Agenda Document Pack - Audit and Scrutiny Committee - 24/09/2026
North Ayrshire Council · 24 September 2026
Back to Audit and Scrutiny Committee — 24 September 2026 and its agenda
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE Audit and Scrutiny Committee A Special 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, 24 September 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 External Audit Report on the 2025/26 Audit Submit report by the Head of Service (Finance) on the Annual Audit report for 2025/26 and to consider the verbal report by the external auditor (copy enclosed). 3 Our Council Plan Year End Progress Reporting Submit report by the Head of Service (Democratic) on the progress in delivering Our Council Plan 2023 to 2028 as at Year End 2025 to 2026 (copy enclosed). 4 Annual Assurance Statement to the Scottish Housing Regulator 2025/26 Submit report by the Executive Director (Communities and Housing) on the Council’s Annual Return on the Charter 2025/26 submission (copy enclosed). 1
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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 2
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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: 3
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NORTH AYRSHIRE COUNCIL 24 September 2026 Audit & Scrutiny Committee Title: External Audit Report on the 2025/26 Audit Purpose: To invite Committee to note the Annual Audit Report for 2025/26 and to consider the verbal report by the external auditor. Recommendation: That Committee: (a) Notes the findings of the 2025/26 audit of the financial statements as contained in the external auditor’s Annual Audit Report at Appendix 2; (b) Considers the verbal report by the external auditor; (c) Notes the agreed Action Plans as outlined in Appendix 1 of the Annual Audit Report and (d) Approves the audited Annual Accounts for signature. 1. Executive Summary 1.1 As part of the external audit for 2025/26, Audit Scotland have produced the attached Annual Audit Report which includes an opinion on the Council’s financial statements, wider scope audit and best value. 1.2 The unaudited accounts for the year to 31 March 2026 were approved by Council on 24 June 2026 and submitted to the Council’s external auditor, Audit Scotland, for audit. The Audit Director for Audit Scotland has now issued their proposed Independent Auditor’s Report on the financial statements which is free from qualification and confirms that the accounts give a true and fair view of the state of affairs of the Council, its group and the Council’s charitable trusts as at 31 March 2026. Agenda Item 2 5
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1.3 The overall conclusions of the reports state that the Council: • The Council has effective and appropriate arrangements in place for Financial Management; Financial Sustainability; Vision, Leadership and Governance; and Use of Resources to Improve Outcomes • Financial management is effective; • The Council has appropriate governance and decision-making arrangements however improvements could be made regarding timely completion of elected member registers of interest and increased attendance at member training; • The Council’s performance, taken from national benchmarking data, shows an improved position over time; and • The Council’s has appropriate arrangements in place for securing Best Value and preparing and publishing statutory performance information. 1.4 As detailed in Exhibit 5 of the Annual Audit Report, a number of adjustments have been identified during the audit process. These adjustments are mainly presentational or in relation to the valuation of non-current assets. The overall balance of Useable reserves remains unchanged however £1.496m has been moved from Unearmarked to Earmarked Reserves following Council decision on the 24 June 2026. 1.5 Audit Scotland’s report includes action plans in relation to the recommendations for improvement identified during the course of the audit. Full details of these and the proposed management actions are included in appendix 1 to the report. 2. Background 2.1 The 2025/26 audit of the Council’s accounts was conducted by Audit Scotland, the fourth of a five-year cycle as the Council’s appointed external auditors. 2.2 Appendix 1 includes letters of representation to be signed by the Head of Finance as the responsible officer for North Ayrshire Council. Audit Scotland’s annual report to members, which summarises the findings of their audit, is attached at Appendix 2. 2.3 The Council’s accounts for the year to 31 March 2026 were submitted to Audit Scotland by the deadline of 30 June 2026. The external auditor is required to report on certain matters arising to those charged with governance in sufficient time to enable appropriate action to be taken before the financial statements are approved and certified. Audit Scotland has issued an unmodified report on the accounts of the Council and its charitable trusts confirming that they show a true and fair view of the financial position. 2.4 During the audit, Audit Scotland and Council officers identified two errors relating to classification of assets. The total value of these errors and adjustments was £6.249m. These have been corrected in the Audited Annual Accounts. 2.5 In addition, Audit Scotland has identified a mis categorisation between Long term and Short term investments of £5.000m, again, this has been corrected in the Audited Annual Accounts. 2.6 In relation to the Council’s charitable trusts, Audit Scotland have issued an unqualified opinion in relation to the charitable trust accounts. 6
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2.7 The report notes that the auditor has received a statutory objection to the accounts relating to the Common Good and Trust Funds and has met with the objector to consider the issues and evidence provided. The auditor has concluded that the issues raised are not material to their opinion. 2.8 A link to the final audited accounts will be issued to all members for their information. 2.9 Representatives from Audit Scotland will be in attendance at Committee and will present a verbal report highlighting the main findings of the 2025/26 report. 3. Proposals 3.1 It is proposed that Committee: (a) Notes the findings of the 2025/26 audit of the financial statements as contained in the external auditor’s Annual Audit Report at Appendix 2; (b) Considers the verbal report by the external auditor; (c) Notes the agreed Action Plans as outlined in Appendix 1 of the Annual Audit Report; and (d) Approves the audited Annual Accounts for signature. 4. Implications/Socio-economic Duty Financial 4.1 The financial implications are as outlined in the report. Human Resources 4.2 None. Legal 4.3 Under the Local Authority Accounts (Scotland) Regulations 2014 the Council is required to approve the audited Annual Accounts for signature by 30 September 2026. Equality/Socio-economic 4.4 None. Climate Change and Carbon 4.5 None. Key Priorities 4.6 This report directly supports the Council Plan 2023 to 2028 by maximising financial flexibility to support the delivery of our priorities. Community Wealth Building 4.7 None. 7
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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 Chief Executive, Executive Directors and other appropriate officers have been consulted as part of the audit process. Mark Boyd Head of Service (Finance) For further information please contact Natalie Graham, Senior Manager (Corporate Finance) Financial Management, on 01294 324533. Background Papers North Ayrshire Council Unaudited Accounts 2025/26 –Council, 24 June 2026; North Ayrshire Council Charitable Trusts: Unaudited Trustees’ Annual Report 2025/26 – Council, 24 June 2026 8
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HEAD OF FINANCE: Mark Boyd Cunninghame House, Irvine KA12 8EE Tel: 01294 310000 Fax: 01294 324544 www.north-ayrshire.gov.uk Your Ref: Our Ref: If telephoning please call: 01294 310000 Or email: chief.executive@north-ayrshire.gov.uk 24 September 2026 Louisa Yule CPFA, Audit Director Audit Scotland 4th Floor, The Athenaeum Buildings 8 Nelson Mandela Place Glasgow G2 1BT Dear Louisa, North Ayrshire Council Annual Accounts 2025/26 This representation letter is provided in connection with your audit of the annual accounts of North Ayrshire Council and its group, hereafter referred to as North Ayrshire Council, for the year ended 31 March 2026 for the purpose of expressing an opinion as to whether the financial statements give a true and fair view and have been properly prepared, and for expressing other opinions on the Remuneration Report, Management Commentary, and Annual Governance Statement. I confirm to the best of my knowledge and belief, and having made such enquiries as I considered necessary, the following representations given to you in connection with your audit of North Ayrshire Council’s annual accounts for the year ended 31 March 2026. General I have fulfilled my responsibilities for the preparation of the 2025/26 annual accounts as set out in your 2025/26 Annual Audit Plan. All the accounting records, documentation, and other matters which I am aware are relevant to the preparation of the annual accounts have been made available to you for the purposes of your audit. All transactions undertaken by North Ayrshire Council have been recorded in the accounting records and are properly reflected in the financial statements. I confirm that the effects of uncorrected misstatements are immaterial, individually and in aggregate, to the financial statements as a whole. As you have reported, there are no uncorrected misstatements. Financial Reporting Framework The annual accounts have been prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom 2025/26 (2025/26 Code) and the requirements of the Local Government (Scotland) Act 1973, the Local Government in Scotland Act 2003, and the Local Authority Accounts (Scotland) Regulations 2014. Appendix 1 9
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In accordance with the Local Authority Accounts (Scotland) Regulations 2014, I have ensured that the financial statements give a true and fair view of the financial position of North Ayrshire Council at 31 March 2026 and the transactions for 2025/26. Accounting Policies and Estimates All material accounting policies applied are as shown in the note included in the financial statements. The accounting policies are determined by the 2025/26 Code, where applicable. Where the 2025/26 Code does not specifically apply, I have used judgement in developing and applying an accounting policy that results in information that is relevant and reliable. All accounting policies applied are appropriate to North Ayrshire Council’s circumstances and have been consistently applied. The methodology, significant assumptions, and data used in making accounting estimates are reasonable, and have been properly reflected and disclosed in the financial statements in accordance with the 2025/26 Code. Judgements made in making estimates have been based on the latest available and reliable information. Estimates have been revised where there are changes in the circumstances on which the original estimate was based or as a result of new information or experience. Going Concern Basis of Accounting I have assessed North Ayrshire Council’s ability to continue to use the going concern basis of accounting and have concluded that it is appropriate. I am not aware of any material uncertainties that may cast significant doubt on North Ayrshire Council’s ability to continue to adopt the going concern basis of accounting. Assets All assets at 31 March 2026 of which I am aware have been reported in the financial statements. All assets as at 31 March 2026 have been valued and / or indexed in line with the accounting polices around asset valuations. I carried out an assessment at 31 March 2026 as to whether there is any indication that an asset may be impaired and have recognised any impairment losses identified in the financial statements. I have provided you with all information of which I am aware regarding any valuation exercises carried out after 31 March 2026. There are no plans or intentions that are likely to affect the carrying value or classification of the assets recognised in the financial statements. Owned assets are free from any lien, encumbrance, or charge, except as disclosed in the financial statements. Liabilities All liabilities at 31 March 2026 of which I am aware have been reported in the financial statements. 10
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Provisions have been recognised in the financial statements for all liabilities of uncertain timing or amount at 31 March 2026 of which I am aware where the conditions specified in IAS 37, as adapted by the 2025/26 Code, have been met. The amount recognised as a provision is the best estimate of the expenditure likely to be required to settle the obligation at 31 March 2026. Where the effect of the time value of money is material, the amount of the provision has been discounted to the present value of the expected payments. Provisions recognised in previous years have been reviewed and adjusted, where appropriate, to reflect the best estimate at 31 March 2026, or to reflect material changes in the assumptions underlying the calculations of the provisions. The accrual recognised in the financial statements for annual leave untaken by 31 March 2026 has been estimated on a reasonable basis. There are no plans or intentions that are likely to affect the carrying value or classification of the liabilities recognised in the financial statements. Contingent Liabilities There are no significant contingent liabilities, other than those disclosed in Note 33 to the financial statements, arising either under formal agreement or through formal undertakings requiring disclosure in the financial statements. All known contingent liabilities have been fully and properly disclosed in accordance with IAS 37, as adopted by the 2025/26 Code. Litigation and Claims All known actual or possible legal claims have been disclosed to you and have been accounted for and disclosed in the financial statements in accordance with the 2025/26 Code. Fraud I understand my responsibilities for the design, implementation, and maintenance of internal control to prevent fraud and I believe I have appropriately fulfilled those responsibilities. I have provided you with all information in relation to: • my assessment of the risk that the financial statements may be materially misstated as a result of fraud, • any allegations of fraud or suspected fraud affecting the financial statements, and • fraud or suspected fraud that I am aware of involving management, employees who have a significant role in internal control, or others that could have a material effect on the financial statements. Laws and Regulations I have disclosed to you all known instances of non-compliance or suspected non- compliance with laws and regulations whose effects should be considered when preparing financial statements. Related Party Transactions All material transactions with related parties have been appropriately accounted for and disclosed in the financial statements in accordance with IAS 24, as adopted by the 11
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2025/26 Code. I have made available to you the identity of all of North Ayrshire Council’s related parties and all the related party transactions of which I am aware. Remuneration Report The Remuneration Report has been prepared in accordance with the Local Authority Accounts (Scotland) Regulations 2014, and all required information of which I am aware has been provided to you. Management Commentary I confirm that the Management Commentary has been prepared in accordance with statutory guidance, and the information is consistent with the financial statements. Corporate Governance I confirm North Ayrshire Council has undertaken a review of the system of internal control during 2025/26 to establish the extent to which it complies with proper practices set out in Delivering Good Governance in Local Government: Framework 2016. I have disclosed to you all deficiencies in internal control identified from this review or of which I am otherwise aware. I confirm that the Annual Governance Statement has been prepared in accordance with the Delivering Good Governance in Local Government: Framework 2016 and the information is consistent with the financial statements. There have been no changes in the corporate governance arrangements, or issues identified, since 31 March 2026 which require to be reflected in the Annual Governance Statement or annual accounts. Group Accounts I have identified all the other entities in which North Ayrshire Council has an interest and have classified and accounted for them in accordance with the 2025/26 Code. Any significant issues, including those related to fraud and any qualified audit opinions, in relation to the financial statements of group entities, have been provided to you. Any significant issues identified by you as group auditor have been communicated to management of group components, where relevant to those components. Events Subsequent to the Date of the Balance Sheet All events subsequent to 31 March 2026 for which IAS 10, as adopted by the 2025/26 Code, requires adjustment or disclosure have been adjusted or disclosed. Yours sincerely Mark Boyd Head of Finance North Ayrshire Council Section 95 Officer 12
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HEAD OF FINANCE: Mark Boyd Cunninghame House, Irvine KA12 8EE Tel: 01294 310000 Fax: 01294 324544 www.north-ayrshire.gov.uk Your Ref: Our Ref: If telephoning please call: 01294 310000 Or email: chief.executive@north-ayrshire.gov.uk 24 September 2026 Inire Evong, Audit Scotland 4th Floor, The Athenaeum Building 8 Nelson Mandela Place Glasgow G2 1BT Dear Inire, North Ayrshire Council Charitable Trust Funds Annual Accounts 2025/26 This representation letter is provided in connection with your audit of the annual accounts of the North Ayrshire Council Charitable Trust Funds, for the year ended 31 March 2026 for the purpose of expressing an opinion as to whether the financial statements give a true and fair view and have been properly prepared, and for expressing other opinions on the Trustees Report. I confirm to the best of my knowledge and belief, and having made such enquiries as I considered necessary, the following representations given to you in connection with your audit of North Ayrshire Council Charitable Trust Funds Annual Accounts for the year ended 31 March 2026. General I have fulfilled my responsibilities for the preparation of the 2025/26 annual accounts as set out in your 2025/26 Annual Audit Plan. All the accounting records, documentation, and other matters which I am aware are relevant to the preparation of the annual accounts have been made available to you for the purposes of your audit. All transactions undertaken by North Ayrshire Council Charitable Trust Funds have been recorded in the accounting records and are properly reflected in the financial statements. As you have reported, there are no uncorrected misstatements. Financial Reporting Framework The annual accounts have been prepared in accordance with the Charities and Trustee Investment (Scotland) Act 2005, and regulations 9(1), (2) and (3) of the Charities Accounts (Scotland) Regulations 2006. In accordance with the Charities Accounts (Scotland) Regulations 2006, I have ensured that the financial statements give a true and fair view of the financial position of North Ayrshire Council Charitable Trust Funds at 31 March 2026 and the transactions for 2025/26. 13
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Accounting Policies and Estimates All material accounting policies applied are as shown in the notes to the financial statements. The accounting policies are determined by the 2025/26 Code, where applicable. Where the 2025/26 Code does not specifically apply, I have used judgement in developing and applying an accounting policy that results in information that is relevant and reliable. All accounting policies applied are appropriate to North Ayrshire Council Charitable Trust Funds’ circumstances and have been consistently applied. Going Concern Basis of Accounting I have assessed North Ayrshire Council Charitable Trust Funds’ ability to continue to use the going concern basis of accounting and have concluded that it is appropriate. I am not aware of any material uncertainties that may cast significant doubt on North Ayrshire Charitable Trust Funds’ ability to continue to adopt the going concern basis of accounting. Assets The cash fund, land and buildings and investments shown in the Statement of Balances at 31 March 2026 were owned by the registered charities. Assets are free from any lien, encumbrance, or charge except as disclosed in the financial statements. There are no plans or intentions that are likely to affect the carrying value of classification of the assets within the financial statements. Liabilities There are no liabilities at 31 March 2026 of which I am aware. This is reflected in the financial statements. Contingent Liabilities There are no significant contingent liabilities, arising either under formal agreement or through formal undertakings, requiring disclosure in the financial statements. Litigation and Claims All known actual or possible legal claims have been disclosed to you and have been accounted for and disclosed in the financial statements in accordance with the 2025/26 Code. Fraud I understand my responsibilities for the design, implementation, and maintenance of internal control to prevent fraud and I believe I have appropriately fulfilled those responsibilities. I have provided you with all information in relation to: • my assessment of the risk that the financial statements may be materially misstated as a result of fraud, • any allegations of fraud or suspected fraud affecting the financial statements, and • fraud or suspected fraud that I am aware of involving management, employees who have a significant role in internal control, or others that could have a material effect on the financial statements. 14
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Laws and Regulations I have disclosed to you all known instances of non-compliance or suspected non- compliance with laws and regulations whose effects should be considered when preparing financial statements. Related Party Transactions All material transactions with related parties have been appropriately accounted for and disclosed in the financial statements in accordance with IAS 24, as adopted by the 2025/26 Code. I have made available to you the identity of all of North Ayrshire Council Charitable Trust Funds’ related parties and all the related party transactions of which I am aware. Corporate Governance I confirm North Ayrshire Council (administering authority) has undertaken a review of the system of internal control during 2025/26 to establish the extent to which it complies with proper practices set out in Delivering Good Governance in Local Government: Framework 2016. I have disclosed to you all deficiencies in internal control identified from this review or of which I am otherwise aware. Events Subsequent to the Date of the Balance Sheet All events subsequent to 31 March 2026 for which IAS 10, as adopted by the 2025/26 Code, requires adjustment or disclosure have been adjusted or disclosed. Yours sincerely Mark Boyd Head of Finance 15
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North Ayrshire Council 2025/26 Annual Audit Report Prepared for North Ayrshire Council and the Controller of Audit September 2026 Appendix 2 16
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North Ayrshire Council: 2025/26 Annual Audit Report | 2 Contents Summary of audit opinions and conclusions 3 Introduction 5 Audit scope, responsibilities, and fee 6 Audit of the annual accounts 9 Wider scope audit 23 Best Value audit 44 Appendix 1 53 Appendix 2 63 Accessibility You can find out more and read this report using assistive technology on our website www.audit.scot/accessibility. Appendix 2 17
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Summary of audit opinions and conclusions | 3 Summary of audit opinions and conclusions Audit of the annual accounts 1 All audit opinions stated that the annual accounts were free from material misstatement. 2 There were no significant findings or key audit matters to report. All audit adjustments required to correct the financial statements were processed by North Ayrshire Council. Wider scope audit 3 North Ayrshire Council has effective and appropriate arrangements in place for Financial Management; Financial Sustainability; Vision, Leadership and Governance; and Use of Resources to Improve Outcomes. 4 Financial management is effective. The council reported an underspend against the general services budget of £21.4 million following underspends in capital finance costs, employee costs and increased income across services. Usable reserves increased by £17.2 million to £147.1 million at 31 March 2026. Of this £49.6 million is earmarked for the Prudential Investment Fund which will support borrowing costs for the Capital Investment Programme. 5 The Medium-Term Financial Outlook was updated in November 2025 whilst the Medium-Term Financial Plan (MTFP) 2026/27 to 2028/29 was approved in February 2026. The MTFP showed a cumulative gap of £61.6 million over the three-year period. The council approved a balanced budget for 2026/27. This included a savings package of £7.3 million, increasing council tax by 8.5% and the planned utilisation of £3.5 million of reserves. 6 Governance arrangements in place are effective however improvements could be made regarding the timely completion of elected members registers of interest as well as increased levels of attendance at member training events. Appendix 2 18
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Summary of audit opinions and conclusions | 4 7 Performance reporting arrangements are well established. National benchmarking data shows the council’s performance has improved over time, but performance is mixed when compared to the prior year with 50% of indicators improving whilst performance declined for 27%. Best Value audit 8 North Ayrshire Council has effective and appropriate arrangements in place for securing Best Value. 9 North Ayrshire Council has effective and appropriate arrangements in place for preparing and publishing statutory performance information. Appendix 2 19
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Introduction | 5 Introduction Purpose of the Annual Audit Report 1. The purpose of this Annual Audit Report is to report the significant matters identified from the 2025/26 audit of North Ayrshire Council annual accounts and the wider scope areas specified in the Code of Audit Practice (2021). 2. The Annual Audit Report is addressed to North Ayrshire Council, hereafter referred to as ‘the council’ and the Controller of Audit and will be published on Audit Scotland’s website in due course. Appointed auditor and independence 3. Louisa Yule (CPFA), of Audit Scotland, has been appointed as external auditor of the council for the period from 2025/26 until 2026/27. Louisa Yule as engagement lead and the audit team are independent of the council in accordance with relevant ethical requirements, including the Financial Reporting Council’s Ethical Standard. There have been no developments since the issue of the Annual Audit Plan that impact on the continued independence of the engagement lead or the rest of the audit team from the council, including no provision of non-audit services. Acknowledgements 4. We would like to thank the council and its staff, particularly those involved in preparation of the annual accounts, for their cooperation and assistance during the audit. We look forward to working together constructively over the remainder of the five-year audit appointment. Appendix 2 20
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Audit scope, responsibilities, and fee | 6 Audit scope, responsibilities, and fee Scope of the audit 5. The audit is performed in accordance with the Code of Audit Practice, including supplementary guidance, International Standards on Auditing (ISA) (UK), and relevant legislation. These set out the requirements for the scope of the audit which includes: • An audit of the financial statements and an opinion on whether they give a true and fair view and are free from material misstatement. • An opinion on statutory other information published with the financial statements in the annual accounts, namely the Management Commentary and Annual Governance Statement. • An opinion on the audited part of the Remuneration Report. • Conclusions on the council’s arrangements in relation to the wider scope areas: Financial Management; Financial Sustainability; Vision, Leadership and Governance; and Use of Resources to Improve Outcomes. • Reporting on the council’s arrangements for securing Best Value. • Providing assurance on the Housing Benefit Subsidy Claim, Non- Domestic Rates Return, Whole of Government Accounts return, and summary financial statements. • A review of the council’s arrangements for preparing and publishing statutory performance information. • Provision of this Annual Audit Report. Responsibilities and reporting 6. The Code of Audit Practice sets out the respective responsibilities of the council and the auditor. A summary of the key responsibilities is outlined below. Auditor’s responsibilities 7. The responsibilities of auditors in the public sector are established in the Local Government (Scotland) Act 1973. These include providing an Appendix 2 21
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Audit scope, responsibilities, and fee | 7 independent opinion on the financial statements and other information reported within the annual accounts and concluding on the council’s arrangements in place for the wider scope areas and Best Value. 8. The matters reported in the Annual Audit Report are only those that have been identified by the audit team during normal audit work and may not be all that exist. Communicating these does not absolve the council from its responsibilities outlined below. 9. The Annual Audit Report includes an agreed action plan at Appendix 1 setting out specific recommendations to address matters identified and includes details of the responsible officer and dates for implementation. The council’s responsibilities 10. The council has primary responsibility for ensuring proper financial stewardship of public funds, compliance with relevant legislation and establishing effective arrangements for governance, propriety, and regularity that enables it to successfully deliver its objectives. The features of proper financial stewardship include: • Establishing arrangements to ensure the proper conduct of its affairs. • Preparation of annual accounts, comprising financial statements for the council and its group that gives a true and fair view and other specified information. • Establishing arrangements for the prevention and detection of fraud, error and irregularities, and bribery and corruption. • Implementing arrangements to ensure its financial position is soundly based. • Making arrangements to secure Best Value. • Establishing an internal audit function. Audit Fee 11. The audit fee for the 2025/26 audit was reported in the Annual Audit Plan and was set at £401,680 (2024/25 £384,980). We also agreed an audit fee of £1,100 for the audit of the registered charities administered by the council (2024/25 £1,100). There have been no developments that impact on planned audit work required, therefore the audit fee reported in the Annual Audit Plan remains unchanged. National performance audit reporting 12. The Auditor General for Scotland and the Accounts Commission regularly publish performance audit reports. These cover a range of matters, many of which may be of interest to the council and Audit and Appendix 2 22
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Audit scope, responsibilities, and fee | 8 Scrutiny Committee. Details of national and performance audit reports published over the last year can be seen in Appendix 2. Appendix 2 23
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Audit of the annual accounts | 9 Audit of the annual accounts Main judgements All audit opinions stated that the annual accounts were free from material misstatement. There were no significant findings or key audit matters to report. All audit adjustments required to correct the financial statements were processed by the council. Audit opinions on the annual accounts 13. The council and its group’s annual accounts were approved by Audit and Scrutiny Committee on 24 September 2026 and certified by the appointed auditor on 24 September 2026. The Independent Auditor’s Report is included in the council’s annual accounts, and this reports that, in the appointed auditor’s opinion, these were free from material misstatement. Audit timetable 14. The unaudited annual accounts and all working papers were received on 25 June 2026 in accordance with the agreed audit timetable. The Annual Accounts and supporting working papers were of a good standard. Finance staff provided good support to the audit team which helped ensure the smooth running of the final accounts audit process. Materiality 15. The concept of materiality is applied by auditors in planning and performing an audit, and in evaluating the effect of any uncorrected misstatements on the financial statements or other information reported in the annual accounts. 16. Broadly, the concept of materiality is to determine whether misstatements identified during the audit could reasonably be expected to influence the decisions of users of the annual accounts. Auditors set a monetary threshold when determining materiality, although some issues may be considered material by their nature. Therefore, materiality is ultimately a matter of the auditor’s professional judgement. 17. Materiality levels for the audit of the council and its group were determined at the risk assessment phase of the audit and were reported in Appendix 2 24
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Audit of the annual accounts | 10 the Annual Audit Plan, which also reported the judgements made in determining materiality levels. These were reassessed on receipt of the unaudited annual accounts. Materiality levels were updated and these can be seen in Exhibit 1. Exhibit 1 2025/26 Materiality levels for the council and its group Materiality The council Group Materiality – set at 2% of gross expenditure £13.6 million £17.8 million Performance materiality – set at 65% of materiality. As outlined in the Annual Audit Plan, this acts as a trigger point. If the aggregate of misstatements identified during the audit exceeds performance materiality, this could indicate further audit procedures are required. £8.9 million £11.6 million Reporting threshold – set at 5% of materiality. £0.7 million £0.9 million Source: Audit Scotland Significant findings and key audit matters 18. ISA (UK) 260 requires auditors to communicate significant findings from the audit to those charged with governance, which for the council is Audit and Scrutiny Committee. 19. The Code of Audit Practice also requires public sector auditors to communicate key audit matters. These are the matters that, in the auditor’s professional judgement, are of most significance to the audit of the financial statements and require most attention when performing the audit. 20. In determining key audit matters, auditors consider: • Areas of higher or significant risk of material misstatement. • Areas where significant judgement is required, including accounting estimates that are subject to a high degree of estimation uncertainty. • Significant events or transactions that occurred during the year. 21. The significant findings and key audit matters to report are outlined in Exhibit 2. Appendix 2 25
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Audit of the annual accounts | 11 Exhibit 2 Significant findings and key audit matters Significant findings and key audit matters Outcome Council dwellings – Classification error During testing, an asset was identified which was transferred from assets under construction to council dwellings in the unaudited accounts. However, it was noted that work on this asset was not completed until after 31 March 2026, therefore they should have been in asset under construction for 2025/26 accounts. The Council updated the accounts. Assets under construction as at 31 March 2026 increased by £4.112 million, with a corresponding decrease to council dwellings. Depreciation has decreased by £0.206m, with a corresponding debit entry to the capital adjustment account. Location factor used in property valuations and indexation The council used the January 2026 BCIS location factor of 0.94 instead of the March 2026 location factor of 0.93 in the valuation of depreciated replacement cost (DRC assets) and indexation of properties valued using the DRC methodology. We confirmed that the impact was not material for the indexation process however noted that it could potentially be material for the assets revalued at 31 March 2026. The Council has calculated that the impact of using a location factor of 0.93 instead of 0.94 would be a decrease of £3.007m to other land and buildings. This represents 0.2% of the total property, plant and equipment value of £1,421.3 million. The council does not consider this to be material and has not updated the accounts. As the impact is below the audit materiality levels, we have accepted this assessment. Going forward, the council should ensure that the March location factor is used within the indexation and valuation calculations for the annual accounts. Recommendation 1 Assets under construction – Classification error During testing, an asset was identified as incorrectly being included in assets under construction although the asset was operational. The Council have updated the accounts which has increased other land and buildings by £2.137 million, with a corresponding decrease to assets under construction. Short term investments – Classification error During testing, we identified that a fixed term deposit of £5 million had been incorrectly classified as a short-term investment instead of long term. The Council updated the accounts. This resulted in long-term investments increasing by £5 million, with a corresponding decrease to short term investments. Appendix 2 26
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Audit of the annual accounts | 12 Significant findings and key audit matters Outcome Heritage Asset – Trinity Mirror and Shards The Council were unable to provide evidence to confirm that a heritage asset with a value of £0.127m was owned by North Ayrshire Council. The value of the asset is not material however the Council should continue their work to confirm their ownership of the asset. Recommendation 2 Source: Audit Scotland Correspondence referred to the auditor by Audit Scotland/Statutory objections to the accounts 22. We received an objection to the accounts covering issues related to the Largs Common Good Fund and Trust Funds. We met with the objector and considered the issues and evidence provided. We are satisfied that this did not identify any issues which had an impact on our opinion on the financial statements. 23. Through consideration of the objection, it has been identified that the council has not held an annual putting competition in Largs, to meet the requirements of the Isabella McPhee Memorial Fund. 24. The council no longer operates the putting green directly. In March 2024, Cabinet approved the lease of Mackerston Putting Green and associated kiosk for a period of five years on a full repairing and insuring lease at a rent of £2,000 per annum. No proposals have been received from any third parties, either members of the community or the lessee, to hold a putting competition. Qualitative aspects of accounting practices 25. ISA (UK) 260 also requires auditors to communicate their view about qualitative aspects of the council’s accounting practices, including accounting policies, accounting estimates, and disclosures in the financial statements. Accounting policies 26. The appropriateness of accounting policies adopted by the council was assessed as part of the audit. These were considered to be appropriate to the circumstances of the council, and there were no significant departures from the accounting policies set out in the Code of Practice on Local Authority Accounting in the United Kingdom (the Code). Accounting estimates 27. Accounting estimates are used in number of areas in the council’s financial statements, including the valuation of land and buildings assets and the valuation of the pension liability. Audit work considered the process management of the council has in place around making accounting estimates, including the assumptions and data used in making Appendix 2 27
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Audit of the annual accounts | 13 the estimates, and the use of any management experts. Audit work concluded: • There were no issues with the selection or application of methods, assumptions, and data used to make the accounting estimates, and these were considered to be reasonable. • There was no evidence of management bias in making the accounting estimates. 28. Details of the audit work performed and the outcome of the work on accounting estimates that gave rise to significant risks of material misstatement are outlined in Exhibit 6. Disclosures in the financial statements 29. The adequacy of disclosures in the financial statements was assessed as part of the audit. The quality of disclosures was adequate, with additional levels of detail provided for disclosures around areas of greater sensitivity, such as financial instruments and valuation of the pension liability. Group audit 30. The council is part of a group and prepares group financial statements. The group is made up of nine components, including the council which is the parent of the group. Group audit instructions were issued to component auditors, where required, to outline the expectations and requirements in performing the audit work for the purposes of the group audit. The audit work performed on the group’s components is summarised in Exhibit 3. Exhibit 3 Summary of audit work on the group’s components Group component Auditor and audit work required Summary of audit work performed North Ayrshire Council Audit Scotland Fully scope audit of the council’s annual accounts. See above; results of the audit work are reported in this Annual Audit Report. Common Good Funds Audit Scotland Analytical procedures at group level. Analytical procedures performed at the group level, no significant issues identified. Appendix 2 28
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Audit of the annual accounts | 14 Group component Auditor and audit work required Summary of audit work performed Trust Funds Audit Scotland Analytical procedures at group level. Analytical procedures performed at the group level, no significant issues identified. North Ayrshire Ventures Trust Galbraith Pritchards Analytical procedures at group level. Analytical procedures performed at the group level, no significant issues identified. North Ayrshire Leisure Limited Azets Audit Services Limited Analytical procedures at group level. Analytical procedures performed at the group level, no significant issues identified. Strathclyde Partnership for Transport (SPT) Audit Scotland Obtain assurances on the audit procedures carried out on the valuation of land and buildings in SPT Assurances obtained on the audit procedures carried out on management override, valuation of land and buildings in SPT. Strathclyde Concessionary Travel Scheme Joint Board Audit Scotland Analytical procedures at group level. Analytical procedures performed at the group level, no significant issues identified. Ayrshire Valuation Joint Board Audit Scotland Analytical procedures at group level. Analytical procedures performed at the group level, no significant issues identified. North Ayrshire Integration Joint Board Audit Scotland Analytical procedures at group level. Analytical procedures performed at the group level, no significant issues identified. Source: Audit Scotland 31. ISA (UK) 600 requires auditors to report the following matters if these are identified or encountered during an audit: • any instances where review of a component auditor’s work gave rise to issues and how this was resolved. • any limitations on the group audit. Appendix 2 29
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Audit of the annual accounts | 15 • any frauds or suspected frauds involving group or component management. 32. No matters in relation to the above were identified. 33. The unaudited group accounts were prepared using the 2024/25 accounts for North Ayrshire Leisure Limited as the 2025/26 accounts are not yet available. We are satisfied that this has not had a material impact on the group accounts. Our audit opinion on the annual Accounts of the eight section 106 charities administered by the council are unmodified. 34. Elected members of the council are trustees for eight registered Scottish charities: • Anderson Park Trust: Charity number – SC042136 • Douglas Sellers Trust: Charity number – SC042101 • Margaret Archibald Bequest: Charity number – SC042117 • North Ayrshire Charitable Trust: Charity number – SC025083 • North Ayrshire Council (Dalry) Charitable Trust: Charity number – SC043644 • North Ayrshire Council (Kilbirnie and Glengarnock) Charitable Trusts: Charity number – SC043600 • North Ayrshire Council (Kilwinning) Charitable Trust: Charity number – SC043374 • North Ayrshire Council (Largs) Charitable trust: Charity number – SC043494 35. The Trust balances are disclosed in a note in the council’s Annual Accounts but do not represent assets of the council so are not included within the cash and cash equivalents figure shown in the council’s balance sheet. 36. A full and separate independent auditor’s report is required for the statement of accounts of each registered charity where members of North Ayrshire Council are sole trustees, irrespective of the size of the charity; this is as a result of the interaction of the Local Government in Scotland Act 1972 with the charities legislation. 37. Our duties as auditors of the charities administered by North Ayrshire Council are to: Appendix 2 30
