million of additional funding to support the Real Living Wage across adult and children’s social care and early learning and childcare. While baselining additional funding into the GRG is intended to enhance councils’ financial flexibility and align with national commitments to reduce ring-fencing, much of this funding remains directed towards specific policies and priorities 13. In recent years, there has been a significant increase in the General Revenue Grant (GRG) provided to councils, reflecting the Scottish Government’s decision to baseline several, previously ring-fenced, grants. Our Supplement to the Financial bulletin 2024/25 sets out the funds baselined into the GRG. Between 2024/25 and 2026/27, the GRG has increased in real terms by £869 million (eight per cent). There has been a modest increase in GRG funding to councils over the last year, with a real terms increase of £89 million (0.8 per cent). Over the same period, specific revenue grants, which are ring-fenced by the Scottish Government, have reduced by over 20 per cent (£56 million). 14. The Scottish Government states that increasing GRG funding supports the goals of the Verity House Agreement to lessen ring-fenced funds. However, much of the new funding is required to meet existing commitments, such as £244 million of the total £770 million in 2026/27 allocated for teacher pay increases. Councils must continue using GRG funding for these obligations, limiting flexibility in spending plans. The General Revenue Grant (GRG) is funding provided by the Scottish Government to help councils finance their general services. Unlike specific revenue grants, GRG is typically not ring- fenced for specific purposes, providing councils with a degree of flexibility over how to allocate this funding. However, the Scottish Government directs councils to spend some GRG funding on national policy initiatives, and those expectations are generally agreed with the Convention of Scottish Local Authorities (COSLA). Though not formally ring-fenced, the Scottish Government provides this funding with an expectation that councils will spend it on specific services. The GRG allocation to councils is based on factors such as deprivation, levels of rurality and population size. It is also based on individual funding formulas assigned to a particular local service area. The formula used to determine the funding allocation depends on the specific circumstances for that service area. This allows the Scottish Government to calculate each council’s share of the GRG. The Scottish Government jointly agrees the methodology of distributing funding to councils with COSLA which requires regular review. Scottish Government adjusts the allocation to each council as part of the agreed funding methodology to recognise that the indicators used, for example, population size, may lead to significant annual reductions or increases for some. The floor restricts the scale of any grant increase or reduction within a set parameter to reduce the impact in any one financial year. 109
Page 110
1. Scottish Government funding to councils 12 Note: Prior years have been adjusted into 2026/27 prices using the March 2026 GDP deflators. Source: Analysis of Scottish Government Finance Circulars Exhibit 2. Scottish Government revenue allocation to local government in real terms 2024/25 to 2026/27 All councils are receiving an increase in their revenue allocation in 2026/27. Recent property revaluations are driving a significant increase in councils’ non-domestic rates income 15. An increase in non-domestic rates (NDR) income is driving the overall increase in revenue funding in 2026/27. Funding to councils arising from non-domestic rates income is increasing in real terms by £298 million (nine per cent) between 2025/26 and 2026/27. This partly reflects the impact of the new non-domestic property revaluation taking effect from 1 April 2026, which is expected to result in a higher aggregate NDR yield in the first year of the revaluation cycle. 16. The Scottish Government takes account of the estimated income that councils expect to receive in council tax and NDR income when determining the final GRG allocation to councils. A significantly reduced capital settlement from the Scottish Government is making it harder for councils to invest in local infrastructure 17. Councils use capital funding to buy, maintain or improve assets such as buildings, general infrastructure and equipment. The Scottish Government is allocating £669 million of capital funding to local government in 2026/27, a 15 per cent (£114 million) real terms reduction compared to last year (Exhibit 3, page 13). Non-domestic rates (NDR) are a tax on businesses and other non- domestic properties which helps to fund local services. The Scottish Government sets the rate of tax, councils collect the money, and the Scottish Government redistributes it as part of its funding allocations to councils. The independent Scottish Assessors calculate the rateable value of every non-domestic property every three years. The 2026 revaluation increased the rateable value on a significant number of non-domestic properties, including council-owned buildings. The Scottish Government has announced a package of support to help those affected by increases in NDR. £3.2bn £3.2bn £3.5bn £0.3bn £0.3bn £0.2bn £10.5bn £11.2bn £11.3bn General Revenue Grant Non-Domestic Rates Specific Revenue Grants 2024/25 2025/26 2026/27 110
Page 111
1. Scottish Government funding to councils 13 18. Twenty-eight councils are receiving a lower capital allocation in 2026/27 compared to the previous year. This impacts on their ability to invest in local infrastructure, including increasing the pressures on future revenue budgets (paragraph 57). 19. The Scottish Government and COSLA also use a needs-based formula to distribute the capital allocation to councils, which is more variable year-to-year than revenue funding. The General Capital Grant is distributed based largely on population size and road-length with councils choosing which projects to fund. Specific Capital Grants are intended to fund specific national policy priorities. 20. A reduction in the core capital allocation increases the financial sustainability pressures facing councils and the need for greater and more focused capital planning, including: • Councils increasing their borrowing to fund capital projects. Borrowing costs, like interest payments, must be met from councils’ revenue budgets, increasing the pressures further. • Councils delaying vital investment in local assets. This means local assets deteriorate further or councils are forced to close them completely. Exhibit 3. Scottish Budget local government capital settlement in real terms 2024/25 to 2026/27 Councils are receiving a lower capital allocation from the Scottish Government in 2026/27 compared to the last two years. Note: Prior years have been adjusted into 2026/27 prices using the March 2026 GDP deflators. Source: Analysis of Scottish Government Finance Circulars £563m £569m£656m £128m £100m £126m 2024/25 2025/26 2026/27 General Capital Grant Specific Capital Grants 111
Page 112
1. Scottish Government funding to councils 14 • A lack of investment in key local infrastructure impacting on wider outcomes, such as community health and wellbeing. • A requirement to review existing capital plans to ensure their affordability under existing pressures. Further reductions in Scottish Government funding over the medium term will heighten the risk of councils becoming financially unsustainable 21. Alongside the draft 2026/27 budget, the Scottish Government published the Scottish Spending Review, which sets out indicative multi-year spending plans from 2026/27 to 2028/29 (and to 2029/30 for capital). This is a projected level of spend rather than a final settlement and does not provide a council-level breakdown of funding. As such, there is a lack of information which could provide councils with sufficient information to assist in effective medium-term financial planning. 22. The Scottish Spending Review projects that revenue funding for councils will decline in real terms by £528 million (four per cent) between 2026/27 and 2028/29. Councils will therefore continue to face significant challenges including where to stop, reduce or significantly redesign services in order to remain financially sustainable, as demand rises and costs increase while projected funding falls, as set out in our Local government in Scotland: Financial bulletin 2024/25. 23. The Scottish Spending Review also shows that the capital pressures facing councils are set to continue. Capital funding from the Scottish Government to councils is expected to decrease in real terms by £28 million (four per cent) from 2026/27 to 2029/30. This reduction will impact on councils’ ability to invest in infrastructure projects, such as building new schools. Councils will need to assess how the projected reduction in their capital settlement, together with cost increases, will affect their longer-term infrastructure strategies. 112
Page 113
152. Council budgets 2. Council budgets Rising demand and increasing costs mean that councils are continuing to face growing financial challenges. Councils are using reserves, savings, borrowing and increases in council tax to manage shortfalls. Councils’ General Fund revenue budget for 2026/27 has increased since 2025/26 24. Each year, councils set a revenue budget to cover the costs of providing services and other expenses for the upcoming year. They are required to ensure that this revenue budget is balanced annually. For 2026/27, councils reported a General Fund revenue budget of around £18.9 billion, increasing from around £18.3 billion in 2025/26 (in real terms). While this is an increase in available budget for councils in the coming year, this sits alongside the challenging context of Scotland’s public finances. There is a rising demand for services provided by councils, increased costs and inflation putting pressure on budgets despite the increase in funding. 25. Most General Fund revenue funding comes from the Scottish Government, with 60 per cent from the GRG. The remaining revenue funding for councils comes from a number of sources including NDR, council tax, use of reserves and other grants and funding from the Scottish and UK governments (Exhibit 4). Exhibit 4. Sources of funding for councils’ 2026/27 General Fund revenue budgets Source: Council data returns 0 2 4 6 8 10 12 General Revenue Grant Non-domestic rates Council tax Reserves Other grants, funding and income 0.9% 0.9% 20.1% 18.4% 59.7% £ billion 113
Page 114
2. Council budgets 16 IJB funding is a major pressure on councils’ revenue budgets 26. IJBs receive annual funding from their council and NHS board partners to deliver local health and social care services. Councils are allocating £4.3 billion of revenue funding to IJBs in 2026/27. This represents around 24 per cent of the combined 2026/27 revenue budgets for all councils (excluding Highland who currently operates a lead agency model) and a £220 million real terms increase since last year. Three councils are allocating 30 per cent or more of their revenue budgets to IJBs in 2026/27. 27. The Accounts Commission’s Integration Joint Boards: Financial bulletin 2024/25 highlights the critical financial pressures facing IJBs. Twenty councils were able to provide information on savings required by IJBs in 2026/27, showing that the financial pressures are continuing. Overall, those IJBs are expected to deliver £179 million of savings in 2026/27, £103 million within social care services (57 per cent of all savings required by IJBs). 28. The Integration Joint Boards: Financial bulletin 2024/25 also highlights that reserve levels continue to fall across IJBs, with the total level of reserves held by IJBs now lower than the budget gap forecast for the year ahead. While several councils have sought to address health and social care pressures through additional uplifts to the IJB, they are acknowledging this only provides short-term stability. Councils are largely recognising that if IJBs cannot contain financial pressures, then additional funding may be sought from partners during the financial year, which could lead to councils making further saving measures. 29. Individual IJBs are acting in response to the significant financial pressures accumulating from rising demand and constrained funding settlements, for example: • Perth and Kinross IJB approved a Financial Recovery Plan for 2025/26 to manage in-year pressures, mainly through the use of council reserves. While some measures continue, the 2026/27 plan focuses on sustainable service redesign. This comes alongside significant savings already delivered and ongoing financial pressures, with recognition that further measures may risk reduced access to care. • North Ayrshire Council has moved to a ‘critical only’ threshold for funded adult social care support, meaning only those at critical risk will receive support. The change follows severe financial pressures, with rising demand and increasing care delivery costs not matched by available funding. 114
Page 115
2. Council budgets 17 At the time of setting their 2026/27 budget, almost all councils reported a budget gap 30. Where councils are reporting that their spending across the year will be greater than their available income, we refer to this as a budget gap. The budget gap is the difference between anticipated income (not including income drawn from council reserves) and anticipated expenditure (taking into account any savings approved before the 2026/27 budget process began). 31. At the time of setting their budgets, councils identified a combined budget gap of £528.6 million, representing a gap of around three per cent of councils’ total combined General Fund revenue budgets for 2026/27. This proportion has remained broadly consistent over the last seven years. Exhibit 5, (page 18) sets out the budget gaps for individual councils as a percentage of their individual revenue budgets. 115
Page 116
2. Council budgets 18 Exhibit 5. 2026/27 budget gap in each council, as a percentage of their General Fund revenue budget (gap in £ millions shown in brackets) Note: Shetland and Orkney hold significant reserves related to oil and gas harbour activity. They are excluded from this chart as they are outliers due to their planned use of reserves to balance the budget. At the time of setting its budget, South Lanarkshire reported a surplus position. There are differences in the way councils approach and present their budget and identify budget gaps, including when saving measures and other actions are agreed. This means that comparisons should be made with caution. Source: Council data returns -1% 0% 1% 2% 3% 4% 5% 6% 7% South Lanarkshire (-£1.5m) Fife (£3.6m) Renfrewshire (£5.0m) East Lothian (£3.5m) Dundee City (£5.0m) Inverclyde (£4.0m) Aberdeen City (£11.0m) North Lanarkshire (£19.3m) City of Edinburgh (£27.9m) East Ayrshire (£9.5m) Aberdeenshire (£19.2m) East Renfrewshire (£8.7m) Dumfries and Galloway (£12.5m) Highland (£23.4m) Falkirk (£14.5m) West Lothian (£20.2m) Moray (£10.6m) Stirling (£11.4m) Eilean Siar (£5.0m) Angus (£13.9m) North Ayrshire (£17.8m) Clackmannanshire (£7.0m) Glasgow City (£86.7m) Perth and Kinross (£20.7m) Scottish Borders (£16.3m) Midlothian (£13.3m) Argyll and Bute (£14.9m) West Dunbartonshire (£15.9m) South Ayrshire (£20.7m) East Dunbartonshire (£23.7m) Councils 116
Page 117
2. Council budgets 19 Councils are taking various actions to close their 2026/27 budget gaps 32. Each council is required to set a balanced budget, so any identified budget gap must be addressed via a series of measures when the council agrees its budget. Councils can use a range of tools to help balance their budgets, either by generating additional income or by reducing expenditure. Actions include increasing council tax rates, increasing fees and charges, identifying new saving opportunities and drawing on council reserves (Exhibit 6). 33. Budgets may also include measures to fund additional investment or to increase reserves. At the time of setting their budgets, councils approved measures of around £626.4 million to meet the £528.6 million budget gap and to fund £97.8 million of revenue investment. 34. Councils should prioritise recurring measures that deliver long-term savings, such as redesigning services or increasing annual income through changes to council tax. Non-recurring measures, such as delaying expenditure or leaving posts temporarily vacant, are short term and cannot sustainably close a budget gap. Any gap covered by these one-off actions will reappear in future years, and therefore should be addressed through recurring measures. Exhibit 6. Councils’ bridging actions in their 2026/27 budgets Councils are taking various actions to close their 2026/27 budget gap and fund additional investment. 0 50 100 150 200 250 Other recurring actions Other non-recurring actions Non-recurring savings Increase to income Use of reserves Recurring savings Increase to council tax rates/base £ million 1.8% 2.7% 5.4% 8.5% 19.4% 26.8% 35.2% Note: Other non-recurring actions mainly relate to measures being taken by Glasgow City Council to address homelessness pressures. Percentages do not sum to 100 per cent due to rounding. Source: Council data returns 117
Page 118