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Audit of the annual accounts | 16 • express an opinion on whether the charity’s financial statements properly present the charity’s financial position and are prepared in accordance with charities legislation. • read the Trustees’ Annual Report and express an opinion as to whether it is consistent with the financial statements. • report on other matters, by exception, to the Trustees and to the Office of the Scottish Charity Regulator (OSCR). 38. The council has made full use of the connected charities provision and reports all charities within one set of accounts. 39. Six trusts have been dormant for a period of six years or more and of these, three Trusts have been dormant for over eight years. The dormancy of each identified Trust is disclosed on page 6 of the Trustees annual report. 40. We recommended within the 2022/23 Annual Audit Report, that the charitable Trusts had adequate governance documentation to enable grants to be issued as well as suitably advertising their purpose and how funds can be accessed. Whilst the charitable Trusts have continued to promote their activities, and the council raise awareness within communities of the financial support available from the Charitable Trusts; this has not been sufficient to bring the trusts back into operation. There is no clear plan on how to bring these Trusts back in to use. It is therefore unlikely that these Trusts meet the requirement of public benefit. 41. We reported in 2024/25 that; the funds within Dalry Trust, Kilwinning Trust, Kilbirnie & Glengarnock Trust, Largs Trust, Douglas Sellers Trust and Anderson Park Trust will be exhausted during 2025/26. The trustees planned to obtain approval from OSCR to wind up these trusts and for any remaining capital funds to be disbursed. The funds were not exhausted in 2025/26 and officers confirmed that approval has not been sought from OSCR to wind them up. 42. The Independent Auditor’s Report for the Annual Accounts of the eight charities administered by the council reports that, in the appointed auditor’s opinion, these were free from material misstatement. Recommendation 5 Dormant Trusts The council should look to progress plans to utilise trust funds to deliver public benefit and where appropriate to seek approval from OSCR for the disbursement of any remaining capital and wind up those Trusts. Appendix 2 31
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Audit of the annual accounts | 17 Other matters to report 43. Auditing standards require auditors to report a number of other matters if they are identified or encountered during an audit. The matter(s) identified or encountered on the audit of the council is outlined in Exhibit 4. Exhibit 4 Other matters to report Auditing standard requirement Matter to report Outcome Related parties ISA (UK) 550 requires auditors to report any significant matters in connection with related parties identified during the audit. Our work identified a number of register of interests for councillors that had not been updated for the 2025/26 financial year. This can lead to difficulties identifying related party relationships and issues around transparency. See para 141 and Recommendation 1 Recommendation included in this annual audit report. Source: Audit Scotland Significant matters discussed with management 44. All significant matters identified during the audit and discussed with the council’s management have been reported in the Annual Audit Report. Audit adjustments 45. Audit adjustments were required to the financial statements to correct misstatements that were identified from the audit. Details of all audit adjustments greater than the reporting threshold of £0.700 million are outlined in Exhibit 5, Appendix 2 32
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Audit of the annual accounts | 18 Exhibit 5 Audit adjustments Details Financial statements lines impacted Comprehensive Income and Expenditure Statement (CIES) Balance Sheet Audit adjustments to financial statements Dr Cr Dr Cr £000 £000 £000 £000 1. As outlined in Exhibit 2, an adjustment was required due to significant finding one. Assets under Construction 4,112 Council Dwellings (4,112) Capital adjustment account 206 Depreciation (206) 2. As outlined in Exhibit 2, an adjustment was required due to significant finding three. Other Land and Buildings 2,137 Assets under Construction (2,137) 3. As outlined in Exhibit 2, an adjustment was required due to significant finding four. Long term investments 5,000 Short term investments (5,000) Net impact on financial statements - (206) 11,455 (11,249) Audit adjustments in disclosures Appendix 2 33
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Audit of the annual accounts | 19 Source: Audit Scotland 46. Management of the council processed audit adjustments for all misstatements identified greater than the reporting threshold. As a result, there are no uncorrected misstatement to report 47. In addition to the corrected misstatements outlined in Exhibit 5, there were other misstatements identified greater than the reporting threshold. The value, nature, and circumstances of the uncorrected misstatements were considered, individually and in aggregate, by the audit team, and it was concluded these were not material to the financial statements. As a result, these did not have any impact on the audit opinions given in the Independent Auditor’s Report. 48. It is the auditor’s responsibility to request that all misstatements greater than the reporting threshold are corrected, even if they are not material. Management of the council have not processed any audit adjustments to correct these misstatements. However, the final decision on whether an audit adjustment is processed to correct a misstatement rests with the Audit and Scrutiny Committee as those charged with governance. Whole of Government Accounts (WGA) return 49. The council is part of the WGA boundary and therefore prepares a return that is used by HM Treasury to prepare the WGA. The National Audit Office (NAO) is the auditor for the WGA and issues instructions outlining audit procedures auditors must follow when auditing a WGA return. The threshold for requiring audit procedures to be performed on the WGA return was set at £2 billion. The council was below this threshold and therefore only limited audit procedures were required. Significant risks of material misstatement identified in the Annual Audit Plan 50. Audit work has been performed in response to the significant risks of material misstatement identified in the Annual Audit Plan. The outcome of audit work performed is summarised in Exhibit 6, Appendix 2 34
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Audit of the annual accounts | 20 Exhibit 6 Significant risks of material misstatement to the financial statements Risk of material misstatement Planned audit response Outcome of audit work Fraud caused by management override of controls Management is in a unique position to perpetrate fraud because of management’s ability to override controls that otherwise appear to be operating effectively. The audit team will: • Evaluate the design and implementation of controls over journal entry processing. • Make inquiries of individuals involved in the financial reporting process about inappropriate or unusual activity relating to the processing of journal entries. • Test journals entries, focusing on those that are assessed as higher risk, such as those affecting revenue and expenditure recognition around the year-end. • Evaluate significant transactions outside the normal course of business. • Assess the adequacy of controls in place for identifying and disclosing related party relationships and transactions in the financial statements. • Assess changes to the methods and underlying assumptions used to prepare accounting estimates and assess these for evidence of management bias. Audit work performed found: • The design and implementation of controls over journal processing were appropriate. • No inappropriate or unusual activity relating to the processing of journal entries was identified from discussions with individuals involved in financial reporting. • No significant issues were identified from testing of journal entries. • No significant issues were identified from transactions outside the normal course of business. • Our audit work identified an issue with the controls in place for identifying and disclosing related party relationships. • No significant issues were identified with changes to methods and underlying assumptions used to prepare accounting estimates and there was no evidence of management bias. Conclusion: no evidence of fraud caused by management override of controls. Appendix 2 35
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Audit of the annual accounts | 21 Risk of material misstatement Planned audit response Outcome of audit work Non-Current Assets The council held £1,259 million of property, plant, and equipment (PPE) at 31 March 2025, of which £989.7 million was land and building assets. The council is required to value land and building assets at existing use value where an active market exists for these assets. Where there is no active market, these assets are valued on a depreciated cost replacement (DRC) basis. As a result, there is a significant degree of subjectivity in these valuations which are based on specialist assumptions, and changes in the assumptions can result in material changes to valuations. A number of errors were identified in the prior year relating to the classification of non-current assets, which resulted in a number of significant adjustments being required in the audited accounts. The audit team will: • Evaluate the design and implementation of controls over the valuation process. • Review the information provided to the valuer and assess this for completeness and accuracy. • Evaluate the competence, capabilities, and objectivity of the valuer. • Obtain an understanding of management’s involvement in the valuation process to assess if appropriate oversight has occurred. • Review the appropriateness of the key data and assumptions used in the 2025/26 valuation process, and challenge these where required. • Review the indices applied by management to assets not subject to valuation in 2025/26 and assess if these are reasonable and have been correctly applied. • Perform substantive testing of a sample of assets from the asset register to check that they have been correctly classified and have not been counted in more than one asset category. • Review the NCA disclosures in the accounts. Audit work performed found: • The design and implementation of controls over the valuation process were appropriate. • The information provided to the valuer was accurate and complete. • The valuer had sufficient competence, capability, and objectivity to perform their work. • Management is involved in the valuation process and have an appropriate level of oversight. • The data and assumptions used in the 2025/26 valuation process were appropriate. • The indices applied by management to assets not subject to valuation in 2025/26 were reasonable and no significant issues were identified regarding their application. • Substantive testing of a sample of assets did not highlight any issues with assets being counted in more than one asset category; however, a couple of classification errors were identified. • The NCA disclosures in the accounts were deemed appropriate. Conclusion: the valuation of PPE is not materially misstated. Appendix 2 36
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Audit of the annual accounts | 22 Source: Audit Scotland Prior year recommendations 51. The council has made progress in implementing the agreed prior year audit recommendations. For actions not yet implemented, revised responses and timescales have been agreed with the council and are outlined in Appendix 1. Appendix 2 37
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Wider scope audit | 23 Wider scope audit Conclusion The council has effective and appropriate arrangements in place for Financial Management; Financial Sustainability; Vision, Leadership and Governance; and Use of Resources to Improve Outcomes. Financial management is effective. The council reported an underspend against the general services budget of £21.4 million following underspends in capital finance costs, employee costs and increased income across services. Usable reserves increased by £17.2 million to £147.1 million at 31 March 2026. Of this £49.6 million is earmarked for the Prudential Investment Fund which will support borrowing costs for the Capital Investment Programme. The Medium-Term Financial Outlook was updated in November 2025 whilst the Medium-Term Financial Plan (MTFP) 2026/27 to 2028/29 was approved in February 2026. The MTFP 2026/27 to 2028/29 showed a cumulative gap of £61.6 million over the three-year period. The council approved a balanced budget for 2026/27. This included a savings package of £7.3 million, increasing council tax by 8.5% and the planned utilisation of £3.5 million of reserves. Governance arrangements in place are effective however improvements could be made regarding the timely completion of elected members registers of interest as well as increased levels of attendance at member training events. Performance reporting arrangements are well established. National benchmarking data shows the council’s performance has improved over time, but performance is mixed when compared to the prior year with 50% of indicators improving whilst performance declined for 27%. Audit approach to wider scope Wider scope 52. As reported in the Annual Audit Plan, the wider scope audit areas are: • Financial Management. • Financial Sustainability. Appendix 2 38
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Wider scope audit | 24 • Vision, Leadership and Governance. • Use of Resources to Improve Outcomes. 53. Audit work is performed on these four areas and a conclusion on the effectiveness and appropriateness of arrangements the council has in place for each of these is reported in this chapter. Conclusions on wider scope audit Financial Management 54. The audit work performed on the arrangements the council has in place for securing sound financial management found that these were effective and appropriate. This judgement is evidenced by the council: • having a system of internal control in place that is operating effectively and has no significant weaknesses or deficiencies. • having clear and up-to-date policies and procedures, for example, financial regulations and scheme of delegation, in place that ensure effective financial management. • having clear and up-to-date policies in place for preventing and detecting fraud and other irregularities, and participation in fraud prevention and detection activities such as the National Fraud Initiative (NFI). • having suitably qualified and experienced staff leading the finance function, which has sufficient skills, capacity, and capability to effectively fulfil its role. • having effective arrangements in place for the scrutiny of arrangements that support sound financial management, and effective scrutiny and challenge provided by the Audit and Scrutiny Committee. The council reported a general fund service underspend of £21.4 million. 55. The council approved a balanced budget of £459 million for 2025/26 in February 2025. The budget required a planned use of £4 million reserves and a range of savings totalling £4.801 million. In addition, earmarked funds of £85 million were carried forward from 2024/25 for service expenditure in 2025/26 and are reflected in the financial performance reports for 2025/26. 56. In the 2025/26 Annual Accounts, the council reported a total service underspend of £21.4 million. Significant variances against budget are summarised in Exhibit 7. Appendix 2 39
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Wider scope audit | 25 Exhibit 7 Summary of significant variances against budget Area £m Reason for variance Financing costs £10.2 million Underspend on capital financing costs aligned to Treasury management and investment strategy, including revision to the annual debt repayment charges under revised service concession arrangements. Employee costs £2.2 million Underspend in employee costs mostly due to vacancy management across services and staff turnover levels. This is net of the overspend of £1.7 million additional cots for teachers in relation to absence cover and teacher salary pay levels. Service income and recharges £4 million Higher than anticipated income and recharges across services. Other Corporate items £3.4 million Underspend in relation to centrally held provisions not required in the year. HSCP £1.8 million Underspend within HSCP net of £1.3 million additional costs for external residential and non-residential placements for children. Source: North Ayrshire Council 2025/26 Annual Accounts The Housing Revenue Account underspent by £3.9 million in 2025/26 57. The Housing Revenue Account expenditure of £62.5 million was against a revised budget of £66 million. The underspend of £3.9 million reported is mostly due to savings on loan charges linked to the council’s continuing strategy to delay external borrowing by utilising cash balances. 58. The council intends to retain the underspend within the Housing revenue Account reserves to support future service delivery, including the Council House building programme. 59. The Housing Revenue Account Reserve as at 31 March 2026 is £25 million and will be utilised to support the delivery of the HRA Business Plan. 60. Housing Revenue Account expenditure on capital investment was £36.917 million against a budget of £41.958 million. The underspend was Appendix 2 40
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Wider scope audit | 26 primarily in relation to changes in the profiling of expenditure on new build projects including contingency budget not required in year. There was a £17.2 million increase in usable reserves to £147.1 million at 31 March 2026. 61. There is a planned use of reserves over the medium term to mitigate funding gaps. In 2025/26 there was a net increase of £17.2 million (2024/25 £3.5 million), in the council’s usable reserves, resulting in a total balance of £147.1 million at 31 March 2026 (Exhibit 8). 62. The March 2023 CIPFA Bulletin 13 on Local Authority Reserves and Balances provides updated best practice guidance on Local Authority Reserves and Balances. The Bulletin does not set a prescribed level of reserves, but it says the Proper Officer (the council’s Head of Service - Finance) has a responsibility to advise members on the creation and levels of reserves that are appropriate to the council’s circumstances. Reserves balances can be held for three main purposes: • Working balance: To help cushion the impact of uneven cash flows and avoid unnecessary temporary borrowing. • Contingency: To cushion the impact of unexpected events or emergencies. • Known requirements: To build up funds to meet known or predicted requirements Exhibit 8 North Ayrshire Council – Usable reserves Reserve 31 March 2024 £’Million 31 March 2025 £’Million 31 March 2026 £’Million General fund £93.385 £94.269 £107.745 Housing Revenue Account £20.566 £22.141 £25.148 Insurance Fund £2.558 £2.233 £2.316 Capital Fund £9.831 £11.186 £11.866 Total usable Reserves £126.340 £129.829 £147.075 Source: North Ayrshire Council Annual Accounts 2024/25 to 2025/26 Appendix 2 41
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Wider scope audit | 27 63. At 31 March 2026, the general fund reserve includes an unearmarked balance of £11.195 million, representing 2.3% of budgeted expenditure for 2025/26. Management considers that this level of reserve reflects a suitable contingency to contribute towards any unanticipated pressures and is consistent with, although at the lower end of, the council’s approved strategy of maintaining unearmarked reserves between 2 and 4 per cent of net expenditure to meet the potential cost of unforeseen liabilities. 64. The earmarked general fund reserve of £96.6 million includes an earmarked Prudential Investment Fund (Loans Fund Reserve) of £49.6 million which supports borrowing linked to the council’s Capital Investment Programme. It was created as part of the 2015/16 budget strategy to utilise short term underspends on General Fund financing budgets to offset longer term pressures to support Prudential Borrowing arising from the Capital Investment Programme. 65. Due to the significant investment planned by the council over the period to 2033/34, the current General Fund financing budgets will be incrementally increased over the period of the programme. This additional funding includes the use of the recurring element of the Service Concession flexibility approved at Council on 15 February 2023 and the utilisation of the balance of savings from the reduction in employer pension contributions in 2025/26. 66. The remainder of the General Fund Reserve, £47 million, is earmarked for specific purposes such as the supporting the council’s renewal and recovery strategy (£4.1 million), change and service redesign fund (£3.3 million) and supporting the medium-term financial planning strategy (£5.2 million). 67. The level of reserves has supported the council in delivering medium- to long-term strategies, funding one-off costs, and smoothing its core revenue budget requirement. However, delivering balanced budgets over the medium term will remain very challenging and will require a range of measures, including reduced service investment, further service reform and redesign, income generation, efficiencies from the Sustainable Change Programme, use of council reserves, and council tax increases that balance inflationary pressures with the impact on citizens. A new General Fund Capital Investment Programme 2025/26 to 2033/34 is used to inform capital investment and support Council plan priorities. 68. In February 2025, the Council approved the refreshed Capital Investment Programme 2025/26 to 2033/34. The refresh considered the current Capital Investment Programme and takes cognisance of subsequent changes including: Appendix 2 42
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Wider scope audit | 28 • The ongoing impact of construction industry inflation, cost volatility and supply chain issues across the overall Capital Investment Programme; • Revised Scottish Government capital grants as detailed in the Local Government Finance Settlement 2025/26; • A review of spending profiles across key capital projects to support the Council’s priorities; and • Revised levels of investment across projects, taking cognisance of Council priorities, external funding sources and investing in core assets through asset management plans. 69. The refresh included an assessment of all funding sources over the 9 years of the plan, including assumed levels of general capital grant, specific grants and an assessment of the level of capital receipts over the period. The refreshed capital Investment Programme proposed total investment of £331.5 million over the period 2025/26 to 2033/34. Total available funding is projected at £174.2 million. 70. The difference between the Council's Capital Investment Programme and funding from various sources is expected to be met through prudential borrowing of £157.260m. The Capital Investment Programme is expected to be delivered within the approved loan charges revenue budget, utilising the balances held in the Prudential Investment Fund and Capital Fund to smooth the revenue implications of the borrowing costs associated with the revised programme. 71. The Prudential Investment Fund was created as part of the 2015/16 budget strategy to utilise short term underspends on General Fund financing budgets to offset longer term pressures to support Prudential Borrowing arising from the Capital Investment Programme. 72. Due to the significant investment planned by North Ayrshire Council over the period to 2033/34, set within the context of government grant forecasts and combined with the additional cost pressures identified across a number of projects, it is projected that these funds will be exhausted before the end of the current 10-year Capital Investment Programme. 73. The council acknowledges that in order to ensure the affordability of current and future capital investments beyond this, it will be necessary to incrementally increase the current General Fund financing budgets over the period of the programme. Additional funding support to mitigate significant cost increases and the increased cost of borrowing includes the use of the recurring element of the Service Concession flexibility, which resulted in an average contribution of £3.437m from 2022/23 and the utilisation of the balance of savings from the temporary reduction in the employers’ superannuation contributions during 2024/25 and 2025/26 totalling £8.498m. Appendix 2 43
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Wider scope audit | 29 74. The proposed investment aligns with the Council's key priorities, as set out in the Council Plan 2023-2028, core asset management plans and the refreshed Capital Investment Strategy. 75. In response to previous reporting on the need for the council to improve its forecasting of capital projects and more accurately plan expenditure, recognising the extent of optimism bias that appears to have existed; the phasing of expenditure within the approved Capital Investment Programme for 2024/25 to 2033/34 was reviewed to reflect historic expenditure patterns and organisational capacity. This resulted in the rephasing of approximately 19% of the planned expenditure in both 2024/25 and 2025/26 for delivery in later years, without impacting on the overall value of investment within the programme. 76. Both capital and revenue financial resources across the General Fund and Housing Revenue Account are used to maintain the current asset base. The Council’s Capital Investment Strategy has been developed in line with the requirements of the Prudential Code and brings together the various asset management plans and strategies across the Council, aligning investment plans with these strategies and with strategic priorities. Individual asset management plans are then updated on an annual basis. 77. The capital programme is reviewed by Cabinet on an on-going basis with any additional funding brought forward for approval as appropriate. Major reviews are undertaken on a 3-year basis, with the next due to be completed during 2026/27. Challenges in the construction industry continue to impact the council’s capital programme. 78. The Capital Investment programme recognises risks around significant cost volatility across the construction industry, including inflationary pressures, limited availability of contractors, supply chain issues and material shortages which are impacting on tender returns and the cost of materials. 79. Where quantified, the resultant cost pressures have been recognised in relation to specific projects. However, risks have been identified, or are anticipated, across a number of projects using industry cost estimates as an indicator, including major works at Ardrossan North Shore through enabling works and Ardrossan Campus. In order to support the management of these and other emerging risks, and to apply prudent financial planning, an additional investment of £15.000m within the Flexibility budget is included over the next five years. This position will continue to be monitored as works advance and tenders are finalised. 80. Total capital investment of £331.5 million from the Council’s General Fund is planned over the period from 2025 to 2026 until 2033 to 2034, supporting the four key strategic priorities from the Council Plan: Appendix 2 44
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Wider scope audit | 30 • Wellbeing, • Communities and Local Democracy, • Climate Change and • A Sustainable Council. 81. Including planned expenditure of £63.8 million towards the Ayrshire Growth Deal to 2033 to 2034. It is recognised that the total level of investment across Ayrshire will be in the region of £251.5 million (including £103 million commitments from both the UK and Scottish Governments). 82. The council’s General Fund capital plan includes £96.0 million planned investment in Education. The major areas of education investment include: • £6.5 million investment for the universal school meals expansion to enable improvements in current kitchen and dining facilities across the school estate to create capacity for the anticipated uptake. • £81.8 million for the new build Ardrossan Campus wider community facility development. • £7.5 million investment to schools for ICT equipment. 83. In June 2026, Cabinet received a report from the cost consultant on the Ardrossan Campus Project. This was after the identification in September 2025 of asbestos and hydrocarbon contamination which has resulted in an additional cost to the project of £9.97 million (8.74%) and an extension of the completion date to 26 May 2028. This has resulted in the overall Campus project budget increasing to £124.6 million, with the additional funding to be met from the Council’s capital flexibility fund approved in February 2026. 84. The council’s Housing Revenue Account Capital Investment Programme for 2026/27 of £70.1 million, including £18.5 million for stock improvements and £34.2 million to support the delivery of the Strategic Housing Investment Plan, aims to deliver 1,666 affordable new homes. Roads backlog maintenance stands at £42.9 million with a ‘steady state’ requirement for maintaining the roads at present condition of £3.8 million per year. 85. North Ayrshire Council’s roads are the council’s largest community asset. The council maintains, 1,044 kilometres of adopted roads. 86. The capital programme for the period 2026/27 to 2033/34 details that £3.8m of capital investment is planned annually on roads improvement/reconstruction. The Council Budget meeting in February 2026 approved a further £4 million investment in Roads. The programme also states that there is Planned investment of £83.5 million on roads, Appendix 2 45
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Wider scope audit | 31 structure and lighting until 2033/34 including improvements to the roads and street lighting network, upgrading of the B714, flood prevention works, bridges infrastructure improvement and Active Travel projects. 87. The £83.5 million includes £42.9 million road improvements, £4.1 million on flood prevention works and £26.2 million on the upgrading of the B714 following a successful application to the UK Governments Levelling Up Fund. Property lifecycle investment of £9.0 million, to support the property asset management plan, will ensure Council properties continue to be maintained to the appropriate standards in delivering services to citizens and communities. The plan includes investment in several key programmes of regeneration within North Ayrshire and, in respect of the Ayrshire Growth Deal, on a wider pan Ayrshire basis. Total external debt which includes the council’s long-term liabilities was within the authorised limit and operational boundary set by the council’s treasury management investment strategy. 88. The Capital Financing Requirement (CFR) is the underlying borrowing requirements of the Council. The CFR is the total historic outstanding capital expenditure which has not been paid from either a capital or revenue resource and, therefore, needs to be funded from borrowing. It is a measure of the Council’s underlying borrowing need. 89. The council remained within its authorised CFR of £552.8 million for 2025/26, with gross borrowing of £421.9 million. This is lower than the CFR as the council continues with its strategy to use internal funds. The ratio of net revenue used for paying for the borrowing finance cost (loan interest) was 26.5% for housing and 4.1% for non-housing. This is an indicator of affordability and highlights the revenue implications of existing and proposed capital expenditure by identifying the proportion of the revenue budget required to meet borrowing costs. 90. The treasury strategy aligns with the Council Plan by contributing to “maximising financial flexibilities to help support delivery of priorities” and “maximising value from the use of our assets” as referred to under the priority of “A Sustainable Council”. 91. 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. The CFR is projected to: • Increase to £874.978 million by 2030/31 • Reduce annually thereafter to 2033/34. 92. The council continues to manage its borrowing through its treasury management and investment strategy. Updates on the investment position Appendix 2 46
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Wider scope audit | 32 of the Council are reported to Cabinet in the Mid-Year Treasury Report, and the Annual Treasury Report is submitted to the Council after the end of the financial year. The new Programme for Government in September 2026 focuses on improving outcomes and addressing national challenges with wide ranging proposed reform 93. The Scottish Government’s Programme for Government 2026-31 focuses on eradicating child poverty, growing the economy, tackling the climate emergency, and delivering a strong NHS and public services. Within health and social care, it prioritises reducing waiting times, improving access to care, and shifting more services from hospitals into community settings to support prevention and independent living. 94. The Programme proposes modernisation and significant reform including replacing the current 14 territorial health boards with two strategic health boards. For local authorities, the Programme signals potential reform of health and social care governance and delivery arrangements and reducing duplication and increasing efficiency in the delivery of public services. While the direction of travel is towards greater integration, prevention and community-based care, the full implications for local authorities remain uncertain. Greater clarity is expected in the coming months as the Scottish Government undertakes planned consultation and engagement on the future of social care and local governance. There are well-established budget monitoring and reporting processes in place. 95. The council has effective financial management processes in place to manage budgets and support the sustainability of services in the medium- term. This is supported by an experienced finance team and the processes in place allow members to carry out effective scrutiny of the council’s finances. 96. The Cabinet regularly review progress against budget throughout the year. The budget updates provide a good level of information on the reasons for variances, the projected financial outturn and the challenges facing the council for the rest of the year. The information is provided at timely intervals throughout the year to enable effective scrutiny from members. Key financial information overtime shows how the council has effectively managed its financial pressures overtime. 97. Key financial information considered in forming the judgement on the council’s arrangements for securing financial sustainability is outlined in Exhibit 9. Appendix 2 47
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Wider scope audit | 33 Exhibit 9 Key financial information Budget setting 2023/24 (£m) 2024/25 (£m) 2025/26 (£m) 2026/27 Planned (£m) Budget gap 19.267 22.574 18.867 17.615 Planned to be met via: • Savings and flexibilities -12.448 -17.562 -8.539 -7.296 • Use of reserves -3.410 -5.000 -4.000 -3.500 • Additional council tax / funding -3.409 -0.012 -6.328 -6.819 Actual Savings delivered -12.448 -17.562 -8.539 Reserves Use of / (contribution to) reserves -3.410 -5.000 -4.000 -3.500 Total usable reserves carried forward 126.340 129.829 147.075 General Fund: • Earmarked 84.940 85.088 96.550 • Uncommitted 8.445 9.181 11.195 Source: The council’s 2025/26 annual accounts and Council Revenue Plans Financial systems of internal control were effective 98. From our review of the design and implementation of systems of internal control (including those relating to IT) relevant to our audit approach, we have not identified any issues that represent a risk of material misstatement for the 2025/26 Annual Accounts. 99. The key controls within the council’s main financial systems were assessed as being designed and implemented appropriately. As such, we are satisfied that the risk of material misstatement to the Annual Accounts is low. Appendix 2 48
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Wider scope audit | 34 Internal audit provided a reasonable level of assurance over the council’s framework of governance, risk management and control arrangements during 2025/26. 100. Internal Audit provides an independent and objective opinion on the Council’s risk management, governance and control environment by evaluating its effectiveness. 101. The Internal Audit Plan for 25/26 was approved by the Audit and Scrutiny Committee in March 2025 and sets out the areas of work which Internal Audit intends to cover during the year. A mid-year update to the Internal Audit Plan was approved in November 2025. 102. The update to the plan is in line with Global Internal Audit Standards (GIAS) which recognise that it is good practice to regularly review and adjust the plan, as necessary, in response to changes in the organisation’s business, risks, operations, programmes, systems and controls. 103. Internal audit’s annual report, presented to the June 2026 Audit and Scrutiny Committee, provided reasonable assurance on the adequacy and effectiveness of the Council’s governance, risk management and control arrangements. 104. All audit reports finalised during 2025/26 were reported to meetings of the Audit and Scrutiny Committee. The results of the audits that have been completed and reported on, with respect to the 2025/26 audit plan, provided mostly substantial and reasonable audit opinions reported upon. 105. In accordance with the GIAS, the Internal Audit function is required to undergo an External Quality Assessment (EQA) at least once every five years. The most recent EQA was completed in 2022, and the next EQA undertaken against the new Global Internal Audit Standards is scheduled for 2027. 106. A self-assessment against the Global Internal Audit Standards was completed during 2025/26, and the Chief Internal Auditor concluded that the internal audit function generally conforms with the Standards. An associated action plan was developed and is expected to be implemented over the next 12 months to support progression towards full conformance. Progress against this action plan will be reported to the Audit & Scrutiny Committee during 2026/27. The self-assessment forms part of the Quality Assurance and Improvement Programme (QAIP), as required by the Global Internal Audit Standards. The council has in place appropriate arrangements for the prevention and detection of fraud and corruption. 107. The council has a range of established procedures for preventing and detecting fraud and irregularity including counter fraud and corruption Appendix 2 49
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Wider scope audit | 35 strategy, whistleblowing policy and procedures, and codes of conduct for members and officers. 108. A Corporate Fraud Team provides the Council with the capacity to investigate fraud both within and against the organisation. The Audit and Scrutiny Committee receives bi-annual updates on the work of the team. 109. The team received 338 referrals for investigation during 2025/26 (2024/25 331 referrals). All referrals made to the team are investigated. 318 cases were closed during 2025/26 (2024/25 359 cases) with results achieved (fraud, error or other recovery/action) in 100 cases. Fraud and error totalling £0.103 million was identified. 110. The council continues to participate in the National Fraud Initiative (NFI). This is a counter-fraud exercise across the UK public sector which aims to prevent and detect fraud. 111. We have concluded that the council has in place appropriate arrangements for the prevention and detection of fraud and other irregularities. We are not aware of any specific issues that we need to bring to your attention. Financial Sustainability 112. The audit work performed on the arrangements the council has in place for securing financial sustainability found that these were effective and appropriate. This judgement is evidenced by the council: • making appropriate arrangement to develop medium and longer- term financial plans and linking these to its Corporate Plan and priorities. • having effective arrangements in place for identifying risks to financial sustainability over the medium and longer-term, and understanding medium and longer-term demand pressures that could impact on available resources. • having savings plans in place to manage forecast budget deficits, and a reserves strategy in place to manage the use of reserves if the required level of savings cannot be met. The council’s latest medium-term financial outlook which covers the three-year period to 2026/27 to 2028/29 has identified a structural funding gap of £61.6 million (including the HSCP). 113. The council has established processes for setting and monitoring budgets. The General Fund Long Term Financial Outlook (LTFO) is a key part of its strategic financial framework, providing the basis for the Medium-Term Financial Outlook (MTFO) and annual budgets. This supports the council in responding to financial challenges and aligning Appendix 2 50
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Wider scope audit | 36 resources with the priorities in the Council Plan. The LTFO also ensures that strategic initiatives requiring long-term revenue and capital commitments are reflected in financial planning. 114. The latest LTFO, covering 2024/25 to 2033/34 and presented to the Council in December 2023, identifies an estimated funding shortfall of £127 million over the next ten years. This includes anticipated HSCP pressures and is based on best estimates, with sensitivity analysis showing the impact of changes in key assumptions. Although the council currently has reserves to help manage funding gaps, these reserves can only be used once. The council’s cost base is not sustainable, creating a risk to the longer-term financial sustainability of council services. 115. The most recent MTFO for the period 2026/27 to 2028/29 was presented to the Council in November 2025. It draws on similar data and projections to that contained in the Long-Term Financial Outlook; however, the financial projections have been updated for this period based on more recent cost analysis and funding metrics. This has identified a gross funding gap of £61.6m over the next 3 years, excluding any assumptions regarding planned use of reserves and Council tax increases, which must be addressed as part of the Council’s Medium-Term Financial Plan. 116. Key assumptions within the MTFO include: • Workforce costs - The current planning assumption beyond that which has already been agreed across the medium and long-term is for the Council funding element of pay awards to remain at a 3% increase each year. It was noted that for 2026/27, the Scottish Government have committed to fund the increase in pay above 3% i.e. 0.5% additional funding. • HSCP - The projected position of HSCP, influenced by significant demographic, demand, funding and inflationary pressures of around £8.2m in 2026/27, indicates a potential funding deficit position of between £8m to £21m in 2026/27, with a central planning deficit assumption of between the best and medium-case scenarios of around £11m. • Local Government Funding – the council recognises the uncertainty around future funding levels and how they can impede progress towards delivering sustainable change. The Scottish Government has made a commitment to include information to support multi- year allocations; it is hoped that this new approach will support more sustainable medium-term financial planning. 117. The anticipated funding gap position of the Council (including the HSCP) over the period is provided in Exhibit 10. This does not incorporate any planned use of reserves noted above. Appendix 2 51
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Wider scope audit | 37 Exhibit 10 MTFO – Budget gap 2026/27 to 2028/29 2026/27 £m 2027/28 £m 2028/29 £m Total gap £m General Fund Funding Gap 12.5 13.8 13.0 39.3 HSCP Pressures (including pay) 8.2 7 7.1 22.3 Total 20.7 20.8 20.1 61.6 Source: North Ayrshire Council The council approved a balanced budget for 2026/27 with council tax increasing by 8.5 per cent, fees and charges increasing by 5 per cent on fees and the planned use of £3.5 million of reserves was approved. 118. The Medium-Term Financial Plan (MTFP) for 2026/27 to 2028/29 was approved in February 2026. As reflected in Exhibit 10, it outlined indicative net funding gaps for the three-year period to 2028/29 of £61.6 million which includes the Health and Social Care Partnership pressures. 119. The MTFP included an initial baseline planning assumption for 2026/27 of an increase of 7% Council Tax, with a current planning assumption of a further 5% increase for 2027/28 and 2028/29. The council approved an increase in council tax of 8.5% for 2026/27. 120. The MTFP includes a range of savings proposals that will be required to deliver a balanced Budget position for 2026/27. Alongside this council tax is projected to increase by 7% and reserves will be utilised to help mitigate the significant financial challenges facing the Council. 121. The council was presented with a balanced budget for 2026/27 in February 2026 of £484.9 million. Council approved an increase to council tax rates of 8.5% which will generate an additional £6.8 million. Alongside this, the budget outlined plans for the use of £3.5 million in reserves and savings will also be delivered across directorates. 122. As part of efficiencies and savings proposals to support the budget, the council also approved an increase of 5% on fees and charges for 2026/27. The budget also included a package of efficiency savings totalling £7.296 million to address the council’s budget gap. This consists of £4.202 million of savings within the council’s operational adjustment; £2.220 million of previously approved savings and £0.874 million of IJB related savings. Appendix 2 52