2. Council budgets 20 Councils continue to rely on identified savings across different service areas to address financial challenges 35. All councils have identified the service areas where they expect to make savings when setting their 2026/27 budgets, where previously some councils had savings that were unidentified. Although this represents appropriate financial planning at the time of setting the budget, councils may still need to identify further saving measures if unforeseen in-year pressures arise. 36. Councils are planning £179.6 million worth of saving measures through 2026/27 budgets, representing one per cent of the General Fund revenue budget for all councils. Around £168.1 million are recurring savings with £11.5 million of non-recurring savings identified. Increasing the share of recurring savings is important for ongoing financial management as it provides a more reliable financial base going forward. 37. At the time of budget-setting, South Ayrshire Council planned the largest level of savings as a proportion of its 2026/27 total General Fund revenue budget. The council plans to deliver recurring savings of £9.4 million in 2026/27, representing around 2.4 per cent of its 2026/27 General Fund revenue budget. Most of these savings are within corporate functions and environmental services, particularly through changes to waste management services. 38. Statutory services, like education and social work services, limits councils’ ability to reduce spending in these areas, with savings more common within non-statutory services. Corporate services have the most individual saving measures across all councils, amounting to around £66.7 million, representing over a third of the total value of all 2026/27 saving measures. Around 74 individual saving measures are within culture and leisure, economic development and environmental services. This represents around £46.6 million of saving measures. 39. Our recently published report Delivering for the future – Transformation: How councils are redesigning and delivering more efficient services set out the need for sustainable change through transformation of services, presenting a mixed picture of how well councils are doing this. All councils increased their council tax rates in 2026/27 40. Councils had full flexibility in 2026/27 to determine their council tax levels. All councils increased their council tax rates in 2026/27, with increases ranging from four per cent in City of Edinburgh Council to ten per cent in Aberdeenshire and Moray councils (Exhibit 7, page 21). 118
Page 119
2. Council budgets 21 Source: Council data returns and Scottish Government Council Tax documents Exhibit 7. Band D Council Tax rates in each council, 2024/25 – 2026/27 Council Tax rates increased between four and ten per cent in 2026/27. 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Shetland Islands Eilean Siar South Lanarkshire Angus North Lanarkshire Dumfries and Galloway Scottish Borders Falkirk Orkney Islands Fife West Lothian Aberdeenshire West Dunbartonshire Perth and Kinross Clackmannanshire East Renfrewshire East Dunbartonshire Highland Inverclyde Moray East Lothian Renfrewshire City of Edinburgh North Ayrshire South Ayrshire Argyll and Bute Stirling Dundee City East Ayrshire Aberdeen City Glasgow City Midlothian £ Councils 2024/25 Council Tax (Band D) 2025/26 increase 2026/27 increase 119
Page 120
2. Council budgets 22 41. In total, councils expect to receive £248 million from increases to council tax in 2026/27. The income individual councils expect to raise from council tax depends on several local factors, such as the scale of the increase, the size of the council area, and the nature of the local housing stock, as well as local demand and priorities. 42. Councils have different council tax baselines, calculated using the number of homes in the area, converted to the equivalent number of homes in band D. For 2026/27, Aberdeen City Council agreed a 6.8 per cent increase, bringing its band D council tax charge to £1,747, while Aberdeenshire Council approved a ten per cent increase, resulting in a band D charge of £1,686. Councils such as Aberdeen City, with a higher value baseline, will therefore raise more income for each one per cent increase. Overall, there is a 23.7 per cent difference between the lowest (£1,468) and highest (£1,816) band D rates in Scotland. 43. The Council Tax Reduction (CTR) scheme provides support to a range of claimants, recognising that council tax increases disproportionately impact lower income households. Among the council areas with the highest levels of deprivation, Glasgow City Council applied one of the lowest council tax increases in 2026/27, at 5.9 per cent. Increases in Dundee City, West Dunbartonshire and Inverclyde councils were close to the national average increase of 7.7 per cent. North Ayrshire exceeded the average, with an increase of 8.5 per cent. 44. Our 2025/26 budget bulletin reported significant increases in local council tax rates. Overall, percentage increases were lower in 2026/27 than in 2025/26, but cumulative two-year increases across Scotland range from 12.3 per cent in City of Edinburgh Council to 25.8 per cent in Falkirk Council. The average cumulative council tax increase over the last two years is 18 per cent. There is no clear link between council size and the level of council tax increase. For example, Glasgow City Council, with the largest population, has approved a cumulative increase of 13.8 per cent, while Shetland Islands Council, which has one of the smallest populations and the second lowest Band D rate (Exhibit 7, page 21), has approved an 18 per cent increase, reflecting the national average. 45. Councils also now have the power to set the amount of an additional premium on the council tax rate for empty properties and second homes. Several councils plan to make use of the new power in 2026/27. Councils anticipate raising over £1 billion in 2026/27 from charging to access certain local services 46. Councils also generate income from the fees and charges they set for using certain services. For example, councils will charge for accessing local leisure facilities, like swimming pools, or collecting certain household waste. Council tax makes up a relatively small proportion of a council’s total revenue budget, representing around 20 per cent of overall council income in 2026/27. A percentage increase in council tax does not result in an equivalent percentage increase in a council’s total budget. For example, if council tax represents 20 per cent of a council’s income, a ten per cent increase in council tax results in only a two per cent increase in the council’s overall funding. This is often referred to as the council tax gearing effect. 120
Page 121
2. Council budgets 23 47. Thirty-one councils provided information about the income they expect to receive from fees and charges in 2026/27. Councils expect to receive £1.2 billion from fees and charges in 2026/27, representing around 6.7 per cent of the combined revenue budgets. Income from fees and charges in 2026/27 is largely equivalent to the estimated income received by councils from fees and charges in 2025/26. 48. All councils will increase fees and charges in 2026/27, with the largest percentage rises concentrated in environmental services. The Accounts Commission’s spotlight report on culture and leisure services highlights councils’ increasing reliance on charging individuals to access services. It also highlights inconsistencies in how these charges impact different groups. 49. Seventeen councils are introducing new fees and charges in 2026/27. These are mostly within environmental services and economic development and planning. Three councils are removing certain fees and charges in 2026/27. 50. During the 2026/27 budget cycle, six councils approved tighter eligibility criteria for certain services, including introducing different charging policies for certain users of services. For example, in one council non-residents will face higher charges for accessing bereavement services compared to those living in the area. 51. Across a sample of budget consultations, there is evidence that some councils are clearly communicating that fees and charges may be increased or amended as part of addressing identified budget gaps. Consultations typically outline the need for savings, income generation and service changes, and invite residents to comment on proposed options before decisions are made. Councils are continuing to use reserves to balance their budgets 52. As previously set out by the Accounts Commission (Local government budgets 2025/26), councils’ continued use of reserves to balance budget pressures is not sustainable. At the end of 2025/26, councils estimated a total of £2.6 billion in their General Fund, a usable reserve, with £2 billion committed. Of this total amount held in the General Fund, £0.17 billion (seven per cent) was specifically earmarked for contingency. 121
Page 122
2. Council budgets 24 53. When setting 2026/27 budgets, councils approved the use of £0.19 billion of General Fund reserves. Councils are generally using reserves to manage short-term financial pressures rather than to support ongoing expenditure. For example, reserves are being used to fund specific non-recurring pressures, one-off investment, as well as planned use of service concession flexibility. Some councils have included the use of reserves as a short-term measure within their budget strategies to enable efficiency measures or transformational change. 54. While some councils are using reserves on a one-off basis to manage short-term financial pressures, all acknowledge that using reserves to fund budget gaps is not sustainable in the long term, and that reserves must be managed carefully to ensure minimum uncommitted reserve levels are maintained. Reductions in Scottish Government capital funding are increasing council borrowing and risk exacerbating financial sustainability pressures 55. Councils use their capital budgets to fund local infrastructure projects, like building new schools. The significant capital pressures facing councils are making it difficult to invest in local infrastructure. The impact from reduced capital funding from the Scottish Government is exacerbated by the inflationary pressures making infrastructure projects more expensive. These pressures are set to continue as capital funding from the Scottish Government is expected to reduce further with high inflation continuing to impact on the cost of projects (paragraph 23). 56. The funding of capital budgets comes from a variety of sources (Exhibit 8, page 26). The total General Fund capital budget for all councils in 2026/27 is £3.5 billion, representing a real terms increase of £0.30 billion (9.3 per cent) over the last year. However, 14 councils are reducing their General Fund capital budgets in 2026/27. 57. Borrowing is the main way that councils fund capital projects, representing around 71 per cent of all General Fund capital funding in 2026/27. Councils intend to borrow £2.48 billion in 2026/27 to fund local infrastructure projects, a real terms increase of £0.41 billion from the previous year. The Accounts Commission’s 2024/25 Financial bulletin on councils explains how councils are relying more on borrowing to finance projects with debt repayment costs putting pressure on future revenue budgets. 122
Page 123
2. Council budgets 25 58. Four councils say they are planning an innovative approach to fund local infrastructure projects in 2026/27, including: • Angus Council set aside £0.75 million as part of its 2026/27 council tax increase to cover loan repayments and interest. This increases the council’s ability to borrow money for capital investment with an additional £16 million of spending planned through an Angus Public Infrastructure Fund. • South Lanarkshire Council is investing £2 million to cover the upfront costs of creating commercial spaces for local organisations. This funding allows the council to access more than £11 million of total investment in commercial properties, which will be paid for over time through rental income. All councils that own housing are investing in new builds 59. Twenty-six councils own and maintain council housing. Councils are required to have a Housing Revenue Account (HRA) to record all income and expenditure for the direct provision of housing services. Councils are committing a combined £1.5 billion from their capital budgets to the HRA in 2026/27, a £20.8 million (1.4 per cent) real terms increase compared to the previous year. Despite this, nine councils are reducing capital funding to their HRA in 2026/27. 60. Borrowing is the major source of finance for councils’ HRA capital budgets, accounting for around 74 per cent in 2026/27. This is a slightly higher proportion than in 2025/26. Higher borrowing increases the pressures on future HRA revenue budgets because councils must set aside funding to cover debt repayment costs. 61. HRA funding allows councils to progress their local housing priorities. • All councils with an HRA are planning expenditure on new builds in 2026/27. Councils expect to spend £0.66 billion on new housing this year, a real terms increase of £74.5 million (12.8 per cent) compared to 2025/26. • Councils are planning to increase spending in real terms on refurbishment and repair and maintenance costs by £23.1 million (3.1 per cent) between 2025/26 and 2026/27. • Councils are also planning around £113 million in other areas of expenditure, such as buying back former council housing. 62. The Auditor General and Accounts Commission are undertaking a report on housing services across Scotland. This report is due for publication in early 2027. The Housing Revenue Account (HRA) is a ring-fenced account relating to local authority housing. The HRA is intended to record expenditure and income on running a council’s own housing stock and closely related services or facilities, which are provided primarily for the benefit of the council’s own tenants. 123
Page 124
2. Council budgets 26 Exhibit 8. Sources of capital budgets for 2025/26 and 2026/27 Borrowing is the main way that councils fund capital projects. 0.0 0.5 1.0 1.5 2.0 2.5 Other Developer contributions Capital receipts Internal revenue funding Specific Capital Grants General Capital Grants Borrowing £ billion 2025/26 2026/27 1.9% 5.3% 3.3% 2.4% 2.6% 2.5% 2.4% 2.0% 7.0% 6.9% 64.4% 70.6% 16.4% General Fund 12.3% 0.0 0.25 0.50 0.75 1.0 1.25 Other Developer contributions Capital receipts Internal revenue funding Specific Capital Grants General Capital Grants Borrowing £ billion 2025/26 2026/27 0.1% 4.4% 2.1% 0.1% 2.8% 2.2% 71.8% 1.4% 2.2% HRA 73.9% 10.2% 10.8% 9.3% 8.8% Note: Figures for 2025/26 have been adjusted into 2026/27 prices using the March 2026 GDP deflators. Capital receipts are income councils generate from selling existing assets. Source: Council data returns 124
Page 125
2. Council budgets 27 Councils are considering a range of issues to set balanced budgets in the future 63. Councils are anticipating that funding pressures will continue in the medium term, reflecting projected spending levels set out in the Scottish Spending Review (paragraph 22). In projecting future revenue budget gaps, councils have considered and made assumptions about a range of funding and cost pressures (Exhibit 9, page 28). 125
Page 126
2. Council budgets 28 Exhibit 9. Factors considered by councils when projecting future revenue budget gaps Source: Council data returns Considerations Pay settlements All councils considered current and future pay settlements, with assumed increases ranging from two to 3.5 per cent. Around one third of councils assumed a pay increase of three per cent. Pension contributions Fewer than half of councils considered potential changes to employer pension contributions. Where these were considered, most councils assumed no imminent change. The most recent Scottish Local Government Pension Scheme triennial valuation was undertaken in March 2026 and will set contribution rates from 1 April 2027 onwards. Inflation Most councils took account of general and service specific inflationary pressures, particularly in relation to contracts and energy or wider utility costs. Demand More than two-thirds of councils factored in service demand, with some assuming increased demand in future years. While the scale varied across councils, many highlighted growing pressures in social care, homelessness and Additional Support Needs. Council Tax More than two-thirds of councils considered future changes to council tax rates. Of these, around half assumed increases ranging from two to ten per cent in 2027/28, and from one to seven per cent in 2028/29. Some anticipated higher council tax income due to an increase in the number of taxable properties. Non-Domestic Rates Approximately one-third of councils considered potential changes to Non Domestic Rates (NDR). Some councils that did not factor in changes noted that NDR decisions are determined by the Scottish Government and are therefore outside local control. Fees & charges More than two-thirds of councils considered changes to fees and charges. Some councils applied inflationary uplifts, typically between two and six per cent, while others assumed no increases. Borrowing / debt Most councils considered the cost of borrowing and debt servicing, based on expected loan repayments, interest rate assumptions and agreed capital investment plans. These costs are generally incorporated within longer-term financial plans, with additional borrowing costs reflected in annual budgets. Reserves More than two-thirds of councils considered their level and use of reserves. Some assumed little or no use of general fund reserves to balance budgets. Where reserves are used, councils typically draw on specific earmarked funds and apply controls, such as spreading the impact over time or restricting use to short-term pressures. Savings More than half of councils considered the risk of savings plans not being fully delivered. While councils acknowledged that failure to achieve planned savings could affect services, most assumed that approved savings would be delivered in full, or that alternative measures would be identified where necessary. 126