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Wider scope audit | 38 123. The council recognise risks to the achievement of the 2026/27 projected outturn position due to: • the employer contribution rates to Strathclyde Pension Fund increasing to 17.5% in 2026/27 following a two-year temporary reduced rate of 6.5% • ongoing pressures within the Health and Social Care Partnership which has the potential to impact the level of support the council is required to provide. The Heath and Social Care Partnership are projecting a deficit position. 124. The Medium-Term Financial Plan (MTFP) for 2026/27 to 2028/29 reflects on the analysis included within the Medium-Term Financial Outlook. An extensive programme of engagement and consultation with communities was undertaken as part of the 2026/27 budget process setting out the scale of the challenges facing the council. 125. Before the Council considered the range of budget proposals and the level of Council tax for 2026/27, an extensive programme of engagement and consultation with communities was undertaken that set out the scale of the financial challenge facing the council. The engagement ran from 6 November to 19 December 2025 and included surveys across two main themes as well as in person and online focus groups. The main themes each included a number of proposals which included: • Reduce the budget for teachers by 1% in 26/27 and 27/28 leading to savings of £0.590 million and £1.549 million respectively. • Align Pupil Support Assistant hours to reflect reduced pupil rolls across mainstream schools, reducing the budget by 1% in each of the two years equating to 135 hours per week. • Streamline the Participatory Budgeting small community grants processes into one community process, creating a more engaging process for communities. 126. The programme resulted in 1,225 responses across the two themes, detailed feedback on proposals and considerable engagement with community groups across North Ayrshire. The engagement also enabled residents to bring petitions on specific options to the Audit and Scrutiny Committee and Cabinet. Full details of feedback across all areas were presented to the Council on 11 February 2026, for elected member consideration in advance of setting the Council Budget on 25 February 2026. Appendix 2 53
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Wider scope audit | 39 127. The use of the survey helps the Council fulfil its statutory duty to consider the impact its policies, including budget proposals, may have on those with protected characteristics (Equality Act 2010), our island communities (Islands (Scotland) Act 2018) as well as the socio-economic impact on our residents (Fairer Scotland Duty (2018), the Consumer (Scotland) Act 2020) and the possible impact on the rights of children (United Nations Convention on the Rights of the Child (Scotland) Act 2024. The results of the survey were used by services to help inform impact assessments for budget proposals. Vision, Leadership and Governance 128. The audit work performed on the arrangements the council has in place around its Vision, Leadership and Governance found that these were effective and appropriate. This judgement is evidenced by the council: • having a Corporate Plan in place, supported by Operational Plans, that clearly set out its vision, strategy, and priorities and reflect the pace and depth of improvement required to realise these in a sustainable manner. • involving service users, delivery partners, and other stakeholders in the development of its vision, strategy, and priorities to ensure these align to their needs. • having clear financial and performance reporting in place, both internally and externally, that is linked to its Operational Plans, and effective scrutiny and challenge of performance provided by Audit and Scrutiny Committee. • having effective governance arrangements in place in general, as reflected in the Governance Statement included in the annual report and accounts. There is openness and transparency in decision-making by the council. 129. The Council has established arrangements to support public access to its decision-making processes, including the live streaming of committee meetings and the publication of agendas, meeting papers, and recordings on the Council website. 130. North Ayrshire council publishes its Annual Accounts on its website, which includes a Management Commentary. The commentary provides an analysis of the council’s financial performance and use of resources for the year. The Council has approved and adopted a Local Code of Corporate Governance which is consistent with the principles of the CIPFA/SOLACE Framework ‘Delivering Good Governance in Local Government’ (2016). The Annual Governance Statement is approved annually by the Audit and Scrutiny Committee and published on the council’s website. Appendix 2 54
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Wider scope audit | 40 131. In addition, the council website provides access to a wide range of corporate information, including information on the Council Plan, organisational performance, and equality and diversity reporting. There are appropriate governance and decision-making arrangements in place at the council. 132. Council members and management are responsible for ensuring that effective governance arrangements are in place to support lawful and proper decision-making, safeguard public funds, and promote accountability. These arrangements also enable the council to monitor and assess how efficiently and effectively it uses its resources. 133. An annual review of governance arrangements is reported to the Council. Following the last review in September 2024 the Scheme of Delegation was reformatted to reflect the Council’s new directorate structure. The Council maintains Register of Interests for elected members 134. In accordance with the Councillor’s Code of Conduct, each member is required to complete a register of interests. The register is intended to be a public record of interests that might, by their nature, be likely to conflict with a members’ role. 135. Maintaining up-to-date registers is essential for public transparency and helps ensure that the Council complies with the requirements of IAS 24 Related Party Disclosures, which require certain interests to be explicitly disclosed in the annual accounts. 136. The Council has processes in place for compiling the register of interests’ information including sending out annual reminders to all members to update their information. The audit team observed that several follow-up reminders were sent out by officers during 2025/26. However, some members have not completed their register of interests for 2026. 137. Our audit work found that four members register of interests were not updated during 2025/26 and two of these were last updated in 2022. 138. Members are required by the Ethical Standards in Public Life (Scotland) Act 2000 (Register of Interests) Amendment (No. 2) Regulations 2021 to update entries in the register of interests within one month of circumstances changing. Maintaining up to date registers is important for public transparency, and to ensure the Council meets the accounting requirements of IAS 24 Related Party Disclosures which requires certain interests to be disclosed explicitly within the annual accounts. Appendix 2 55
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Wider scope audit | 41 Recommendation 3 Register of Interest Elected members should complete and update their register of interests at least annually, and within one month of any change in circumstances. The council should put arrangements in place to monitor completion rates and ensure the public register on the council website is updated promptly. This will support transparency and help ensure related party disclosures in the annual accounts are complete and accurate. The council offers a training programme for members in addition to e-learning and the opportunity to attend Improvement Service events and webinars. 139. The Accounts 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. 140. A report on development support provided to members during the period September 2025 to August 2026, included details of attendance rates, feedback from current activities and future planned developments was presented to the August 2026 Audit and Scrutiny Committee. The report noted that the council offers a full training programme for members in addition to e-learning and the opportunity to attend Improvement Service events and webinars. Training covers a wide range of areas including cyber security, safeguarding and councillor duties on outside bodies. 141. The report noted that elected members also have access to e- learning modules on the iLearn system. It concludes that take up of this learning is low. Overall, there were 137 (September 2024 to August 2025: 155) separate Member attendances at development sessions between September 2025 and August 2026. Members attendance ranged from 0 to 13, with approximately 40% of members not attending any training during the period under review. 142. Feedback is sought by electronic means on sessions attended and for the period covered by the report, the response rate was 20%. As part of planning for the 2027 elected member induction programme, a survey was sent out to councillors to gather feedback on the effectiveness of the 2022 programme, only 5 responses were received. Appendix 2 56
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Wider scope audit | 42 We have previously reflected within the 2024/25 Annual Audit Report on the levels of attendance at member training events. We note that the council offers an extensive development programme for members that are topical, relevant to the council and councillor’s responsibilities along with areas of risk to the council. Members should engage with officers to support the training programme through attendance at events, providing feedback and suggesting future areas for development. Recommendation 4 Members Development Councillors should actively participate in the development sessions made available to them to enhance their knowledge and understanding of emerging issues, governance requirements, and best practices. Attendance at these sessions will help ensure they remain informed of relevant developments and are equipped to fulfil their roles and responsibilities effectively. Use of Resources to Improve Outcomes 143. The audit work performed on the arrangements the council has in place around its Use of Resources to Improve Outcomes found that these were effective and appropriate. This judgement is evidenced by the council: • being able to demonstrate a clear link between the use of resources and delivery of its priorities. • having arrangements in place to benchmark its performance to identify areas of improvement. • being able to demonstrate improvements in performance against benchmarks and relative to other comparable organisations. There is regular reporting of the council’s progress with its Council Plan priorities. 144. The Cabinet is the main decision-making body of the council and as part of its remit, it considers Council performance reporting. The most recent meeting on 1 September 2026 considered the Council Plan year end progress reporting. 145. The Council Plan Progress Report Year End 2025 to 2026 shows how the council is continuing to progress its priorities in line with Best Value legislation in the six months ending 31st March 2026. It is supported by the Local Government Benchmarking Framework Analysis of the April 2026 data release, to show the Council’s performance relative to others and learn from other local authorities. Appendix 2 57
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Wider scope audit | 43 146. There are 47 actions within the Our Council Plan, with one reported directly through the Health and Social Care Partnership (HSCP) and excluded from the report. Of the remaining 46 actions, 45 are on target (green) and one is slightly adrift of target as at Year End. 147. A recommendation was included in the Annual Audit Report for 2024/25 that ‘the council needs to set out in advance what criteria have to be met for an ‘on target’ judgement to be made for each action in the Council Plan’. The Performance Management Strategy (2023-2028 October 2025 Refresh) details how to determine whether an action is on target. This is being used within training to embed a structured approach to performance management across the council at strategic and operational levels. 148. The report shows the progress on the 26 Performance Indicators within the Council framework. At the year-end, 17 were on target,4 slightly adrift, 4 significantly adrift and 1 with a data only/ status unknown status; this is where a target has intentionally not been set, usually due to the indicator being a new indicator or where the Council can only partly contribute to the outcome. Details of those indicators adrift of target are include in the report. Appendix 2 58
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Best Value audit | 44 Best Value audit Conclusion The council has effective and appropriate arrangements in place for securing Best Value. The Management Report on themes prescribed by the Accounts Commission reported the council has a clear asset management strategy in place which is supported by effective governance and accountability arrangements. The council has effective and appropriate arrangements in place for preparing and publishing statutory performance. Audit approach to Best Value 149. Under the Code of Audit Practice, the audit of Best Value in councils is fully integrated within the annual audit. As part of the annual audit, auditors are required to take a risk-based approach to assessing and reporting on whether the council has made proper arrangements for securing Best Value in accordance with statutory guidance, including follow up of findings previously reported in relation to Best Value. 150. The Accounts Commission also reports nationally on thematic aspects of councils’ approaches to, and performance in, meeting their Best Value duties. As part of the annual audit, thematic reviews, as directed by the Accounts Commission, are conducted on the council. The thematic review for 2025/26 was asset management and involved considering how councils are managing their assets to ensure high-quality services while also responding to challenges around financial sustainability and climate change. Conclusions and judgements on the thematic review are reported in a separate Management Report and summarised in this chapter. Conclusions on Best Value The council’s arrangements and performance in meeting Best Value and community planning duties 151. The audit work performed on the arrangements the council has in place for securing Best Value and its community planning arrangements found these were effective and appropriate. This judgement is evidenced by: Appendix 2 59
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Best Value audit | 45 • the council having well established and effective governance arrangements in place, with Best Value being a key aspect of the governance arrangements. • the arrangements the council has in place around the four wider scope audit areas, which are effective and appropriate, contribute to it being able to secure Best Value. The council’s arrangements and performance in meeting Best Value and community planning duties 152. The council is part of the fourth year of the programme for Controller of Audit reports to the Accounts Commission on the council’s performance in meeting its Best Value duties. The Controller of Audit report is available on the Audit Scotland website, with a summary of the conclusions and judgements made in the report outlined below. • The Accounts Commission were impressed by the council’s commitment to securing Best Value, which is clearly at the heart of how it goes about its business. Communities across North Ayrshire should be reassured about how the council plans and manages its finances, and the way in which it is proactively working to address structural budget gaps and contextual challenges, including deprivation and a declining population. The council is self-aware, actively identifies areas for improvement, keen to learn from others’ experience, and committed to improving outcomes and reducing inequalities. • Working with partners across and out-with the region, the council is demonstrating a real willingness to ‘think big’ and a commitment to sustainable change. While cost saving is a primary driver for its transformation programme, there is strong evidence that it wants to do things differently to improve outcomes and gain wider benefits. Examples like the Solar PV Farms project demonstrate innovation and a desire to impact positively on net zero and fuel poverty targets, even if financial savings are limited. • The council is an exemplar of how to do transformation well – robust governance, a dedicated investment fund, a well-established and well-resourced in-house team, a track record of delivering savings, and evidence of active collaboration on shared services with the other Ayrshire councils, who face similar challenges. We would urge senior officers and elected members to now confidently push on with this work despite political and structural complexities, ensuring that financial benefits can be realised in the medium term and wider benefits delivered in the longer term, including in relation to economic growth. We expect other councils facing similar challenges to look at what North Ayrshire is doing and how it is doing it in relation to transformation and change. Appendix 2 60
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Best Value audit | 46 • Recognised as a sector leader back in 2020, we are impressed that a considered and embedded approach to community engagement and empowerment continues, including successful implementation of participatory budgeting, engagement with young people, long- standing policies on asset transfer, and a new approach to budget consultation which has succeeded in attracting significant input from residents. It is evident that the council has good relationships with its communities and that trust is there, providing strong foundations when politics and decisions get difficult. We would encourage the council to continue to evidence that it is listening to its communities and acting on the results of engagement. • Like other councils, North Ayrshire faces significant medium-term financial risks, particularly in relation to spending on health and social care. We are encouraged that relationships across the Integration Joint Board (IJB) are positive, and oversight and scrutiny arrangements are robust. These factors will be critical if the necessary savings and recovery actions are to be delivered over the next few years. We also note that the council has used and still plans to use reserves to close funding gaps but has acknowledged that this is not sustainable. We look forward to following progress on how savings are being delivered in future annual audit reports and seeing progress on plans to achieve a sustainable cost base. 153. The point to take forward from the report was around Evidence of ongoing community engagement influencing decision making. There is a range of community engagement activity undertaken across the Council. Details of community engagement are included as part of the Council's performance monitoring arrangements and they include community engagement to support the development of Climate action plans, budget engagement activity, third sector engagement event. Themes prescribed by the Accounts Commission 154. As previously outlined, the Accounts Commission reports nationally on thematic aspects of council’s approaches to, and performance in, meeting their Best Value duties, with the thematic review for 2025/26 on the subject of asset management. Conclusions and judgements on the council’s approach to asset management are outlined in a separate Management Report which is available on the Audit Scotland website. A summary of the conclusions and judgments made in the report is outlined below. • North Ayrshire 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. • The council’s Corporate Asset Strategy and Plans align with its corporate objectives, new ways of working, the changing needs of Appendix 2 61
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Best Value audit | 47 its population, and clearly sets out how net zero commitments will be met. • North Ayrshire Council, alongside other local authorities, is navigating substantial fiscal pressures that are projected to widen budget gaps in the coming years. However, the Council demonstrates a commitment to assessing affordability whilst navigating substantial financial pressures that are projected to widen budget gaps in the coming years. • The 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. • 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. 155. We did not identify any improvement actions required by the council from, our work and the report was presented to the August 2026 Audit and Scrutiny Committee. Statutory performance information (SPI) and service performance 156. The Accounts Commission has issued a Statutory Performance Information Direction which requires the council to publish information that will: • enable comparisons of performance between councils and over time • show how well it is improving local outcomes with community planning partners in their area. 157. Auditors have a statutory duty to satisfy themselves that the council has made proper arrangements for preparing and publishing SPI in accordance with the Direction and report a conclusion in the Annual Audit Report. 158. The arrangements the council has in place for preparing and publishing SPI were assessed by considering: • whether information reported allowed comparison of performance between councils and over time Appendix 2 62
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Best Value audit | 48 • the indicators it uses for reporting and whether it maximises use of the Local Government Benchmarking Framework (LGBF) indicators (and explaining the rationale when the LGBF is not used) • whether information reported was balanced, timely, and accessible • whether information reported covered the four key areas set out in the Schedule to the Direction. 159. The Council has appropriate arrangements in place for preparing and publishing performance information. North Ayrshire Council has an established process for reporting on the performance indicators within its framework. With mid-year and year-end reporting to Cabinet. 160. North Ayrshire Council also publishes performance information through an online interactive Power BI performance dashboard as well as the use of ‘magazine’ style reports that provide information on performance across services on the Council website. 161. The performance dashboard also links to the LGBF benchmarking tool and the Council aligns its performance indicators with the LGBF to enable comparison of performance with other local authorities across Scotland. The council’s performance from national benchmarking data shows improvement over time but performance is mixed when compared to the prior year with 50% of indicators improving whilst performance declined for 27% 162. The Local Government Benchmarking Framework (LGBF) brings together a wide range of information about how all Scottish councils perform in delivering services, including the cost of services and how satisfied citizens are with them. 163. The Council Plan year-end progress reporting taken to the 1 September North Ayrshire Council includes data on the Local Government Benchmarking Framework provides a clear summary of North Ayrshire’s performance. 164. For the reportable indicators 51% were recorded within the top two quartiles for the most recent data compared with 50% in the base year (generally 2010/11). When compared to the most recent year, 50% of indicators have improved, with performance declining in 27% of indicators and 23% remaining unchanged overall. 165. The Accounts Commission also requires auditors to report a summary of the LGBF indicators the council has reported, which can be seen in Exhibit 11. Appendix 2 63
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Best Value audit | 49 Exhibit 11 Summary of LGBF indicators the council has reported Cost indicators % Performance indicators % Satisfaction indicators % All indicators % Movement in last year Improved 70% 42% 73% 55% Stayed the same 15% 25% 18% 23% Declined 15% 33% 9% 27% Movement since base year Improved 60% 67% 0 59% Stayed the same 0 8% 0 6% Declined 40% 25% 100% 35% Indicators in the top two quartiles Most recent year 45% 53% 45% 51% Base year 45% 51% 55% 50% Source: LGBF at 8 September 2026 166. Exhibit 11 shows that overall, LGBF performance has improved since the base year, with 59% of all indicators improving and 51% now in the top two quartiles. However, satisfaction indicators show a significant deterioration, with 100% declining since the base year. 167. Indicators where the council has seen the most significant improvements or worsening of performance include: • The Average Total Tariff Score of the school leavers from the most SIMD deprived 20% of Scottish data zones in 2025 was 681 points. This is a 3.2% increase on last year and is also above the Average Total Tariff Score of school leavers from similar SIMD areas in the whole of Scotland (676 points). • The Average Total Tariff score for 2025 school leavers published in the March 2026 edition of the national Insight benchmarking tool was 864.4 tariff points. This is an increase of 2.8% compared to the Appendix 2 64
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Best Value audit | 50 previous year. North Ayrshire school leavers also outperform the national figures across a range of SIMD deciles. • Total installed capacity of low carbon heat and electricity generation across council's estate. Target was 30,137, the numbers achieved was 30,230 for 2025/26. • Proportion of operational buildings that are suitable for their current use; the 2025/26 target was 93% and 95.2% was achieved. 168. The Council is committed to improving areas where performance is ranked as low when compared to other councils or its own targets. The Council plan progress update (Year end 2025 to 2026) includes an action tracker that closely monitors progress and the criteria for determining the status of actions are set out in the Performance Management Strategy. 169. Given the service demand and cost pressures facing councils it is unlikely that the council will be able to maintain performance across all the services they currently provide in the medium to longer term. This means that councils will need to make increasingly difficult choices about what their service and performance priorities are. 170. The LGBF data should continue to be used alongside the council’s own performance management framework as well as its engagements with communities to assess local performance and priorities. This will provide a breadth of data to inform and identify where improvements and better outcomes for communities can be achieved. Progress against previous Best Value findings and recommendations 171. Best Value findings and recommendations have been made in previous years’ Annual Audit Reports, Management Reports on themes prescribed by the Accounts Commission, and in Best Value reports published by the Accounts Commission, which are based on Controller of Audit reports. 172. Details of previous recommendations and progress the council is making against these can be seen in Appendix 1, with 1] of the 4 recommendations made being implemented to date, and progress being made with 3 recommendations. Overall, the pace and depth of improvements resulting from the recommendations is positive, with many improvements occurring quickly after the recommendations were implemented. Appendix 2 65
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Best Value audit | 51 The Council has appropriate arrangements in place in respect of fairness and equality 173. The Audit Planning Guidance sets out a requirement for audit work to be carried out on Fairness and Equality Best Value characteristic at least once during the audit appointment. 174. Our work identified that the Council demonstrates that it meets the requirements of the equality legislation and has a culture which encourages equal opportunity. In line with legislation, the Council reports on progress on how it meets the UK equality Act General Equality Duty and the Scottish Government’s Specific Equality Duties every two years. 175. The Council demonstrates a continuous improvement in encouraging a culture of equal opportunities, an example of this is in its decision to treat ‘Care – Experienced’ as an additional local protected characteristic. This was in recognition of the many barriers and inequalities faced by people who identify as ‘Care-Experienced.’ 176. Consultations were undertaken with staff during the development of the 2025 – 2029 Equality Outcomes and Equality awareness is included in induction training for both officers and Elected Members. Employees are required to complete a mandatory Equality and Diversity Awareness course on an annual basis. Specialist training is also available for officers required to carry out Equality and Children’s Rights Impact Assessments via an online module and face to face training. 177. The Council has a dedicated Equalities and Inclusion Officer to facilitate and take forward equality and diversity work across the Council. There are also a number of other officers in services, whose work directly supports the equality agenda. e.g. the Connected Communities team regularly engage and support various community groups from LGBT issues to age or refugee groups. 178. North Ayrshire Council demonstrates that equality considerations are mainstreamed into its strategic planning and processes in a number of ways. The Council Plan 2023 – 2028 has the vision "A North Ayrshire that is fair for all. It clearly states that its mission is working together to improve the lives of the people in North Ayrshire and was developed alongside the local community. 179. Equalities implications are included in every committee report to provide officers with the opportunity to highlight any equality related issues arising from the subject of the equality paper. 180. The Council collects information and data on the impact of policies on different equality groups to help inform future decisions and it considers the views of different equality groups in making decisions. Examples of its extensive engagement with local communities include during the 2025/26 and 2026/27 Budget Consultation process. Appendix 2 66
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Best Value audit | 52 181. The engagement took the form of surveys and focus groups covering key themes for savings, to make it easier for residents to respond, for example the 2026/27 survey was separated into proposed savings for ‘Schools and related services for Children and Young People’ and ‘Other Council Services’. Surveys could be completed on paper, online or via the Customer Contact Centre (telephone). The survey asked residents about potential impacts on protected characteristic groups and asked about personal demographic information; this was used by services to help inform impact assessments for budget proposals. 182. Equality Outcomes are reported to Cabinet and Audit and Scrutiny every two years, via the Executive Leadership Team (ELT). The actions and indicators are reviewed on an on-going basis throughout the life of the Equality Action Plan. Activities supporting equality and diversity are also captured through Council Plan priorities and reported at Mid-Year and Year End through the ELT, Cabinet and Audit and Scrutiny Committee. Appendix 2 67
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Appendix 1 | 53 Appendix 1 Action plan 2025/26 2025/26 Recommendations Matter giving rise to recommendation Recommendation Agreed action, officer and timing 1.Location factor Location factors used in the valuation and indexation calculations for non-current assets The council used the January BCIS location factor of instead of the March location factor of in the valuation of depreciated replacement cost (DRC assets) for the 2025/26 accounts in order to facilitate the timeous preparation of the annual accounts. The impact was not material in 2025/26 but there is a risk that it could be material in future, depending on the difference between the location factors and the values of the assets revalued. The council should ensure that the March location factor is used within the indexation and valuation calculations. calculate Accepted The Council will incorporate the provisional mid-March location factors into the year- end valuation process. Responsible officer Head of Service (Laurence Cree) Agreed date 31 March 2027. 2. Heritage asset ownership The council were unable to provide evidence that, Trinity Mirror and Shards, a heritage asset with a value of £0.127m, was owned by North Ayrshire Council. The council should continue its work to confirm ownership of the asset. Accepted The Council will continue it’s work to confirm ownership of the asset. Responsible officer Head of Service (Aileen Craig) Agreed date 31 March 2027. Appendix 2 68
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Appendix 1 | 54 Matter giving rise to recommendation Recommendation Agreed action, officer and timing 3.Register of Interests Register of interests for all members should be completed regularly and the council website updated to reflect this on a timely basis. The council should ensure that all elected members complete and update their register of interests on a regular basis, including prompt updates where circumstances change. The council should also ensure that the public register on its website is updated on a timely basis to support transparency and compliance with related party disclosure requirements. Accepted The Council will add an additional step to internal processes whereby any register of interests not returned will be escalated to Head of Finance. Responsible officer Head of Service (Finance). Agreed date 31 March 2027 4. Members development Councillors should actively participate in the development sessions made available to them to enhance their knowledge and understanding of emerging issues, governance requirements, and best practices. Attendance at these sessions will help ensure they remain informed of relevant developments and are equipped to fulfil their roles and responsibilities effectively. The council should put arrangements in place to support positive engagement by councillors with training and development sessions. Officers should also ensure that any mandatory training requirements are clearly identified and communicated as such. Accepted The Council will continue to engage with Elected Members and promote attendance at the Elected Members Development Programme scheduled throughout the year which provides opportunities for regular development on key topics. Responsible officer Head of Service (Aileen Craig) Agreed date 31 March 2027 Appendix 2 69
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Appendix 1 | 55 2025/26 Recommendations for charities administered by North Ayrshire Council Matter giving rise to recommendation Recommendation Agreed action, officer and timing 5. Dormant Trust Six charitable trusts have been dormant for six years or more, and there is no clear plan to bring them back into use. As a result, there is a risk that the trusts are not meeting public benefit requirements. The Council should look to progress plans to use up the funds of relevant trusts and seek approval from OSCR for the disbursement of any remaining capital and winding up of these Trusts. Accepted Finance will engage further with Connected Communities to promote utilisation of dormant funds. Responsible officers Head of Service (Finance) and Head of Service (Rhonda Leith). Agreed date 31 December 2026. Progress against Controller of Audit Report findings - 2025 Matter giving rise to recommendation Recommendation, agreed action, officer and timing Update 1.Evidence of ongoing community engagement influencing decision making The council should continue to evidence that it is engaging with its communities and acting on the results of findings. Management response: A range of community engagement activity continues to be undertaken across the Council. Details of which are included as part of the Council's performance monitoring arrangements Responsible Officer: Head of Service (Connected Communities) and Head of Service (Finance) Action by: 31 March 2027 Appendix 2 70
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Appendix 1 | 56 Follow-up of prior year recommendations, including any previous Best Value report findings and recommendations Matter giving rise to recommendation Recommendation, agreed action, officer and timing Update 1. A number of significant amendments have been required to the Annual Accounts to ensure in particular that non-current asset figures are fairly stated. Management response: A full review of capital accounting year end procedures will be carried out during 2025-26. This will include the procedures for reviewing information provided by the Council’s valuation team and the use of external valuers. Responsible Officer: David Forbes, Senior Manager - Finance and Revenues Action by: 31 March 2026 Auditor Observation - Ongoing Some improvement was noted however several amendments were required in the 2025/26 accounts. Year- end procedures should include evidenced review of asset classification, and management’s assessment as to the reasonableness etc of the valuer’s assumptions, including the location factors used in DRC valuations and indexation. Council response – Progress We will continue to strengthen procedures during 2026/27 and include evidence of our review of asset classification and assessment of the reasonableness of the valuer’s assumptions. Natalie Graham, Senior Manager - Corporate Finance, Capital & Treasury Action by: 31 March 2027 Appendix 2 71
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Appendix 1 | 57 Matter giving rise to recommendation Recommendation, agreed action, officer and timing Update 2. Impairment of non- current assets Accounting standards require the council to assess at the end of each financial year whether there are any indications an asset is impaired. Most assets are valued at least every five years and generally when valued, each asset is subject to a physical inspection. There are however some assets that are never revalued. The council’s impairment review is largely limited to assets revalued and should be made more robust and comprehensive. Management response: Under current procedures, an impairment review is carried out for all assets valued within the financial year. In addition, the valuation team undertakes an annual impairment review to determine if any assets not revalued in year are subject to material change. The Accounting Policies in relation to asset impairment will be reviewed and enhanced to provide clear reference to the impairment review process. Responsible Officer: David Forbes, Senior Manager - Finance and Revenues Emma Mulholland, Team Manager - Estates Action by: 31 March 2026 Implemented The accounting policy in relation to asset impairment has been enhanced to provide clear reference to assets not formally valued in year. Evidence of the 2025/26 impairment review process was provided. Appendix 2 72
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Appendix 1 | 58 Matter giving rise to recommendation Recommendation, agreed action, officer and timing Update 3. Progress on Council Plan actions. The council does not set out in advance what criteria have to be met for an ‘on target’ judgement to be made for each quarter, relying instead on updates from individual teams leading on the strategies and other supporting evidence (including ‘Next Steps’ from the previous report). If the ‘Next Steps’ actions were SMART it might be possible to analyse whether all the relevant ones within the time period had been met and that could feed into whether an action was on target. The Performance Management Strategy is being revised and will be presented to the Audit and Scrutiny Committee on 20th November 2025. This public facing strategy will contain details of how to determine the status of Council Plan actions based on existing strategies and next steps. This approach will be supported by additional training for teams providing updates during 2026. The Council Plan Progress Reports will include SMART next steps. These next steps will be recorded within our performance management system to track their status transparently and inform the status of Council Plan actions. Responsible Officer: Isla Cruickshanks, Senior Manager – Policy, Performance & Democracy Action by: 20 November 2025 Implemented. The Performance Management Strategy was refreshed in October 2025 in and it details how to determine whether an action is on target. This is being used within training to embed a structured approach to performance management across the council at strategic and operational levels. Appendix 2 73
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Appendix 1 | 59 Matter giving rise to recommendation Recommendation, agreed action, officer and timing Update 4. BV thematic report - Transformation savings The council’s latest MTFO identifies a structural funding gap of £46.7m (including HSCP pressures) which must be addressed as part of the council’s Medium-Term Financial Plan. Whilst we recognise that transformation alone will not offer the full solution to the financial gap identified in the MTFO, the level of financial efficiencies from the Sustainable Change Programme should be commensurate with the scale of the financial challenges. The council should ensure its plans are sufficiently ambitious to respond to its financial challenges. It should clearly set out the extent to which savings from transformation will help address the budget shortfalls set out in its Medium-Term Financial Plan. Auditor Observation - Ongoing Work on achieving this is ongoing with a number of operational savings identified and measures such as increases in council tax as well as the introduction of special measures in the HSCP. The agreed action date for this is March 2029. Council response – Progress Details of Transformation progress continue to be governed through the Council's Transformation Board. Further Plans to support the 2027/28 Budget continue to be developed Responsible Officer Head of Service (Finance) Action by March 2029 Appendix 2 74
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Appendix 1 | 60 Matter giving rise to recommendation Recommendation, agreed action, officer and timing Update 5. BV thematic report – Transformation reporting progress The council does not currently report publicly on how it is progressing with delivering transformation as a whole in terms of planned and realised financial and non-financial benefits. To provide assurance to elected members and the public about how the council plans to change to sustain services in the future the council should report publicly on how it is progressing with delivering transformation, as a whole, in terms of planned and realised financial and non- financial benefits. Auditor Observation - Ongoing The council published a Council Plan Six Monthly Progress report – 1 April 2025 to 30 September 2025 on a dedicated webpage, which includes updates on the Transformation Programme. This could be enhanced by including planned and realised financial and non- financial benefits. The agreed action date for this is March 2027. Council response – Progress Incorporated into the Council's performance reporting framework and presented on a dedicated webpage which includes progress on transformation activity Responsible Officer Head of Service (Finance) Action by March 2027 Appendix 2 75
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Appendix 1 | 61 Matter giving rise to recommendation Recommendation, agreed action, officer and timing Update 6. BV thematic report – Workforce innovation – Joint Workforce arrangements There is scope for the council to explore further where it can work together with partners to share services and increase collaboration. The council should explore further where it can work together with partners to share services and increase collaboration. Council Response - Ongoing A Shared Services Leadership Group has been established across North, East and South Ayrshire Councils. On 1 July 2026 a shared Economic Development service was implemented with North and East Ayrshire Council. Further work is being progressed to assess shared service opportunities across a range of functional areas. Following the launch of the Scottish Government Programme for Government, Ayrshire councils will engage with Scottish Government to consider further regional collaboration opportunities. Responsible Officer: Head of Service (Finance) Agreed date: 31 March 2029 Appendix 2 76