Page 127
2. Council budgets 29 64. We reported in the Local Government: Financial bulletin 2024/25 that a number of earlier Private Finance Initiative (PFI) contracts are now nearing expiry, with councils actively preparing for, or managing, complex contract exit arrangements. While councils have not generally made assumptions about PFI handback implications, a sample review indicates that councils are considering these risks during budget setting. This includes keeping money aside to cover unitary charges, and in some cases, setting aside funds to cover potential property repair and maintenance costs. Councils are continuing to forecast budget gaps over the short term 65. Given the ongoing public sector financial pressures (paragraph 22), councils are projecting they will continue to have gaps in their revenue budgets; £486.9 million in 2027/28 and £476.6 million in 2028/29. Exhibit 10, (page 30) sets out projected gaps across all councils. There are differences in the way councils’ approach and present their budget and identify budget gaps including when saving measures are agreed so figures may not be directly comparable. 66. Although some pressures in these forecasts are expected to be resolved or reduce over time, councils still face a combined revenue gap of £964 million across the next two years. To bridge this shortfall, they will need to raise additional income, identify further savings, or rethink how – and what – services they deliver. 127
Page 128
2. Council budgets 30 Councils Budget gap 2027/28 £ million Budget gap 2028/29 £ million Cumulative gap to 2028/29 £ million Cumulative gap as % of 2026/27 General Fund revenue budget Highland 4.8 0.8 5.7 0.7% West Lothian 11.5 - 11.5 1.8% South Lanarkshire 9.7 19.5 29.2 2.7% City of Edinburgh 11.8 31.4 43.2 2.8% Dundee City 7.8 7.1 15.0 2.9% Fife 8.5 26.6 35.1 2.9% Perth and Kinross 5.2 10.6 15.9 3.0% Falkirk 9.4 5.9 15.3 3.0% Renfrewshire 4.6 16.2 20.7 3.3% Moray 2.9 7.4 10.3 3.3% Angus 5.2 8.6 13.7 3.5% East Renfrewshire 8.0 5.2 13.2 3.6% North Ayrshire 9.0 9.2 18.3 3.8% East Ayrshire 6.0 12.0 18.0 3.9% South Ayrshire 9.9 6.4 16.3 4.1% Inverclyde 5.2 6.2 11.5 4.2% North Lanarkshire 26.0 25.4 51.3 4.3% Argyll and Bute 10.2 5.6 15.8 4.4% East Lothian 10.5 8.4 18.9 5.0% Scottish Borders 11.9 9.8 21.7 5.2% Dumfries and Galloway 13.9 14.1 28.0 5.4% Stirling 8.1 10.2 18.3 5.7% Midlothian 13.5 9.3 22.8 6.7% Eilean Siar 3.6 6.0 9.6 6.8% Aberdeen City 30.2 18.5 48.7 7.0% Glasgow City 95.3 72.0 167.3 7.5% Clackmannanshire 10.1 3.5 13.6 7.5% West Dunbartonshire 10.9 14.3 25.2 7.7% Aberdeenshire 42.4 28.3 70.6 8.2% East Dunbartonshire 23.1 22.2 45.2 11.8% Orkney Islands 21.0 23.1 44.1 28.7% Shetland Islands 36.9 32.8 69.7 37.4% Scotland 486.9 476.6 963.5 5.1% Exhibit 10. Councils’ projected budget gaps to 2027/28 and 2028/29 The cumulative projected budget gap to 2028/29 is almost £1 billion. Note: A detailed 2028/29 budget gap is not currently available for West Lothian Council. Shetland and Orkney hold significant reserves related to oil and gas harbour activity and are outliers due to their use of these reserves. Source: Council data returns 128
Page 129
313. Consulting with communities 3. Consulting with communities As councils continue to make challenging budget decisions, they must ensure the communities affected are fairly and consistently consulted. While the majority of councils consulted on their 2026/27 budgets, there is variation in how effectively they are consulting with communities 67. Councils must effectively consult with residents in helping to identify ways to address their funding pressures. As demand for services grows and resources become constrained, it is important that councils explain the difficult decisions they must make, including how public funds are used to maintain and improve services, and how they are protecting essential services. 68. Twenty-seven councils consulted with residents on their 2026/27 budget. Most councils consulted clearly with residents on the funding pressures they are facing and on possible actions to close their budget gap. Councils commonly sought views on priority areas and presented savings options and potential income-generation measures to address financial pressures. 69. There was some variation in how councils consulted on their 2026/27 budgets, but most did so through online public consultations and surveys. Some councils also used community engagement methods such as community meetings, roadshows or workshops. Some councils provided evidence of new ways they undertook engagement as part of their 2026/27 budget-setting process, examples include: • South Lanarkshire Council consulted separately with children and young people on budget proposals. Recognising that the views of young people are often missed in normal budget consultation processes. • Angus Council changed their approach to allow more open comments on specific services and budget areas, gathering more in-depth qualitative feedback than before. In addition, QR codes were added to posters to make it easier for people to access online surveys directly. 129
Page 130
3. Consulting with communities 32 • Officers and elected members from Scottish Borders Council ran targeted consultation exercises with community groups and the public, including within schools, supermarkets and colleges. This allowed for more face-to-face engagement with people who may not normally complete online consultations. Facilitated sessions were also held with groups who are less frequently represented in formal consultation exercises to ensure their views were also included. These are often missed in standard consultations. 70. Councils should use a range of methods to engage and consult with stakeholders, as this helps ensure wider participation in ways that are accessible and meaningful, including people whose voices are under-represented, and reduces the risk that any groups or individuals are excluded. High levels of engagement and participation lead to better informed decision-making by ensuring a wide range of views and experiences are considered. Councils also need to ensure they are transparent, as part of their engagement, about why they have made decisions, especially when these decisions directly affect communities. 71. Councils should also consult with a wide range of stakeholders on their budget decisions, allowing them to better understand the impact decisions have on different groups. There was variation in how councils consulted with established groups on their 2026/27 budget proposals. Twenty-nine (of 31) councils engaged with their local IJBs as part of their budget setting process, and more than half (17) engaged with Community Planning Partnerships. Other stakeholder groups councils engaged with include: • Staff, unions and communities – engagement most commonly focused on internal stakeholders and local communities, with 26 councils engaging with staff and trade unions, 23 involving tenants and residents’ associations, and 22 engaging with community groups. • Children, young people and families – most councils sought views from families and young people, with 19 councils engaging with children and young people (including school pupils) and 16 engaging with parent councils. • Business and other stakeholders – 15 councils engaged with the business community and seven councils engaged with other users of services or stakeholders, including third-sector partners and charities such as Women’s Aid. 72. A review of a sample of council budget consultation documents shows residents expressing strong support towards protecting frontline services. Residents highlight the importance of protecting education, social care, children and family services, and libraries, leisure, and wider community facilities. 130
Page 131
3. Consulting with communities 33 73. Across budget consultations, councils explain that limited and often ring-fenced funding, especially for statutory services like education and social care, means that protecting these areas may lead to reductions, service changes, closures to non-statutory or discretionary services, or higher charges elsewhere. 74. Councils included budget proposals that would reduce access to key local facilities, such as leisure centres or libraries, or lowering educational or social care support. These proposals were developed during budget consultations and prior to final funding settlements, reflecting the range of savings options councils were considering at the time. As funding settlements were finalised and public consultations considered, there are examples of councils scaling back on proposals or abandoning them altogether: • Stirling Council – rejected savings proposals that would have a greater impact on families and vulnerable groups. • Inverclyde Council – withdrew plans for savings to libraries, swimming pools, and community safety teams after feedback from residents. • Argyll and Bute Council – councillors rejected savings proposals that would have reduced library and leisure services. • Fife Council – prioritised protecting vital services, supporting vulnerable residents, and investing in education and anti-poverty initiatives. Councils are using Equality Impact Assessments to understand the effect budget decisions may have on their communities 75. Public bodies use Equality Impact Assessments (EIAs) to understand the potential impact from new policies or budget decisions on individuals with protected characteristics. EIAs help identify ways to advance equality and highlight potential discrimination. Public bodies must complete an EIA whenever introducing a new policy or making a strategic decision that impacts on different groups. Public bodies must do this early in the process to allow the findings to shape the decision- making process. 76. Councils must complete an EIA to understand how their budget decisions may affect groups and communities, particularly those with protected characteristics under the Equality Act 2010. This becomes even more important as councils continue to face significant financial pressures, including reducing services. Thirty-one (of 32) councils carried out EIAs. The Accounts Commission’s Spotlight on culture and leisure services found the quality of EIAs varies when councils are making changes to services that impact on communities. 131
Page 132
3. Consulting with communities 34 77. The Accounts Commission explained within last year’s budget bulletin its expectations around councils fully and transparently explaining the impact budget decisions may have on those with a protected characteristic. This information, including the actions to mitigate potential discrimination, should be clearly accessible for everyone. 132
Page 133
Appendix 1 35 Appendix 1 Councils’ 2026/27 revenue budgets, budget gaps, approved savings and other budget measures Councils General Fund revenue budget 2026/27 £ million Budget gap 2026/27 £ million Approved savings 2026/27 £ million Other measures 2026/27 £ million Aberdeen City 697.2 11.0 3.5 11.1 Aberdeenshire 866.2 19.2 9.3 10.3 Angus 388.1 13.9 5.3 8.6 Argyll and Bute 362.0 14.9 6.1 8.8 City of Edinburgh 1,534.5 27.9 20.0 31.3 Clackmannanshire 181.2 7.0 3.6 3.4 Dumfries and Galloway 515.8 12.5 4.2 8.3 Dundee City 521.3 5.0 0.8 6.6 East Ayrshire 460.2 9.5 3.5 6.1 East Dunbartonshire 381.8 23.7 4.1 19.6 East Lothian 379.9 3.5 1.4 2.1 East Renfrewshire 363.1 8.7 3.2 5.5 Eilean Siar 140.8 5.0 0.4 4.6 Falkirk 508.4 14.5 10.2 7.1 Fife 1,205.3 3.6 0.1 14.1 Glasgow City 2,233.8 86.7 31.9 71.7 Highland 868.0 23.4 5.4 18.1 Inverclyde 276.6 4.0 0.6 3.5 Midlothian 340.7 13.3 0.6 12.7 Moray 311.7 10.6 4.2 6.3 North Ayrshire 486.1 17.8 0.2 17.5 North Lanarkshire 1,182.6 19.3 9.2 22.0 Orkney Islands 153.3 21.3 0.2 21.1 Perth and Kinross 533.8 20.7 8.8 12.4 Renfrewshire 630.9 5.0 2.4 10.7 Scottish Borders 418.0 16.3 7.6 8.7 Shetland Islands 186.5 43.7 0.0 43.7 South Ayrshire 398.1 20.7 9.4 11.3 South Lanarkshire 1,086.7 -1.5 4.2 11.5 Stirling 323.0 11.4 5.5 6.0 West Dunbartonshire 325.7 15.9 5.4 10.5 West Lothian 634.6 20.2 8.5 11.7 Scotland 18,895.8 528.6 179.6 446.8 Note: The approach councils take to budget setting, defining budget gaps and the measures taken to address these gaps varies across councils therefore caution should be taken when comparing councils. In each council, the sum of approved savings and other measures may be greater than the budget gap; budgets may also include measures to fund additional investment or increase reserves. Approved savings include both recurring and non-recurring savings. Other measures include increases to council tax, increases to income, use of reserves and other actions, as set out in Exhibit 6. 133
Page 134
Appendix 2 36 Appendix 2 Progress against the expectations in the Local Government Budgets 2025/26 Councils should: Progress/ status In future, we expect to see councils encourage more active participation in the budget-setting process by ensuring that: Budget papers and financial monitoring reports provided to elected members include clear and understandable headline figures that state the impact of specific budget decisions on the overall financial position of the council Mixed progress There is mixed progress in how effectively councils are presenting key financial information in budgetary reports that are also publicly available. Budgets should link back to the council’s corporate plan to allow elected members to make spending choices better informed by, and based upon, the council’s priorities Progress Thirty-one councils linked their 2026/27 budget back to its corporate plan. Linking key financial plans back to corporate plans ensures that resources are targeted towards key strategic priorities. Fundamental information, such as the forecast budget gap, is clearly presented as part of the consultation process with residents Progress A sample review of budget consultations indicates most councils clearly identify their budget gaps, with some also providing detail over multiple financial years. Estimated costings of how specific proposals will contribute to managing the budget gap are made available to residents, including the potential contribution of any proposed increase to council tax and the anticipated impact on levels of service delivery Progress A sample review indicates that most councils make estimated costings available for proposed measures, including indicative savings or income from council tax increases, with high-level information on the anticipated impact on service delivery, though the level of detail can vary. General public consultations are supplemented by targeted consultations with groups most impacted by changes to specific services and that consideration is given to how to encourage participation Mixed progress Thirty councils consulted to some extent on their 2026/27 budget. Most councils consulted with local IJBs and residents on budget proposals, but there is a mixed approach in how councils engaged with targeted groups. The ongoing impact of budget decisions are fully assessed, including through Equality Impact Assessments, to enable elected members to make informed decisions. Progress Thirty-one councils confirmed they carried out an EQIA on their 2026/27 budgets. EQIAs are a statutory requirement to ensure decision- makers are aware of the impact on groups with a protected characteristic. 134
Page 135
Audit Scotland 4th Floor 102 West Port Edinburgh EH3 9DN Phone: 0131 625 1500 www.audit.scot ISBN 978 1 918486 10 0 Bulletin Local government budgets 2026/27 135
Page 136
136
Page 137
NORTH AYRSHIRE COUNCIL 27 August 2026 Audit and Scrutiny Committee Title: National Planning Improvement Framework (NPIF) Purpose: To advise the Committee of the completion and outcome of the Planning Service’s National Planning Improvement Framework (NPIF) Recommendation: That the Committee notes the completion and outcome of the National Planning Improvement Framework (NPIF). 1. Executive Summary 1.1 The National Planning Improvement Framework (NPIF) replaces the former annually prepared Planning Performance Framework. The NPIF is a four-stage process and is designed to shift the focus of measuring planning authorities away from rigid metrics, moving instead toward a collaborative approach that embeds continuous improvement. 1.2 The full assessment is provided at Appendix 1, alongside a summary Action Plan at Appendix 2. The Audit and Scrutiny Committee is invited to note the outcome of the performance assessment and agree that the NPIF will be used in consultation with North Ayrshire communities to support accountable and effective service delivery. 2. Background 2.1 The Planning (Scotland) Act 2019 introduced a new approach to measuring the performance of planning authorities. It made it mandatory for planning authorities to prepare a report on their performance and identify future improvement actions from 2025 onwards. This report is referred to as the National Planning Improvement Plan (NPIF) and replaces the former Planning Performance Framework (PPF). The NPIF is prepared annually and requires to be published and submitted to Scottish Ministers. 2.2 A new role of National Planning Improvement Champion (NPIC) was introduced in the Act to monitor the performance of planning authorities and provide advice to them, as considered appropriate, on the steps that might be taken to improve performance by Agenda Item 10 137
Page 138
planning authorities. The NPIC post is based within the Improvement Service and is accountable to Scottish Ministers. 2.3 The NPIF has been developed by the NPIC, and the framework process comprises the following four stages: • Stage 1 - where the planning authority undertakes a self-assessment exercise and identifies improvement areas • Stage 2 - an improvement action plan and performance assessment arising from stage 1 undergoes peer collaborative review • Stage 3 - the agreed improvement action plan and performance assessment are provided to Scottish Ministers and the Council’s Chief Executive • Stage 4 - the NPIF and improvement action plan is published, actioned and monitored. 2.4 The Council’s Planning Service has recently completed stages 1-3 and will now enter stage 4. 2.5 The self-assessment of the Planning Service is attached as Appendix 1 to this report, providing a full overview of performance and the Improvement Action Plan detailing the actions to be implemented in the next two years. A copy of the Action Plan is provided at Appendix 2. 2.6 The NPIF Performance Assessment and Improvement Action Plan has now been reviewed by the National Planning Improvement Champion, who has confirmed it to Scottish Ministers and the Council’s Chief Executive. The review of the Planning Service has been confirmed as “making excellent progress”. This maintains a long history of service delivery excellence and North Ayrshire’s Planning Service continues to be one of the top performing services in Scotland. Notwithstanding this, the focus of the NPIF performance assessment has been on identifying actions to ensure continuous improvement. 2.7 The key improvement actions identified include: • The undertaking of a service review to prepare a workforce planning strategy and evaluation of resources • Further identification and evaluation of local, regional and national challenges to planning to ensure effective service delivery • A review and update of the Council’s Planning Enforcement Charter 2.8 The NPIF was recently published on the Council’s website and shared with all North Ayrshire community councils, with their feedback incorporated as noted. The Improvement Action Plan is therefore in the public domain and open to scrutiny by all North Ayrshire communities. There will be regular checks by the Planning Service and the National Planning Improvement Champion on progress. It is also anticipated that there will be an annual review to evaluate progress against agreed improvement actions. 3. Proposals 138
Page 139
3.1 That the Committee notes the completion and outcome of the National Planning Improvement Framework (NPIF). 4. Implications/Socio-economic Duty Financial 4.1 None Human Resources 4.2 None Legal 4.3 The legislative requirements for the preparation, submission and registration of NPIFs are set out in the Town and Country Planning (Scotland) Act 1997 as amended by the Planning (Scotland) Act 2019. Equality/Socio-economic 4.4 The Council is required to take account of the NPIF in the preparation of North Ayrshire’s third Local Development Plan (LDP3) which will be the subject of an equalities impact assessment and assessment on the impact of the plan on children. Climate Change and Carbon 4.5 The Council is required to take account of the NPIF in the preparation of North Ayrshire’s third Local Development Plan (LDP3) which will be subject of a Strategic Environmental Assessment. Key Priorities 4.6 Communities and Local Democracy are one of four interlinked and interdependent priorities set out in the Council Plan (2023-28). The preparation of the NPIF and consultation on it are a means of enabling local communities to be active in the preparation of North Ayrshire’s next Local Development Plan and placemaking approaches. Community Wealth Building 4.7 None. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 None. 139
Page 140
Consumer Duty 4.10 None. 5. Consultation 5.1 The NPIF was shared with community councils across North Ayrshire for their review and feedback, which was then incorporated into the final assessment. David W. Hammond Executive Director (Communities and Housing) For further information please contact Allan Finlayson, Chief Planning Officer, on 01294 324319. Background Papers 0 140
Page 141
__________________________________________________________________________________ National Planning Improvement | Improvement Service National Planning Improvement Framework (NPIF) North Ayrshire Council Performance Assessment 2025/26 March 2026 Cohort 3 141
Page 142
__________________________________________________________________________________ National Planning Improvement | Improvement Service 142
Page 143
__________________________________________________________________________________ National Planning Improvement | Improvement Service Planning Authority: North Ayrshire Council Lead officer: Allan Finlayson Email: allaninlayson@north-ayrshire.gov.uk Phone number: 07500 226257 North Ayrshire Planning Service The Planning Service in North Ayrshire, from January 2024, sits within the Housing and Public Protection Service within the Communities and Housing Directorate. The Chief Planning Officer heads a team of ten professional planners and four support staff split between two teams: Development Management and Strategic Planning. Our Development Management team continue to deliver sector-leading determination timescales for planning applications while handling a high number of cases per officer. The Strategic Planning Team is at a progressed stage and on track in the preparation of North Ayrshire’s third Local Development Plan, undertaking early engagement with communities and stakeholders. Introduction The Planning (Scotland) Act 2019 introduced a new approach to measuring the performance of planning authorities and made it mandatory for authorities to prepare a report on their performance after the end of each financial year. The National Planning Improvement Framework (NPIF) has been developed by the National Planning Improvement Champion and aims to support a planning authority to assess their performance, identify areas of improvement and ascertain how best to action these to maximise their effectiveness and efficiency. The National Planning Improvement Framework aims to support the purpose of planning to manage the development and use of land in the long-term public interest through ensuring that: ▪ The planning system enables the delivery of sustainable, liveable, and productive places. ▪ Planning services are equipped to work effectively and efficiently, embedding continuous improvement. ▪ Users are able to engage constructively with the planning system and planning service. A self-assessment tool has been development and focuses on the attributes of a high performing planning authority. The attributes are grouped into five themes as detailed below. 143
Page 144
__________________________________________________________________________________ National Planning Improvement | Improvement Service 144
Page 145
__________________________________________________________________________________ National Planning Improvement | Improvement Service NPIF Scoring Matrix Engagement on the National Planning Improvement Framework (NPIF) On completion of a draft NPIF the Planning service fulfilled a required peer review meeting with the National Planning Improvement Champion, the Improvement Service, Elected Members and internal and external stakeholders. An intention to include the attendance of external peer review partner (Angus Council) was not possible as a result of matters out with North Ayrshire’s control. The peer review meeting examined the NPIF, discussed its content and the Planning service in North Ayrshire with all attending parties. A decision was made not to invite a community council to the peer review meeting for the reason that this would not be fully representative of all communities of North Ayrshire. To fulfil the importance of engaging with all North Ayrshire’s communities it was determined to update the NPIF with feedback received from the peer review meeting attendees, the National Improvement Champion and the Improvement Service and, thereafter, to consult on a revised NPIF with all community councils in North Ayrshire. The revised draft NPIF was subsequently issued to all community councils in North Ayrshire seeking comments. In addition, the Chief Planning Officer offered to present a summary of the draft NPIF to all community councils at one of their meetings to inform on the NPIF and assist in the submission of community views. Presentation of the NPIF was subsequently made to all responding community councils and all feedback has been incorporated into the finalised NPIF. In summary, comments 145
Page 146
__________________________________________________________________________________ National Planning Improvement | Improvement Service on the NPIF were positive as was feedback on community engagement with the Planning service and North Ayrshire Council more widely. Attendance at community council meetings also provided opportunity to discuss contentious planning applications, future engagement opportunities in relation to the emerging Local Development Plan and North Ayrshire Council more widely in respect of many matters such as community wealth building, community wellbeing and community infrastructure delivery. Notwithstanding good experience of past engagement being noted, discussion on lesson learning took place on how community engagement and planning decision making could be improved in the future. The approach taken in respect of community consultation on the NPIF was welcomed by all community councils and acknowledged as good practice to be built on in the future. The only concerns raised by community councils in relation to the NPIF were made in respect of identified staff resourcing which was seen as a potential impediment to the success of future engagement with communities and the addressing of identified community needs. The best examples of this related to impact on investigation and enforcement of unauthorised development and the ability of the Planning service to fully develop community engagement in respect of aspirations and concerns contained in registered Local Place Plans (LPPs). 146
Page 147
__________________________________________________________________________________ National Planning Improvement | Improvement Service A high performing planning authority needs to have the right number of people to do the work expected of it with the rights skills set. It also needs to have a strategy to ensure that it retains and recruits the right staff in the future. It supports staff to upskill and to be prepared for changes in policy, legislation, and new circumstances. Please consider the following when thinking about this attribute and how you have performed over the last year: • Does the planning authority have the sufficient level of staff to carry out all activities within the required timeframes? YES – although staff resource issues exist • Does the planning authority have the ability to carry out all activities within the required timeframes with its current budget? YES • Does the planning authority have the ability to carry out all activities within the required timeframes with its current income? YES • Does the planning authority received responses from consultees within the prescribed timescale when assessing planning applications? YES • Does the planning authority have the ability to access the appropriate advice, expertise, evidence, and data it requires? YES Narrative The Development Management Team is one of the smallest pro-rata of all Scottish Planning Authorities at only 5.75 FTE posts comprising of 1.75 FTE Senior Planning Officers, 2 Planning Officers and 2 Assistant Planning Officers. The team has 2 FTE support staff with no enforcement or specialist officers. The team has experienced significant resource issues in the last year with business case justification required for the recruitment of a Planning Officer vacancy and difficulties thereafter in recruiting an Assistant Planning Officer position following internal promotion. The Planning Officer position was vacant, for 4 months and the Assistant planning officer post was vacant for one year but has recently been filled. ATTRIBUTE 1: THIS PLANNING AUTHORITY HAS SUFFICIENT RESOURCES AND SKILLS TO MAXIMISE PRODUCTIVITY 147
Page 148
__________________________________________________________________________________ National Planning Improvement | Improvement Service Informal peer review of comparable Planning service resourcing has confirmed that the team is as little as one third of the size of comparable authorities and with as much as twice the caseload per officer. Consultees play a significant role in the processing of planning applications. Internal consultation responses are generally received within the requested timescale. However, there are regulatory pressures on our internal consultees and therefore limited resources available to direct planning application consultations. External consultation responses have been noticeably delayed as a result of pressure by additional demands arising from the implementation of National Planning Framework (NPF4), enhanced Local Development Plan (LDP) requirements and resourcing pressures generally. Delay in the consultation process impacts on planning application determination timescales and is outwith the control of the Planning service. The Strategic Planning Team is comprised of a Strategic Planning Manager, 2 Planning Officers, 1 Assistant Planning Officer and a Technician. The team is currently operating at a reduce resource following the loss of the Assistant Planning Officer to a promoted post in a neighbouring authority As with the Development Management team the Strategic Planning team is small when compared to comparable Planning Authorities and has no specialist officer resource in areas such as historic buildings or landscape. The team is responsible primarily for all aspects of the preparation of the Council's Local Development Plan and providing support to community bodies in the preparation of Local Place Plans. The team consists of a manager, two planning officers, an assistant planning officer and technician. The Strategic Planning Team has recently finalised an Evidence Report and submitted this to Scottish Government as part of the “Gatecheck” process. The breadth of topics to be covered and the data collection, analysis and engagement that is necessary to pass the Gate Check stage provided a significant workload challenge for the team. Identified risks related to the capacity for engagement with Key Agencies and the impact of an Evidence Report being returned following Gate Check would have on the planning authority being able to meet the Scottish Government expectation of having a new style LDP in place within around 5 years of the Regulations coming into force i.e. by May 2028. To date these risks have been managed and the LDP is on track for adoption by May 2028. Budget provision has been made to support the preparation of the LDP, including the procurement of specialists to provide appropriate advice, expertise, evidence and data, specifically in relation to Transport Appraisal; Play Sufficiency Assessment and landscape assessment. Informal review of the Planning service over the past year has identified the following issues. 148
Page 149
__________________________________________________________________________________ National Planning Improvement | Improvement Service • Difficulties in recruitment • Career progression only possible where a vacancy becomes available • Ageing workforce in senior positions • Succession planning limitations • Increasing legislative complexity without additional resource • Pressure of maintaining service excellence in the face of additional pressures A formal review of the Planning service to examine these issues in more detail is planned in the coming year. Action Formal reviews of the Planning service will examine existing resource suitability for current and future workload, identify potential gaps in service provision, provide risk management and a pathway to ensure appropriate future service provision. 149
Page 150