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Appendix 1 | 62 Matter giving rise to recommendation Recommendation, agreed action, officer and timing Update 7. BV thematic report – Workforce innovation – Measuring the impact of workforce planning The council could improve how it monitors the effectiveness of its workforce planning practice by regularly reporting progress against workforce planning priorities. In addition to providing general workforce planning updates, the council should regularly report its progress against its workforce planning priorities to elected members through its Council Plan updates or other means. Implemented. The refreshed Workforce Strategy 2024–2028 developed corporate actions which are included on the council’s performance management system. The actions are updated and reported on a six-monthly basis. The action updates, together with a separate explanatory workforce planning update, are provided in the Council Plan performance report which is reported to Cabinet and the Audit & Scrutiny committee. Appendix 2 77
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Appendix 2 | 63 Appendix 2 Supporting national and performance audit reports Report name Date published Local government budgets 2025/26 22 May 2025 NHS in Scotland: Spotlight on governance 28 May 2025 Delivering for the future: Responding to the workforce challenge 7 August 2025 Flooding in communities: Moving towards flood resilience 28 August 2025 Adult Disability Payment 18 September 2025 Scotland’s colleges 2025 2 October 2025 Improving care experience: Delivering The Promise 8 October 2025 Local government performance: Spotlight on culture and leisure services 23 October 2025 Financial sustainability and taxes 13 November 2025 NHS in Scotland 2025: Finance and performance 4 December 2025 Delayed discharges: A symptom of the challenges facing health and social care 8 January 2026 Community health and social care: Performance 2025 8 January 2026 Administration of Scottish income tax 2024/25 16 January 2026 Local Government in Scotland: Financial bulletin 2024/25 29 January 2026 The Scottish Budget 2026/24: Supplement to the Financial bulletin 2024/25 12 February 2026 Integration Joint Boards: Finance bulletin 2024/25 26 February 2026 Annual Assurance and Risks Report: A review of 2024/25 local government audits in Scotland 12 March 2026 Transforming the approach to climate change: Lessons from public audit 19 March 2026 Appendix 2 78
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North Ayrshire Council 2025/26 Annual Audit Report Audit Scotland, 4th Floor, 102 West Port, Edinburgh EH3 9DN Phone: 0131 625 1500 Email: info@audit.scot www.audit.scot AS.5.0 Appendix 2 79
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NORTH AYRSHIRE COUNCIL 24 September 2026 Audit and Scrutiny Committee Title: Our Council Plan Year End Progress Reporting Purpose: To advise the Audit and Scrutiny Committee on progress in delivering Our Council Plan 2023 to 2028 as at Year End 2025 to 2026. Recommendation: That Audit and Scrutiny: (a) Notes the Year End Progress Report and Annual Performance Report. (b) Notes the status of the Council’s performance indicators within the LGBF Analysis of April 2026 Data Release. (c) Notes the revisions to four Education 2025 to 2026 targets and the revision of 2027 to 2028 targets outlined in section 4 of this report. 1 Executive Summary 1.1 Our Council Plan Progress Report Year End 2025 to 2026 (Appendix 1) shows how our council is continuing to progress our priorities in line with Best Value legislation in the six months ending 31st March 2026. It is supported by the Local Government Benchmarking Framework Analysis of the April 2026 data release (Appendix 3), to show our performance relative to others and learn from other local authorities. 1.2 When considering the performance indicators, LGBF indicators directly relating to our Council Plan and accompanying narrative to demonstrate impact, performance remains strong in many areas. 1.3 Where challenges are resulting in less positive performance, these are detailed within the accompanying reports for transparency alongside details of how this will be addressed and within what timescale. 2 Background 2.1 Under the Local Government (Scotland) Act 1992 and Local Government in Scotland Act 2003 we have a duty to demonstrate Best Value. To ensure we support our residents, fulfil our statutory duties and invite scrutiny, we Agenda Item 3 81
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actively manage performance and seek to continuously improve our reporting to make it accessible and engaging. 2.2 The Statutory Performance Information Direction 2024 determines how we demonstrate Best Value. It applies to the reporting of activity that has taken place since 1st April 2025 for approximately three years. Guidance on the Direction is being released in stages. This is being monitored to ensure continued compliance. 2.3 Audit Scotland Actions 2.4 Best Value Thematic Audits have resulted in a larger Council Plan Progress Report (Appendix 1). For example, the inclusion of Workforce and Transformation updates. 2.5 In September 2025, the Annual Audit Report 2024/25 resulted in a recommendation relating to Next Steps and criteria to determine whether an action status is on target. 2.6 Within the Council Plan Progress Reports, Next Steps are indications of areas of focus for the coming six months, but not specifically actions. Their progress is included in the main narrative of the following six-monthly report. However, Audit Scotland has recommended these are SMART and progress is recorded. 2.7 Rather than present progress for each Next Step (which made the report very complex and not inline with the accessibility required under the Direction), a general statement to say if they are on target is included. Progress is included in the narrative of the report, with only those not progressing as expected or with a brief update, highlighted in each priority section (a manage by exception approach). 2.8 The Performance Management Strategy (PMS) details a logical approach to determining the status of actions and is linked to within the Action Tracker of Appendix 1. This ensures where performance has been affected, even if externally influenced, this is reflected in the status to ensure any issues can be addressed promptly. This descriptive level of detail is innovative as a local authority PMS tends to be a high-level document. A link is included above the Action Tracker in Appendix 1 and is expected to meet the audit requirements. Training actively encourages the use of the PMS as a reference document for Senior Managers. 82
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3 Assessment of Performance 3.1 Performance Indicators There are 26 performance indicators within our framework. At Year End, the overall status of the framework is: Status Year End 2024/25 Year End 2025/26 On Target (Green) 13 (54.2%*) 17 (68%*) Slightly Adrift of Target (Amber) 5 (20.8%*) 4 (16%*) Significantly Adrift of Target (Red) 6 (25%*) 4 (16%*) Data Only / Status Unknown 2 1 (*Of PIs where status is known) The status of a PI is determined by the following tolerances: Status Description On target Slightly adrift of target (typically this represents a variance ≥ 1% and < 5% from the target). Significantly adrift of target (typically this represents a variance ≥ 5% from the target). Data only (PIs only) – this is where a target has intentionally not been set, usually due to the indicator being a new indicator or where we can only partly contribute to the outcome. Data not available / status unknown - (PIs only) the status is not available either due to data not being available or no target being set. (Source: Our Performance Management Strategy 2023-2028 – October 2025 Refresh) The details of those adrift of target are below: CP_37 Average total tariff score of pupils living in SIMD 20% most deprived areas (Red) The Average Total Tariff Score of the school leavers from the most SIMD deprived 20% of Scottish data zones in 2025 was 681 points. This is a 3.2% increase on last year and is also above the Average Total Tariff Score of school leavers from similar SIMD areas in the whole of Scotland (676 points). Given the dynamic above it means that the poverty-related attainment gap is smaller than last year - a small but significant gain in the endeavour to reduce the opportunity gap between our young people living in the least and the most deprived areas of North Ayrshire. 83
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CP_06 Average tariff score: All Leavers (Red) The Average Total Tariff score for 2025 school leavers published in the March 2026 edition of the national Insight benchmarking tool was 864.4 tariff points. This is an increase of 2.8% compared to the previous year. North Ayrshire school leavers also outperform the national figures across a range of SIMD deciles. There is a complex interaction of factors that determine the dynamic of the Average Total Tariff Score of a school leaver. North Ayrshire leavers are offered a wider set of opportunities to choose more qualifications at different SCQF levels - adding more points to the tariff portfolio of each young learner. Wider achievement is increasing in importance without diminishing the value of academic achievement. CP_42 Provided floor space of commercial/industrial space within our council portfolio (sq. ft) (Red) Performance is 394,684 against a target of 423,077. Fluctuations across the portfolio arise as a result of estate management actions, generally disposals to existing tenants securing their retention in the area and facilitating their business plans around location security and growth, which directly contributes to our Community Wealth Building approach. Specific projects also impact availability, for example, units within Bridgegate, Irvine are not currently being marketed while the long-term future of the area is under consideration. There has also been a re-baselining of available space following the transition of portfolio management from the Business Support and Development Service to Property Management and Investment. Available space will increase in the coming years as projects are delivered, for example at Kyle Road, Annickbank and i3. CP_02 % of council budget directed via participatory methods (Red) 1.27% of council budget has been directed via participatory methods compared to an ambitious 1.5% target. Assuming the Scottish Government / COSLA target remains at 1% for local authorities, this remains 0.3% ahead of the national target. The revised target is reflective of current progress and takes into account the current funding landscape while exceeding national expectations. The financial value of participatory budgeting is only part of the outcome as it can be difficult to attach a financial value to the vast benefits of involving our people in decision making processes and co-designing services alongside them. Participatory budgeting remains a key method of engaging our people with services. CP_07 % of school leavers entering positive destinations (LGBF) (Amber) At the end of the 2024 to 2025 academic session, 95.7% of the 1,396 school leavers identified by Skills Development Scotland for North Ayrshire have moved on to positive post-school destinations. As in previous years most school leavers (72.6%) continue into Further and Higher Education. This time, the percentage moving into Higher Education courses (37%) has exceeded those who moved into Further Education (35.5%) which has only occurred previously during the pandemic and two post-pandemic years. Within our LGBF family group we are currently 3rd below Inverclyde Council (96.4%) and Eilean Siar Council (96.1%). This places us 16th in the overall rankings and within the 2nd quartile. 84
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CP_40 Number of new build housing units reaching completion (all tenures) (actual not cumulative) (Amber) The number of new build housing units reaching completion was 431 against an annual target of 436. This is a variance of 1.1%. This indicator includes wider private sector development where our council has limited influence over the total number of completions achieved. The shortfall of five units reflects delays in completions across all tenures including within the SHIP programme. 3.1.1 Indicator Amendments and Recommendations CP_41 Number of empty homes brought back into use (actual) At Mid-Year 2025 to 2026, a Quarter Two figure of 78 empty homes brought back into use was reported resulting in an on-target (green) status at that point. Following further year end verification, a small number of cases were identified as having been closed prematurely and the Quarter Two figure has been revised to 74. While this amendment affected the position at Mid-Year, overall performance at Year End exceeded the annual target. Empty homes remain a key focus for the service, and additional resources have been secured to strengthen processes and reduce the likelihood of similar issues in future reporting. As a precaution, a review of previous years’ data was undertaken and no anomalies were identified. CP_31 % of total household waste that is recycled (calendar year as per SEPA) (LGBF) At Mid-Year, the Quarter Two status for percentage of total household waste that is recycled was 51.2% and was significantly adrift of target (red). However, further data checks have been undertaken and the Quarter Two figure has now been revised to 56% meaning the Quarter Two status is on target (green). The overall figure for 2025 to 2026 (2025 calendar year) is 52.9% against a target of 53% meaning that this indicator remains on target (green). All figures for 2025 to 2026 (2025 Calendar year) are still subject to verification by SEPA and will be confirmed in October. CP_29 Overall carbon emissions (tonnes) (Non-domestic Council estate) At Mid-Year, the Quarter Two overall carbon emissions (tonnes) (non-domestic council estate) was 3,313. This was a provisional figure and has since been confirmed as 3,030 by the service, which now has all available data to complete the calculation. Quarterly targets are intentionally not set for this indicator due to the dynamics of the data over short time periods, therefore the status remains unchanged as “data only” for the quarter. Annual targets are set and are unaffected by this amendment. CP_19 Proportion of operational buildings that are suitable for their current use (LGBF) The provisional figure for 2024 to 2025 was incorrectly reported as 95.4% rather than the correct figure of 95.2%. This has been updated within this report and the status is unaffected. 85
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3.2 Actions There are 47 actions within Our Council Plan, with one reported directly through the Health and Social Care Partnership (HSCP) and excluded from this report. Of the remaining 46 actions, 45 are on target (green) and one is slightly adrift of target as at Year End. Our Performance Management Strategy details how to determine whether an action is on target. This is being used within training to embed a structured approach to performance management across our council at strategic and operational levels. As described in 2.8 above, it is expected to fulfil the Annual Audit 2024 to 2025 recommendation relating to managing action progress effectively. 3.2.1 Actions Adrift of target CP10 Increase the number of homes in the area through a mix of private and social developments and bringing empty buildings back in to use (Amber) This action has been noted as amber due to the linked performance indicator ‘CP_40 Number of new build housing units reaching completion’ not meeting its target. As discussed above, the number of new build housing units reaching completion was 431 against an annual target of 436. This is a variance of 1.1%. This indicator includes wider private sector development where our council has limited influence over the total number of completions achieved. The shortfall of five units reflects delays in completions across all tenures including within the SHIP programme. 3.3 LGBF Analysis of April 2026 Data Release The data release shows 20 of our 33 priority indicators are in the top two quartiles, this includes areas such as ‘Proportion of pupils entering positive destinations’, ‘CO2 emissions area wide per capita’, and ‘Percentage of Unemployed People Assisted into work from Council Programmes’. Our short term (most recent one year comparison) is showing an improvement in 24 of our 33 priority indicators, with only seven demonstrating a decline in performance. Improved indicators include ‘Proportion of children meeting developmental milestones’ and ‘Percentage of income due from Council Tax received by the end of the year’. 3.4 Key Highlights 3.4.1 Wellbeing • During 2025 to 2026, our Money Matters team helped increase North Ayrshire residents’ income by more than £20 million. • Fairer Futures continued to develop through strong partnership with communities and the third sector, focusing on building trust, improving access to support, and embedding lived experience in service design and decision- making. 86
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• An independent report highlighted strong progress in Community Wealth Building through the regional Ayrshire Growth Deal project, supported by £3 million of Scottish Government funding with the programme assisting over 1,000 Ayrshire businesses and expanding opportunities to benefit from public sector investment. • The delivery of the 2024 to 2027 Community Wealth Building Strategy has continued, with progress monitored across all six Community Wealth Building pillars. • North Ayrshire has continued to play a national leadership role through facilitation of the Scotland-wide Community Wealth Building Practitioners Network, supporting the sharing of good practice and innovation across Scotland. • The Wellbeing Economy Dashboard continues to be developed and used to strengthen understanding of economic, social and environmental outcomes, supporting evidence-based decision making and performance monitoring. • Training and a new child-friendly complaints process were introduced to embed children’s rights in everyday practice, supporting implementation of the UNCRC in Scotland. • The Equal employability service has been further embedded through its move to Lochshore Park, enhancing support for people with health conditions and disabilities through improved facilities and opportunities. • Strong progress has been made in delivering new and affordable homes through an expanded housing investment programme, increasing targets and advancing key developments to meet local housing need. 431 homes have been completed during 2025 to 2026. • Efforts to reduce empty homes have been strengthened, with 432 properties brought back into use and continued support offered to owners to increase housing supply within communities. • Ongoing investment in existing council homes is improving safety, comfort and energy efficiency, helping to reduce costs for tenants while informing long-term housing and sustainability plans. • Tenant engagement and performance scrutiny remain strong, with high satisfaction levels and ongoing improvements informed by tenant feedback, inspections and targeted action plans through to 2028. 3.4.2 Communities and Local Democracy • In 2025 to 2026, 431 adults and 1,955 of our young people gained recognised national awards • Over the year, a total of 489 groups were supported to access external funding. • 1,179 volunteering opportunities were participated in during 2025 to 2026. • Over £600,000 was disbursed to local groups through Community Investment Funding. 87
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• Participatory Budgeting funding of over £204,000 attracted strong community interest, with 324 nominations received and a significant number progressing across youth, locality and community wealth building projects. • Proposals from the locality planning review are being implemented across all six localities following Cabinet approval in May. This will help strengthen participation in local democracy. • The Champions Board Conference brought together care-experienced young people to share their views, build connections and help shape future activity, strengthening the council’s commitment to keeping The Promise. • Over £800,000 of funding has been secured in partnership with the Scottish Government’s Islands Programme to support key projects on Arran, enhancing community facilities and infrastructure in line with national priorities. 3.4.3 Climate Change • The 7.560MW Nethermains Solar Farm has now moved into the Operation and Maintenance Phase following the works completion certificate being issued in January 2026. • The 5.344MW Shewalton Solar PV Farm was commissioned on 6 March 2026. An official opening is expected to take place in the coming months. • A tree planting exercise was completed in January with a total of 8,050 trees planted, over 65,000 to date, further supporting our Tree Planting and Nature Network strategies. • A gas pumping trial was successfully held on the Nethermains site throughout January - February 2026. The trials were successful with a decision pending on whether to proceed with the gas recovery works. • Phase Two of the CNI solar project is underway on Cumbrae, supporting 130 homes with renewable energy solutions to reduce carbon emissions and fuel poverty while delivering wider community benefits. • Through a sustained programme of targeted investment in initiatives such as Building Management Systems (BMS), LED lighting upgrades and a range of energy-efficiency improvements, underpinned by proactive monitoring of energy use, the council has transformed the performance of its property portfolio. These measures have delivered reductions in energy consumption, playing a significant role in lowering carbon emissions and advancing the council’s commitment to a more sustainable, low-carbon future. • The Area Based Scheme continues to progress, delivering energy efficiency improvements and expanding to new areas to help reduce fuel poverty and support low carbon heating. • The ECO4 Flex partnership has delivered over £1 million in external funding, supporting 48 households with energy efficiency improvements and low carbon heating measures. • Strong collaboration has supported local suppliers to secure contracts worth £32 million over the year, reinforcing the council’s commitment to sustaining the local economy and resilient supply chains. 88
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• Community engagement is supporting the development of Community Climate Action Plans, with mapping and digital tools helping residents shape local priorities and actions. • Nature-based improvements and biodiversity activity have been strengthened through partnership working, investment, and community-led projects, enhancing local environments and supporting conservation across North Ayrshire. • Investment in active travel infrastructure, supported by Levelling Up Fund funding, is improving walking and cycling routes, enhancing accessibility, and expanding sustainable travel opportunities across North Ayrshire. • Enhancements to public transport infrastructure have improved accessibility and reliability, including the installation of real-time information and upgraded bus stops and shelters. 3.4.4 A Sustainable Council • North Ayrshire Council’s scheduled Controller of Audit (Section 102) Best Value report was considered by the Accounts Commission in October and Council in December. The findings are extremely positive, highlighting a culture of continuous improvement, a proactive focus on addressing inequalities in our communities and stating the council is “an exemplar of how to do transformation well”. • Budget engagement activity generated strong community input, with over 1,100 responses helping to shape a £485 million budget, including investment in renewable energy and measures to reduce child poverty. • Significant external funding, including over £1.5 million from the Vacant and Derelict Land Fund, £376,535 for council-led projects and £397,000 for community groups through UKSPF, alongside £1.5 million for Pride in Place, is supporting regeneration and community development across North Ayrshire. • We have established the Ayrshire Collaborative to explore transformational working approaches and improve service delivery through the Public Sector Reform lens. • Progress continues on property rationalisation, with construction underway on a new Customer Service Centre and plans in place to consolidate services into Cunninghame House to support efficiency and regeneration. • Following the approval of the Generative AI Policy by Cabinet providing clear guidance for employees, a trial is underway to test additional functionality. 4 Target Setting 4.1 Target Amendment Proposals - Education A recommendation to amend the 2025 to 2026 targets was agreed by Cabinet in September 2025. Proposed amendments have been made following the publication of confirmed 2024 to 2025 school leaver attainment data released in February 2026. 89
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(The total tariff measure is based on a complex national calculation using leavers’ highest qualifications and attainment data, meaning an interim figure cannot be accurately calculated locally during the school year. As a result, only confirmed annual data which becomes available through the national release in February 2027 can be used to inform targets. Therefore, adjusting a target at March 2026 during the 2025 to 2026 academic year cannot be based on any internal information or data more recent than the 2024 to 2025 academic year.) The proposed targets for Education are as follows: PI Description 2025 to 2026 Academic Year Original Target 2025 to 2026 Academic Year Proposed Target CP_37 Average total tariff score of pupils living in SIMD 20% most deprived areas 720 690 CP_06 Average tariff score: All Leavers 910 880 CP_38 Average total tariff for care experienced Young People 470 480 4.2 Targets for 2027 to 2028 Targets for 2026 to 2027 were approved by Cabinet on 1 September and are included in Appendix 1. It is proposed that 2027 to 2028 targets only be changed where it is evident our operating environment has changed substantially since the targets were set during the creation of our Council Plan Performance Framework in 2023 (published in January 2024). As a result of this, it is proposed the following 2027 to 2028 targets are revised: Description Existing 2027/28 Target Proposed 2027/28 Target Expected Performance Trend Comments CP_36 Number of residents participating in community learning and development activity work: 20,600 23,500 This target will be re-evaluated once 2026 to 2027 results are known and any opportunities for additional funding which could increase delivery are confirmed. 90
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Description Existing 2027/28 Target Proposed 2027/28 Target Expected Performance Trend Comments CP_39b Number of unemployed people progressing into employment as a result of participation in council funded or operated activities 550 475 There is a challenging funding landscape for example the reduction in revenue resource as a result of the end of the Shared Prosperity Fund and transition to the Local Growth Fund on a regional basis. The amended target aims to continue the ambition of 2026/27, increasing employment across North Ayrshire. CP_10a % of procurement spent on local enterprises 27% 28% Moderate growth in the percentage is expected over the medium-term however the target is limited due to North Ayrshire having no tier 1 construction contractors. Running parallel to this measure is the actual local spend value which could be considered more important than the percentage. CP_28 Hectares of vacant and derelict land in North Ayrshire 1,000 830 The total hectares of vacant and derelict land is influenced by the development and management of land in private ownership as well as proposals for council owned sites that are subject to external funding. The external funding landscape is challenging due to reducing funding levels within programmes. The target of 830 is expected to be achieved by March 2028 which aligns with the delivery of the Local Regeneration Fund projects. CP_27 Street Cleanliness Index - % Clean 87% 89% - CP_20 Overall percentage of road network that should be considered for maintenance treatment 34.8% 32% Through targeted additional investment agreed as part of the council’s budget setting decisions over recent years, aligned to prioritised maintenance treatments, North Ayrshire’s road condition continues to improve. 91
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Description Existing 2027/28 Target Proposed 2027/28 Target Expected Performance Trend Comments CP_02 % of council budget directed via participatory methods 2.5% 1.3% Assuming the Scottish Government / COSLA target remains at 1% for local authorities, this remains 0.3% ahead of the national target. The revised target is reflective of current progress and takes into account reductions in capital programmes and external funding while still exceeding national expectations. CP_30 Total installed capacity of low carbon heat and electricity generation across our council’s estate 25,000 32,000 Based on a review of solar PV installation programmes, it is proposed the target is amended to 32,000kW. CP_31 Percentage of total household waste that is recycled (calendar year as per SEPA) 57% 53% Despite relatively strong performance compared to other local authorities, the proposed target is lower to reflect challenges relating to legislation and contamination levels. Actions have been taken to improve the separation of Waste Upholstered Domestic Seating (WUDS) from within our bulky waste collection service to help minimise the impact of the change in legislation. Contamination levels within the purple bin for glass, cans and plastics have contributed to a decline in performance. An increase in the type of wood being deposited at recycling centres that is only suitable for biomass recovery and not for recycling, is also impacting performance. 92
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Description Existing 2027/28 Target Proposed 2027/28 Target Expected Performance Trend Comments CP_47 Gross rent arrears (all tenants) as at 31 March each year as a percentage of rent due for the reporting year 4.5% 7% A change in the rent arrears calculation has resulted in the proposed target of 7%. Though most recent performance is 8% (2024 to 2025) additional staffing resources and the software being acquired for arrears management will help achieve this target during 2027 to 2028. 5 Proposals That the Audit and Scrutiny Committee: (a) Notes Year End Progress Report and Annual Performance Report. (b) Notes the status of the council’s performance indicators within the LGBF Analysis of April 2026 Data Release. (c) Notes the revisions to four Education 2025 to 2026 targets and the revision of 2027 to 2028 targets outlined in section 4 of this report. 6 Implications/Socio-economic Duty Financial 6.1 None. Human Resources 6.2 None. Legal 6.3 These reports demonstrate how we meet our statutory duty of Best Value through compliance with the Statutory Information Direction 2024. Equality/Socio-economic 6.4 None. Climate Change and Carbon 6.5 None. Key Priorities 6.6 The Council Plan Progress Report outlines how we will actively manage the delivery of Our Council Plan priorities. Community Wealth Building 6.7 None. 93
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Islands Communities Impact Assessment (ICIA) 6.8 None. United Nations Rights of the Child (UNCRC) 6.9 None. Consumer Duty 6.10 None. 7 Consultation 7.1 The Executive Leadership Team (ELT) and Cabinet have reviewed and scrutinised the report prior to consideration by the Audit and Scrutiny Committee. Aileen Craig Head of Service (Democratic) For further information please contact Isla Cruickshanks, Senior Manager (Policy, Performance and Democracy). Email IslaCruickshanks@north- ayrshire.gov.uk Background Papers - None. 94
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Our Council Plan Six Monthly Progress Report 1 October 2025 to 31 March 2026 Appendix 1 95
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Contents Our Performance at a Glance ................................................................................................. 1 Welcome ................................................................................................................................. 2 Wellbeing ....................................................................................................................... 4 Communities and Local Democracy ............................................................................. 15 Climate Change ............................................................................................................ 26 A Sustainable Council ................................................................................................... 36 Performance Summary ......................................................................................................... 54 Performance Indicators Adrift of Target ....................................................................... 54 Indicator Amendments and Recommendations .......................................................... 55 Actions Adrift of target ................................................................................................. 57 Performance Indicators ........................................................................................................ 58 Action Tracker ....................................................................................................................... 62 96
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 1 of 67 Our Performance at a Glance Residents’ income increased by more than £20 million through our Welfare Advice Services in 2025 to 2026 £800,000 shared in Arran between three projects – a youth centre, island hub and marine infrastructure £685,740 awarded to 14 community projects across North Ayrshire during 2025 to 2026 16,279 trees were planted during the financial year 2025 to 2026, exceeding our target 60 people attended our third annual Older People’s Voice Conference We are embedding Children’s Rights in our everyday decision- making, supporting the UNCRC Over 1,000 local businesses supported by our Community Wealth Building Programme We launched our 2026 to 2027 Budget Consultation and received 1,125 responses 53 Digital Learning Sessions delivered supporting 192 people Our Solar Farms are actively generating renewable electricity 1,500 pupils took part in climate change education during 2025 to 2026 Over 400 employees attended our A Great Place to Work event to learn more about workplace support 97
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 2 of 67 Welcome Welcome to our Year-End Progress Report on our Council Plan 2023 to 2028. This report covers the period 1 October 2025 to 31 March 2026. Our Council Plan is our contract with our residents and details how we are progressing our four priorities of Wellbeing, Communities and Local Democracy, Climate Change, and A Sustainable Council: Our Vision: A North Ayrshire that is fair for all Our Mission: Working together to improve the lives of our people in North Ayrshire Delivery of our Council Plan is progressing positively with 81% of our indicators where the status is known either on target or just slightly adrift of target, and 100% of our actions are on target or just slightly adrift of target. We regularly compare our performance to other local authorities with similar demographic traits through the Local Government Benchmarking Framework (LGBF) and include information on this within our Council Plan reporting. There are 33 LGBF indicators that link closely with our Council Plan priorities and 20 of these 33 indicators are in the top two quartiles. North Ayrshire Council’s scheduled Controller of Audit (Section 102) Best Value report was considered by the Accounts Commission in October, with the Commission’s findings considered by Council in December. This report is an overview of all recent Best Value audits and the findings are extremely positive, highlighting a culture of continuous improvement, a proactive focus on addressing inequalities in our communities and stating the council is “an exemplar of how to do transformation well”. 98
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 3 of 67 Through our extensive and accessible 2026 to 2027 budget consultation, over 1,200 responses from our residents and community groups were received and helped to shape priorities across schools, services for young people and wider council services, with targeted engagement ensuring the voices of our young people and those who are care-experienced were also heard. This feedback directly informed the setting of our budget (approved in February 2026) alongside Equality and Children’s Rights Impact Assessments. Since the launch of our new Money Smart Team in May 2025, we have helped increase North Ayrshire residents’ income by more than £20 million by giving debt advice in addition to supporting individuals and families with their finances, to ensure they are able to access and maximise benefits with services. A major milestone in our council’s journey to net zero was achieved with the successful delivery of council-owned solar farms at Nethermains and the former Shewalton landfill site. As the first projects of their kind to be owned and operated by a Scottish local authority, these fully energised sites are already generating renewable electricity while providing a long-term income stream for our council. Revenue from the solar farms will be reinvested to support local services, tackle fuel poverty and enable community-led renewable energy initiatives. During the year, Connected Communities continued to support groups to access funding and be involved in decision making. Local people decided where small grants participatory budgeting should be awarded, including specific grants of up to £2,000 for organisations with Community Wealth Building aspirations. To give context to the environment in which we deliver our services, some key measures are highlighted below: Together we will ensure a North Ayrshire that is fair for all. Population of North Ayrshire: 134,010 (2024) 18.0% of our children live in poverty after housing costs (2025) 28% of our households live in fuel poverty (2022 to 24) 68.1% of working age population is in employment (June 2025) 10.9% of people earn less than the living wage (2025) Area wide CO2 emissions are 540.1kt CO2E (July 2023) 99
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 4 of 67 Wellbeing To transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people. Key Activities Money Smart Our welfare rights and money advice service helped increase North Ayrshire residents’ income by more than £20 million over 2025 to 2026. Our Money Smart team helps individuals and families with their finances, offering debt advice whilst ensuring they are able to access and maximise benefits. This can involve: • Completing benefits checks and confirming entitlement. • Helping with claims for Universal Credit and other DWP and Social Security Scotland benefits. • Advice and support with debts including rent and Council Tax arrears. • Information on housing services. • Budgeting advice. Accessing Support Work is underway to modernise and simplify how residents access benefits, making support easier to navigate. This includes ensuring the ‘No Wrong Door’ approach is embedded across all services, making sure people get the right help, no matter how they reach us. Training and awareness sessions have been expanded to include colleagues in Education, schools and third sector organisations to support a more joined-up response. A review of progress is also underway to ensure the approach continues to be as effective as possible. Fairer Futures Fairer Futures has continued to develop, with communities and third sector partners helping to shape how services are designed and delivered. Activity remains focused on building trust, strengthening relationships and bringing services closer to people and our communities. This includes ongoing development of community connector roles and a Community Services Directory to improve access to support. The Child Poverty Strategy team led a workshop at the ‘Collaborating for Impact: Improving Outcomes for Children, Young People and Families Conference’, hosted by Children in Scotland in partnership with Glasgow City Council. The workshop, co- designed with Arran CVS, brought together public and third sector partners to ensure the ethical inclusion of lived experiences in policy and service design. Children and Families Plan Significant progress was made on the development of a shared Children and Families Plan bringing together three statutory duties (our Children’s Services Plan, Child Poverty Action Plan and UNCRC commitments) and other responsibilities. We have been actively working with third sector interface colleagues ensuring community voice and sector expertise are embedded throughout. In addition, a third sector engagement event was hosted at Saltcoats Town Hall in partnership with Children in Scotland. This enabled us to explore how to 100
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 5 of 67 evaluate progress so far and consider key strengths and opportunities to improve how our council works in meaningful partnership with the third sector. Together, these developments are strengthening collaboration, supporting a more co-ordinated, community informed and sustainable approach to reducing inequality and improving wellbeing. Family Enterprise Programme The new Family Enterprise Programme, developed in partnership with Ayrshire College and The Ayrshire Community Trust (TACT) and supported through the Child Poverty Early Intervention Fund was launched in March 2026. Ten parents participated in curriculum co-design sessions with Ayrshire College tutors, helping to shape a 12-week accredited programme due to begin in April 2026. This initiative will provide parents with accredited entrepreneurial training and access to small business start-up grants. By addressing barriers such as limited childcare flexibility and opening new economic opportunities, the programme aims to increase financial security and contribute to North Ayrshire’s growing wellbeing economy. Smart Data Foundry We have developed a new analytical indicator which measures the proportion of people whose income is made up of more than 40% benefits, excluding universal payments, to ensure a more reliable understanding of need. A specialist working group, including a representative from our Information Governance team, is preparing to link internal data sources to the Smart Data Foundry platform. This will provide a richer, more detailed picture of local circumstances and enable a more accurate targeting of support. Poverty Awareness Almost 300 employees have completed our council’s dedicated child poverty e- learning module earning their Child Poverty Informed digital badges, with many committing to participate in ongoing quarterly sessions. Face-to-face learning sessions have also been developed in partnership with the third sector and are being rolled out. Positive feedback has been received and this engagement with the training demonstrates a deepening organisational understanding of the challenges facing families and our aims to ensure North Ayrshire is fair for all. Collaboration for Health Equity in Scotland (CHES) Progress is being made across the three workstreams of Good Start, Good Jobs and Good Health, including system mapping, closer collaboration across services and partners, and exploring opportunities to test innovative new ways of working. A workshop at Ardrossan Civic Centre on 23 October 2025, brought together 48 representatives from across the public, private and third sectors. It focused on identifying local good practice in improving health equity, and what further action is needed to close the gap between policy intent and real-world impact. Engagement also took place with the Community Planning Partnership Board in March 2026 to share progress made in the local programme and seek further support from partners to further enable CHES support to reduce health inequalities in our communities. 101
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 6 of 67 Early Years Admission Policy Alterations to the Early Years (EY) admissions policy approved by Cabinet in October 2025, bring local practice in line with the wider Scottish approach where catchment areas do not apply. In North Ayrshire, parents can select up to three council-funded establishments. Applications will be assessed using a revised Priority Banding System which will come into effect from session 2026 to 2027. Skills Capacity Building We are continuing to build capacity in the leadership skills of middle and senior educational establishment staff. The Raising Attainment Team has continued to support leadership development across, EY, Primary and Secondary establishments. This has included regular training and development opportunities for EY Managers and Senior Leaders, alongside regular data clinics for EY and school middle and senior leaders supporting improved data literacy skills and the use of data in raising attainment and achievement, including sessions led by Head Teachers. EY, Primary and Secondary attainment discussions have continued to provide opportunities for peer support and challenge. Networks for Secondary Senior Leaders and Heads of Faculty (English and Maths) have also supported professional learning and development around shared priorities, literacy and numeracy. In addition, Service Improvement Groups, with participation across EY, Primary and Secondary sectors have enabled shared leadership opportunities in taking forward strategic priorities including curriculum development, the use of data and digital learning. The Promise We have successfully delivered the Promise Education Award through a pilot programme involving a targeted group of secondary schools. St Matthew's Academy and Irvine Royal Academy have achieved Levels 1 and 2 of the award, with Ardrossan Academy, Kilwinning Academy, Greenwood Academy and Auchenharvie Academy actively progressing through the programme. Building on the positive impact of the pilot, the next phase will focus on extending awareness, guidance and support across additional establishments and sectors to further embed The Promise and strengthen outcomes for care experienced learners. We are supporting care experienced learners through joint planning, improved guidance and the development of a new 102