__________________________________________________________________________________ National Planning Improvement | Improvement Service Professional and Financial Resources The establishment resource of the Planning service is; Head Count: Chief Planning Officer 1 Development Management 5.75 Development Planning 4 (currently 3 as a result of vacancy) Technical Support 4 Total 14.75 (currently 13.75 as a result of vacancy RTPI Chartered Staff: 6 Age Profile: Under 30 2 30-39 5 40-49 5 50 and over 3 The Chief Planning Officer monitors the service budget on a monthly basis with the respective service Accountant. Planning fee income for 25/26 was similar to that of previous years at approximately £750,000. With outgoings of considerably less than this, the Planning service has historically “over recovered” in respect of income against expenditure without a resulting increase in resources. 150
Page 151
__________________________________________________________________________________ National Planning Improvement | Improvement Service 151
Page 152
__________________________________________________________________________________ National Planning Improvement | Improvement Service Please consider the following when thinking about this attribute and how you have performed over the last year: • Does the planning authority have a workforce planning strategy in place? NO – this is an action • Does the planning authority have the ability to support staff development and upskilling and send staff on relevant courses? YES – training budget exists • Does the planning authority have a deliverable commitment to support staff health and wellbeing? YES – both corporately and within service Narrative North Ayrshire Council’s Performance Management Strategy and fair-work-first- statement aim to aims to create a flexible, skilled, and motivated workforce that supports the council's vision of a "Fair for All" North Ayrshire. The Council also has a Wellbeing at Work policy Corporate Health, Safety & Wellbeing and is committed to excellence in health, safety and wellbeing by preventing or minimising any adverse impact of our activities and services, and by ensuring that its employees and communities are safe and protected. Beyond the identified Council policies there is no Planning workforce strategy however, as previously noted, a review of the Planning service is programmed for the next year which will establish service capacities, needs, and strategy for delivery. This work will build on the informal review previously noted and inform in areas such as workforce direction, recruitment strategy and financial opportunities/constraints. Action The recruitment of Town Planners and associated staff is a national challenge as recognised in work such as the Royal Town Planning Institute /Heads of Planning Scotland and Scottish Government Future Planners Project. A historic reduction in the number of undergraduate Town Planning courses has been addressed with potential geographic significance to North Ayrshire with the initiation of an accredited course at the University of West of Scotland bolstering the only other undergraduate course at Dundee University and the postgraduate course at Glasgow University. The North Ayrshire Planning service does not currently have budget for intern or graduate placements however this will be considered in the programmed Planning service review. A more pressing concern, however, is the limited staff resource that can be dedicated to the investigation into and enforcement of planning breaches. This is an ongoing difficulty in meeting the expectations of customers concerned with enforcement matters. The Planning service has no dedicated enforcement officer, and this obligation ATTRIBUTE 2: THE PLANNING AUTHORITY HAS A VALUED AND SUPPORTED WORKFORCE 152
Page 153
__________________________________________________________________________________ National Planning Improvement | Improvement Service is shared between Development Management Officers who already have a higher than nationally averaged workload in respect of application caseload. Therefore, the investigation of additional staff resource for the service is an action. An additional resource concern is the absence of a managerial position in the Development Management team to reflect the existence of such in the Strategic Planning team. This is a staffing resourcing issue that will also be investigated as an action. Opportunities to support Planning staff by means of training and upskilling are constantly reviewed and a limited training budget exists for this. The Planning service is also committed to enhancing the skills, talents, and confidence of staff through attendance at relevant and suitable training and development courses which include those hosted by the RTPI, relevant chapter events, HOPS and the Improvement Service and other providers. 153
Page 154
__________________________________________________________________________________ National Planning Improvement | Improvement Service Improvement Action Plan (People theme) Attribute Score (1=Making excellent progress, 5= No progress) 1. The planning authority has sufficient resources and skills to maximise productivity 4 2. The planning authority has a value and supported workforce 2 Based on the grading above, outline any areas of improvement that are required and by whom and their level of importance (High/ Medium/ Low) and by when (short/ medium/ long term). Improvement Action What action will you take? What will the outcome be? Owner Importance High Medium Low Timescale Short term – 1 year Medium term – 3 years Long term – 3+ years Resources Service review Allan Finlayson High Short Internal Workforce Planning strategy Allan Finlayson High Short Internal/peer review Enforcement resourcing improvement Allan Finlayson High Short Development Manager resourcing improvement Allan Finlayson Medium Medium 154
Page 155
__________________________________________________________________________________ National Planning Improvement | Improvement Service A high performing planning authority has a positive culture through ensuring it has sound governance, effective leadership and a commitment to continuous improvement. The authority has an identified chief planner, who is supported by a strong leadership group to advise on decision-making, policy and operational management. Please consider the following when thinking about this attribute and how you have performed over the last year: • Has the planning authority undertaken an annual assessment of its performance and acted upon areas previously identified as in need of improvement? YES – annual informal assessment undertaken with committed action to formalise • Has the planning authority achieved recognition at relevant awards or through performance accreditation frameworks? YES – previous award recognition however current resourcing issues preclude seeking this at this time • Has the planning authority engaged in peer review, good practice exchange or improvement activities? YES – informal peer review and lesson learning regularly undertaken • Has the planning authority addressed any complaints upheld by the Scottish Public Services Ombudsman and have evidence of this and that it has learned from valid cases? YES – previously however no SPSO cases within the reporting period Narrative Continuous improvement of the Planning service is always the subject of ongoing review and focusses on Development Management and Local Development Planning obligations. Development Management performance has decreased slightly as a result of resourcing difficulties but remains nationally leading and significantly higher than national averages. The Local Development Plan (LDP) is currently on track for adoption before the 2028 Scottish Government target however programme slippage has been noted recently, again as a result of resourcing issues and the delay experienced in Scottish Government’s ATTRIBUTE 3: THIS PLANNING AUTHORITY HAS EMBEDDED CONTINOUS IMPROVEMENT. 155
Page 156
__________________________________________________________________________________ National Planning Improvement | Improvement Service consideration of the LDP Evidence Report at Gate Check stage. The LDP Development Plan scheme is as up to date as possible in these circumstances. National award recognition of the high standards of performance and achievements of the Planning service has been achieved previously. Most notably awards have been given in the Scottish Awards for Planning (2019) and Royal Town Planning Institute’s Awards for Planning Excellence (2016 and 2017). Regrettably, given resourcing pressures, the focus of the Planning service is now on maintaining performance and has not recently been in a position to seek award recognition to promote the service excellence being maintained. Development Management Performance Our decision-making demonstrates continuous evidence of nationally leading timescales in the determination of all type of planning applications to assist the development and meet customer expectations. Development management performance has decreased slightly in the last year as a result of long-term vacancies and recruitment difficulties however the performance of the Planning service remains the highest in Scotland in most measurable indices and in the top three of all. The offer of processing agreements or other agreed project plan is made to prospective applicants in advance of all major applications and availability publicised on planning authority website. Early collaboration with applicants and consultees on planning applications providing clear and proportionate development advice is usually available in the promotion of free of charge pre-application discussions for all prospective applications. This service is currently suspended for less significant proposed developments on the basis of vacancy and recruitment impacts but will be re-introduced as soon as possible following successful recruitment. Legal agreements are avoided where possible or invariably concluded within 6 months of ‘resolving to grant’ planning permission. The Planning service Enforcement charter was last updated in March 2023 and is therefore due for further updating. This is action for progression in the short term. Action Development Plan Progress North Ayrshire’s Local development plan is currently on track for adoption in late 2027 in advance of the Scottish Government 2028 target for all Planning Authorities. The Development plan scheme was last adopted in November 2024 Development Plan Scheme as required annually. Updating is currently postponed until confirmation of a decision by Scottish Government at Gate Check. Engagement with stakeholders including Elected Members, industry, agencies, the public and Scottish Government are engaged appropriately through all key stages of development plan preparation. 156
Page 157
__________________________________________________________________________________ National Planning Improvement | Improvement Service Continuous improvement: progress relevant service improvement commitments identified through NPIF report. Delivery of 2025/26 Service Improvement Actions Repositioning the Planning Service to promote Placemaking: • Ayrshire Growth Deal: Contribute to the implementation of the Ayrshire Growth Deal in North Ayrshire and the wider growth and investment opportunities. In addition to supporting the delivery of major investment planned for Hunterston, the Planning Service has supported the preparation of masterplans for Ayrshire Growth Deal projects at i3 and the Great Harbour, both in Irvine. • Support economic recovery and renewal by contributing to a cross service/Council approach to economic development, centred on placemaking and Community Wealth Building. Exploring the alignment of planning and community wealth building, including in context of NPF4. The Planning Service continues to collaborate with Economic Development and Community Wealth Building to input into the preparation of a Regional Economic Strategy for Ayrshire and the Council’s Community Wealth Building initiatives to support sustainable economic development within the Ayrshire region and North Ayrshire communities. Driving Improved Performance: • Development Management: Continue to provide an efficient and effective Development Management Service. The Planning service continues to maintain sector-leading performance in comparison with nationwide peers despite recent resourcing difficulties. • Service Delivery: review service delivery to identify potential opportunities to improve. The Planning service was operating under an extended period of resource constraint since 2024 as a result of the filling of three vacancies out of a team of fifteen therefore there has been limited opportunity to review potential service improvements. Notwithstanding the above position, the Local Development team has continued to develop community engagement. The team has significantly supported the preparation of Local Plan Plans (LPPs) by local communities to engage, inform and support the 157
Page 158
__________________________________________________________________________________ National Planning Improvement | Improvement Service preparation of the emerging Local Development Plan (LDP3). Collaboration with Community Wellbeing colleagues in community engagement has been further developed to deliver “one-stop” community consultation involving the Planning service and the preparation of interdependent information resources such as Place Profiles North Ayrshire Place Profiles that collate information from cross Council services. Modifications to the Development Management processes continue to be made to ensure planning applications can be determined as efficiently as possible. Limited staff resource requires that case officers have responsibility for enforcement, the validation process, sending acknowledgement letters, consultations, posting site notices and ensuring the Uniform database is maintained to support service standards being upheld. Recent changes have been made to remove some information publicly displayed on the Council’s Online Planning Information System (OPIS) such as objection comments and consultation responses. The reason for this is that resource does not exist to redact information and also that OPIS appears to be being used by some of the public as an extension to social media platforms e.g. referring to and cross-referencing comments to seek to direct application assessment. Promoting the plan-led system: • Development Planning: Following the timetable set out in the Development Plan Scheme, develop Evidence Base to inform LDP3. The Development Plan Scheme was last adopted in November 2024, and we are on track and nearing the end of the Evidence Reporting stage of LDP3 preparation. A strong emphasis is placed within the Strategic Planning Team service on sharing good practice, skills, and knowledge, including via HOPS sub-forums, the Knowledge Hub resource, and informal groups, including the Fife LDP Peer Review Group and regular meetings with South and East Ayrshire. In 2025, the Chief Planning Officer “reached out” to peers in East and South Ayrshire to further develop regional understanding of Planning and related matters and inform collaborative working, for example, in respect of regional economic and spatial strategy, and housing, climate and nature crises. This has progressed significantly in the subsequent period to develop regional spatial and economic understanding and initiatives. 2025/26 Service Improvement Actions As a result of the Planning service operating under an extended period of resource constraint no new improvement actions for the Planning Service have been set at this time. The Service is continuing to focus on the early stages of preparing Local Development Plan 3 and is on track for adoption in accordance with Scottish Government targets. 158
Page 159
__________________________________________________________________________________ National Planning Improvement | Improvement Service Delivering an efficient and effective Development Management service is being maintained with the highest level of performance being demonstrated in national comparison. Notwithstanding the above, the Chief Planning Officer intends to continue to develop regional collaboration in further discussion with neighbouring authorities in Inverclyde and Renfrewshire Councils. Action 159
Page 160