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 7 of 67 Service Operating Procedure which will detail how to deliver the Education Service consistently and efficiently. During the last six months, progress has continued in strengthening support for care experienced learners through enhanced partnership working, improved governance arrangements and the development of more robust planning and reporting processes. Collaboration between the Education Service and Health and Social Care Partnership (HSCP) colleagues has continued alongside activity in the National Virtual Head Teacher network, supporting the development of guidance on cross-boundary information sharing and promoting greater consistency of practice. The Keeping the Promise Award programme (above) has continued to be embedded across participating secondary schools, while Champion Boards remain established in all secondary schools, ensuring that the views and experiences of care experienced young people continue to inform service development and improvement activity. Consideration of explicit approaches to involving care experienced young people in Service policy development has been built into the Service Plan. The Service Operating Procedure is in final draft and provides a consistent framework for supporting care experienced learners across the Education Service, building on the strengthened partnerships and systems established during this period. Winter Warmer Breakfast From 1 December 2025 to 30 January 2026, a free breakfast was offered to all North Ayrshire secondary school pupils on school days through the return of our Winter Warmer Breakfast Initiative. The aim of the initiative was to relieve some of the financial pressure on families at a time of year when this can be felt the most. United Nations Convention on Rights of a Child (UNCRC) In February 2026, the council rolled out training on Supporting Children’s Rights in our Work, alongside a new child friendly complaint handling process and principles. The aim is to embed children’s rights in everyday decision making and supports the UNCRC (Incorporation) (Scotland) Act 2024, placing children’s rights at the heart of policy and practice. Education Services Ayrshire Growth Deal Tool We have continued to raise awareness of our new tool which supports learners in career planning that is focused on the growth areas of the Ayrshire Grown Deal (AGD). This work supports a key priority within the Ayrshire Regional Skills Investment Plan 2022 - 2025. The tool supports delivery of the AGD through awareness-raising among children, young people and school staff; curriculum and pathways planning; and ultimately further study and employment opportunities for our young people of North Ayrshire. Community Wealth Building A new independent report has praised the strong progress being made through the AGD funded Community Wealth Building programme in Ayrshire, highlighting its growing and positive impact on local businesses, fair work and inclusive economic growth. The study carried out extensive research, assessing performance metrics, holding extensive discussions with 103
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 8 of 67 a range of stakeholders, surveying local enterprises and carried out a number of case studies with local firms who have been supported by the Community Wealth Building programme by analysing the four key pillars: • Procurement - increasing local spend by prioritising local suppliers and small businesses in public and institutional contracts. • Promoting local jobs and embedding fair work across Ayrshire. • Making better use of assets for community benefit. • Promoting inclusive ownership models. Supported by £3 million of Scottish Government funding, the programme has already supported over 1,000 Ayrshire business and increased opportunities to benefit from further public sector investment. Described as a ‘pioneering model’, the approach is helping to keep wealth within our communities, creating better jobs, strengthening local economy and creating a more resilient regional economy for the future. Employability Positive Pathways Our council is supporting Third Sector partner, The Ayrshire Community Trust (TACT), to deliver ‘Positive Pathways’, a new employability programme residents get closer to work. The 12-week initiative combines personal development, one to one coaching, E-learning and CV writing support as well as volunteering opportunities with local organisations. The programme begins with a two-week STEPS to Excellence course, delivered by qualified facilitators to build confidence, help people recognise their potential and support those who are long-term unemployed or facing redundancy to access training, employment or volunteering opportunities. On completion of the programme, participants are offered eight-week Scottish Credit and Qualifications Framework courses with Ayrshire College – an SCQF Level 4 Health and Wellbeing and SCQF Level 4 Elevate Employability Award. Volunteering placements can also be explored to gain practical, hands-on experience. Modern Apprenticeships On 24 February, we held a Modern Apprentice Recruitment Day at Ayrshire College in Kilwinning focussing on opportunities across our council services including Business Administration, Housing and Youth Work. The event was targeted at 16 to 19-year-olds either ready to leave school or looking at employment opportunities. 75 of our young people attended and 10 Modern Apprenticeship vacancies were filled. During Modern Apprenticeship week from 2 March, we celebrated the commitment and achievements of our learners working towards their Modern Apprenticeship qualifications as well as sharing details of new opportunities available across North Ayrshire. As part of the week’s activities, the Working North Ayrshire Team, in partnership with Developing the Young Workforce, hosted a “Your Next Move” Youth Recruitment Event at Ayrshire College’s Kilwinning Campus on 4 March. It attracted 250 attendees with 58 stallholders including employers sharing information. 104
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 9 of 67 Specialist Employability Support We have continued to embed the Equal employability service following the opening of its new location at Lochshore Park, Beith in September. The Equal programme supports people with long- term health conditions and disabilities into work and training as part of our council’s “Your Next Move, Working North Ayrshire” programme. Lochshore Park offers more space and provides outdoor opportunities and enhanced facilities in modern surroundings. Employability Awards Over 140 nominations were received for the third annual Employability Awards, delivered through the Next Move, Working North Ayrshire programme. The awards celebrate the achievements of trainees, volunteers and modern apprentices building skills, confidence and experience on their journey to progress to the world of work. Taking place during Careers Week, the event highlighted the range of career pathways and support available across North Ayrshire, marked by the introduction of a new ‘Career Pathway Excellence’ award. Trade Skills Programme A new trade skills programme launched to address local skills shortages in the construction industry while improving the confidence, experience and employment opportunities for our young people. The Future Trades Programme, delivered in partnership with Your Next Move, Working North Ayrshire programme, CEIS Ayrshire and supported by The Robertson Trust, offers hands-on training across a range of trades including bricklaying, plastering, plumbing, joinery and painting and decorating alongside industry recognised qualifications and tailored employability support. A total of 24 young people have successfully taken part and attained their Construction Skills Certification Scheme (CSCS) with many already progressing to interviews, work placements and job opportunities. Housing Strategic Housing Investment Plan (SHIP) In early 2026, we continued to make strong progress in delivering new homes and improving existing ones across North Ayrshire. Working alongside our Registered Social Landlord partners, we are delivering affordable housing through our council’s SHIP. The SHIP sets out priorities for housing investment over the next five years and explains how these will be delivered to meet local housing need. In October 2025, Cabinet approved proposals to expand the SHIP, increasing the overall target from 1,643 to 1,666 new homes. As part of this decision, the third phase of the St Michael’s development in Kilwinning was moved into the main programme. This phase will see 46 new homes built at the former school site, adding to the 119 homes already delivered during the first two phases. Two further council-led developments have also been added to the main SHIP programme for 2026 to 2031: • Redburn Grove, Irvine – 16 new homes as part of the redevelopment of the Gypsy/Traveller site. • Guthrie Road, Saltcoats – Seven new homes following the demolition of an existing block through the Estates Based Regeneration Programme. 105
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 10 of 67 Construction is already underway at several sites, including Ayrshire Central in Irvine, our council’s largest ever council house development; the former Garnock Academy site in Kilbirnie, and the former King’s Arms Hotel in Irvine. Sustainable Housing Investment Alongside new build programmes, we continue to invest in our existing council homes to ensure they remain safe, comfortable, and affordable to live in. Sustainability improvements such as external wall insulation and solar panels are being installed where appropriate, helping tenants reduce energy costs and address fuel poverty. We are also piloting a “whole house” retrofit approach, which will help shape future investment decisions and support our long-term energy efficiency targets. All investment decisions are informed by detailed property condition data and our 30-year Housing Revenue Account business plan, ensuring funding is targeted where it is most needed. Empty Homes Reducing the number of empty homes remains a priority. As at 31st March, 432 empty properties were brought back into use, increasing the supply of homes within local communities. Our Housing teams continue to work closely with private owners, offering advice and support to help return vacant properties to use. Where appropriate, owners of former housing association homes are also supported to explore buy-back options. Tenant Participation The North Ayrshire Network, our tenant-led customer group, helps to challenge performance and support continuous improvement to ensure our tenants play a role in shaping how housing services are delivered. The group was involved in reviewing key regulatory submissions, including the Annual Return on the Charter and Annual Assurance Statement, before these were submitted to the Scottish Housing Regulator. The Tenant Inspection Panel continues to review one area of service each year, focusing on improvements that matter most to tenants. Findings from the latest Tenant Satisfaction Survey (TSS), completed in February 2025 with 1,490 tenants (40.4%), are helping to shape future service improvements. Overall satisfaction with North Ayrshire Council’s Housing Service remains high at 91.8%, with positive movement across most areas, indicating improved perceptions of the service. Compared with the previous survey, satisfaction has increased in key areas including overall service, neighbourhood management, value for money, quality of homes and repairs, while ratings for keeping tenants informed remain strong. Although satisfaction with opportunities to participate in decision-making has dipped slightly, it remains above the sector average. The survey also highlighted areas for improvement, particularly around making homes easier to heat, strengthening tenant involvement, and improving awareness of available support. Action plans are in place to address these issues, with delivery planned between 2025 and 2028. Housing Regeneration Funding We continue to actively seek external funding to support housing delivery and regeneration. During 2025 to 2026, we worked with the Scottish 106
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 11 of 67 Government and Trust Housing Association to secure funding to support housing for key workers on Arran. The council has been successful in securing £1.838m from North Ayrshire Ventures Trust and a further £1.169m from the Scottish Government’s Regeneration Capital Grant Fund towards the over £13m investment required to regenerate Bourtreehill Village Centre in Irvine. The grant funding will be utilised to develop three new retail units in the area, retaining existing retail tenants. This will allow the ageing existing retail and residential accommodation to be replaced with 35 new homes on the site. The existing retail provision has a number of low demand vacant units which have remained empty for some time. Local Housing Strategy Good progress has been made across our four overarching outcomes set out in our Local Housing Strategy: More Homes at the Heart of Great Places - Since April 2014, 975 homes have been completed, including recent developments at Fitzsimmons Wynd, Ardrossan, St Mary’s Gardens, Largs, and Longacre Place, Stanecastle, Irvine which were developed throughout 2024 to 2025 and 2025 to 2026. Major projects are underway, including Ayrshire Central in Irvine, which will deliver over 200 new homes, and the former Garnock Academy site in Kilbirnie, which will provide 50 new council homes. We also continue to work closely with private developers. Since April 2023, this partnership approach has supported the delivery of 528 new private sector homes. Development is now underway at all five sites allocated through Local Development Plan 2, which together will deliver over 1,000 private homes, alongside other active sites such as Montgomerie Park, Irvine, and West Byrehill, Kilwinning. Affordability and Choice - Strong progress has been made in improving affordability and housing choice. This includes establishing the Arran Housing Task Force to better understand local demand, delivering 123 Housing First tenancies through the Rapid Rehousing Transition Plan (considerably ahead of target), and expanding the council buy-back scheme to increase the supply of affordable homes. Affordable Warmth and Zero Emissions - Significant steps are being taken to support the council’s ambition to reach net zero carbon emissions by 2030. New homes are being built with air source heat pumps, improved insulation, and solar panels. The Area Based Scheme supports private households by installing energy-efficient and low-carbon measures in hard-to-treat areas. In addition, Energy Smart emergency support payments have been provided to residents at risk of fuel debt. Improving the Quality of Our Homes - The Estate-Based Regeneration Programme continues to improve neighbourhoods by addressing low demand housing, antisocial behaviour, and environmental issues. Improvements include better parking, paths, fencing, landscaping, and communal spaces. Through the Sheltered Housing Reprovisioning Programme, refurbishment has recently been completed at Barnett Court, Saltcoats, and Cheviot Court, Irvine. Further works are planned to start next year at Vineburgh Court, Irvine, and Laigh Court, Beith. 107
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 12 of 67 Next Steps All next steps noted within the Mid-Year Progress report are progressing as expected and included in the narrative above. Next Steps to be achieved by September 2026 or as noted include: • We will progress detailed planning for access and benefit services in April 2026, prioritising improvements to the housing benefit and council tax reduction application process. • We will use Smart Data Foundry insights to routinely inform service targeting, resource allocation and early intervention. • We will work with partners to identify new opportunities through the Child Poverty and Early Intervention Fund. • We will roll out face-to-face child poverty learning sessions more widely and embed learning into induction and ongoing development. • We will build on Fairer Futures by regularly involving parents and young people in shaping services. • We will monitor and evaluate the Family Enterprise Programme. • We will continue to simplify routes into financial, employability and wellbeing support through the ‘No Wrong Door’ approach and community connectors. • We will look to extend our Welfare Rights Officer posts, recognising the positive impact of this work on local families. • We will finalise our joint Children and Families Plan 2026 to 2029, bringing together for the first time our formal planning across children’s services, child poverty and children’s rights by September 2026. • We will use CHES and Community Planning Partnership structures to better connect child poverty work with health, housing and education priorities. • We will help to shape national reports summarising the impacts of CHES to date and making recommendations to relevant bodies to further accelerate progress. • We will develop a small set of shared outcome measures to show how combined actions are reducing financial pressure and improving wellbeing for children and families. • We will develop a new Education Improvement Plan 2026-29, focusing on key priorities as identified with school staff, children and young people, and other partners by September 2026. 108
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 13 of 67 Case Study - Dirrans Centre, Kilwinning The Dirrans Centre in Kilwinning, run by the North Ayrshire Health and Social Care Partnership, provides specialist rehabilitation and reablement support for adults with physical disabilities, brain injuries, and neurological and long-term conditions. Originally established in 1996 as a head injury unit, the centre has evolved to meet wider and more complex needs, supporting people at different stages of recovery to rebuild independence, confidence and quality of life. Many people supported by the centre face significant physical, emotional and social barriers following illness or injury. Without tailored, compassionate rehabilitation, individuals can experience isolation, declining mental wellbeing and reduced independence, placing additional pressure on families and wider public services. The Dirrans Centre takes a person-centred, strengths-based approach to rehabilitation. Staff work closely with individuals to support physical recovery, rebuild confidence and promote independence, while also recognising the importance of emotional wellbeing and social connection. Services are delivered in partnership with our council and wider health and social care services, ensuring coordinated and holistic support. A key strength of the centre is its focus on relationships. Service users consistently describe the staff and fellow participants as a “soul family”, highlighting the importance of trust, empathy and belonging in the recovery journey. Feedback from service users demonstrates positive outcomes, watch how the programme is making a difference by clicking on the image on the right: Individuals report significant improvements in both physical and mental health, increased independence and renewed purpose. For some, the support received has been described as transformative, with several people stating it has changed – or even saved – their life. Beyond individual outcomes, the centre plays an important role in supporting North Ayrshire’s ambition to build a wellbeing economy. By helping people regain independence and confidence, the service contributes to healthier communities, reduced reliance on long-term care and better life chances for residents. 109
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 14 of 67 Case Study – Family Centred Wellbeing Service The North Ayrshire Family Centred Wellbeing Service is helping families access the right support placing wellbeing, relationships and early intervention at the heart of its approach. Working closely with schools, health services, communities and third sector partners, the Service provides coordinated support tailored to the needs of children, young people and their families. By taking a whole-family approach, the services aims to reduce barriers, improve wellbeing and help families build confidence, resilience and stronger connections within their communities Support ranges from emotional wellbeing and practical advice to help with financial pressures, school attendance and family relationships. Crucially, families are supported in a way that works or them, ensuring services are accessible, compassionate and focused on long term positive outcomes. Partnership working is central to the success of the service. Staff across agencies work together to identify concerns early and provide joined up support before challenges escalate. This collaborative model is helping families feel listened to, supported and better connected to the services available in their local area. The impact is already being seen across North Ayrshire with families reporting improved wellbeing, greater confidence and stronger engagement with education and community support. By focusing on prevention and early help, the Family Centred Wellbeing Service is helping create more positive futures for children, young people and families. To learn more about the Family Centred Wellbeing Service and the support available for children, young people and families, visit the service website: North Ayrshire Family Centred Wellbeing Service. 110
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 15 of 67 Communities and Local Democracy We will have active, inclusive and resilient communities. Key Activities Nationally Recognised Awards During 2025 to 2026, 431 adults and 1,955 young people gained recognised national awards and accredited qualifications. Achievement routes included Duke of Edinburgh Awards, Discovery Awards, Personal Development Awards in Youth Work, Youth Achievement Awards, employability programmes and a range of accredited learning opportunities delivered through schools, community settings and third sector partnerships. A significant contributor to this achievement was the Duke of Edinburgh's Award programme, which engaged 1,019 young people during the year. During January 2026 to March 2026 alone, 108 awards were achieved and more than 600 young people, families and volunteers attended the annual presentation event to celebrate success. The year's achievements were supported by strong progression pathways. Four Youth Work Modern Apprentices progressed into positive destinations, while Discovery Award participants achieved North Ayrshire's first Gold Award alongside Silver and Bronze Awards. These achievements helped participants build confidence, leadership skills and employability, while supporting positive destinations and lifelong participation in learning. Community Capacity Building 489 community groups and organisations were supported to access external funding during the year, helping attract investment into North Ayrshire communities and strengthening community wealth building. Support included funding advice, governance development, business planning, Community Benefit opportunities, Community Asset Transfer support and direct assistance with funding applications. Community organisations accessed investment from programmes including the Community Investment Fund, National Lottery, Creative Scotland, Community Benefits, North Ayrshire Ventures (NAVT) and Community Renewable Energy Generation Fund (CREGF). During January to March 2026: • £92,214 was invested in community assets and capacity, including: o £17,865 for Three Towns Growers Community Hub o £20,000 for Ardrossan Outdoor Bowling Club o £50,428 for Saltcoats Victoria Football Club • £60,000 secured through child poverty partnership activity • £19,950 National Lottery investment supporting older people in Girdle Toll • £100,000 award supporting the Fairer Food Network Alongside direct funding, Community Benefits activity generated additional resources for local groups, including IT equipment, sports kits, match funding, safety equipment, 111
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 16 of 67 white goods and financial donations. This support enabled community organisations to improve facilities, expand services, employ staff, develop community assets and deliver locally identified priorities, helping to ensure more wealth and investment remains within North Ayrshire communities. Volunteering and Leadership 1,179 volunteering opportunities were participated in this year, demonstrating the significant contribution volunteers make to community wellbeing, leadership, environmental action, sport and active citizenship across North Ayrshire. Opportunities were created through youth work programmes, community organisations, Discovery Awards, climate action projects, Duke of Edinburgh Awards, community events, Community Sports Hubs and Active Schools programmes. Managed volunteers also supported delivery in English for Speakers of Other Languages (ESOL), Core Skills and youth activities. Young people played a particularly important role in volunteering activity. Duke of Edinburgh participants completed volunteering placements across their communities, while youth forums, Champions Boards, Young Ambassadors and Sports Academy pupils contributed to community action, local democracy and peer leadership. During 2025 to 2026, 97% of all Active Schools activity was delivered by volunteers. A total of 141 Sports Academy pupils volunteered within school and community sport programmes, 134 Young Ambassadors undertook leadership activity, and 394 new Move and Improve Leaders trained across 19 schools in January to March 2026. Active Schools also delivered 28 events involving 1,724 young people, supported predominantly by volunteers, while also engaging 5,346 primary pupils, 2,319 secondary pupils and 44 ASN pupils in extracurricular activity. Funding £204,159 was available for community groups to apply for via Participatory Budgeting. The total was shared between the following areas: • £124,351 to support locality project applications up to £1,000. • £30,000 to support Community Wealth Building applications up to £2,000. • £48,808 to support youth project applications up to £1,000. Our Connected Communities Service received 324 nominations from community groups and organisations for consideration. From these, 78 youth projects, 158 locality projects and 27 Community Wealth Building Fund projects were identified as meeting the necessary criteria. The full results can be found here. Links to Community Wealth Building continue to be demonstrated through the Community Investment Fund (CIF) and other grants administered to our communities, in addition to ongoing work around strengthening the role of locality networks and development of locality 'Place Insights'. The delivery of the Test It! Programme allows us to share skills across partners and support enterprising activity within the third sector. 112
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 17 of 67 One locality has now fully utilised its allocation of CIF and we are working with them to understand the learning which can be shared with others who are nearing the end of their allocations to ensure a smooth transition. We are also continuing to identify any external funding opportunities which can help to support locality priorities. ‘Elect Her’ Workshop In November our council ran the ‘Elect Her’ workshop providing an opportunity for women in North Ayrshire to get involved in local democracy. The event was targeted at those looking to make a change in their communities and/or who wished to put themselves forward as a councillor. Held in the Chambers, seven people attended, enabling informal yet detailed discussions about the role of a councillor with Elected Members. Following the success of this workshop, our council held another in February for anyone interested in becoming a councillor within North Ayrshire. The workshop aimed to increase participation in local democracy while educating and inspiring potential candidates for local government. A total of 13 people participated in the event, all sharing a passion for their community and taking the opportunity to learn from some of our councillors in elected office. Care Experienced Champions Board Conference Care-experienced young people from secondary schools across North Ayrshire came together on Wednesday 26 November 2025 for their first ever Champions Board Conference at Saltcoats Town Hall. Following a similar format to the Joint Cabinet, the conference gave our young people the chance to explore what The Promise means in practice, meet and collaborate with peers, share their views, and begin shaping their summer programme for 2026. The Champions Board Conference marks an important step in ensuring our council continues to take meaningful and practical action to help North Ayrshire keep The Promise. Youth Participation Strategy On 27 January, an event was held at Saltcoats Town Hall to reflect on and learn from our Youth Participation Strategy. A new strategy is being developed and it was our aim to bring those who work with our young people including community partners, senior managers, Education and Connected Communities teams together to discuss requirements, developments and challenges in this area. Older People’s Voice Conference Our third annual Older People’s Voice Conference saw 60 residents take part on 6 March at Redburn Community Centre. The community event was planned and hosted by our Council’s Community Learning and Development team in partnership with older people across the six localities. The conference is a key component of our Older People’s Voice Participation Strategy to ensure our older residents real life experience informs policy planning. Attendees enjoyed an afternoon tea provided by Friends of Redburn and discussed what has worked well over the past year. Our council’s WhatsApp channel was highlighted as improving communication. It is being used to share key service updates and emergency 113
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 18 of 67 communications to residents who may not be on social media but are confident using WhatsApp messenger. Other themes discussed at the annual meeting included: • Ensuring older people’s voices are heard, actioned and respected. • Helping to shape the work of our council. • Addressing inequalities. • Achievement through intergenerational learning. • Community participation. • Information on elderly grants. • Health and wellbeing (Including green health) in localities. Local groups attended from localities across North Ayrshire, and these included: Irvine Seniors’ Forum, Three Towns Discovery Group, Age Well in West Kilbride, Kilwinning Vintage Voices and Watt Gardens Residents’ Group in Dalry. Community Investment Fund During the 2025 to 2026 financial year, a total of £685,740 was awarded to community projects across North Ayrshire through the Community Investment Fund. Overall, 14 projects received funding across the localities. Some of these are: • Beith Trust in Garnock Valley – funding was awarded to upgrade the Beith Astro 3G pitch to ensure its continued safe use as a key multi-purpose community facility. • Impacts Arts in Irvine – for their Community Canvas project to deliver co-designed murals that provide volunteering, skills development and employment opportunities while promoting wellbeing and reducing inequalities. • PRYDE in Kilwinning – for the employment of a Community Development Manager, part-time community engagement staff and associated building overheads, enabling the delivery of a continued and expanded programme of activities within the hub. • Cycling without Age in Largs - to purchase a second trishaw. This will be used alongside their existing trishaw on the promenade, allowing their volunteer “pilots” to take more people on trips. • Craufurd Simson Park in North Coast- a community-driven initiative to develop a safe and inclusive playground for local residents. Group were awarded 50% of the total project costs and are 114
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 19 of 67 seeking match funding for the remaining 50%. • Saltcoats Victoria Football Club - to support Phase 1 of a planned upgrade of the facilities at Campbell Park. This includes a changing room upgrade involving new modular units which include changing for two teams, modern showering facilities and an officials’ changing room. Third Sector Co-design with third sector partners and community members remains central. Partnerships are translating shared priorities into early delivery and investment, with stronger alignment between prevention, community wellbeing, employability and social enterprise activity. Money Max, a family-centred support team focused on putting people’s needs first by offering practical guidance, advocacy and support tailored to individual circumstances, was achieved through partnership. Our work with the Third Sector Chief Officers group led to its co-design and funding through the Child Poverty and Early Intervention Fund. This pilot service brings together TACT, CHAP, Beith Trust, 1st Alliance Community Bank and Right Options to deliver a coordinated support across all of their organisations. The service can help with: • Reducing debt and improving financial wellbeing. • Benefit applications, banking options and savings schemes. • Building confidence, skills and opportunities. • Connecting people with the right support services. • Providing a safe, non-judgemental space for guidance and development. Money Max has entered the delivery stage with staff in post and joint programme design underway. Test It! is a new social enterprise development programme designed and delivered in partnership with North Ayrshire’s Third Sector for North Ayrshire’s Third Sector. Building on research undertaken by the Third Sector Chief Officers Group, the programme is working with a small cohort of aspiring community and voluntary organisations to build skills, confidence and understanding of social enterprise within a peer support framework. Mentoring and workshop sessions are provided by Beith Trust and Right Options, centring learning on real experience of building a successful, locally owned social enterprise. The five successful organisations will receive start up grants of between £3,000 and £9,500 to launch their idea, in addition to 1:2:1 coaching for organisations with the potential to develop an early stage idea further. Workshop delivery begins in April 2026 and the first cohort will test their ideas over the remainder of the year. Islands Island Plans The new five-year National Islands Plan was launched on 24 February and is supported by a £5.75 million package of investment for island communities to create jobs, strengthen local economies, improve infrastructure, enhance community resilience and support the transition to net zero. The overarching purpose of the Local 115
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 20 of 67 Island Plans is to drive sustainable economic development, build resilience, support population attraction and retention and advance our Council Plan priorities and overall vision of a North Ayrshire that is fair for all. In response to the publication of the National Islands Plan 2026 to 2031 and building on the effective and substantial work to date, it is proposed that the North Ayrshire Islands Programme progresses work with island stakeholders, Elected Members and across council teams to co- develop refreshed and refined Local Island Plans. These will be aligned with our Council Plan, Community Wealth Building Strategy, the new National Islands Plan, the Ayrshire and Highlands and Islands Regional Economic Strategies and other relevant policies, strategies and plans. Consideration will be given to developing island investment plans that can be used as a framework to maximise funding on the islands. It is intended they will identify strategic island and priority capital and revenue projects seeking external funding, ensuring there is a co-produced and co-defined project pipeline to maximise investment opportunities for the islands. Island Investment In partnership with the Scottish Government’s Islands Programme, over £800,000 is being shared over the following three projects on Arran: • £382,399 is going towards building a new youth centre in Lamlash (Arran Youth Foundations Youth Centre). • £323,925 will be used to upgrade the Brodick Hall Island Hub. • £129,718 will help extend marine infrastructure at Lochranza. The programme backs the advancement or establishment of projects that will help local communities deliver the National Islands Plan’s Strategic Objectives. Community Planning Our Community Planning team continues to lead and support CPP and Locality Partnership meetings, both online and face-to-face. They are facilitating the rollout of the Locality Planning Review recommendations, working closely with the Scottish Government and other national partners on key developing policy areas, and leading a council-wide review of community grants. A Locality Communications working group has been established to explore how social media can be used more effectively to promote the work of the CPP. This includes highlighting Locality Partnerships (LP’s), publicising community events, sharing success stories, supporting engagement activities and promoting available funding opportunities. Our CPP is maintaining close collaboration with our council’s Spatial Planning team on the development of guidance for Local Place Plans and the update of Locality Profiles. To ensure sufficient time for this work to progress and for resulting actions to be embedded, the refresh of Locality Plans has been rescheduled to 2026. Arts and Cultural Team We have delivered a Place Partnership with Creative Scotland which facilitated new projects and initiatives in North Ayrshire including two Artist Residency Projects. The Harbour Arts Centre works actively to support local artists and 116
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 21 of 67 community organisation in the delivery of art and cultural based events and activities to the local communities. English for Speakers of Other Languages (ESOL) People from all over the world are improving their language skills through our Big Class sessions. Participants are allocated a group based on their English level to join with other learners. The programme is supported by our council's ESOL team, which includes Community ESOL tutors and volunteer tutors, through the Connected Communities service. Ruslana, from Ukraine, attends the sessions and said: “I like this class because it has helped me to overcome the barriers in communication with English-speaking people.” “The lessons give me confidence in speaking and have helped me to gradually learn new words. I am starting to understand English better by ear, and I feel more comfortable in everyday situations. Valentina, also from Ukraine, didn’t study English at school or university and said the class has been great for developing her language abilities due to the constant support from our council’s tutors. “My English is getting better and better, and I would recommend the Big Class to other people”. 117
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 22 of 67 Next Steps All next steps noted within the Mid-Year Progress report are progressing as expected and included in the narrative above or listed below: We will update the CIF guidance which is provided to applicants and strengthen the checklist which assists Locality Officers with decision making: Guidance has been drafted and will be shared with Locality Partnerships following the Scottish Parliamentary Election. We will continue work with partners across our council, TSI and KA Leisure to understand how we can better attract, support, recognise and retain volunteers locally and improve the overall volunteer experience: We continue to work closely with partners across our council, the TSI and KA Leisure to share information and publicise opportunities in ways which make it easier for individuals to find volunteering opportunities and organisations to recruit volunteers. --- Next Steps to be achieved by the end of September 2026 unless otherwise stated: • We will progress the next phase of our Locality Planning 2.0 programme, looking to strengthen our locality networks. • We will further develop the pipeline of Community Asset Transfer projects to increase the number of assets in community ownership. • We will work with KA Leisure to develop the next phase of delivery of the Wellbeing Alliance. • Our Community Planning Partnership will hold two training sessions in 2026 (August and December). Invitations will be extended to all partners, internal colleagues and Locality Partnership members. • Locality Plan priority engagement is ongoing with Plans due to be considered by Locality Partnerships in the autumn. • The Participation Strategy will be refreshed, supported by the upcoming work with Scottish Community Development Centre (SCDC) to build staff and partner skills in engagement and consultation by March 2027. • We will launch engagement on proposals for a Community Transport initiative. • We will refresh and relaunch the Community Engagement Network following our shared visioning with partners. • We will progress work with island stakeholders, Elected Members and across council teams to co-develop refreshed and refined Local Island Plans. 118
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 23 of 67 Case Study – She Shed – Dalry The She Shed was opened in August 2023 and aimed to provide a supportive space for all women in the community to gather, share and create. In 2025, to accommodate the increasing number of attendees, the group moved to the Dalry Scout Hall. With continued support from locality staff they have been able to form a committee and become a constituted group with guidance and training offered on a regular basis. This has allowed them to apply for further participatory budgeting funding as well as from the Dalry Parish boundary trust to allow them to pay rent, plan activities and purchase resources to acknowledge the variety of interests of attendees. The She Shed has developed into a weekly hub for women from across the Garnock Valley who are welcoming and supportive of each other. They have hosted open days, attended events to promote the project and welcomed other partners to celebrate occasions with them such as Christmas and Burns Day. The She Shed has worked well because there has been a positive impact on the lives of the people who attend. The women who attend report that they have benefited from attending the weekly sessions and found an improvement in their wellbeing. This has been achieved through the commitment of the volunteers from the She Shed and other local partners and their positive outlook towards partnership working. By collectively sharing information and access to resources they have been able to develop a community space that promotes the values and ethos of CLD, a safe and inclusive space for women to come together. At the core of the work being delivered is women’s welfare regardless of their race, class, sexuality and age. Their health and wellbeing is always considered and at the forefront when devising activities and providing information. The She Shed has made a difference in the lives of women attending the group by reducing social isolation and giving them a space to connect with others and learn new skills. As a result of the She Shed, one member in particular has developed confidence to leave the house on a regular basis and speak to other people. Another woman now has a day where she has respite from her caring responsibilities. By attending the Shed she has the space to take time for herself and relax and recharge. These are just two examples of many where women’s confidence, health and wellbeing are being improved through community engagement. 119
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 24 of 67 Case Study – Community Conversations – Irvine The purpose of the Community Conversations across the Irvine locality was to engage residents, community groups and partners in meaningful dialogue to shape action around four key local priorities: 1. Supporting Skills and Work Opportunities 2. Enhancing Mental Health and Wellbeing 3. Alleviating Poverty 4. Championing Green Health and the Natural Environment The conversations were structured around the following themes: Poverty; Employability and Skills; Mental Health and Wellbeing; and Green Health and Open Spaces. In total 454 participants attended Community Conversations between January and March 2026. The findings will be used to create a new, inclusive and representative Irvine Locality 2026 to 2027 Action Plan. Engagement sessions included: • Redburn Community Lunch hosted 84 residents to share food, ideas and conversations about what matters most in their community. • Fullarton ConneXions welcomed 55 residents to Café Solace community meal provision, including four Alcohol and Drugs Partnership community groups alongside volunteers from Recovery Café in Irvine. • Volunteer Rooms facilitated 39 participants from a range of community groups, organisations, colleagues and CPP partners. • In total 149 of our children and young people took part in youth friendly conversations across our primary schools and youth groups. The conversations were aimed to create accessible spaces for people to share lived experiences, highlight barriers, and contribute project ideas that would directly inform locality planning and future community development work. By gathering diverse voices from across Irvine, the programme sought to ensure that community-led insight guided decision-making and supported more inclusive, place-based approaches. The Community Conversations worked well because the approach was designed to be genuinely accessible, inclusive and rooted in the needs of our local people. Holding sessions in familiar community spaces helped reduce barriers to participation and encouraged residents to engage more openly. The informal, conversational style created a relaxed atmosphere where people felt comfortable sharing their views and experiences. Strong partnership working also contributed significantly to the success of the activity. Local partners (Independent and third sector partners, Health and Social Care Partnership, Police Scotland, Scottish Fire and Rescue, NHS Ayrshire and Arran and Ayrshire College) helped promote the sessions, brought additional knowledge of community dynamics, and supported facilitation - helping to build trust and widen participation. Their involvement ensured the activity felt collaborative rather than service-led. A key factor in the success of the activity was the use of the online platform Consul to collate and present the information gathered. Consul provided an accessible digital space where community 120