__________________________________________________________________________________ National Planning Improvement | Improvement Service Please consider the following when thinking about this attribute and how you have performed over the last year: • Does the planning authority have an effective scheme of delegation in place? YES – reviewed annually and up to date • Have all councillors who exercise a planning function undergone statutory training and is there is evidence of ongoing training for members? YES – historically undertaken in advance of and beyond legislative requirement • Have more than x % of officer recommendations have been overturned by councillors at committee or Local Review Body. NO – historically low numbers of overturned recommendations Narrative The Planning service is incorporated within North Ayrshire Council’s Communities, Housing and Public Protection directorate. This directorate was newly formed in 2024 to respond to the Council’s commitments in these service areas. The decision-making ability of the Planning service is established in the Council’s adopted Scheme of Delegation, and this details the circumstances whereby planning applications are required to be considered and determined by the Planning Committee. The scheme of delegation provides decision making powers to the Chief Planning Officer on an extended basis in the interests of efficiency in dealing with local planning applications however major and sensitive applications are commonly determined by the Council’s Planning Committee. The Scheme of Delegation was most recently adopted in October 2025 and is regularly reviewed. The Local Review Body is the method of appealing decisions made by the Chief Planning Officer under the Scheme of Delegation. The Local Review Body conducts reviews in respect of the refusal of planning permission, failure to determine applications and the imposition of conditions. In the last year, the Local Review Body (LRB) determined only four applications for review. This is considered to demonstrate both general satisfaction with the decision making of the Chief Planning Officer under the Scheme of Delegation and the appropriateness of decisions made. The Local Review Body overturned only one officer decision in this period. ATTRIBUTE 4: THE PLANNING AUTHORITY HAS SOUND GOVERNANCE 160
Page 161
__________________________________________________________________________________ National Planning Improvement | Improvement Service The Council’s Planning Committee is the decision-making board which determines planning applications where delegation authority is not provided to officers. The Planning Committee meets monthly to consider recommendations on planning applications and Local Development matters as appropriate. In the past 12 months, 96% of applications considered by the Planning Committee were decided in accordance with officer recommendation. This equates to only one officer recommendation being overturned in that period. The Planning (Scotland) Act 2019 requires that mandatory training is implemented for all elected members who are involved in any decisions involving planning matters. It should be noted that, as a commitment to effective decision making, North Ayrshire Council has historically undertaken elected member training significantly in advance of this legislative requirement. Training is undertaken on a six-monthly basis most recently in December 2024, June 2025 and December 2025. Interim and individual training can be provided at any time e.g. for new Committee members as and when required. In the last year only two appeals to Scottish Ministers for planning decisions have been made and both remain under consideration. One further planning appeal was submitted but was rejected as being out with the remit of the DPEA. As noted above in respect of delegated decisions, the low level of appeals to Scottish Ministers is considered to demonstrate general satisfaction with and the appropriateness of decisions made. Guidance to applicants on how to appeal either to Scottish Ministers or the Local Review Body is available on the Council’s website Planning reviews and appeals. 161
Page 162
__________________________________________________________________________________ National Planning Improvement | Improvement Service Please consider the following when thinking about this attribute and how you have performed over the last year: • Does the planning authority have an identified Chief Planning Officer in place? YES – since 2021, well in advance of regulatory requirement • Does the Chief Planning Officer advise on corporate decision making and policy within the broader organisation? YES • Is the planning authority's Chief Planning Officer a member of the Royal Town Planning Institute? YES • Does the Chief Planning Officer advise and support external bodies through engagement in organisations’ committees, advisory groups or working groups? YES • Does the planning authority have a strong leadership team that supports a culture of continuous improvement? YES - both corporately and within service Narrative A Chief Planning Officer was appointed in 2021, in advance of the statutory requirement being put in place by the Scottish Government in 2024. The officer in question is a Chartered Member of the Royal Town Planning Institute (RTPI) and is the head of the profession within the Council. The Chief Planning Officer provides advice throughout the Council to other departments and services, other Senior Managers, Elected Members, and members of the public in relation to planning matters. Guidance on the role of the Chief Planning Officer advises that the position should strengthen leadership on planning and corporate recognition of the importance and positive influence of planning within a Council. The duties and responsibilities of the Chief Planning Officer are positioned around 5 main attributes: • Professional Advisor • Delivering National Planning Priorities ATTRIBUTE 5: THE PLANNING AUTHORITY HAS EFFECTIVE LEADERSHIP 162
Page 163
__________________________________________________________________________________ National Planning Improvement | Improvement Service • Champion of place • Head of Profession • Performance Improvement The role of the Chief Planning Officer as a Professional Advisor is to direct on the vision and implementation of the National Planning framework (NPF4) and Local Development plan for North Ayrshire spatial and associated development priorities. The Chief Planning Officer is a member of the Council’s Senior Management Team (SLT) and advises the Council’s Executive Leadership Team (ELT) and elected members in the development and delivery of corporate objectives to promote and achieve the Strategic Plan priorities in a spatial and place-based approach. The role of the Chief Planning Officer includes Delivering National Planning Priorities in the alignment and delivery of national planning objectives within North Ayrshire. As a Champion of Place, the Chief Planning Officer directs and delivers place making ambitions within the Council, is the Council’s placemaking champion and ensures a collaborative approach to place making with other Council officers, elected members and developers. The Chief Planning Officer is the Head of the Planning Profession in North Ayrshire and the most senior responsible qualified officer for the Council’s Planning Service. The Chief Planning Officer is the main contact for key stakeholders on planning and place and represents the Council internally and externally on several groups requiring or benefitting from input from the planning function. The Chief Planning Officer is ultimately responsible for the Performance and Improvement of the planning service in North Ayrshire and the embedding of an ethos of continuous improvement. The Chief Planning Officer in North Ayrshire participates and advises a number of internal and external bodies to provide spatial and development planning advice. These include. • Ayrshire Economic Partnership Board • Ayrshire Economic Joint Committee • Arran Housing Taskforce • B714 Project Delivery Board • Clyde Marine Planning Partnership • North Ayrshire Inward Investment Group • Irvine Town Board (Long Term Plan for Towns) • Islands Group Board 163
Page 164
__________________________________________________________________________________ National Planning Improvement | Improvement Service • Ayrshire Planning Regional discussion group Reporting to the Chief Planning Officer are two Senior Planning Officers responsible for the Council’s Development Management regulatory service and the Strategic Planning Manager responsible for the Council’s Development Planning regulatory service. The Planning service benefits from a direct relationship to and strong support from the Council’s Chief Executive, Executive Director of Communities and Housing and Head of Housing and Public Protection. A culture of continuous improvement is expected, supported, and delivered in North Ayrshire Council generally and specifically within the Planning service. The Chief Planning Officer, Strategic Planning Manager and Senior Planning Officers all engage nationally to keep involved and informed in national Planning practice. This takes the form of national engagement with Heads of Planning Scotland with participation in both the Development Plan and Development Management groups. Involvement with the Improvement Service is undertaken by Planning management and all staff in participation with the Planning Skills programme. The Chief Planning Officer also presented to an Improvement Service seminar on Customer Service, this being informed by North Ayrshire Council and the Planning service commitment to community engagement and removing barriers to customer service. All of this has informed preparation of the NPIF. 164
Page 165
__________________________________________________________________________________ National Planning Improvement | Improvement Service Improvement Action Plan (Culture theme) Attribute Score (1=Making excellent progress, 5= No progress) 3. This Planning Authority has embedded continuous improvement 1 4. This Planning Authority has sound governance 1 5. This Planning Authority has effective leadership 1 Based on the grading above, outline any areas of improvement that are required and by whom and their level of importance (High/ Medium/ Low) and by when (short/ medium/ long term). Improvement Action What action will you take? What will the outcome be? Owner Importance High Medium Low Timescale Short term – 1 year Medium term – 3 years Long term – 3+ years Resources Renfrewshire/Inverclyde regional discussions. Further develop and undertake meetings with neighbouring Councils to understand and develop competing/co- operative regional challenges/opportunities. Allan Finlayson Medium Short Chief Planning Officer and Strategic Planning manager Enforcement Charter review Allan Finlayson/Iain Davies High Short 165
Page 166
__________________________________________________________________________________ National Planning Improvement | Improvement Service A high performing planning authority needs to have an effective local development plan and other strategies in place to provide a vision for the future of the area. It needs to be able to set and deliver on policy ambitions and priorities by clearly informing decision making and providing certainty and predictability for communities, developers and investment. The authority’s development management systems need to be effective in making the right decisions about development and be efficient as possible in doing this. The planning authority makes best use of digital technology and how it manages and uses data. Please consider the following when thinking about this attribute and how you have performed over the last year: • Does the planning authority have an up to date Local Development Plan in place and/ or is on track to adoption? YES – the extant LDP2 is up to date and the emerging LDP3 on track to adoption • Does the planning authority have an up-to-date Regional Spatial Strategy in place/ or on track to adoption? YES – a RSS is not yet a legislative requirement however North Ayrshire is progressing towards preparation of a combined RSS and Regional Economic Strategy in partnership with South and East Ayrshire Councils • Has the planning authority’s Local Development Plan Evidence Report been approved by the Department of Planning and Environmental Appeals and/ or on track for approval? NO – however the Evidence Report has been submitted to DPEA in advance of many authorities and is currently receiving attention at Gate Check • Has the application of the Local Development Plan’s policies been found to be deficient at appeal or judicial review? NO – policies of the extant LDP2 (2019) are widely considered to be almost entirely aligned with the subsequent adoption of the National Planning Framework (NPF4) in 2023. ATTRIBUTE 6: THE PLANNING AUTHORITY HAS A ROBUST POLICY AND EVIDENCE BASE 166
Page 167
__________________________________________________________________________________ National Planning Improvement | Improvement Service Narrative North Ayrshire Council’s development plan consists of Local Development Plan (LDP2), which was adopted in November 2019 Adopted Local Development Plan and the Fourth National Planning Framework (NPF4), adopted in February 2023 National Planning Framework 4 - gov.scot. Together these provide an up-to-date development plan covering North Ayrshire. The local development plan is supplemented by non-statutory planning guidance documents Non-statutory planning guidance. Preparation of a new local development plan (LDP3) is well underway and on track for adoption in 2027 in advance of Scottish Governments May 2028 deadline. The emerging LDP’s Evidence Report was submitted to the Directorate of Planning and Environmental Appeals (DPEA) for Gate Check assessment in January 2026 and a decision is expected in April. Following approval by the appropriate committees of North, South and East Ayrshire Councils, an indicative Regional Spatial Strategy for Ayrshire was submitted to the Scottish Government in 2020. Guidance from the Scottish Government remains to be progressed significantly. Notwithstanding this position, the Chief Planning Officers of all Ayrshire Councils and Regeneration peers in all Councils are progressing a combined Regional Spatial Strategy and Regional Economic Strategy for Ayrshire Ayrshire regional economic strategy. The above work will further develop regional understanding of Planning, Regeneration and related matters and inform collaborative working, for example, in respect of regional economic and spatial strategy, housing, climate and nature crises and infrastructure delivery. Further developing regional discussion with neighbouring authorities in Inverclyde and Renfrewshire Councils will be progressed in late 2026 to further develop this work and is a committed action. 167
Page 168
__________________________________________________________________________________ National Planning Improvement | Improvement Service Please consider the following when thinking about this attribute and how you have performed over the last year: • Has the planning authority encouraged and promoted planning applications to be submitted through the e-development portal? YES – North Ayrshire receives almost entirely all planning applications through the e- development portal. Notwithstanding this, the receipt of paper applications is accommodated to assist with customer needs although this rarely occurs. • Does the planning authority have a data governance strategy in place for the management of planning data? YES – both corporately and in service. • Does the planning authority have the ability to use interactive web-mapping, GIS, and spatial data? YES – the service use of interactive and digital data is provided at a level significantly beyond reasonable expectations of the small Planning team. This is considered a testament to the professionalism of officers and their commitment to customer and community engagement • Does the planning authority have the ability to use digital approaches to engagement, including website, social media, and other platforms? YES – and, again, the use of these approaches is provided at a level significantly beyond reasonable expectations of the small Planning team. Narrative The North Ayrshire Council website has a number of pages dedicated to various aspects of planning. The Council website has recently been updated to a new, clearer, and more interactive platform, and officers of the Planning service have contributed to this process to take the opportunity to update information and links as appropriate. In addition, updating of the Planning pages is undertaken “in house” as and when required. Planning and Building Standards In respect of Development Management, during 2025-26 96% of planning applications received were submitted through the Planning Portal, accounting for almost all of the 600 applications received. Use of the Portal is actively encouraged and clear advice with links is provided on the Planning pages of the Council’s website Make a planning application ATTRIBUTE 7: THE PLANNING AUTHORITY MAKES BEST USE OF DATA AND DIGITAL TECHNOLOGY 168
Page 169
__________________________________________________________________________________ National Planning Improvement | Improvement Service This approach minimises our handling of documents and ensures greater efficiency in application receipt, validation, and assessment. Our processes are now fully electronic, with any hard copy information quickly digitised and we have operated in this manner for many years. The Planning service has developed an interactive Local Development Plan interactive version of the LDP for the benefit of customer service to aid customer engagement in the LDP process and also to provide direct digital access to detailed policies and additional related information that provides more detail about how we will consider proposals for specific uses or developments. A storymap presentation of the LDP is also available online. The Strategic Planning Team also utilises interactive web-mapping and GIS – specifically ArcGIS’s StoryMaps – to present a wide range of spatial data. This includes housing and employment land audits. StoryMaps have been used to create Profiles for North Ayrshire’s six localities. These have been produced to inform the preparation of our third Local Development Plan LDP3 and support other placemaking activity. The profiles summarise key social, cultural, environmental, and economic features of the areas. The Service has invested in a three-year Commonplace licence to support engagement on the Local Development Plan through the creation of an online hub: Have Your Say Today - North Ayrshire’s Third Local Development Plan - Commonplace. ArcSurvey GIS has been deployed for the current ‘Call for Ideas’ exercise, allowing submitted information in support of promoted sites, including mapped boundaries, to be digitised more easily: Call for Ideas The Planning Services makes spatial data available via the Corporate Open Data Portal under the Open Government Licence for public sector information and in accordance with North Ayrshire’s Open Data Strategy and Publication Plan. 169
Page 170