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 25 of 67 members could review emerging themes, contribute additional comments, and stay informed about the process at a time and place that suited them. This blended approach - combining in-person conversations with an online engagement tool - helped widen participation, especially for individuals who could not attend sessions in person. As a result of these conversations several key areas of focus were identified: Mental health and reducing poverty The barrier of transport Poverty pressures Community spaces as lifelines Supporting young people Mental health, trauma and recovery Practical skills Green spaces matter These sessions were received positively: “A meaningful opportunity to have my voice heard.” “Good chance to share our views with other like-minded partners.” “Optimistic for the future to drive positive changes.” The next stages in the creation of the Irvine Locality Action Plan will involve defining timelines, partners and expected outcomes, identifying pilots for quick implementation, and establishing regular community voice forums. We will ensure lived experience is embedded in every stage. 121
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 26 of 67 Climate Change To achieve net-zero by 2030. Key Activities Sustainable Energy Solar Farms Both council solar photovoltaics (PV) developments at Nethermains and the former Shewalton landfill site are fully energised and generating renewable electricity. The solar farms are pioneering and the first to be owned and operated by a Scottish local authority. The sites are key to delivering our council's Sustainable North Ayrshire Strategy and will earn income for our council to help sustain local services by selling the electricity generated. Some of the income from the solar farm will be used to help with community projects, addressing fuel poverty and encouraging renewable energy projects at a local level. Community Energy Generation Work is ongoing to identify further low-carbon energy opportunities, including potential community ownership models and collaboration with local industry to make use of excess heat. The Community Renewable Energy Generation Fund continues to be promoted, with nine community groups supported since February 2024. 2030 Woodland: A Tree Planting Strategy Delivery of North Ayrshire’s 2030 Woodland: A Tree Planting Strategy remains a priority, with continued support offered to community groups and ongoing identification of suitable planting sites. Since 2022 to 2023, 65,305 trees have been planted across North Ayrshire through a combination of council-led projects and community-led initiatives. This exceeds the 2025 to 2026 milestone target of 60,000 trees by 31 March 2026 and places the programme firmly on schedule to achieve the overall ambition of 108,000 trees by 2030. A significant milestone was reached in February 2026 with the completion of 7,000 trees planted at Annick Valley Park in Irvine and in March, a new tree-planting project commenced at Milgarholm Park, delivered in partnership with local social enterprise Eadah Enterprises and environmental charity Woodland Wakeup. The project will see 1,600 trees planted and includes strong community involvement alongside an on-site educational programme delivered by Woodland Wakeup, helping to connect local people with the environmental benefits of woodland creation. North Ayrshire 2030 Woodland Grant Fund The 2030 Woodland Grant Fund 2025 to 2026 was launched in October 2025 to support not-for-profit community groups and local organisations across North Ayrshire. The £25,000 fund was widely promoted through multiple communication channels and closed for applications on 31 January 2026. Two applications were received, one has been approved to support a small-scale 122
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 27 of 67 tree-planting project within a primary school, while assessment of the second application is ongoing. Community Participation We continue to strengthen community participation in climate governance through a series of community climate conversations held across our localities. In addition, the Climate Change Steering Group maintains active engagement with internal teams, external stakeholders, and partners to support informed decision-making on our journey to net zero. Area Based Scheme (ABS) The ABS continues to make positive progress, with resident engagement and energy efficiency installations underway on Cumbrae, Arran and at St Winnings in Kilwinning. Measures installed to date include air source heat pumps, high heat-retention storage heaters and solar photovoltaic (PV) systems, supporting households experiencing fuel poverty. Engagement has also commenced with homeowners living in properties in Beith and Kilbirnie. These homes have been identified as more difficult to treat, and where feasible the scheme will provide external wall insulation alongside solar PV installations. In addition, for 2025 to 2026, the Scottish Government confirmed the expansion of the scheme to additional locations, enabling further investment in electric heating upgrades, cavity wall insulation and solar PV. The newly approved areas include Kilbirnie, Beith, Irvine, Largs, Saltcoats and Stevenston, with early engagement in these communities receiving a positive response. ECO4 Flexibility (ECO4 Flex) Our partnership with our ECO4 Flex-approved contractor has continued to deliver improvements to homes across North Ayrshire since May 2023. They have installed more than 167 energy-efficiency and heating measures in 48 households experiencing low income or vulnerability to cold. These works include air source heat pumps, solar PV panels, loft and room-in-roof insulation, internal wall insulation, boiler replacements, first-time central heating systems and thermostatic radiator valves, securing over £1 million in external funding. Carbon Neutral Island (CNI) - Cumbrae Construction work on Phase Two of the CNI solar PV and battery storage project is now underway on Cumbrae. The aim of the project is to install solar PV and battery storage systems on 130 homes in Millport to reduce carbon emissions and address fuel poverty by enabling households to generate and store renewable energy. Feedback from the local community has been encouraging, and the project is delivering wider community benefits. For example, as part of the contractual commitments, one supplier will fund the replacement of an outdated defibrillator in Millport. Climate Partnerships Procurement Through close joint working between Corporate Procurement and the Business Support and Development Team, local suppliers are being encouraged and supported to tender for council opportunities. This approach has delivered strong results as, during 123
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 28 of 67 the final quarter of 2025 to 2026, contracts worth £490,000 were awarded to local businesses. This amounted to £32 million across the financial year, demonstrating our council’s continued commitment to retaining spend within the local economy and building resilient local supply chains. Sustainable Growth The Recovery and Sustainability Project has continued to deliver strong results, consistently exceeding agreed targets during 2025 to 2026. The programme has made a significant contribution to economic recovery and environmental improvement, supporting businesses while accelerating progress towards net zero. Key outcomes delivered during the year include: • Five Green Inward Investments within: power generation; wind farm supply chains; and circular economy/Waste. This will create over 100 jobs with further opportunities expected. • 12 feasibility studies looking at business adoption of green technologies or green power with focus placed on solar energy, hydro projects, waste and capital equipment. • 1,212 tons co2e reductions seen through interventions. • Over £500k energy savings. • 11 businesses supported through training provision. • 147 projected new jobs. • £2.4m external funding secured. 124
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 29 of 67 • 118 tonnes of waste diverted from landfill. • Business investment in six new charge points. Reducing Waste Sustainably Maximising Reuse Our council supports a circular economy through partnership working with our bulky waste reuse provider. Between 1 April 2025 and 31 March 2026, 944 mattresses (24.3 tonnes) were collected for reuse, reducing waste. During the same period, 220 tonnes of household furniture was collected from across North Ayrshire and diverted for reuse. This activity supported 1,883 households to furnish their homes, while delivering wider social and economic benefits by employing 21 staff and two volunteers. Policy Development Officers continue to work in partnership with COSLA, SOLACE and the Scottish Government through a national co-design approach to shape new circular economy policy including a revised statutory Code of Practice for Household Waste Recycling. This work forms part of Scotland’s emerging Circular Economy and Waste Route Map and will directly inform our council’s future Zero Waste Strategy, identifying further opportunities to improve reuse and recycling. Recycling Performance Our household waste recycling performance remains strong. Our provisional recycling rate for Quarter four (October to December 2025, calendar year) is 48.2%, exceeding the phased target of 46%, subject to final verification by SEPA in the autumn. For the 2024 calendar year (figures confirmed one year in arrears), North Ayrshire achieved a 53% household recycling rate, placing our council 9th out of 32 Scottish councils through the Local Government Benchmarking Framework and well above the national average of 44.3%. This performance is delivered while managing one of the highest waste tonnages among the top-performing authorities, highlighting both our strong outcomes and operational scale. We were recognised with the Most Improved Performer Award by ASPE in December (see A Sustainable Council section below). Climate Education During 2025 to 2026, our Energy and Sustainability Team delivered 58 climate and energy learning sessions across 21 schools, reaching 1,509 pupils and supporting practical climate action within school communities. Schools and early years settings continue to benefit from professional learning delivered by the Learning for Sustainability Education Officer, supporting staff to develop confidence and practical skills in outdoor learning and biodiversity. This ongoing programme helps strengthen our children and young people’s connection with nature and the environment. Areas of focus have included improving biodiversity within school grounds, exploring renewable energy and applying outdoor approaches to literacy and numeracy. Within our council workforce, Carbon Literacy training was provided to 26 volunteer Climate 125
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 30 of 67 Champions across our services, with further engagement planned next year, including training for Elected Members. Community Climate Planning Engagement with local communities continues to support the development of Community Climate Action Plans, with officers attending community events to discuss priorities, opportunities and challenges. We have been working with groups across North Ayrshire to help identify actions for further exploration, with recent activity focused on communities in Arran. To help ensure wider participation, an access controlled online platform is used for structured engagement with community groups. This has been developed with support from our council’s Geographic Information System Analytics Team, enabling residents who are unable to attend Climate Workshops to share their views on climate action. Community Volunteering All planned sustainability and volunteering activity was successfully delivered during quarter four, including litter-picking, tree-planting and youth engagement. These activities form a core part of the Irvine “Community Conversations” programme. As a result of this engagement, the North Ayrshire Community Planning Partnership has supported a funding application of £80,000 to the Scottish Government. If approved, this will enable delivery of a summer roadshow, followed by engagement sessions with local secondary schools and partnership working with community organisations. Biodiversity Action In partnership with NatureScot, Streetscene is delivering nature-based improvements, including the creation of naturalised open spaces and wildflower meadows to support wildlife and pollinators. Investment through regeneration funding has enabled the purchase of specialist equipment to support habitat management and nature restoration. In addition, £27,500 of regeneration funding is supporting reconstruction works at Shewalton Pond, with completion expected by mid-summer, and 26 biodiversity enhancement projects led by local communities are being supported by the Community Nature Restoration Fund. Our Libraries have supported environmental awareness and reuse through the delivery of 96 themed activities, including Seed Library sessions. Across parks and greenspaces, work progressed on biodiversity and conservation, including ranger-led citizen science events, invasive species control with volunteers, and ongoing management of Phytophthora ramorum (plant disease). The Fish Pond project, north of the old formal gardens woodland, continues to progress at Eglinton Park, with final works expected in 2026 to 2027. We continue our partnership working through the North Ayrshire Biodiversity Partnership. Sustainable Travel Active Travel Our council has been awarded funding from the UK Government’s Levelling Up Fund (LUF) to improve 126
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 31 of 67 active travel opportunities in the i3 Business Park in Irvine. Existing footways are being upgraded and new connections created to provide better opportunities for people to walk and cycle to and within the business park. The upgraded routes will also add to the network of recreational routes to the south-east of Irvine. Some routes within the business park have experienced vegetation encroachment. Path widening and clearance works will improve safety, visibility and accessibility for walking and cycling. Tree works have commenced on Long Drive, with further works planned along the River Irvine path. Where required, permissions have been granted by Scottish Forestry, with replacement native planting to be delivered in line with our council’s Tree and Woodland Management Policy and Tree Planting Strategy to support biodiversity and woodland connectivity. Other LUF supported Active travel Projects include Riverside Way (Irvine), Strategic Investment Route (River Irvine Path), and Long Drive (Irvine) extensions. Active Travel Routes – Completed in Quarter Four: • Route upgrades in Beith/Kilbirnie and Largs. • Improvements at Blacklands Recreation Ground. • Enhanced sections along Bannoch Road (Irvine Road to Corsehill, Kilwinning). • Pedestrian improvements between Auchenharvie Road and Canal Street. • Vegetation clearance, new cycle stands and general route enhancements. • Delivery of the Long Drive Active Travel Route. • Completion of Links to Eglinton Phase 2 – Stage 1. Active Travel Facilities: Investment in supporting infrastructure included: • New e-bike infrastructure on Arran. • Cycle parking installed at Eglinton Park Community Garden. • Additional cycle stands across key locations. Planning for Future Routes Work continues to develop a pipeline of active travel projects for future delivery and funding. This includes accessibility audits, design and feasibility work for routes across Arran, the mainland and the islands, detailed design for National Cycle Network crossing improvements, and preparatory works for schemes at Valefield Bridge (Kilbirnie) and Putyan Burn (Dalry). Public Transport Improvements Enhancements to public transport infrastructure during the period included the installation of Real Time Passenger Information (RTPI) signs across the North Coast and Garnock Valley (subject to final trunk road permissions), alongside Bus Infrastructure Fund improvements such as replacement shelters, strengthened bus stops and accessibility reviews on the Broomlands Busway. Travel Smart The Travel Smart Programme continues to support behaviour change by encouraging greater 127
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 32 of 67 use of active travel and public transport, helping to reduce carbon emissions and promote a more sustainable transport network. Key activity this period includes: • Targeted campaigns, workplace engagement and community outreach delivered through the Travel Smart Programme and the mobile Trinity Active Travel Hub. • Guided walks, cycle sessions, volunteer-led activities and practical initiatives such as bike maintenance classes. • Support for workplaces to develop tailored travel plans and improve access to sustainable travel options. • Promotion of active travel opportunities through the Trinity Hub social media channels. These behaviour-change initiatives complement our council’s wider programme of active travel and public transport infrastructure investment outlined above. 128
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 33 of 67 Next Steps All next steps noted within the Mid-Year Progress report are progressing as expected and included in the narrative above. Next Steps to be achieved by the end of September 2026 unless otherwise stated include: • We will continue to provide strong leadership, engagement and education to support our journey to net zero, including climate education and training for pupils and staff to enable practical action on climate change and biodiversity. • More homes in priority areas will benefit from low-carbon heating and renewable energy, helping to cut emissions and reduce fuel poverty. • Community-led climate action and volunteering will continue to improve local environments, supported by the Streetscene Team and partners through environmental events, wildflower meadow development, regular litter picking and neighbourhood improvement activity. • Community-led tree planting will continue in line with the 2030 Woodland Strategy, alongside exploration of further collaborative planting opportunities and larger-scale woodland creation projects at Montgomerie Park and Bartonholm in Irvine. This will support biodiversity, nature restoration and increased woodland cover. • Delivery of the Recovery and Sustainability Project will focus on new accelerator programmes and increased support for business capital investment to drive sustainable, low-carbon growth. • We will maximise the benefits of our solar farms by supporting community projects and developing new local low-carbon energy opportunities. • We will await the outcome of our £80,000 Scottish Government funding application to enable delivery of a summer roadshow, followed by school engagement and partnership activity with community organisations. 129
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 34 of 67 Case Study – Solar PV Farms Introduction Council declared a climate emergency in June 2019 and committed to achieving net zero carbon emissions across the council estate by 2030. Scottish Government’s net zero target is by 2045, therefore our council has a role to play in supporting area-wide emissions to help achieve the national target. The Sustainable North Ayrshire Strategy is our council’s route map to net zero, with one of the actions within the strategy to develop two solar PV farm projects on former council- owned landfill site. Background During a budget setting meeting in March 2020, Council allocated funds towards the development of two solar photovoltaic (PV) farms at Nethermains, Kilwinning and Shewalton, Irvine. The solar PV farms were planned to: • Provide a substantial amount of clean, renewable energy to supply the local electricity grid. • Make a further positive contribution toe Council’s climate emergency declaration commitment to be net zero carbon by 2030. • Provide a localised economic activity and long-term productive use for the former landfill sites that would be otherwise difficult to develop. • Provide an annual net income that can be reinvested in North Ayrshire. This one-off project was procured as an open tender to maximise competition and value for money. The contract commenced on 10 March 2023, and was split into three phases: • Phase 1 – Design of Nethermains, Kilwinning & Shewalton, Irvine. • Phase 2 – Build, Operation and Maintenance of Nethermains, Kilwinning. • Phase 3 – Build, Operation and Maintenance of Shewalton, Irvine. Current Position Construction of both solar farms is now complete. Nethermains solar farm was energised on 19 September 2025 and formally launched on 1 October 2025. The 7.6MW solar aims to produce approximately 7,680MWh of electricity per year. The 5MW solar farm at Shewalton was energised on 5 March 2026 and aims to generate approximately 5,414MWh of electricity per year. 130
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 35 of 67 The energy generated from both sites is monitored remotely, and since energisation, more than 5,100MWh of electricity (enough to power approximately 2,800 homes for a year) has been generated. The sale of the renewable energy from both sites is facilitated by a Power Purchase Agreement with OVO Energy for the first year of operation. In addition to utilising sites for renewable energy, which would have otherwise been left vacant, biodiversity enhancements have been possible through consultation with NatureScot and aligning with our council’s Tree Planting and Nature Network strategies. On Nethermains, 8,000 trees have now been planted on land unusable for solar, and a landscape management plan to address invasive species on Shewalton is in development. Next steps As the solar farms enter the operation and maintenance phase of the project, our council is looking towards a pipeline of potential large scale renewable energy projects, to further reduce area wide emissions, support council services, and increase community participation in the journey towards net zero in North Ayrshire. 131
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 36 of 67 A Sustainable Council A Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities. Key Activities Best Value Controller of Audit Report North Ayrshire Council’s scheduled Controller of Audit (Section 102) Best Value report was considered by the Accounts Commission in October, and Council in December. The findings are extremely positive, highlighting a culture of continuous improvement, a proactive focus on addressing inequalities in our communities and stating the council is “an exemplar of how to do transformation well”. See ‘Audit, Inpections and Accreditations’ section below. 2026 to 2027 Budget Consultation We held our 2026 to 2027 Budget Engagement between 6 November and 19 December 2025. During this period we consulted with our residents and community groups on a number of proposals across two themes: 1. Children and young people 2. Other Council Services In addition to community discussions, 1,125 responses were received across the two themes (887 responses for “Children and young people”, and 338 responses for “Other Council services”) showing considerable engagement with our residents and community groups resulting in informative feedback on the proposals. As with our previous budget consultation, the proposals were grouped into themes so that residents could respond to the areas that mattered most to them, minimising survey fatigue and ensuring a higher completion rate. Residents were able to respond through an online survey or a variety of mediums to avoid digital exclusion and make the survey accessible. These included: • Posters displayed in front facing locations with QR codes linking to the survey. • Paper copies of the survey available through front-facing locations. • Completion via telephone via our Customer Contact Centre. • Community discussions. To reach our young people, a young person friendly version of the consultation was carried out in face-to-face sessions with school pupils, young people with disabilities, the North Coast Youth Forum, the annual North Ayrshire Youth Conference and North Ayrshire Joint Champions Board Conference. This included listening to care experienced residents. Engagement feedback was analysed, informed the budget proposals and accompanying Equality Impact and Children’s Rights Impact Assessments (ECRIAs), all of which were presented to Council on 11 February 2026 in advance of the budget meeting of Council. At a Council meeting on 25 February, our 2026 to 2027 budget of £485 million was approved. The budget included several key investment and policy decisions: • £1.36 million reallocated from 132
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 37 of 67 the i3 Energy fund to support the development of a new council-owned renewable energy project. • £276,000 added to strengthen work aimed at reducing child poverty. Equality and Children’s Rights Impact Assessments (ECRIAs) Extensive support was provided to services completing ECRIAs on Budget proposals, this resulted in 14 Screening Forms (not requiring a full assessment) and eight Full Impact Assessments shared with Elected Members in advance of the Council budget meeting. Assessments were informed by our Council’s extensive Budget Consultation Exercise, which included survey questions on both the perceived impact on people with protected characteristics and other elements of our ECRIA. Optional personal demographic information was completed by survey respondents to help provide a fuller understanding of potential impacts. Inline with legislation, ECRIA's are also completed for non-budget related activities. Recently this has included the completion of Screening forms for an internal Alcohol, Drugs and Solvent Misuse Policy, the relocation of Customer Services from Bridgegate House to Cunninghame House as part of our estate rationalisation and The Youth Participation Strategy. Once complete, all are uploaded to our website. British Sign Language We continue to support the Pan-Ayrshire British Sign Language (BSL) Advisory group to progress the BSL Plan. Four officers from across our council completed a BSL introductory course, including an employee from our Sensory Impairment Team who has direct interaction with our BSL Communities. Employees will be attending more advanced courses during the autumn of 2026. Following attendance at the launch of the Scottish Government Inclusive Communication Toolkit, planning is underway to consider how the key elements can be adapted across our council. Property Rationalisation Continuing our ambition of rationalising our council’s non-domestic property portfolio, construction works began on 5 January to create a new customer service centre on the ground floor of Cunninghame House. As part of property rationalisation approved by Cabinet in March 2024, further projects will be completed in 2026 to 2027 including: • The vacation of Quarry Road, Trinity Church and Galt House to merge operations into Cunninghame House. • The vacation of Bridgegate House and subsequent consideration for future uses as part of Irvine Town Centre regeneration work. Housing and Regeneration Funding We have been working closely with the Scottish Government and our Registered Social Landlord partner, Trust Housing Association, to secure support from the Scottish Government‘s Key Workers Fund. This funding will enable the purchase of homes on Arran to help meet the housing needs of key workers. We have also successfully secured a £1.838m investment from the North Ayrshire Ventures Trust (NAVT) and £1.169m of Regeneration 133
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 38 of 67 Capital Grant Funding (RCGF) to support regeneration improvements within the Bourtreehill Village Centre. Annual Rent Consultation Our Annual rent consultation was carried out between 5 December 2025 and 16 January 2026 and attracted the highest number of responses for this survey. Tenants were sent information regarding two potential rent increase options. The first option of an average 3.84% increase, equivalent to £3.50 per week, was favoured by 75% of respondents and approved by Council in February. It will help maintain current investment levels in priority areas including home improvements, sheltered housing, developing new affordable housing, and buying back former council houses. As with all of our consultations, tenants without access to the internet were able to participate via their local housing office or library or could request a survey form be posted out to them with a free return envelope provided. Regeneration External Funding Our Vacant and Derelict Land Fund allocation for 2025 to 2026 was just over £1.5m. With this funding, proposals have been developed for Lochshore and Portland Road, Irvine. Supporting our Vacant and Derelict Land Strategy, these areas were highlighted for development following an examination of cross-service project expressions of interest. Via the UK Shared Prosperity Fund (UKSPF), six council-led projects with a value of £376,535 are currently underway and three have been completed. In addition, 24 local groups shared £397,000 which included £250,000 of UKSPF support. The Irvine Pride in Place (previously Plan for Neighbourhoods) regeneration plan was approved by the UK Government in March 2026. Year one will see the following projects progress: • Bridgegate Enhancement. • Station Square / Underpass. • Town Dressing. • Community Fund. • Murals. Delivery of the plan is being supported by our officers and the recruitment of a new Irvine Neighbourhood Board Chair is underway. The Pride in Place Impact Fund (PiPIF) (announced by the UK Government in September 2025) will see £1.5m of capital funding invested in North Ayrshire over the next two years. The PiPIF will provide immediate support, complementing the Pride in Place Programme by enabling the development of community spaces, supporting the regeneration of our high streets and public spaces. The Three Towns has also been selected for the Pride in Place Programme and recruitment of a Neighbourhood Board Chair is ongoing On 2 December 2025, Cabinet agreed that PiPIF funding would be aimed at areas that have not previously benefited from Pride in Place funding or the previous Plan for Neighbourhoods funding. PiPIF funding will be assigned via one of the three following ways: • A direct allocation to participatory budgeting in eligible localities. 134
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 39 of 67 • A community funding allocation and direct council-led delivery of projects informed by the Regeneration Delivery Plan. • Associated strategies and plans. Smart Infrastructure Pilot The Smart Infrastructure Pilot Project (SIPP) has moved from initial installation into early use. A workshop was held with key partners to build a shared understanding of how the technology works and how it can begin to support local services. In March 2026, a Data Protection Impact Assessment was carried out for the new public Wi-Fi network, which was approved allowing work to progress towards a planned launch in May. The project’s digital platform is now live and providing real-time insight into footfall in addition to noise and weather data. Teams working in regeneration, tourism and public safety are already using the data to inform their work and are embedding the technology into routine activity to support the delivery of the Great Harbour project. Our Digital Infrastructure and Connectivity plan together with accompanying guidelines is now complete with a final learning session scheduled early in the next financial year. This will help inform future digital infrastructure investment decisions enabling our Transformation team to work with other services and to determine opportunities and align with the Ayrshire Growth Deal Building Digital Capital project. The Ayrshire 5G Innovation Region (5GIR) programme was awarded additional funding of £400,000 bringing the total value of the programme to £4.4m. Completed in March 2026, the programme delivered a realised Gross Value Added impact of £7.8m evidencing strong place-based impacts of better digital connections for the local economy. Enabling further investments in regional connectivity, the programme achieved the following: • Engagement with more than 220 stakeholders. • Delivery of 107 learning events. • Support for 18 Small to Medium size Enterprise grant-funded projects. • Deployment of 25 advanced wireless network solutions. • Upskilling of over 200 individuals. A key outcome of the 5GIR programme has been the creation of a shared approach to developing Ayrshire’s digital economy. This approach supports the Ayrshire Digital Economy Framework and helps build the skills, infrastructure and partnerships needed to strengthen digital capability in our localities. Following changes to how the Regional Economic Strategy is being delivered, work has moved away from producing a separate digital masterplan and is now focused on developing a practical roadmap for the Ayrshire Digital Economy Ecosystem (ADEE), directly aligned with and supporting the Regional Economic Strategy. A commitment to long-term collaboration (through to 2030) has been put in place with ADEE partners providing strong infrastructure for the governance and delivery of future investment and innovation activity across Ayrshire. Our journey with 5GIR is now 135
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 40 of 67 informing the Ayrshire Growth Deal Building Digital Capital business case which will focus on digital infrastructure and private sector leverage. Maximising our Assets Improvements to our play facilities are ongoing by our Streetscene team. A large focus has been on accessibility improvements both for accessing the facility and when using the play equipment – this has been facilitated by capital funding from the Scottish Government. Play facilities in coastal areas are in development and improvements at Irvine Beach Park are well underway including a skate park, cycle pump track and play park. A review of our existing assets is ongoing with new replacements being made where possible, as well as working with our communities to redistribute older assets to libraries, community centres or schools bringing these back into use. For example, benches from Millport were gifted to local community groups. 136
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 41 of 67 Workforce Development The Staff Promise Conference was held in January with 81 employees, partners and 10 care-experienced young people attending. Young people from the Champions Board presented the What Matters to Us priorities and challenged practice. The e-learning module on Corporate Parenting went live and is mandatory for all council staff to understand their responsibilities around supporting care experienced young people. We are supporting employees from the Community Learning and Development service to undergo professional qualifications in partnership with the University of the West of Scotland. This helps to improve the quality of the support we can deliver to community members and organisations. Climate Change Connected Leadership Conference The Connected Leadership Conference enables senior officers to share best practice to deliver the priorities of our Council Plan. A Connected Leadership Conference on Climate Change was held on Monday 19 January at Saltcoats Town Hall. Our Chief Executive, Executive Director for Place, Head of Sustainability, Transport and Corporate Property, and Senior Manager for Sustainability provided updates and led valuable discussions. Following this, a Chief Officer Leadership Team session on climate change was delivered in March. The aim of the session was to transform the discussions at the Leadership Conference into specific measurable actions that could be taken forward by defined officer leads to ensure sustainability in council services. A Great Place to Work Event On 25 November 2025 we hosted our second ‘Great Place to Work’ event which was attended by over 400 employees from several council areas. Over 20 information stalls were available on the day and were hosted by a mix of council representatives and partner exhibitors. A Breastfeeding Friendly Employer Our council is now a Breastfeeding Friendly Employer. We have joined the Breastfeeding Friendly Network which is a UK-wide scheme that looks to empower mothers by raising awareness of their rights under the Breastfeeding etc. (Scotland) Act 2005 and the Equality Act 2010. Living Wage Employer Our council has paid the real Living Wage for the last 14 years and implemented the May 2026 increase six months early in October 2025. The increase of £0.85 from £12.60 to £13.45 positively impacts 796 council employees. 137
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 42 of 67 Our Transformation Programme Our current Transformation Programme was approved in 2023 and developed alongside our Council Plan 2023 to 28. The programme being delivered by our council has been progressed around the key priorities of our Council Plan, driving change and transformation, using technology and innovation where possible to deliver efficient services to help address the financial challenges facing our council. Through embedding a culture of continuous improvement, crucially the delivery of our Transformation programme can protect the services we provide to our residents. This section provides an update on projects that have reached particular milestones in this period to enable focussed scrutiny. Digital Workstream Our Digital Working Group continues to develop key digital projects agreed as part of the national transformation project teams for Housing, Waste, and Fleet Management. This includes strategic activity across our council and nationally through the Scottish Government, Improvement Service (IS), SOLACE and Digital Office. To date the following progress has been made: Parents Portal: This is the national online platform that allows parents and carers to communicate digitally with schools and access a range of services. All secondary schools were live by the end of February, with cluster primary schools on track to be fully rolled out by the end of the 2025 to 2026 school session. The roll-out is making strong progress, particularly through the successful move to digital report delivery. To date, 70% of Progress and Achievement Reports have been issued digitally by schools currently using Parents Portal. Training for Education Business Assistants was completed in February, with two additional catch-up sessions to follow. Artificial Intelligence: Following the approval of the Generative AI Policy by Cabinet in September 2025, providing clear guidance for staff on the appropriate use of this technology, a trial is currently underway until July 2026 using a licensed version of Microsoft Copilot to test additional functionality. Digital Economy: This looks to shape North Ayrshire’s digital future through the Digital Infrastructure and Connectivity Plan. The work on the Digital Connectivity Procurement Framework provided valuable learning, which is now informing the Building Digital Capital programme and supporting a more effective delivery approach. Regionally, our partnership through the Ayrshire 5G Innovation Region has progressed, with a new Memorandum of Understanding extending collaboration to 2030, securing long-term commitment to digital innovation, and providing a strong legacy beyond the current 5G funding cycle. Digital Inclusion: Partnership working between libraries, CLD and specialist organisations continues to strengthen digital inclusion across North Ayrshire. Targeted support for people with sight impairment has expanded through collaboration with Triple Tap Tech, alongside a wider programme of Device Advice, Coding Clubs, Computer Buddy 138
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 43 of 67 Support and Community Learning and Development provision. Together, this coordinated approach delivered 53 digital learning sessions, supporting 192 adults and children to build skills and confidence, with additional capacity provided by Digital Volunteers. Blue Badge Scheme for Disabled Parking: Progress has also been made on the application process, with a feasibility study now complete and due to be reported to SOLACE in April 2026. Alongside this, a Digital Maturity Assessment led by the Digital Office is underway, helping us to better understand our current digital position and shape a future-focused digital strategy. Irvine Locality Property Review The Irvine Locality Review continues to be progressed as part of the Land and Property workstream. The main purpose of the review is to rationalise our council’s property estate in alignment with our strategic objectives. Phase 2 works now completed/ongoing: • Works have completed on the new Training Suite at Cunninghame House which is now operational. • Work commenced on Customer Service Centre with expected completion in May 2026. • Work commenced on construction changes at Quarry Road with completion now expected by end of June 2026. Phase 2 works are ongoing with a review of the remaining localities and land being undertaken: • A three-year plan is underway to review the remaining five localities across North Ayrshire. • Service areas have been consulted regarding land requirements and commenced mapping of land areas with workshops now taking place and expected completion in August 2026. Commercial Property The Commercial Property Workstreams vision is of a more efficient property portfolio across three themes. Progress across each workstream includes: Maximise occupancy from the current estate portfolio Following the transfer of the commercial estate to the Property Management and Investment team in April 2025, a comprehensive review was undertaken to improve performance, maximise income and support Community Wealth Building. A programme of targeted actions has stabilised the estate, improved occupancy and rental income, and strengthened management and oversight arrangements. These improvements provide a stronger platform for sustainable, long-term growth of the commercial portfolio. 139
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 44 of 67 Actions taken to date include: • Repossession of multiple units abandoned by tenants. • Active remarketing of vacant and under-used assets. • Earlier engagement with tenants on rent arrears. • Alignment of rental levels with market conditions. • Introduction of improved monitoring, reporting and annual review arrangements. These actions have delivered a 0.57% increase in occupancy and a 13.75% uplift in rental income over the past 12 months, while improving visibility of performance and enabling earlier intervention where issues arise. Maximise opportunities from Economic Development, Growth & Regeneration and Ayrshire Growth Deal investment (existing projects) The following activities have been progressed to maximise the opportunities from investment: • i3 Flexible Space, Irvine: The Ayrshire Growth Deal programme has provided modern commercial industrial property with the completion of one 18,180 sq. ft (1,689m2) unit as part of the i3 Flexible Space project in Irvine. The unit is currently being marketed for occupation, with submissions under assessment. • Portland Rd. Land Sale: Legal Services have been instructed to conclude missives of a partial land sale, following Cabinet approval. Regeneration Services will undertake cross service engagement to identify options for the remaining land. Develop proposals for new investment and securing Return On Investment (ROI) (future projects) • An award for the Levelling Up For Ayrshire - Commercial and Low Carbon Infrastructure under the Levelling Up Fund (LUF) round three of £17.4m was secured from the UK Government. Informed by market feedback, the North Ayrshire proposal aims to address market failure in the delivery of new energy efficient commercial property alongside the provision of associated low carbon infrastructure at key employment areas in Irvine. These funds are further supported by a successful award of £890,990 from the Scottish Government’s Vacant Derelict Land Investment Programme (VDLIP). The Irvine investment concentrates on Kyle Road, Annickbank and i3 sites. The following activities have been progressed: • Kyle Rd Phase 2, Irvine: Following additional design work, the tender pack is currently being finalised and expected to be issued in April 2026. 140