__________________________________________________________________________________ National Planning Improvement | Improvement Service Please consider the following when thinking about this attribute and how you have performed over the last year: • Does the planning authority planning have the ability to make decisions on planning applications within the required timeframes? YES – planning application decisions in North Ayrshire are in the top three nationally which is considered a significant achievement for a small Planning team which is proportionally one of the smallest in Scotland • Are less than x% of planning decisions overturned at appeal or judicial review? YES • Does the planning authority have an up-to-date Enforcement Charter in place? YES – however the Enforcement Charter is due for updating and this is committed as an improvement action • Does the planning authority have the ability to resolve enforcement cases? YES – however the investigation of enforcement cases as quickly as would be preferred remains challenging as there is no dedicated enforcement officer and cases are investigated by Planning Officers Narrative North Ayrshire Council’s Development Management performance has historically demonstrated nationally leading excellence in decision making timescales notwithstanding a small team size and limited resources. Over the past 10 years, the service has regularly been the highest performing Planning Authority across all planning application determination categories (householder, local, major and national) measured by Scottish Government Supporting documents - Planning Application Statistics 2024/25 (April 2024 to September 2024) - gov.scot Development management performance reduced slightly in the last year as a result of staff resourcing issues. However, performance remains in the top three Planning Authorities in all measured categories and the top performing in more categories than any other Authority. Development Management performance in North Ayrshire is significantly above national average performance levels monitored by Scottish Government Planning statistics - gov.scot. ATTRIBUTE 8: THE PLANNING AUTHORITY HAS EFFECTIVE AND EFFICIENT DECSION MAKING PROCESSES 170
Page 171
__________________________________________________________________________________ National Planning Improvement | Improvement Service The exceptional performance of the Planning service in North Ayrshire is a cornerstone in serving the individual, community, and business needs of all our customers. Commendably, this is achieved whilst providing a free of charge pre-application enquiry service with no discretionary charging beyond statutory requirements. In the last year, the Local Review Body (LRB) determined only four applications for review. This is considered to demonstrate both general satisfaction with the decision making of the Chief Planning Officer under the Scheme of Delegation and the appropriateness of decisions made. The Local Review Body overturned only one officer decision in this period. In the last year only two appeals to Scottish Ministers for planning decisions have been made. One further planning appeal was submitted but was rejected as being out with the remit of the DPEA. As noted previously, the low level of appeals to Scottish Ministers is considered to demonstrate general satisfaction with and the appropriateness of decisions made. Further evidence demonstrating general satisfaction with decision making is the very low number of complaints received by the Planning service. Only three complaints have been received in the last year and none have been upheld. Furthermore, no complaints investigated were referred to SPSO. No applications for Judicial Review have been received. The Planning service has also received a level of communication expressing thanks for good service received significantly above the number of complaints received. The extremely low level of complaints received, absence of escalation and decision making challenge are considered to be a testament to decision making within the Planning service in North Ayrshire. The Planning service Enforcement charter was last updated in March 2024 and is therefore due for further updating. This is action for progression in the short term. Action A more pressing concern, however, is the limited staff resource that can be dedicated to the investigation into and enforcement of planning breaches. This is an ongoing difficulty in meeting the expectations of customers concerned with enforcement matters. The Planning service has no dedicated enforcement officer, and this obligation is shared between Development Management Officers who already have a higher than any national workload in respect of application caseload. Therefore, the investigation of additional staff resource for the service is also an action. An additional resource concern is the absence of a managerial position in the Development Management team to reflect the existence of such in the Strategic Planning team. This is a staffing resourcing issue that will also be investigated as an action. 171
Page 172
__________________________________________________________________________________ National Planning Improvement | Improvement Service Improvement Action Plan (Tools theme) Attribute Score (1=Making excellent progress, 5= No progress) 6. The planning authority has a robust policy and evidence base 1 7. The planning authority makes best use of data and digital technology 1 8. The planning authority has effective and efficient decision making processes 2 Based on the grading above, outline any areas of improvement that are required and by whom and their level of importance (High/ Medium/ Low) and by when (short/ medium/ long term). Improvement Action What action will you take? What will the outcome be? Owner Importance High Medium Low Timescale Short term – 1 year Medium term – 3 years Long term – 3+ years Resources Enforcement charter review Allan Finlayson/ Iain Davies High Short Enforcement resourcing improvement Allan Finlayson High Short Development Manager resourcing improvement Allan Finlayson Medium Medium 172
Page 173
__________________________________________________________________________________ National Planning Improvement | Improvement Service A high performing planning authority should ensure a wide range of people are involved in shaping their future places. Engagement should be fair and inclusive, early, collaborative, meaningful and proportionate and should include difficult to reach groups. The authority should engage with a wide range of partners at a national, regional and local level to ensure a joined-up approach and that links are made across policies and programmes. The planning authority should demonstrate good customer care, transparency and effective communication. Please consider the following when thinking about this attribute and how you have performed over the last year: • Does the planning authority have the ability to offer pre-application advice where it is requested? YES – North Ayrshire Council is one of a decreasing number of Planning Authorities to offer free pre-application guidance. There are no plans to introduce charges as this service is considered important in providing development guidance to customers, communities and developers to the benefit of all. • Has the planning authority held regular engagement events with developers and communities? YES – the Planning service regularly attends community events and meetings and engages with the development industry nationally and locally • Do the results from the customer and stakeholder survey show that customers are satisfied with the service offer by the planning authority? YES – consultation on this survey was widely circulated and the limited number of responses and comments received should be taken as confirmation of satisfaction with the Planning service in North Ayrshire. This position is corroborated by the exceptionally low number of complaints received and the outweighing of these by positive comments submitted by customers ATTRIBUTE 9: THE PLANNING AUTHORITY HAS GOOD CUSTOMER CARE 173
Page 174
__________________________________________________________________________________ National Planning Improvement | Improvement Service Narrative The ethos of the Planning service is to be directly contactable with customers, wherever possible, by all forms of communication. The service maintains a direct telephone service and excellent links with the Council’s general Contact Centre telephone service. Telephone calls are invariably either answered directly or returned the same day. Officers at all levels can be contacted directly by telephone or email. Email responses are invariably returned within 1-2 working days. This customer service ethos was noted by the Improvement Service and the Chief Planning Officer was invited to present to a recent customer service workshop and training session. In respect of Development Management, the Planning service welcomes early engagement with all applicants and developers prior to the submission of any application. The service is strongly of the view that submission of informed, detailed, and comprehensive applications results in quicker decision making and better quality of developments. The Council offers a free of charge pre-application advice service intended to guide and inform the formulation of all development proposals. Maintaining a free of charge service for pre-application advice is becoming less common in Planning Authorities nationally however North Ayrshire is committed to the continuation of this given the customer care and development quality benefits that result. The Planning service also offers Processing Agreements for all National or Major applications and for complex local developments. Details of the Processing Agreements process is available on the Planning Website Make a planning application. A Processing Agreement is used to set out the key processes in determining the application, identifying what information is required and from whom and sets the timescales for the delivery of various stages of the process. It is recognised that there are several benefits of Processing Agreements including greater transparency in decision making, increased predictability and certainty over the timing of key stages. The Strategic Planning Team has developed a positive working relationship with Homes for Scotland, going back to the preparation of the adopted Local Development Plan, the annual Housing Land Audit, and the early stages of preparing LDP3. The Service has engaged proactively with the majority of active Community Councils in North Ayrshire over the past two-years, providing advice on how they can best engage with the Planning system. 174
Page 175
__________________________________________________________________________________ National Planning Improvement | Improvement Service Please consider the following when thinking about this attribute and how you have performed over the last year: • Does the planning authority have a community engagement strategy and infrastructure in place to ensure engagement is early, collaborative, meaningful and proportionate? YES - the Planning service in North Ayrshire is small, agile and with a demonstrable track record of community engagement in fulfilment of a wider Council commitment. There is not considered a need to formalise this in a community engagement strategy which could be at the expense of the agility and directness of existing community contact and engagement • Has the planning authority undertaken community engagement, for example consistent and effective use of the Place Standard Tool, to inform decision-making processes? Has the planning authority encouraged and promoted planning applications to be submitted through the e-development portal? YES – the Place Standard Tool is regularly utilized and the e-development portal is promoted for the submission of all planning applications however applicants who demonstrate that they cannot use the portal can be accommodated by alternative submission eg. email or paper receipt. • Has the planning authority engaged with a good representation of the community including young people, gypsies and travellers, people with protected characteristics, including disability, race, age, sex and sexual orientation, and including people from a range of socio-economic backgrounds? YES – the Planning service engages with all customers and communities in North Ayrshire • Has the planning authority supported the production of Local Place Plans when requested? YES • Do the results from the customer and stakeholder survey show that stakeholders are satisfied with their collaboration with the planning authority? YES Narrative The Planning service is strongly committed to collaboration with local communities, public bodies, and other stakeholders at all relevant stages of the planning process. ATTRIBUTE 10: THE PLANNING AUTHORITY HAS EFFECTIVE ENGAGEMENT AND COLLABORATION WITH STAKEHOLDERS AND COMMUNITIES 175
Page 176
__________________________________________________________________________________ National Planning Improvement | Improvement Service In respect of Development Management, engagement is undertaken daily in often challenging circumstances of polarized opinions. Notwithstanding this, the service is committed to a “listen first” approach to development assessment and to the clear demonstration of appropriate assessment in reports of handling and decision-making accountability. The Strategic Planning Team has ensured that the current Development Plan Scheme includes a Participation Statement setting out when consultation is likely to take place, with whom and its likely form, including the steps to be taken to involve the public in the preparation of the local development plan. Early engagement to inform the Evidence Report/LDP3 was focused around the use of the Place Standard Tool, to gather information on what local people think about the places they live, work and visit in North Ayrshire: Have Your Say Today - Your Place Survey - North Ayrshire’s Third Local Development Plan. This builds upon previous use of the Tool to identify Community Planning locality priorities and evidences the strong links between community planning and spatial planning in North Ayrshire. Specific engagement has been undertaken with children, young people and gypsy/travellers. A commitment has been made via the Council’s emerging equality outcomes to ensure new places, spaces and buildings will be inclusive and designed to take account of the needs of people with disabilities and other protected characteristics, including through their engagement in the preparation of LDP3. The Planning service has recently engaged with North Ayrshire schools STEAM week which enables children to apply their science, technology, engineering, and mathematics knowledge in contexts that make connections between the classroom and the world around them. This work involves facilitating and participating in workshops in partnership with the Council’s Education service. The Strategic Planning Team has supported six community bodies to prepare a Local Place Plan (LPP) with all plans now registered and a further plan expected soon. We have prepared a ‘Handbook’ to guide community bodies preparing Local Place Plans and engaged positively to support the preparation of these plans, providing advice and technical support where required. This has been welcomed by a number of the community bodies we have supported. Local Place Plans are now registered for approximately 70% of the communities of North Ayrshire. This is understood to be unmatched nationally and a testament to the commitment to the Planning system by communities in North Ayrshire and the support that they have received from the Planning service working with wider Council services and specifically community development staff. 176
Page 177
__________________________________________________________________________________ National Planning Improvement | Improvement Service Improvement Action Plan (Engage theme) Attribute Score (1=Making excellent progress, 5= No progress) 9. This planning authority has good customer care 1 10. The planning authority has effective engagement and collaboration with stakeholders and communities. 1 Based on the grading above, outline any areas of improvement that are required and by whom and their level of importance (High/ Medium/ Low) and by when (short/ medium/ long term). Improvement Action What action will you take? What will the outcome be? Owner Importance High Medium Low Timescale Short term – 1 year Medium term – 3 years Long term – 3+ years Resources 177
Page 178