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 45 of 67 • Annickbank Innovation Campus, Irvine: The tender process has recently been undertaken and a contract award is in progress. • i3 Flexible Space Phase 2: Design work is currently being finalised to support a tender issue in Spring 2026 for the construction of a new industrial building. Nethermains and Shewalton Solar PV Farm The 7.560MW Nethermains Solar Farm has now moved into the Operation and Maintenance Phase following the works completion certificate being issued in January 2026. A tree planting exercise was also completed in January with a total of 8,050 trees planted, further supporting our Tree Planting and Nature Network strategies. A gas pumping trial was successfully held on the Nethermains site throughout January - February 2026. The trials were successful with a decision pending on whether to proceed with the gas recovery works. The 5.344MW Shewalton Solar PV Farm was commissioned on 6 March 2026. An official opening is expected to take place at a later date subject to Scottish Government availability. An energy sales contract is in place for both sites for one year with the option to review and extend for a further two years. Waste Services Special Uplifts: Following updated Persistent Organic Pollutants Regulations and new guidance issued by the Scottish Environment Protection Agency (SEPA), we were required to introduce a new Waste Upholstered Domestic Seating (WUDS) to be collected and managed separately for items such as sofas, sofa beds, chairs, stools etc. Since the introduction of the new process in September 2025, over 6,200 customers from Arran, Cumbrae and the Mainland have placed special uplift orders successfully using the new form. In-Cab Devices: To further support service efficiency, a decision was taken to extend the use of in-cab devices to additional service areas, including Bulky Uplifts and Bin Deliveries in 2026. A pilot commenced in March 2026, with targeted vehicles scheduled to receive devices between May and June 2026. The In-cab devices provide collection crews with real-time access to up-to-date work instructions, with completed tasks automatically updating back-office systems enabling faster service updates for customers, reducing paperwork, and improving coordination between drivers, team managers and the Waste Management team. Overall, the devices support a more efficient, reliable and customer-focused waste and recycling service. Collection Frequency Change: As part of the 2026 to 2027 budget-setting, Council agreed to change the collection frequency for the purple and blue recycling bins on the mainland and Cumbrae from three-weekly to four-weekly, to better reflect service demand. Planning for the revised recycling collection arrangements is currently underway, with implementation scheduled for October 2026 and supported by a comprehensive public communication campaign to ensure residents are fully informed. 141
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 46 of 67 DEFRA Packaging Extended Producer Responsibility: Work has commenced in North Ayrshire to support the UK Government’s Packaging Extended Producer Responsibility (PEPR) initiative, which was introduced in April 2025. This aims to shift the financial burden of packaging waste away from councils and onto the producers who create it. This represents a major structural change in how waste services are funded and will further benefit North Ayrshire residents by providing: • Cleaner streets and communities, as producers will fund better recycling and waste management, reducing litter and landfill reliance • More reliable and improved recycling services, as North Ayrshire Council will receive dedicated funding to enhance household packaging collection and disposal. • Fairer system for residents, as businesses rather than local taxpayers will cover the full net cost of dealing with packaging waste. • Less waste and more sustainable packaging, as producers are incentivised to design recyclable, reusable and lower impact materials, benefiting the local environment. Digital Waste Tracking: The introduction of a requirement for all UK councils to utilise the new Digital Waste Tracking System voluntarily from April 2026 will become mandatory from October 2026. This requires our council to record all waste movements electronically in the national system. It includes waste collected from our weekly waste collections from households as well as waste from businesses. The new Digital Waste Tracking system will benefit our residents by helping to reduce fly-tipping and illegal waste activity, as electronic records make it harder for waste to be disposed of unlawfully. Improved real-time data will strengthen environmental protection by allowing issues to be identified and addressed more quickly, while increased transparency will provide clearer assurance about where waste goes and how it is managed. Overall, digital reporting will streamline processes and reduce errors, supporting more efficient, reliable and higher-quality waste and recycling services for local communities. Decarbonisation of Fleet The Decarbonisation of Fleet project is making steady progress, with 83 electric vehicles (EVs) now in operation from the 397 vehicles originally identified as suitable for replacement. A further 28 EVs are expected to be purchased by the end of 2026, bringing the total to 111. To support this transition, 47 workplace chargers (89 sockets) have been installed across North Ayrshire, with work underway to add a further eight chargers (16 sockets) in the coming months. In addition, the Pan-Ayrshire Electric Vehicle Infrastructure Fund (EVIF) project is expected to award its contract in April 2026 and will deliver over 300 public EV chargers across Ayrshire, including 106 in North Ayrshire, significantly strengthening local charging infrastructure. 142
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 47 of 67 Our Workforce Strategy 2024 - 2028 The Workforce Strategy 2024–2028 is aligned to the Council Plan and the Medium-Term Financial Outlook, setting out how the workforce continues to support delivery of our council’s priorities within the context of available resources. During 2025 to 2026, strong progress has been made across all four themes of the Strategy, with key action highlights set out below. Theme 1 Embedding workforce planning Workforce Plans All services have workforce plans in place which are reviewed on a six-monthly basis. These reviews ensure workforce plans remain live, responsive documents informed by business demand, PESTLE analysis, change planning and succession considerations. During 2025 to 2026, workforce planning has become increasingly embedded as a core leadership responsibility, with clear ownership at Head of Service level and consistent review cycles across Directorates. Workforce planning activity is now clearly aligned to service redesign, vacancy management, recruitment control and wider transformation activity, supporting delivery of our Council Plan priorities. Development Interventions Rather than standalone training events, workforce planning capability has been strengthened through ongoing engagement between HR and Services. Six-monthly workforce planning sessions, supported by a refreshed template and clearer guidance, have improved consistency, focus and quality of planning discussions. Integration with Transformation Workforce planning is incorporated into transformation programmes to consider workforce benefits, resource and impact. Workforce Strategy actions and performance measures are tracked through our corporate performance management system, strengthening transparency and governance. Theme 2 Enhancing workforce information Workforce Information Toolkit A digital Workforce Information Toolkit has been developed to provide managers and senior leaders with access to live workforce data to support effective planning and decision- making. The Toolkit has been rolled out within a number of Services, with wider council adoption underway during 2026 (see case study below). Workforce Strategy Performance Dashboard The Workforce Strategy has a series of performance indicators measured on a regular basis. These indicators have been included in a Workforce Strategy Performance Dashboard offering a user-friendly overview to support workforce planning. The dashboard brings together people data held within corporate systems and presents it in a visual format to support monitoring of workforce performance and trends over time. These indicators include, but not 143
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 48 of 67 limited to, data relating to headcount/ Full-Time Equivalent (FTE), gender, employee turnover, absence, average age of employee and time to recruit. Theme 3 Building workforce capacity Digital Skills Survey A council-wide Digital Skills Survey was undertaken to assess digital confidence and capability across the workforce. Results demonstrated strong digital foundations, with identified development needs in document collaboration, troubleshooting and information sharing. A structured action plan was put in place to address these areas through targeted development activity, practical support and increased awareness of learning resources. Agile Workstyle Wellbeing Survey Employees operating an agile workstyle were surveyed to understand the continued impact on wellbeing and productivity. Findings were positive across recruitment and retention, engagement, collaboration and work life balance. An associated action plan was put in place to support continuous improvement and sustain the benefits of agile working. Apprenticeships and Grow Your Own Programmes Apprenticeship pathways continue to play a key role in building workforce capacity and supporting the future talent pipeline. During 2025 to 2026, Modern Apprentices and Graduate Apprentices have been recruited and supported across a wide range of services, with strong links to schools, colleges and universities. Services have also progressed grow your own approaches and succession planning activity - supporting skills development, retention and workforce sustainability. Theme 4 Health, Safety and Wellbeing A broad range of health and wellbeing activity has continued throughout the year, coordinated through the LiveWell programme. This includes wellbeing courses, workshops, physical activity sessions and health checks, promoted through corporate communications to maximise accessibility. Occupational Health provision continues to support staff wellbeing, early intervention and sustained attendance, providing clinical advice, management referrals and pre-placement screening. Promotion of supportive policies and guidance remains a key focus to ensure managers and employees are aware of available support. Health and Safety activity remains embedded across our council, with ongoing monitoring and reporting of RIDDOR incidents, violence and aggression trends and proactive engagement with services. Health and Safety Planning Groups and the Corporate Health and Safety Group provide oversight, assurance and opportunities for shared learning and continuous improvement. Summary Overall, delivery of the Workforce Strategy during 2025 to 2026 has been strong, with actions largely on target. This provides a solid foundation for sustaining workforce resilience, capability and wellbeing as our council moves into the next phase of delivery in 2026 to 2027. 144
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 49 of 67 Audits, Inspections and Accreditations Best Value Controller of Audit Report North Ayrshire Council’s scheduled Controller of Audit (Section 102) Best Value report was considered by the Accounts Commission in October, with the Commission’s findings published on 28 October and considered by Council in December. The findings are extremely positive, highlighting a culture of continuous improvement, a proactive focus on addressing inequalities in our communities and stating the council is “an exemplar of how to do transformation well”. Best Value is a statutory duty as set out in the Local Government (Scotland) Act 2003 and applies to all public bodies in Scotland. Its core purpose is to ensure good governance, effective use of resources and continuous improvement in order to deliver better outcomes for our communities and residents. A new annual Best Value Thematic Approach was introduced in 2023, where a specific theme agreed by the Accounts Commission is audited across all local authorities in Scotland. As part of this new approach, once every five years each local authority is the subject of a Controller of Audit report, also known as a Section 102 report. This summarises recent Best Value Audits on behalf of the Accounts Commission who then publish findings which may include recommendations to take forward. To support Best Value, our Performance Management Strategy (PMS) 2023-2028 October 2025 refresh was approved by Cabinet on 2 December. Our PMS, which focusses on delivering better outcomes for our people, was updated in line with the Accounts 145
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 50 of 67 Commission’s Direction 2024 (effective as at 1 April 2025) and the newly introduced Corporate Fraud Offence Act. Innovatively, the strategy is now specifically designed as training reference material for managers. It provides a detailed information on determining statuses to ensure consistency when demonstrating Best Value and helps maintain our culture of continuous improvement. Food Standards Scotland (FSS) Food Law Enforcement Actions Audit 2025 to 2026 A recent Food Standards Scotland audit has praised our council for its strong approach to food safety and enforcement across local food businesses. The review looked at how we carry out inspections, handle enforcement action, and ensures high standards in shops, restaurants and other food premises. Inspectors found that our council has clear policies, well-trained officers and reliable systems in place to protect the public. More than 2,000 food safety visits have been carried out since 2022, and when formal notices were issued, they were found to be proportionate, clearly written and effective in improving conditions. The audit also highlighted our commitment to consistency, with regular staff training, internal checks and annual sampling programmes targeting higher-risk foods. No enforcement action has been required as a result of food sampling in the past three years. The report did identify areas where improvements are needed, particularly around the accuracy of data reported to the Scottish National Database (SND). While our council’s own records are robust, not all information was transferring correctly to the national system. Work is already underway to strengthen the way data is checked, mapped and submitted, and our council has updated its internal procedures to prevent errors in future. Overall, the audit provides reassurance that food safety in North Ayrshire remains strong. Our enforcement work was judged to be effective, timely and appropriate, and the service continues to prioritise public protection. We are already taking steps to strengthen data accuracy and will use the audit findings to continue improving performance in the months ahead. 146
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 51 of 67 Dalry Early Years Centre Dalry Early Years Centre has been praised by the Care Inspectorate for creating a warm, nurturing and safe environment for young people. Following an unannounced two-day inspection in September 2025, inspectors praised the strong relationships between staff, children and their families, high quality learning experiences and effective support for individual needs. Some of the findings included: • Children were safe, secure and emotionally supported. • Children's individual needs were well understood. • Children who required additional support received timely and effective intervention. • Children experienced rich and varied play opportunities indoors and outdoors. • Staff were warm, respectful and purposeful. • Indoor and outdoor spaces were thoughtfully arranged to promote independence. • Leadership was strong and improvement-focused. The Inspection Report also recognised the centre’s positive leadership and commitment to continuous improvement, ensuring children benefit from a supportive and engaging start to their learning journey. Learning Places Scotland Awards We have been awarded three prizes at the recent Learning Places Scotland Awards. The awards celebrate excellence and achievement in the education sector across Scotland, with categories recognising people, projects and partnerships that help to make a lasting impact. Marress House won the Early Learning and Childcare Award and was Highly Commended in the Refurbishment of the Year award. The former tax office, transformed into a modern and welcoming facility which opened doors in August 2024, is also home to our council’s Public CCTV and Concierge Service and features a training suite which will be used to enhance the skillset of the Early Years workforce across North Ayrshire. In the Early Learning and Childcare category, the judges found that Marress House was “a thoughtful and sustainable refurbishment that makes excellent use of an existing building.” It was also praised for having an environment that has attracted positive feedback from parents and children, “helping to shape a nurturing and appropriate setting.”. Montgomerie Park Primary School was Highly Commended in the overall Project of the Year category. APSE Awards Our council achieved two honours at the Association for Public Sector Excellence (APSE) awards on 4 December 2025. We were recognised as Best Performer in Roads, Highways and Winter Maintenance, and also received the award for Most Improved in the Refuse Collection Category. Our council was also named as a finalist in three further categories, showcasing the high quality work happening across a wide range of services. 147
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 52 of 67 Next Steps We will aim to achieve the following by September 2026 or as detailed below: • We will continue to involve communities so that their views can help inform our budgets and shape our services. • We will continue regenerating our properties, delivering digital projects and maximising council assets. • We will roll out refuse vehicle in-cab devices to additional service areas, including Bulky Uplifts and Bin Deliveries by June 2026 as part of our Transformation Programme. • We will deliver a year-long Island intelligence Hub pilot that will generate a dashboard to better equip our island communities with information relative to local challenges strengthening decision-making and maximising opportunities. • We will have employees attending advanced BSL courses during the summer of 2026. • We will work with partners and the Scottish Community Development Centre, the recognised national centre of expertise, to build on our Participation Strategy and design a shared learning programme for council and partner employees and community members. This will be delivered in late 2026 and will give an opportunity to further develop our shared vision for collaborative working in North Ayrshire. 148
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 53 of 67 Case Study – A Workforce Information Tool The Workforce Information Tool is a single online portal which updates daily and enables managers to see information and analytics on the key workforce themes: • Workforce information and associated Costs • Absence Management information • Training & Governance The tool was created by our GIS & Analytics team on the Microsoft Power BI platform. Consolidating our analytics into a single council wide management report ensures we get the maximum value from our analytics platform and reports. Where possible we align our analytics with the national Local Government Benchmarking Framework service areas which allow managers to see how the data from their team contributes to national benchmarking. Development records become readily available enabling managers to identify and fill in any gaps in training, therefore ensuring our employees have the skills to support and deliver our priorities. This report differs from previous analytics as this ensure we get information to our managers as soon as it is available. The primary goal of this is to support workforce management and put data at the forefront of our decision-making processes. “The tool is really helpful as I can review my team information at one source. It enables me to interpret the data in a holistic way alongside my one to one in-person meetings. I can gain a greater understanding of whether anything needs to be put in place at an earlier stage to support each of my colleagues.” – Senior Manager 149
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 54 of 67 Performance Summary Performance Indicators Adrift of Target This section details the performance indicators adrift of target and the action being taken to address performance. Due to expected data lags, the most recent data may relate to previous time periods but may only now be available to report. To avoid duplication, only data that has not previously been reported to Cabinet through Council Plan progress reporting is included in this section. Further details can be found in the Performance Indicators section within this report. CP_37 Average total tariff score of pupils living in SIMD 20% most deprived areas (Red) The Average Total Tariff Score of the school leavers from the most SIMD deprived 20% of Scottish data zones in 2025 was 681 points. This is a 3.2% increase on last year and is also above the Average Total Tariff Score of school leavers from similar SIMD areas in the whole of Scotland (676 points). Given the dynamic above it means that the poverty-related attainment gap is smaller than last year - a small but significant gain in the endeavour to reduce the opportunity gap between our young people living in the least and the most deprived areas of North Ayrshire. CP_06 Average tariff score: All Leavers (Red) The Average Total Tariff score for 2025 school leavers published in the March 2026 edition of the national Insight benchmarking tool was 864.4 tariff points. This is an increase of 2.8% compared to the previous year. North Ayrshire school leavers also outperform the national figures across a range of SIMD deciles. There is a complex interaction of factors that determine the dynamic of the Average Total Tariff Score of a school leaver. North Ayrshire leavers are offered a wider set of opportunities to choose more qualifications at different SCQF levels - adding more points to the tariff portfolio of each young learner. Wider achievement is increasing in importance without diminishing the value of academic achievement. On Target, 45, 98% Slightly Adrift of Target, 1, 2% Actions On Target, 17, 66% Slightly Adrift of Target, 4, 15% Significantly Adrift of Target, 4, 15% Data Only, 1, 4% Performance Indicators 150
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 55 of 67 CP_42 Provided floor space of commercial/industrial space within our council portfolio (sq. ft) (Red) Performance is 394,684 against a target of 423,077. Fluctuations across the portfolio arise as a result of estate management actions, principally disposals. Specific projects also impact availability, for example, units within Bridgegate are not currently being marketed while the long-term future of the area is under consideration. There has also been a re-baselining of available space following the transition of portfolio management from the Business Support and Development Service to Property Management and Investment. Available space will increase in the coming years as projects are delivered, for example at Kyle Road, Annickbank and i3. CP_02 % of council budget directed via participatory methods (Red) 1.27% of council budget has been directed via participatory methods compared to an ambitious 1.5% target. Though it has not been achieved, we have both expanded our ways of involving communities and exceeded the national target of 1% spend agreed between CoSLA and the Scottish Government consistently since 2019/20. The financial value of participatory budgeting is only part of the outcome as it can be difficult to attach a financial value to the vast benefits of involving our people in decision making processes and co-designing services alongside them. Participatory budgeting remains a key method of engaging our people with services. CP_07 % of school leavers entering positive destinations (LGBF) (Amber) At the end of the 2024 to 25 academic session, 95.7% of the 1,396 school leavers identified by Skills Development Scotland for North Ayrshire have moved on to positive post-school destinations. As in previous years most school leavers (72.6%) continue into Further and Higher Education. This time, the percentage moving into Higher Education courses (37%) have exceeded those who moved into Further Education (35.5%) which has only occurred previously during the pandemic and two post- pandemic years. Within our LGBF family group we are currently 3rd below Inverclyde Council (96.4%) and Eilean Siar Council (96.1%). This places us 16th in the overall rankings and within the 2nd quartile. CP_40 Number of new build housing units reaching completion (all tenures) (actual not cumulative) (Amber) The number of new build housing units reaching completion was 431 against an annual target of 436. This indicator includes wider private sector development where our council has limited influence over the total number of completions achieved. The shortfall of five units reflects delivery across a number of sites, including some delays in completion. Indicator Amendments and Recommendations CP_41 Number of empty homes brought back into use (actual) At Mid-Year 2025 to 2026, a Quarter Two figure of 78 empty homes brought back into use was reported resulting in an on-target (green) status at that point. Following further year end verification, a small number of cases were identified as having been closed prematurely and the Quarter Two figure has been revised to 74. While this amendment affected the position at Mid-Year, overall performance at Year End exceeded the annual target. Empty homes remain a key focus for the service, and additional resources have been secured to strengthen processes and reduce the likelihood of similar issues in future reporting. As a precaution, a review of previous years’ data was undertaken and no anomalies were identified. 151
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 56 of 67 CP_31 % of total household waste that is recycled (calendar year as per SEPA) (LGBF) At Mid-Year, the Quarter Two status for Percentage of total household waste that is recycled was 51.2% and was significantly adrift of target (red). However, further data checks have been undertaken and the Quarter Two figure has now been revised to 56% meaning the Quarter 2 status is on target (green). The overall figure for 2025 to 2026 (2025 calendar year) is 52.9% against a target of 53% meaning that this indicator remains on target (green). All figures for 2025 to 2026 (2025 Calendar year) are still subject to verification by SEPA and will be confirmed in October. CP_29 Overall carbon emissions (tonnes) (Non-domestic Council estate) At Mid-Year, the Quarter 2 Overall carbon emissions (tonnes) (Non-domestic Council estate) was 3,313. This was a provisional figure and has since been confirmed as 3,030 by the service, which now has all available data to complete the calculation. There are no quarterly targets set for this indicator and the status remains unchanged (Data Only). CP_19 Proportion of operational buildings that are suitable for their current use (LGBF) The provisional figure for 2024 to 2025 was incorrectly reported as 95.4% rather than the correct figure of 95.2%. This has been updated within this report and the status is unaffected. Target Amendments - Education A recommendation to amend the 2025 to 2026 targets was agreed by Cabinet at Mid-Year. These have been made following the publication of confirmed 2024 to 2025 school leaver attainment data released in February 2026. The total tariff measure is based on a complex national calculation using leavers’ highest qualifications and attainment data, meaning an interim figure cannot be accurately calculated locally during the school year. As a result only confirmed annual data which becomes available through the national release in February can be used to inform targets. Therefor adjusting a target at March 2026 during the 2025 to 2026 academic year cannot be based on any internal information or data more recent than the 2024 to 2025 academic year. The proposed targets for Education are as follows: PI Description 2025 to 2026 Academic Year Original Target 2025 to 2026 Academic Year Proposed Target CP_37 Average total tariff score of pupils living in SIMD 20% most deprived areas 720 690 CP_06 Average tariff score: All Leavers 910 880 CP_38 Average total tariff for care experienced Young People 470 480 152
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 57 of 67 Actions Adrift of target This section details actions adrift of target and the measures being taken to address performance. Further details can be found in the Action Tracker section within this document. CP10 Increase the number of homes in the area through a mix of private and social developments and bringing empty buildings back in to use (Amber) This action has been noted as amber due to the linked performance indicator ‘CP_40 Number of new build housing units reaching completion’ not meeting its target. As discussed above, the number of new build housing units reaching completion was 431 against an annual target of 436. This indicator includes wider private sector development where our council has limited influence over the total number of completions achieved. The shortfall of five units reflects delivery across a number of sites, including some delays in completion. We exceeded our target for bringing empty homes back into use and will continue to monitor performance and work with partners to support delivery and improve performance in the coming year. 153
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 58 of 67 Performance Indicators PI Code and Description 2022-23 Value 2022-23 Target 2022-23 Status 2023-24 Value 2023-24 Target 2023-24 Status 2024-25 Value 2024-25 Target 2024-25 Status 2025-26 Value 2025-26 Target 2025- 26 Status 2026-27 Target CP_36 Number of residents participating in community learning and development activity including youth work 17,804 23,503 18,700 28,102 19,500 24,794 23,500 23,500 CP_04 Proportion of children meeting developmental milestones (LGBF) 79.5% 77.50% 79% 80% 79% Data Available May 2027 79% 79% CP_37 Average total tariff score of pupils living in SIMD 20% most deprived areas 670.2 664.3 714 681 720 Data Available March 2027 690 700 CP_06 Average tariff score: All Leavers 847.2 840.8 908 864.4 910 Data Available March 2027 880 890 CP_38 Average total tariff for care experienced Young People 411.5 355 465 508 470 Data Available March 2027 480 490 CP_07 % of school leavers entering positive destinations (LGBF) 96.5% 95.6% 96.4% 95.7% 96.8% Data Available February 2027 96.8% 96.20% PI Status Significantly Adrift of Target Slightly Adrift of Target On Target Data Not Available Data Only 154
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 59 of 67 PI Code and Description 2022-23 Value 2022-23 Target 2022-23 Status 2023-24 Value 2023-24 Target 2023-24 Status 2024-25 Value 2024-25 Target 2024-25 Status 2025-26 Value 2025-26 Target 2025- 26 Status 2026-27 Target CP_39b Number of unemployed people that have progressed to employment as a result of participation in council funded or operated employability activities 427 475 643 475 Data Available November 2026 450 475 CP_10a % of procurement spend on local enterprises 26.04% 25% 24.48% 26% 26.8% 27% Data Available June 2026 27% 27% CP_40 Number of new build housing units reaching completion (all tenures) (actual not cumulative) 562 384 295 371 396 431 436 407 CP_41 Number of empty homes brought back into use (actual) 120 378 200 375 300 432 350 400 CP_28 Hectares of vacant and derelict land in North Ayrshire 1,130 1,094 951 1,094 942 925 872 925 850 CP_27 Street Cleanliness Index - % Clean (LGBF)1 84.6 90 89.1 87 90.3% 87 89.7% 89 89% CP_20 Overall percentage of road network that should be considered for maintenance treatment 34.8% 33.8% 32.5% 34.8% 30.6% 32.5% Data Available September 2026 32% 32% CP_42 Provided floor space of commercial/industrial space within our council portfolio (sq. ft) 400,991 404,897 404,755 423,077 423,077 394,684 423,077 394,684 1 Sourced from the Local Environmental Audit and Management System (LEAMS) audit conducted by Keep Scotland Beautiful. 155
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 60 of 67 PI Code and Description 2022-23 Value 2022-23 Target 2022-23 Status 2023-24 Value 2023-24 Target 2023-24 Status 2024-25 Value 2024-25 Target 2024-25 Status 2025-26 Value 2025-26 Target 2025- 26 Status 2026-27 Target CP_02 % of council budget directed via participatory methods 2.74% 1% 2.05% 1.5% 1.97%. 1.5% 1.27% 1.5% 1.25% CP_43 Number of council assets under community management (cumulative) 49 53 54 55 56 57 57 59 CP_30 Total installed capacity of low carbon heat and electricity generation across our council's estate 12,104 11,800 15,992 12,000 17,630 28,499 30,230 30,137 31,000 CP_29 Overall carbon emissions (tonnes) (Non-domestic council estate) 20,896 21,000 20,745 19,500 20,333 19,953 17,229 19,824 16,519 CP_44a % of council dwellings that are energy efficient (Formerly known as SHSN05a) (LGBF)2 98.2 98.01 98.1 97.66 98.5 97.92 98.7 98.5% CP_45 Length of new or improved active travel routes per annum (Metres) 1,090 3,900 2,000 2,500 2,000 3,443 2,000 2,000 CP_46 Number of trees planted under the North Ayrshire 2030 Tree Planting Strategy No data No data No data 36,531 40,000 49,026 47,000 65,305 60,000 75,000 CP_19 Proportion of operational buildings that are suitable for their current use (LGBF)3 95.1% 93% 95.2% 92.1% 95.2% 93% 95.2% 93% 89% 2 LGBF reporting has paused on this indicator whilst EESSH2 is established therefore the values from 2022-23 onwards are provisional and sourced locally. 3 Data for 2025 to 2026 is provisional and will be confirmed upon the release of the LGBF data in September 2026 156
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 61 of 67 PI Code and Description 2022-23 Value 2022-23 Target 2022-23 Status 2023-24 Value 2023-24 Target 2023-24 Status 2024-25 Value 2024-25 Target 2024-25 Status 2025-26 Value 2025-26 Target 2025- 26 Status 2026-27 Target CP_31 % of total household waste that is recycled (calendar year as per SEPA) (LGBF)4 55.3% 56.9% 56.1% 57% 53% 56% 52.9% 53% 53% CP_25 % of council dwellings that meet the Scottish Housing Quality Standard (LGBF) 63.2% 76.9% 72.5% 94% 97.4% Data Available September 2026 97.57% 98.93% CP_47 Gross rent arrears (all tenants) as at 31 March each year as a percentage of rent due for the reporting year (LGBF) 7.1% 5.9% 6.5% 8% Data Available September 2026 7.0% 7.0% CP_48 % of income due from council tax received by the end of the year (LGBF) 94.7% 93.6% 94% 94% 98% Data Available September 2026 94% 94% 4 The 2025-26 value is a provisional figure and will be updated in the LGBF data release in October 2026. 157
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 62 of 67 Action Tracker The criteria to determine the status of an action is detailed within section 6.1.2 of Our Performance Management Strategy. Action Status Significantly Adrift of Target Slightly Adrift of Target On Target Ref # Existing Overall Action and Priority 2023-24 2023-24 2023-24 2024-25 2024-25 2024-25 2024-25 2025-26 2025-26 2025-26 2025-26 2026-27 2026-27 2026-27 2026-27 2027-28 2027-28 2027-28 2027-28 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 CP01 Ensuring that wellbeing is at the heart of local life and opportunities, with a focus on tackling inequalities (Wellbeing Priority). - - - - - - - - CP02 Developing a Community Wealth Building approach to a wellbeing economy (Wellbeing Priority). - - - - - - - - CP03 Improving educational attainment and achievement and closing the attainment gap (Wellbeing Priority). - - - - - - - - CP04 Improving outcomes for care experienced young people including implementation of The Promise (Wellbeing Priority). - - - - - - - - CP05 Developing the Young Workforce and ensuring positive destinations for school leavers (Wellbeing Priority). - - - - - - - - CP06 Providing lifelong learning opportunities for individuals and organisations, including digital literacy (Wellbeing Priority). - - - - - - - - CP07 Maximising access to and uptake of benefits, entitlements and financial advice (Wellbeing Priority). - - - - - - - - CP08 Ensuring that supports are available in communities to alleviate cost-of-living pressures through community hubs and networks (Wellbeing Priority). - - - - - - - - 158
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 63 of 67 5 Delivery of this action is managed through the Health and Social Care Partnership Strategic Plan Ref # Existing Overall Action and Priority 2023-24 2023-24 2023-24 2024-25 2024-25 2024-25 2024-25 2025-26 2025-26 2025-26 2025-26 2026-27 2026-27 2026-27 2026-27 2027-28 2027-28 2027-28 2027-28 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 CP09 Through our housebuilding programme and wider Housing Investment provide homes for life that meet the needs of our residents (Wellbeing Priority). - - - - - - - - CP10 Increase the number of homes in the area through a mix of private and social developments and bringing empty buildings back in to use (Wellbeing Priority). - - - - - - - - CP11 Exploration of models and the development of pilot schemes to increase access to and use of public/community transport (Wellbeing Priority). - - - - - - - - CP12 Ensure our places and spaces where we live, work and visit are well maintained and accessible (Wellbeing Priority). - - - - - - - - CP13 Developing infrastructure to support business growth (Wellbeing Priority). - - - - - - - - CP14 Support KA Leisure’s leadership of North Ayrshire’s Health and Wellbeing Alliance (Wellbeing Priority). - - - - - - - - CP15 Through the Health and Social Care Partnership Strategic Plan we will protect and provide care and support for those in need (Wellbeing Priority).5 - - - - - - - - - - - - - - - - CP16 Developing strong relationships with communities and partners based on trust and shared aspirations using their experiences to inform service provision (Communities and Local Democracy Priority). - - - - - - - - 159
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 64 of 67 Ref # Existing Overall Action and Priority 2023-24 2023-24 2023-24 2024-25 2024-25 2024-25 2024-25 2025-26 2025-26 2025-26 2025-26 2026-27 2026-27 2026-27 2026-27 2027-28 2027-28 2027-28 2027-28 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 CP17 Providing support for community organisations in achieving their goals, including as Community Wealth Building anchor organisations (Communities and Local Democracy Priority). - - - - - - - - CP18 Creating a participation and engagement framework which ensures opportunities and support for all residents to take part in influencing local democracy and council and partner strategies (Communities and Local Democracy Priority). - - - - - - - - CP19 Supporting participatory budgeting (Communities and Local Democracy Priority). - - - - - - - - CP20 Supporting community asset transfer and community owned and operated/managed assets (Communities and Local Democracy Priority). - - - - - - - - CP21 Supporting the Community Planning Partnership and the Community Plan (LOIP) (Communities and Local Democracy Priority). - - - - - - - - CP22 Developing partnerships with the third and voluntary sector (Communities and Local Democracy Priority). - - - - - - - - CP23 Placemaking, including creation of locality action plans based on the Community Plan (LOIP) priorities and support the delivery of Islands Plans (Communities and Local Democracy Priority). - - - - - - - - CP24 Ensuring an inclusive, fair, rights-based and asset-based approach in our work (Communities and Local Democracy Priority). - - - - - - - - 160
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 65 of 67 Ref # Existing Overall Action and Priority 2023-24 2023-24 2023-24 2024-25 2024-25 2024-25 2024-25 2025-26 2025-26 2025-26 2025-26 2026-27 2026-27 2026-27 2026-27 2027-28 2027-28 2027-28 2027-28 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 CP25 Accessible public services, both digitally and locally, ensuring a ‘No Wrong Door’ approach (Communities and Local Democracy Priority). - - - - - - - - CP26 Embedding our net-zero ambition in all democratic decision-making (Climate Change Priority). - - - - - - - - CP27 Reducing the carbon footprint of our estate through rationalisation utilising a locality-based approach and taking a fabric first and low carbon energy generation approach to homes and buildings (Climate Change Priority). - - - - - - - - CP28 Improving resilience and reducing carbon by developing and supporting supply chains where materials and goods are sourced locally (Climate Change Priority). - - - - - - - - CP29 Promoting new woodland creation and protecting our green spaces to provide a natural resource for carbon sequestration (Climate Change Priority). - - - - - - - - CP30 Supporting local businesses as they meet their climate change obligations (Climate Change Priority). - - - - - - - - CP31 Promoting a circular economy in North Ayrshire to reduce consumption of raw materials and promote reuse, repair and recycling, and generating energy from residual waste (Climate Change Priority). - - - - - - - - CP32 Developing local low carbon energy generation schemes and networks (Climate Change Priority). - - - - - - - - CP33 Unlocking the potential of community owned energy generation to bring new income streams into - - - - - - - - 161
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 66 of 67 Ref # Existing Overall Action and Priority 2023-24 2023-24 2023-24 2024-25 2024-25 2024-25 2024-25 2025-26 2025-26 2025-26 2025-26 2026-27 2026-27 2026-27 2026-27 2027-28 2027-28 2027-28 2027-28 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 communities and help them take direct action to combat climate change (Climate Change Priority). CP34 Learning for sustainability, and work with communities to adopt low carbon behaviour change and encourage climate-based volunteering activities (Climate Change Priority). - - - - - - - - CP35 Improving communities’ preparedness to deal with the impacts of climate change already locked-in (Climate Change Priority). - - - - - - - - CP36 Working with communities to adopt low carbon behaviour change and encourage climate-based volunteering activities (Climate Change Priority). - - - - - - - - CP37 Taking a nature-based approach to protect our habitats and species (Climate Change Priority). - - - - - - - - CP38 Developing and promoting active travel infrastructure (Climate Change Priority). - - - - - - - - CP39 Transitioning to low and zero carbon travel (Climate Change Priority). - - - - - - - - CP40 Ensuring robust governance arrangements are in place to fulfil our council’s statutory duties, manage risk and support delivery of key priorities (A Sustainable Council Priority). - - - - - - - - CP41 Using dynamic data and lived experiences to inform decision-making (A Sustainable Council Priority). - - - - - - - - 162
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 67 of 67 Ref # Existing Overall Action and Priority 2023-24 2023-24 2023-24 2024-25 2024-25 2024-25 2024-25 2025-26 2025-26 2025-26 2025-26 2026-27 2026-27 2026-27 2026-27 2027-28 2027-28 2027-28 2027-28 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 CP42 Working with partners nationally, regionally and locally to secure investment and target resources towards our priorities (A Sustainable Council Priority). - - - - - - - - CP43 Driving change and transformation, using technology where appropriate, to deliver efficient and effective services and support delivery of priorities (A Sustainable Council Priority). - - - - - - - - CP44 Maximising financial flexibilities to help support delivery of priorities (A Sustainable Council Priority). - - - - - - - - CP45 Maximising value from the use of our assets (A Sustainable Council Priority). - - - - - - - - CP46 Focusing our investment on priorities (A Sustainable Council Priority). - - - - - - - - CP47 Effective workforce planning ensuring that we have the right skills/resources to deliver priorities (A Sustainable Council Priority). - - - - - - - - 163
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Our Council Plan Progress Update – Year End 2025 to 2026 Page 68 of 67 For further information on this report please contact: Corporate Policy and Performance North Ayrshire Council Email: NorthAyrshirePerforms@north-ayrshire.gov.uk Tel: 01294 310000 164
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North Ayrshire Council Annual Performance Report 2025 to 2026 Appendix 2 165
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Welcome to our Annual Performance Report 2025 to 2026 This Annual Performance Report is the second annual report relating to Our Council Plan. Our Council Plan 2023 to 2028 was approved by Council in June 2023 following consultation with our residents. It is our joint plan, our contract with our communities, Our Council Plan. This report provides an at a glance summary of how we’ve supported our residents of North Ayrshire during 2025 to 2026. You can find full details in our magazine style Council Plan Progress Reports published on our website www.north-ayrshire.gov.uk. We are proud to serve our people of North Ayrshire and would like to say thank you to everyone who has supported the delivery of our services including our communities, third sector, public and private partnerships and of course our employees. Councillor Anthony Gurney Leader of the Council Craig Hatton Chief Executive Our Vision – A North Ayrshire that is fair for all. Our Mission – Working together to improve the lives of our people in North Ayrshire. Our four Council Plan priorities are interlinked and interdependent. 166