__________________________________________________________________________________ National Planning Improvement | Improvement Service A high performing planning authority should demonstrate place leadership by taking a collaborative place-based approach in line with the Place Principle. It should use the Place and Wellbeing Outcomes in decision-making processes, to achieve the three spatial principles outlined in NPF4: Sustainable places, where we reduce emissions, restore and better connect biodiversity; Liveable places, where we can all live better, healthier lives; and Productive places, where we have a greener, fairer and more inclusive wellbeing economy. The planning authority should seek to ensure that there are no impediments to delivering agreed development. Please consider the following when thinking about this attribute and how you have performed over the last year: • Is the planning authority aware of the Place and Wellbeing Outcomes, the evidence that sits behind them and is it using them in decision-making processes? YES • Has the planning authority identified tools and approaches to delivering sustainable, liveable, and productive places and is implementing them? YES Narrative In 2024 North Ayrshire Council established a new Communities, Housing and Public Protection Directorate to provide greater focus on community delivery outcomes. This has ensured a wider understanding of Place and Wellbeing Outcomes in the Directorate composition. ATTRIBUTE 11: THE PLANNING AUTHORITY SUPPORTS THE DELIVERY OF SUSTAINABLE, LIVEABLE AND PRODUCTIVE PLACES 178
Page 179
__________________________________________________________________________________ National Planning Improvement | Improvement Service Within the Planning service there is a high awareness of Place and Wellbeing Outcomes by officers and how these should be used in decision-making processes. A cornerstone policy in the extant LDP2 is SP1 (Placemaking) and this is an important foundation on which all decisions are made and the criteria of policy SP1 are consistent with both NPF4 and Place and Wellbeing Outcomes. LDP, NPF4 (combined being the Council’s statutory Development Plan) policies and non- statutory Supplementary Guidance Place and Wellbeing Outcomes are all used to deliver sustainable, liveable, and productive places in North Ayrshire. The Strategic Planning Team represents North Ayrshire Council as one of three authorities working in partnership with Public Health Scotland (PHS), the Institute of Health Equity (IHE) and local NHS health board to form the ‘Collaboration for Health Equity in Scotland’ (CHES). This partnership aims to help local areas and community planning partners to strengthen local plans – including LDPs – to reduce health inequalities and improve wellbeing in their communities. It intends to support local partners to bridge the gap between national policies and local implementation and understand the actions which will have the greatest impact on health inequalities locally and help to overcome the barriers to implementing these. The ultimate goal is to enable people to live longer, healthier lives by addressing the root causes of health inequalities and preventing illness before it starts. Working alongside colleagues in South Lanarkshire and Aberdeen City, supported by the Place & Wellbeing Partnership Lead at the Improvement Service & Public Health Scotland, we are exploring how the associated ‘Marmot 8’ principles along with the Place and Wellbeing Outcomes can be embedded into both the evidence report and then LDP3. 179
Page 180
__________________________________________________________________________________ National Planning Improvement | Improvement Service Please consider the following when thinking about this attribute and how you have performed over the last year: • Has the planning authority provided clear and proportionate expectations of Section 75 agreements and set these out in the LDP and pre-application discussions and they are concluded within 6 months of resolution to grant? YES • Does the planning authority take a proportionate approach to imposing conditions? YES - In North Ayrshire, conditions are proportionally applied for every decision made and no discretionary charging for condition discharge is levied or proposed as it is considered it would be to the detriment of customer service, post decision development implementation and therefore community and economic development. • Does the planning authority have an ambitious local housing land requirement that exceeds the Minimum All Tenure Housing land requirements in NPF4 and is it on track to support delivery? YES • Are the number of processing agreements the planning authority has agreed with applicants increasing? NO • Does the planning authority have an effective delivery programme in place that supports the delivery of development on the ground? YES Narrative To support development and regeneration in North Ayrshire the Planning service does not routinely require developer contributions. The Local Development Plan expects the majority of new development to be directed towards sites that have infrastructure or services in place. Where further provision is required, the Supporting Development Objective: Infrastructure and Services policy within the Adopted Local Development Plan (p.16) sets out clear and proportionate expectations and the need for relevant assessments is highlighted alongside each development site where potential infrastructure deficiencies are known. ATTRIBUTE 12: THE PLANNING AUTHORITY SUPPORTS THE DELIVERY OF CONSENTED DEVELOPMENT 180
Page 181
__________________________________________________________________________________ National Planning Improvement | Improvement Service The Planning service has completed its Evidence Report and this is with DPEA at Gate Check for consideration with a decision expected in April. In preparing the Evidence Report, a draft Housing Evidence Paper was shared with Homes for Scotland; Registered Social Landlords operating in North Ayrshire; developers and agents included on the LDP mailing list; and parties who have approached the Strategic Planning team with an interest in having housing sites allocated in LDP3. The Housing Evidence Paper was reissued (without substantive changes) more widely for comment via the LDP Online Hub and emails to community councils and the remainder of the LDP mailing list. The Paper proposes an indicative Local Housing Land Requirement figure of 4,500 homes, which exceeds the MATHLR by 52.5%. A ‘Call for Ideas’ has been launched which will assist in the allocation of deliverable land by LDP3 to meet the 10-year Local Housing Land Requirement. A Draft Delivery Programme was submitted to Scottish Government on 8 April 2025, which takes account of the views of the key agencies and other stakeholders. At this point, we do not intend to publish the Delivery Programme rather we will seek approval alongside the Evidence Report later in the year, following the finalisation of the 2024/25 Housing Land Audit. In respect of Development Management, the free pre-application service supports the submission of planning applications with necessary information provided to aid decision making outcomes. A general presumption against the use of legal agreements minimises decision making complication and delay The number of processing agreements being used is not increasing but continue to be promoted on the Council’s website and offered where appropriate during the assessment of planning applications. Limited uptake from applicants is considered to be another indication of general satisfaction with decision making and the timescales for this as evidence by demonstrated excellence in decision making performance. Processing agreements are automatically entered into for all major applications and some complex local applications. The number is small annually (generally less than 10) and dependent on the number of applications received but consistently applied. In addition, processing agreements will always reasonably be entered into at an applicant’s request for any application. 181
Page 182
__________________________________________________________________________________ National Planning Improvement | Improvement Service 182
Page 183
__________________________________________________________________________________ National Planning Improvement | Improvement Service Improvement Action Plan (People theme) Attribute Score (1=Making excellent progress, 5= No progress) 11. The planning authority supports the delivery of sustainable, liveable and productive places 1 12. This planning authority supports the delivery of appropriate development 1 Based on the grading above, outline any areas of improvement that are required and by whom and their level of importance (High/ Medium/ Low) and by when (short/ medium/ long term). Improvement Action What action will you take? What will the outcome be? Owner Importance High Medium Low Timescale Short term – 1 year Medium term – 3 years Long term – 3+ years Resources 183
Page 184
NATIONAL PLANNING IMPROVEMENT FRAMEWORK Improvement Action Plan 2026 North Ayrshire Council 184
Page 185
A high performing planning authority needs to have the right number of people to do the work expected of it with the rights skills set. It also needs to have a strategy to ensure that it retains and recruits the right staff in the future. It supports staff to upskill and to be prepared for changes in policy, legislation, and new circumstances. Attribute Score (1=Making excellent progress, 5= No progress) 1. The planning authority has sufficient resources and skills to maximise productivity 4 2. The planning authority has a valued and supported workforce 2 Based on the grading above, outline any areas of improvement that are required and by whom and their level of importance (High/ Medium/ Low) and by when (short/ medium/ long term). Improvement Action What action will you take? What will the outcome be? Owner Importance High Medium Low Timescale Short term – 1 year Medium term – 3 years Long term – 3+ years Resources Service Review Allan Finlayson High Short Internal Workforce Planning Strategy Allan Finlayson High Short Internal/Peer Review Enforcement Resourcing Improvement Allan Finlayson High Short Development Manager Resourcing Improvement Allan Finlayson Medium Medium 185
Page 186
A high performing planning authority has a positive culture through ensuring it has sound governance, effective leadership and a commitment to continuous improvement. The authority has an identified chief planner, who is supported by a strong leadership group to advise on decision- making, policy and operational management. Attribute Score (1=Making excellent progress, 5= No progress) 3. This Planning Authority has embedded continuous improvement 1 4. This Planning Authority has sound governance 1 5. This Planning Authority has effective leadership 1 Based on the grading above, outline any areas of improvement that are required and by whom and their level of importance (High/ Medium/ Low) and by when (short/ medium/ long term). Improvement Action What action will you take? What will the outcome be? Owner Importance High Medium Low Timescale Short term – 1 year Medium term – 3 years Long term – 3+ years Resources Renfrewshire and Inverclyde regional discussions. Further develop and undertake meetings with neighbouring Councils to understand and develop competing or co- operative regional challenges and opportunities. Allan Finlayson Medium Short Chief Planning Officer and Strategic Planning Manager Enforcement Charter Review Allan Finlayson and Iain Davies High Short 186
Page 187
A high performing planning authority needs to have an effective local development plan and other strategies in place to provide a vision for the future of the area. It needs to be able to set and deliver on policy ambitions and priorities by clearly informing decision making and providing certainty and predictability for communities, developers and investment. The authority’s development management systems need to be effective in making the right decisions about development and be as efficient as possible in doing this. The planning authority makes best use of digital technology and how it manages and uses data. Attribute Score (1=Making excellent progress, 5= No progress) 6. The planning authority has a robust policy and evidence base 1 7. The planning authority makes best use of data and digital technology 1 8. The planning authority has effective and efficient decision-making processes 2 Based on the grading above, outline any areas of improvement that are required and by whom and their level of importance (High/ Medium/ Low) and by when (short/ medium/ long term). Improvement Action What action will you take? What will the outcome be? Owner Importance High Medium Low Timescale Short term – 1 year Medium term – 3 years Long term – 3+ years Resources Enforcement Charter Review Allan Finlayson and Iain Davies High Short Enforcement Resourcing Improvement Allan Finlayson High Short Development Manager Resourcing Improvement Allan Finlayson Medium Medium 187
Page 188
A high performing planning authority should ensure a wide range of people are involved in shaping their future places. Engagement should be fair and inclusive, early, collaborative, meaningful and proportionate and should include difficult to reach groups. The authority should engage with a wide range of partners at a national, regional and local level to ensure a joined-up approach and that links are made across policies and programmes. The planning authority should demonstrate good customer care, transparency and effective communication. Attribute Score (1=Making excellent progress, 5= No progress) 9. This planning authority has good customer care 1 10. The planning authority has effective engagement and collaboration with stakeholders and communities. 1 Based on the grading above, outline any areas of improvement that are required and by whom and their level of importance (High/ Medium/ Low) and by when (short/ medium/ long term). Improvement Action What action will you take? What will the outcome be? Owner Importance High Medium Low Timescale Short term – 1 year Medium term – 3 years Long term – 3+ years Resources 188
Page 189
A high performing planning authority should demonstrate place leadership by taking a collaborative place-based approach in line with the Place Principle. It should use the Place and Wellbeing Outcomes in decision-making processes, to achieve the three spatial principles outlined in NPF4: sustainable places, where we reduce emissions, restore and better connect biodiversity; liveable places, where we can all live better, healthier lives; and productive places, where we have a greener, fairer, and more inclusive wellbeing economy. The planning authority should seek to ensure that there are no impediments to delivering agreed development. Attribute Score (1=Making excellent progress, 5= No progress) 11. The planning authority supports the delivery of sustainable, liveable and productive places 1 12. This planning authority supports the delivery of appropriate development 1 Based on the grading above, outline any areas of improvement that are required and by whom and their level of importance (High/ Medium/ Low) and by when (short/ medium/ long term). Improvement Action What action will you take? What will the outcome be? Owner Importance High Medium Low Timescale Short term – 1 year Medium term – 3 years Long term – 3+ years Resources 189
Page 190
_____________________________________________________________________________ Improvement Service | West Lothian Civic Centre, Howden South Road, Livingston, EH54 6FF | 07742 694468 | craig.mclaren@improvementservice.org.uk | Craig Hatton Chief Executive North Ayrshire Council Cunninghame House Friars Croft Irvine KA12 8EE Email to craighatton@north-ayrshire.gov.uk 20 March 2026 Dear Mr Hatton NATIONAL PLANNING IMPROVEMENT FRAMEWORK: IMPROVEMENT ACTION PLAN As you may know we have been piloting new arrangements for assessing planning authority performance and identifying improvement actions through a pilot of a new National Planning Improvement Framework in 3 cohorts. North Ayrshire Council has now completed this pilot which has consisted of a self-assessment against 12 attributes of a high performing planning authority that has in turn allowed for the development of an Improvement Action Plan. Please see attached the planning service’s finalised Improvement Action Plan. This will also be shared with the Minister for Public Finance, who has responsibility for planning within Scottish Government, and it will be published on the Improvement Service website. I also attach the Performance Assessment undertaken by the planning service that provided context to identify improvement actions. I would be very happy to meet with you to discuss these. I hope this is useful but please feel free to contact me if there is anything you would like to discuss at craig.mclaren@improvementservice.org.uk or on 07742 694468. Yours sincerely Craig McLaren FRTPI National Planning Improvement Champion Copied to Allan Finlayson, Chief Planning Officer 190