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2025 to 2026 About us Elected Members • 12 Scottish National Party (SNP) • 11 Labour Group Members (8 Scottish Labour Party and 3 Labour and Co-operative Party) • 5 Scottish Conservative and Unionist • 3 Independent • 2 Reform UK Employees • 6,401.78 Full Time Equivalent employees • 7,575 employees • 73.1% female • 26.81% male Key facts • Population: 134,010 (As at Mid-Year 2024) • 64,633 households • Life Expectancy: o Female: 79.7 years o Male: 75 years • 19,094 children and young people attend our schools and early years centres (including partner early years centres) • 18.0% of children in North Ayrshire live in poverty (after housing costs) • 70.3% of residents are in employment • 51.9% of our residents live in the most deprived Scottish Index of Multiple Deprivation areas Key assets include: • North Ayrshire is 886 sq.km (mainland is 441 sq.km and our islands are 445sq.km) • 225km coastline with beaches (including Sites of Special Scientific Interest (SSSI) • 42 Local Authority Early Years Provisions • 16 Partner Early Years Provisions • 49 Primary Schools • 8 Secondary Schools • 1 Additional Support Needs School • 1 Through School (Early Learning Centre, Primary and Secondary School combined) • 13,405 council homes • 1,057km carriageway • 1,035km footpaths • Approximately 26,223 streetlights • Over 275 Hectares of woodland • 30,230kW installed capacity of low carbon heat and electricity generation across our council’s estate 167
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Financial Overview Scottish Government General Grant £344.318m 72% Scottish Government Specific Grant, £7.448m 2% Non Domestic Rates, £42.871m 9% Council Tax £72.984m 15% Use of reserves £8.766m 2% Funding Corporate Services £21.953m 5% Education, £191.857m 40% Communities and Housing, £16.577m 3% Place £61.734m 13% HSCP £142.676m 30% Other Corporate Items £14.138m 3% Financing Costs £27.452m 6% Funding 168
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Our Performance This section highlights key areas we have delivered under each of the four priorities: ‘Wellbeing’, ‘Communities and Local Democracy’, ‘Climate Change’ and ‘A Sustainable Council’. Full details can be found in our six-monthly Council Plan Progress Reports on our website www.north-ayrshire.gov.uk. Wellbeing • During 2025 to 2026, our Money Matters team helped increase North Ayrshire residents’ income by more than £20 million. Work is underway to simplify access to benefits by embedding our ‘No Wrong Door’ approach, expanding cross-sector training, and reviewing progress to ensure support remains effective and joined-up. • Fairer Futures continued to develop through strong partnership with communities and the third sector, focusing on building trust, improving access to support, and embedding lived experience in service design and decision-making. • We strengthened our approach to tackling child poverty by developing new data insights with Smart Data Foundry to better identify financial hardship and enable more targeted support. • Training and a new child-friendly complaints process were introduced to embed children’s rights in everyday practice, supporting implementation of the UNCRC in Scotland. • An independent report highlighted strong progress in Community Wealth Building, supported by £3 million of Scottish Government funding, with the programme assisting over 1,000 local businesses and expanding opportunities to benefit from public sector investment. • The Equal employability service has been further embedded by its move to Lochshore Park, enhancing support for people with health conditions and disabilities through improved facilities and opportunities. • The Employability Awards celebrated over 140 nominations, recognising the achievements of participants building skills and confidence, while showcasing diverse career pathways and introducing a new excellence award. • Strong progress has been made in delivering new and affordable homes through an expanded housing investment programme, increasing targets and advancing key developments to meet local housing need. 431 homes have been completed during 2025 to 2026. • Efforts to reduce empty homes have been strengthened, with 432 properties brought back into use and continued support offered to owners to increase housing supply within communities. • Ongoing investment in existing council homes is improving safety, comfort and energy efficiency, helping to reduce costs for tenants while informing long-term housing and sustainability plans. • Tenant engagement and performance scrutiny remain strong, with high satisfaction levels and ongoing improvements informed by tenant feedback, inspections and targeted action plans through to 2028. • External funding totalling over £3 million has been secured to support housing delivery and regeneration, enabling new homes, improved retail provision and investment in key community sites. • Strong progress has been made across Local Housing Strategy priorities, delivering new homes, improving affordability and choice, advancing energy efficiency, and enhancing the quality of housing and neighbourhoods through regeneration and investment programmes. 169
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Communities and Local Democracy • 431 adults and 1,955 of our young people gained recognised national awards. • Participatory Budgeting funding of over £204,000 attracted strong community interest, with 324 nominations received and a significant number progressing across youth, locality and community wealth building projects. • Proposals from the locality planning review are being implemented across all six localities following Cabinet approval in May. This will help strengthen participation in local democracy. • The Champions Board Conference brought together care-experienced young people to share their views, build connections and help shape future activity, strengthening the council’s commitment to keeping The Promise. • Co-design with communities and third sector partners continues to strengthen trust and relationships, with practical improvements such as community connector roles and a shared services directory enhancing access to support. • Over £800,000 of funding has been secured in partnership with the Scottish Government’s Islands Programme to support key projects on Arran, enhancing community facilities and infrastructure in line with national priorities. • Our Connected Communities service is supporting residents to improve their English skills, build confidence and overcome communication barriers through tailored learning and supportive the Big Class programme sessions. Climate Change • The 7.560MW Nethermains Solar Farm has now moved into the Operation and Maintenance Phase following the works completion certificate being issued in January 2026. • The 5.344MW Shewalton Solar PV Farm was commissioned on 6 March 2026. An official opening is expected to take place in the coming months. • A tree planting exercise was completed in January with a total of 8,050 trees planted, over 65,000 to date, further supporting our Tree Planting and Nature Network strategies. • A gas pumping trial was successfully held on the Nethermains site throughout January - February 2026. The trials were successful with a decision pending on whether to proceed with the gas recovery works. • Phase Two of the CNI solar project is underway on Cumbrae, supporting 130 homes with renewable energy solutions to reduce carbon emissions and fuel poverty while delivering wider community benefits. • Work is ongoing to identify new low carbon energy opportunities, including community ownership models, while supporting local groups through the Community Renewable Energy Generation Fund. • The Area Based Scheme continues to progress, delivering energy efficiency improvements and expanding to new areas to help reduce fuel poverty and support low carbon heating. • The ECO4 Flex partnership has delivered over £1 million in external funding, supporting 48 households with energy efficiency improvements and low carbon heating measures. • Strong collaboration has supported local suppliers to secure contracts worth £32 million over the year, reinforcing the council’s commitment to sustaining the local economy and resilient supply chains. • We continue to deliver strong recycling performance, exceeding targets, ranking among the top- performing councils in Scotland, and gaining national recognition for improvement. • Climate and energy learning has been expanded across schools, building knowledge, skills and engagement among pupils, staff and council climate champions to support practical climate action. 170
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• To help ensure wider participation, an online platform has been developed in-house, enabling residents who are unable to attend Climate Workshops to share their views on climate action. • Community engagement is supporting the development of Community Climate Action Plans, with mapping and digital tools helping residents shape local priorities and actions. • All planned sustainability and volunteering activities were delivered, supporting community engagement and securing an £80,000 funding application to expand future climate and youth engagement initiatives. • Nature-based improvements and biodiversity activity have been strengthened through partnership working, investment, and community-led projects, enhancing local environments and supporting conservation across North Ayrshire. • Investment in active travel infrastructure, supported by Levelling Up Fund funding, is improving walking and cycling routes, enhancing accessibility, and expanding sustainable travel opportunities across North Ayrshire. • Enhancements to public transport infrastructure have improved accessibility and reliability, including the installation of real-time information and upgraded bus stops and shelters. • The Travel Smart Programme continues to promote behaviour change through targeted engagement and practical initiatives, encouraging greater use of active and sustainable travel options. A Sustainable Council • North Ayrshire Council’s scheduled Controller of Audit (Section 102) Best Value report was considered by the Accounts Commission in October and Council in December. The findings are extremely positive, highlighting a culture of continuous improvement, a proactive focus on addressing inequalities in our communities and stating the council is “an exemplar of how to do transformation well”. • Budget engagement activity generated strong community input, with over 1,100 responses helping to shape a £485 million budget, including investment in renewable energy and measures to reduce child poverty. • Significant external funding, including over £1.5 million from the Vacant and Derelict Land Fund, £376,535 for council-led projects and £397,000 for community groups through UKSPF, alongside £1.5 million for Pride in Place, is supporting regeneration and community development across North Ayrshire. • Progress continues on property rationalisation, with construction underway on a new customer service centre and plans in place to consolidate services into Cunninghame House to support efficiency and regeneration. • Following the approval of the Generative AI Policy by Cabinet providing clear guidance for employees, a trail is underway to test additional functionality. • The Smart Infrastructure Pilot Project and wider digital programmes have progressed into delivery, providing real-time data insights, strengthening digital connectivity and skills, and supporting economic growth through significant investment and collaboration across Ayrshire. Next Steps Next steps for the following six months are included in our six monthly Council Plan Progress Reports on our website www.north-ayrshire.gov.uk. How do we compare? You can discover how our performance compares to other Scottish local authorities through the national Local Government Benchmarking Framework online tool or through our LGBF Report published within our Year End reporting on our website www.north-ayrshire.gov.uk. 171
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We strive to make our reporting as accessible as possible. If you have any questions or require further information on our council’s performance please contact: The Corporate Policy and Performance Team Tel: 01294 310000 Email: NorthAyrshirePerforms@north-ayrshire.gov.uk Reports can be viewed at: Council Performance (north-ayrshire.gov.uk) 172
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Local Government Benchmarking Framework Analysis of April 2026 Data Release Appendix 3 173
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Contents Introduction .............................................................................................................................................. 1 LGBF Priority Indicators ............................................................................................................................ 2 People Services .................................................................................................................................. 7 Other Services ................................................................................................................................. 19 174
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 1 of 31 Introduction The Local Government Benchmarking Framework (LGBF) provides an opportunity to benchmark our performance with other local authorities in Scotland. It is administered by the Improvement Service in partnership with the Society of Local Authority Chief Executives (SOLACE) and highlighted within the Accounts Commission’s Statutory Performance Information Direction 2024 which defines how local authorities should demonstrate they are achieving Best Value for the people they serve. We have identified 33 indicators that closely link to the priorities within our Council Plan. Data for these indicators is released in phases during the year. Areas such as CO2 emissions, Gross Value Added and claimant count are included as priority indicators as they are monitored by our council to reflect our operating environment, though we have limited influence on these areas directly. This section demonstrates our relative performance for these indicators as at the April 2025 data release. This information alongside the LGBF Dashboard enables us to learn from others to improve services for our residents. For comparison, local authorities are divided into quartiles dependent on their overall ranking for each indicator. As at April 2026, 20 of our 33 priority indicators are in the top two quartiles. Top quartile performance includes areas such as proportion of pupils entering positive destinations, CO2 emissions area wide per capita and percentage of unemployed people assisted into work from council programmes In the short term (most recent one year period available), 24 of our 33 priority indicators have shown improvement in performance, whereas seven have demonstrated a reduction in performance and two have stayed the same. Some of the indicators which have improved are proportion of children meeting developmental milestones, immediate available employment land as a percentage of total land allocated for employment purposes and proportion of Social Welfare Fund (SWF) Community Care Grant decisions within 15 days. Those that have declined in performance include proportion of people earning less than the living wage, proportion of the highest paid 5% of employees who are women and claimant count as percentage of 16-24 population. The following is a breakdown of the priority indicators within the context of family groups. Family groups enable local authorities to make as close to a like for like comparison as possible with other councils by grouping those with similar traits depending on the indicator. Grouping is based on levels of deprivation (people services) or rurality (other services). We align our LGBF analysis to the family groups used within the LGBF Dashboard. Currently these are: Peoples Services (Deprivation) • North Ayrshire Council • Comhairle nan Eilean Siar • Dundee City Council • East Ayrshire Council • North Lanarkshire Council • Inverclyde Council • West Dunbartonshire Council • Glasgow City Council Other Services (Rurality) • North Ayrshire Council • Perth and Kinross • Stirling Council • Moray Council • South Ayrshire Council • East Ayrshire Council • East Lothian Council • Fife Council 175
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 2 of 31 LGBF Priority Indicators The table below displays the short term (or prior year) comparison of the performance, rank and quartile for the 33 priority LGBF indicators. To assess performance, the terms ‘improved’ or ‘declined’ are used in this report. This terminology is used as for some indicators a value increasing is improved performance however for other indicators, a value increasing is declined performance. Each indicator is linked to a chart later in the document for more information. In summary, of the 33 indicators over the short term: • Performance has improved for 24 (72.7%), declined for 7 (21.2%) and stayed the same for 2 (6.1%). • Rank has improved for 19, declined for 10, and stayed the same for 4. • Quartile has improved for 12 declined for 3 and stayed the same for 18. Key Improved Stayed the same Declined Performance Rank Quartile LGBF Priority Indicator Most recent year available Previous year’s data Most recent data Data improve / decline Prior year rank Most recent rank Rank improve / decline Previous year’s quartile Most recent quartile Quartile improve / decline CHN11 - Proportion of pupils entering positive destinations (CP_07) 2024 to 2025 95.6% 95.7% 19 16 3 2 CHN – 17 Proportion of Children meeting developmental milestones (CP_04) 2024 to 2025 77.4% 80% 32 28 4 4 176
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 3 of 31 Performance Rank Quartile LGBF Priority Indicator Most recent year available Previous year’s data Most recent data Data improve / decline Prior year rank Most recent rank Rank improve / decline Previous year’s quartile Most recent quartile Quartile improve / decline CHN24 - Proportion of children living in poverty (after housing costs) 2024 to 2025 18.1% 18.0% 31 31 4 4 CLIM01 - CO2 emissions area wide per capita 2023 to 2024 4.56 4.04 20 15 3 2 CLIM02 - CO2 emissions area wide: emissions within scope of LA per capita 2023 to 2024 4.90 4.38 22 18 3 3 CLIM03 - CO2 emissions from Transport per capita 2024 to 2025 29.51 27.29 22 17 3 3 CLIM04 - CO2 emissions from electricity per capita 2024 to 2025 45.78 46.53 17 24 3 3 CLIM05 - CO2 emissions from natural gas per capita 2024 to 2025 72.11 68.69 25 25 4 4 CORP03b - Proportion of the highest paid 5% of employees who are women 2024 to 2025 64.0% 63.9% 4 6 1 1 CORP3c – Gender Pay Gap 2024 to 2025 0.0% 0.3% 7 13 1 2 CORP07 - Percentage of income due from Council Tax received by the end of the year (CP_48) 2024 to 2025 93.6% 94.0% 30 26 4 4 CORP08 - Percentage of invoices sampled that were paid within 30 days 2024 to 2025 95.8% 96.4% 6 7 1 1 177
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 4 of 31 Performance Rank Quartile LGBF Priority Indicator Most recent year available Previous year’s data Most recent data Data improve / decline Prior year rank Most recent rank Rank improve / decline Previous year’s quartile Most recent quartile Quartile improve / decline CORP09 - Proportion of SWF Crisis Grant decisions within 1 day 2024 to 2025 99.2% 99.2% 9 14 2 2 CORP10 - Proportion of SWF Community Care Grant decisions within 15 days 2024 to 2025 99.1% 99.2% 10 9 2 2 CORP-ASSET01 - % of operational buildings that are suitable for their current use (CP_19) 2024 to 2025 95.2% 95.2% 6 7 1 1 ECON01 - Percentage of Unemployed People Assisted into work from Council Programmes 2024 to 2025 19.0% 23.0% 8 4 1 1 ECON04 - Proportion of procurement spent on local enterprises 2024 to 2025 23.9% 26.8% 19 18 3 3 ECON05 - No of business gateway start-ups per 10,000 population 2025 to 2026 12.3 13.1 25 24 4 3 ECON07 - Proportion of people earning less than the living wage 2024 to 2025 10.7% 10.9% 9 6 2 1 ECON09 - Town Vacancy Rates 2024 to 2025 7.8% 7.2% 6 7 1 1 ECON10 - Immediate available employment land as a % of total land allocated for employment purposes 2024 to 2025 42.7% 44.5% 9 5 2 1 178
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 5 of 31 Performance Rank Quartile LGBF Priority Indicator Most recent year available Previous year’s data Most recent data Data improve / decline Prior year rank Most recent rank Rank improve / decline Previous year’s quartile Most recent quartile Quartile improve / decline ECON11 - Gross Value Added (GVA) per capital 2023 to 2024 £20,301 £20,887 26 25 4 4 ECON12a - Claimant Count as a % of Working Age Population 2025 to 2026 4.2% 4.1% 31 31 4 4 ECON12b - Claimant Count as % of 16-24 Population 2025 to 2026 5.5% 5.8% 32 32 4 4 ENV03c - Street Cleanliness Score (CP_27) 2024 to 2025 89.1% 90.3% 24 20 3 3 ENV04b - Percentage of A class roads considered for maintenance treatment 2024 to 2025 28.9% 26.7% 21 13 3 2 ENV04c - Percentage of B class roads considered for maintenance treatment 2024 to 2025 27.4% 25.5% 13 7 2 1 ENV04d - Percentage of C class roads considered for maintenance treatment 2024 to 2025 38.5% 36.8% 26 23 4 3 ENV04e - Percentage of unclassified roads considered for maintenance treatment 2024 to 2025 32.4% 30.5% 11 7 2 1 ENV06 - Proportion of total household waste arising that is recycled (CP_31) 2024 to 2025 56.1% 53.0% 4 9 1 2 HSN01b - Gross rent arrears (all tenants) as a percentage of rent due for the year (CP_47) 2024 to 2025 7.5% 8.0% 7 14 1 2 179
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 6 of 31 Performance Rank Quartile LGBF Priority Indicator Most recent year available Previous year’s data Most recent data Data improve / decline Prior year rank Most recent rank Rank improve / decline Previous year’s quartile Most recent quartile Quartile improve / decline HSN03 - Proportion of council dwellings meeting Scottish Housing Quality Standards (CP_25) 2024 to 2025 76.9% 94.0% 16 3 2 1 HSN05a - Proportion of council dwellings that are energy efficient (CP_44) 2021 to 2022 97.6% 97.7% 2 2 1 1 180
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 7 of 31 People Services The table below displays the short – term, medium term and long term comparisons against our current year for our 15 People Services family group indicators. When 10 full recording periods were not available the most historical figure has been used for the long term comparison. Each indicator is linked to a chart later in the document for more information. In summary, of the 15 indicators over the short, medium and long term. • Short Term Family Group Rank – 8 (53.3%) Improved, 4 (26.6%) declined 3 (20%) and stayed the same • Medium Term Family Group Rank – 6 (40%) Improved, 7 (46.6%) declined and 2 (13.3%) stayed the same • Long Term Family Group Rank – 4 (26.6%) Improved, 8 (53.3%) declined and 3 (20%) stayed the same Short Term, Medium Term and Long Term Comparisons for our People Services Family Group Current Year Short Term Comparison Medium Term Comparison Long term Comparison LGBF Indicators Peoples Services Year Rank Year Rank Rank improve / decline Year Rank Rank improve / decline Year Rank Rank improve / decline CHN11 - Proportion of pupils entering positive destinations 2024 to 2025 16 2023 to 2024 19 2021 to 2022 15 2014 to 2015 6 CHN17 - Percentage of children meeting development milestones 2024 to 2025 28 2023 to 2024 32 2021 to 2022 28 2014 to 2015 13 CHN24 - Proportion of Children Living in Poverty After Housing Costs 2024 to 2025 31 2023 to 2024 31 2021 to 2022 31 2014 to 2015 31 181
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 8 of 31 ECON1 - Percentage of Unemployed People Assisted into work from Council Programmes 2024 to 2025 4 2023 to 2024 8 2021 to 2022 12 2014 to 2015 8 ECON12a - Claimant Count as a percentage of working age population 2025 to 2026 31 2024 to 2025 31 2022 to 2023 30 2015 to 2016 32 ECON12b - Claimant Count as a percentage of 16-24 population 2025 to 2026 32 2024 to 2025 32 2022 to 2023 31 2015 to 2016 32 ECON7 - Proportion of people earning less than the living wage 2024 to 2025 6 2023 to 2024 9 2020 to 2021 12 2013 to 2014 25 ECON9 - Town Vacancy Rates 2024 to 2025 7 2023 to 2024 6 2021 to 2022 18 2014 to 2015 6 ENV3c - Street Cleanliness Score 2024 to 2025 20 2023 to 2024 24 2021 to 2022 27 2014 to 2015 22 HSN1b - Gross Rent Arrears (All Tenants) as a Percentage of rent due for the year 2024 to 2025 14 2023 to 2024 7 2021 to 2022 7 2014 to 2015 3 HSN3 - Proportion of Council dwellings meeting Scottish Housing Quality Standards 2024 to 2025 3 2023 to 2024 16 2021 to 2022 21 2014 to 2015 3 182
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 9 of 31 HSN5a - Proportion of council dwellings that are energy efficient 2021 to 2022 4 2020 to 2021 2 2018 to 2019 1 2015 to 2016 3 CORP7 - Percentage of income due from Council Tax received by the end of the year 2024 to 2025 26 2023 to 2024 30 2021 to 2022 31 2014 to 2015 24 CORP9 - Percentage of Scottish Welfare Fund Crisis Grant decisions within one day 2024 to 2025 14 2023 to 2024 9 2021 to 2022 8 2018 to 2019 7 CORP10 - Percentage of Scottish Welfare Fund Community Care Grant decisions in 15 days 2024 to 2025 9 2023 to 2024 10 2021 to 2022 5 2018 to 2019 6 183
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 10 of 31 (Please note, axis scales used within the following charts vary to ensure trends are visible.) CHN11 – Proportion of pupils entering positive destinations At the end of the 2024 to 2025 academic session, 95.7% of the 1,396 school leavers identified by Skills Development Scotland for North Ayrshire have moved to positive post-school destinations. As in previous years most school leavers, 72.6%, continue into Further and Higher Education. This time, the percentage moving into Higher Education courses (37%) has exceeded those who moved into Further Education (35.5%). This has previously happened during the pandemic and two post- pandemic years. Within our family group we are currently 3rd below Inverclyde Council (96.4%) and Eilean Siar Council (96.1%). This places us 16th in the overall rankings and within the 2nd quartile. CHN17 – Percentage of children meeting developmental milestones The percentage of children meeting developmental milestones for 2024 to 2025 was 80%. We are currently 5th within our family group below Inverclyde Council (87%), Eilean Siar Council (84.5%), North Lanarkshire Council (82.5%) and Dundee City Council (81.6%) and above West Dunbartonshire 184
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 11 of 31 Council (78.6%) and East Ayrshire Council (78.5%). Our relative position is 28 which places us within the 4th quartile. Locally we have exceeded our target of 79%. CHN24 – Proportion of Children Living in Poverty After Housing Costs Trend data should be interpreted with caution as the Scottish and UK Governments introduced a new, more accurate methodology for measuring household income in 2023 to 2024 (published in 2026 – this is represented by the purple vertical line on the chart). Across Scotland, percentage rates have decreased in line with the national trend as a direct result of this improved approach. However, the new methodology has not resulted in a new indicator within the LGBF, meaning the methodology is not consistent over the years and trend is significantly skewed as a result. For the first time, the data now combines survey responses with linked Department for Work and Pensions (DWP) administrative records, addressing well known issues of under reporting of benefit income in the Family Resources Survey. This results in a more accurate picture of household incomes, particularly for low-income families. However, the new methodology appears to have had a more pronounced effect in areas like North Ayrshire, where there are higher rates of economic inactivity and therefore greater reliance on social security. Currently 18% (2024 to 2025) of children are living in poverty after housing costs with only one authority, Glasgow City Council 23.3% with higher rates within our family group (and nationally). We currently sit lower than both our Family Group Average (16.7%) and the National Average (14.8%) and remain in the 4th Quartile. 185
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 12 of 31 ECON1 – Percentage of Unemployed People Assisted into work from Council Programmes The percentage of unemployed people assisted into work from Council Programmes for 2024 to 2025 is 23%. This places us 3rd in our family group behind Eilean Siar Council (60%) and North Lanarkshire Council (23.7%), 4th in the overall rankings and within the 1st quartile. The “Your Next Move Working North Ayrshire” programme provides lifelong learning opportunities for individuals who access this service to support them to prepare and progress to employment. In addition to the continuing support delivered as part of Your Next Move Working North Ayrshire which includes the Equal Programme, Modern Apprenticeships, Skills for Life, Ambition Agreements, Criminal Justice Mentors, CEiS Ayshire, We Work for Families, TACT: Positive Pathways and Barnardos additional provision will also be delivered by partners including SAMH, Streetleague, Impact Arts, Salvation Army, Ayrshire Chamber of Commerce, Maritime Museum, Beith Trust, Hub International and Ko-Next ensuring more opportunities are available to engage more unemployed individuals and support their progression to a positive destination. 186
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 13 of 31 ECON12a – Claimant Count as a percentage of working age population The claimant count as a percentage of working age population for North Ayrshire Council was 4.1%. This places us second lowest within our family group above only Glasgow City Council (4.8%). Our relative position is 31 above only Glasgow City Council. This places us within the 4th quartile. ECON12b - Claimant Count as a percentage of 16-24 population The claimant count as a percentage of 16-24 population for North Ayrshire was 5.8%. This means we are least well performing of our family group rankings and 32nd in the relative position. This places us within the 4th quartile. 187
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 14 of 31 ECON7 – Proportion of people earning less than the living wage The proportion of people earning less than the living wage for 2024 to 2025 was 10.9%. This places us second within our family group behind only Glasgow City Council (10.4%). This means we are 6th in the overall rankings and within the 1st quartile. ECON9 – Town Vacancy Rates Our town vacancy rates for 2024 to 2025 was 7.2%. This places us 3rd in the family group rankings behind Eilean Siar Council (5.5%) and Inverclyde Council (6.1%). This means we are 7th in the overall rankings and within the 1st quartile. 188
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 15 of 31 ENV3c – Street Cleanliness Score Our street cleanliness score for 2024 to 2025 was 90.3%. This means we are fourth in our family group rankings behind East Ayrshire Council (92.6%), Eilean Siar Council (92.4%) and Inverclyde Council (91.1%). This places us 20th in the overall rankings and within the 3rd quartiles. HSN1b – Gross Rent Arrears (All Tenants) as a Percentage of rent due for the year Our gross rent arrears (all tenants) as a percentage of rent due for the year was 8% for 2024 to 2025. This places us second least well performing of our family group ahead of West Dunbartonshire Council (8.8%). This means we are 14th in the overall rankings and within the 2nd quartile. 189
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 16 of 31 HSN3 – Proportion of Council dwellings meeting Scottish Housing Quality Standards The proportion of Council dwellings meeting Scottish Housing Quality Standards for 2024 to 2025 was 94%. This means we are 2nd in our family group behind East Ayrshire Council (98.2%). This places us 3rd in the overall rankings and within the 1st quartile. HSN5a – Proportion of council dwellings that are energy efficient The proportion of council dwellings that are energy efficient for 2021 to 2022 was 97.7%. This places us 2nd in our family group behind East Ayrshire Council (99.5%). This means we are 4th within the overall rankings and within the 1st quartile. 190
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 17 of 31 CORP7 – Percentage of income due from Council Tax received by the end of the year The percentage of income due from Council Tax received by the end of year was 94% for 2024 to 2025. This means we are 4th in the family group rankings behind East Ayrshire Council (94.9%), Inverclyde Council (94.8%) and North Lanarkshire Council (94.5%). This means that we are 26th in the overall rankings and within the 4th quartile. The reported performance represents an improvement from the previous year. However, underlying performance continues to remain below pre-pandemic levels. Collection activity in relation to Council Tax debt continues, with the achievement of budgeted recovery levels forecast over the medium term. As detailed in the Mid-Year 2025 to 2026 Progress Report, we continue to support residents throughout the year through repayment plans and where required through directing residents to other money advice supports available. Ongoing encouragement for residents to use the direct debit payment method should help improve collection levels in future. 191
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 18 of 31 CORP9 – Percentage of Scottish Welfare Fund Crisis Grant decisions within one day The percentage of Scottish Welfare Fund Crisis Grant decision within one day was 99.2% for 2024 to 2025. This places us 4th in the family group rankings behind Eilean Siar Council (although there appears to be an error as their percentage is showing as 101.7%), Inverclyde Council (99.7%) and East Ayrshire Council (99.6%). This means we are 14th in the overall rankings and within the 2nd quartile. CORP10 – Percentage of Scottish Welfare Fund Community Care Grant decisions in 15 days The percentage of Scottish Welfare Fund Community Care Grant decisions in 15 days was 99.2%. This places us 2nd in our family group rankings behind Inverclyde Council (99.6%), 9th in the overall rankings and within the 2nd quartile. 192
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 19 of 31 Other Services The table below displays the short – term, medium term and long term comparisons against our current year for our 18 Other Services family group indicators. When 10 full recording periods were not available the most historical figure has been used for the long term comparison. Each indicator is linked to a chart later in the document for more information. In summary, of the 18 indicators over the short, medium and long term. • Short Term Family Group Rank – 11 (61.1%) Improved, 6 (33.3%) declined and 1 (5.5%) stayed the same. • Medium Term Family Group Rank – 13 (72.2%) Improved, 4 (22.2%) declined and 1 (5.5%) stayed the same. • Long Term Family Group Rank – 13 (72.2%) Improved, 4 (22.2%) declined and 1 (5.5%) stayed the same. Short Term, Medium Term and Long Term Comparisons for our Other Services Family Group Current Year Short Term Comparison Medium Term Comparison Long term Comparison LGBF Indicators Other Services Year Rank Year Rank Rank improve / decline Year Rank Rank improve / decline Year Rank Rank improve / decline CLIM1 – CO2 emissions area wide per capita 2023 to 2024 15 2022 to 2023 20 2020 to 2021 19 2013 to 2014 19 CLIM2 – CO2 emissions area wide: emissions within scope of Local Authority per capita 2023 to 2024 18 2022 to 2023 22 2020 to 2021 19 2013 to 2014 23 CLIM3 -CO2 emissions from transport per 1000 population 2024 to 2025 17 2023 to 2024 22 2021 to 2022 23 2017 to 2018 24 193
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 20 of 31 Short Term, Medium Term and Long Term Comparisons for our Other Services Family Group Current Year Short Term Comparison Medium Term Comparison Long term Comparison LGBF Indicators Other Services Year Rank Year Rank Rank improve / decline Year Rank Rank improve / decline Year Rank Rank improve / decline CLIM4 – CO2 emissions from electricity per 1000 population 2024 to 2025 24 2023 to 2024 17 2021 to 2022 21 2017 to 2018 16 CLIM5 – CO2 emissions from natural gas per 1000 population 2024 to 2025 25 2023 to 2024 25 2021 to 2022 24 2017 to 2018 27 ECON10 – Immediate available employment land as percentage of total land allocated for employment purposes 2024 to 2025 5 2023 to 2024 9 2021 to 2022 11 2014 to 2015 26 ECON11 – Gross value added (GVA) per capita 2023 to 2024 25 2022 to 2023 26 2020 to 2021 25 2013 to 2014 26 ECON5 – No of business gateway start – ups per 10,000 population 2024 to 2025 24 2023 to 2024 25 2021 to 2022 29 2014 to 2015 14 ECON4 – Proportion of procurement spent on local enterprises 2024 to 2025 18 2023 to 2024 19 2021 to 2022 24 2014 to 2015 26 194
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 21 of 31 Short Term, Medium Term and Long Term Comparisons for our Other Services Family Group Current Year Short Term Comparison Medium Term Comparison Long term Comparison LGBF Indicators Other Services Year Rank Year Rank Rank improve / decline Year Rank Rank improve / decline Year Rank Rank improve / decline ENV4b - Percentage of A class roads considered for maintenance treatment 2024 to 2025 13 2023 to 2024 21 2021 to 2022 26 2014 to 2015 27 ENV4c - Percentage of B class roads considered for maintenance treatment 2024 to 2025 7 2023 to 2024 13 2021 to 2022 17 2014 to 2015 18 ENV4d - Percentage of C class roads considered for maintenance treatment 2024 to 2025 23 2023 to 2024 26 2021 to 2022 28 2014 to 2015 30 ENV4e - Percentage of unclassified roads considered for maintenance treatment 2024 to 2025 7 2023 to 2024 11 2021 to 2022 15 2014 to 2015 17 ENV6 – Percentage of total household waste arising that is recycled 2024 to 2025 9 2023 to 2024 4 2021 to 2022 2 2014 to 2015 2 CORP3b – Percentage of the highest paid 5% of employees who are women 2024 to 2025 6 2023 to 2024 4 2021 to 2022 9 2014 to 2015 6 195
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 22 of 31 Short Term, Medium Term and Long Term Comparisons for our Other Services Family Group Current Year Short Term Comparison Medium Term Comparison Long term Comparison LGBF Indicators Other Services Year Rank Year Rank Rank improve / decline Year Rank Rank improve / decline Year Rank Rank improve / decline CORP3c – Gender Pay Gap 2024 to 2025 5 2023 to 2024 1 2021 to 2022 6 2015 to 2016 8 CORP8 – Percentage of invoices sampled that were paid within 30 days 2024 to 2025 7 2023 to 2024 6 2021 to 2022 4 2014 to 2015 14 CORP-ASSET1 – Percentage of operational buildings that are suitable for their current use 2024 to 2025 7 2023 to 2024 6 2021 to 2022 11 2014 to 2015 5 196
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 23 of 31 (Please note, axis scales used within the following charts vary to ensure trends are visible.) CLIM1 – CO2 emissions area wide per capita Our CO2 emissions area wide per capita was 4.04 tCO2e. This places us 3rd in the family group rankings behind East Ayrshire Council (3.46 tCO2e) and Stirling Council (3.85 tCO2e). This means we are 15th in the overall rankings and within the 2nd quartile. CLIM2 – CO2 emissions area wide: emissions within scope of local authority per capita Our CO2 emissions area wide within scope of our local authority per capita was 4.38 tCO2e for 2023 to 2024. This places us 3rd in our Family Group behind East Ayrshire Council (3.91 tCO2e) and East Lothian Council (4.06 tCO2e). This means we are 18th in the overall rankings and within the 3rd quartile. 197
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 24 of 31 CLIM3 -CO2 emissions from transport per 1000 population CO2 emissions from transport per 1000 population for 2024 to 2025 was 27.29 tCO2e. This places North Ayrshire Council 3rd in the family group behind East Lothian Council (9.52 tCO2e) and Stirling Council (3.85 tCO2e). Meaning we are 17th in the overall rankings and within the 3rd quartile. CLIM4 – CO2 emissions from electricity per 1000 population CO2 emissions from electricity per 1000 population for 2024 to 2025 was 46.53 tCO2e. This places us as least well performing of the family group, 24th in the overall relative position and within the 4th quartile. 198
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 25 of 31 CLIM5 – CO2 emissions from natural gas per 1000 population CO2 emissions from natural gas per 1000 population for 2024 to 2025 is 68.69 tCO2e. This places us as least well performing of the family group and 24th in the overall relative position and within the 4th quartile ECON10 – Immediate available employment land as percentage of total land allocated for employment purposes Our immediate available employment land as percentage of total land allocated for employment purposes for 2024 to 2025 was 44.5%. This places us top of our family group. This means we are 5th in the overall rankings and within the 1st quartile. 199
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 26 of 31 ECON11 – Gross value added (GVA) per capita The Gross value added (GVA) per capita for 2023 to 2024 was £20,887. This places us 3rd least well performing of our family group ahead of only East Lothian Council (£18,742) and East Ayrshire Council (£18,003). This means we are 25th in the overall rankings and within the 4th quartile. ECON5 – No of business gateway start–ups per 10,000 population The number of business gateways start – ups per 10,000 population was 13.1. North Ayrshire Council is currently 4th with East Lothian Council (12.0), South Ayrshire Council (11.4) and Moray Council (7.6) ranking below us. This means we are 24th in the overall rankings and within the 3rd quartile. 200
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 27 of 31 ECON4 – Proportion of procurement spent on local enterprises The proportion of procurement spent on local enterprises for 2024 to 2025 was 26.8%. This places us third in our family group rankings and 18th in the overall rankings (3rd quartile). This is a different indicator to CP_10a “% of procurement spend on local enterprises” within our Council Plan performance framework which captures all spend including under £1,000 however it also sits at 26.8% for the same period. ENV4b - Percentage of A class roads considered for maintenance treatment Our percentage of A class roads considered for maintenance treatment for 2024 to 2025 was 26.7%. This places us third within our family group behind East Ayrshire Council (17.7%) and South Ayrshire Council (23.4%). We are 13th in the overall rankings and within the 2nd quartile. Since the baseline year (2010 to 2011), we have seen a positive change in performance from 46.7% to 26.7% moving from 31st in the overall rankings in 2010 to 2011 to 13th as at the most recent data release. 201
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 28 of 31 ENV4c - Percentage of B class roads considered for maintenance treatment Our percentage of B class roads considered for maintenance was 25.5% for 2024 to 2025. This places us 3rd within our family group behind Moray Council (20.5%) and East Ayrshire Council (25.2%). This means we are 7th in the overall rankings and within the 1st quartile. Similarly to our A class roads considered for maintenance treatment, our B class roads considered for maintenance treatment have also seen improvement from the baseline year (2010 to 2011) moving from 46.1% to 25.5%. This represents a change in the overall rankings from 29th in 2010 to 2011 to 7th in 2024 to 2025. ENV4d - Percentage of C class roads considered for maintenance treatment Our percentage of C class roads considered for maintenance treatment for 2024 to 2025 was 36.8%. This places us 3rd least well performing of our family group ahead of South Ayrshire Council (37.6%) and Stirling Council (39.5%). This means we are 23rd in the overall rankings and within the 3rd quartile. Continuing the positive long-term trends of both A and B class roads, C class roads considered for 202
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 29 of 31 maintenance treatment have also reduced from 58.6% to 36.8% since the baseline year (2010 to 2011). This has resulted in an increase in ranking from 31st in 2010 to 2011 to 23rd overall. ENV4e - Percentage of unclassified roads considered for maintenance treatment Our percentage of unclassified roads considered for maintenance treatment was 30.5% for 2024 to 2025. This places us top of our family group, 7th in the overall rankings and within the 1st quartile. The trend has been slightly steadier compared to the A, B and C class roads, and has improved since the baseline year (2010 to 2011). This is a rise from 13th in the overall rankings in 2010 to 2011 to 7th in the most recent year. ENV6 – Percentage of total household waste arising that is recycled The percentage of total household waste arising that is recycled was 53% for 2024 to 2025. This means we are 5th within our family group, behind Moray Council (56.7%), East Lothian Council (55.3%), South Ayrshire Council (53.3%) and Stirling Council (53.2%). We are 9th in the overall rankings and within the 2nd quartile. This performance is delivered while managing one of the highest 203
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 30 of 31 waste tonnages among the top performing authorities, highlighting both our strong outcomes and operational scale. We were recognised with the Most Improved Performer Award in the Refuse Collection Category by ASPE in December 2025. A provisional figure for 2025 to 2026 is 52.9% and is yet to be verified. CORP3b – Percentage of the highest paid 5% of employees who are women The percentage of the highest paid 5% of employees who are women was 63.9% for 2024 to 2025. This puts us at the top of our family group. We are 6th in the overall rankings and within the 1st quartile. CORP3c – Gender Pay Gap The gender pay gap was 0.3% as at 2024 to 2025. This means we are 5th in the overall rankings and within the first quartile. 204
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Local Government Benchmarking Framework Analysis of April 2026 Data Release - Page 31 of 31 CORP8 – Percentage of invoices sampled that were paid within 30 days The percentage of invoices sampled that were paid within 30 days was 96.4% as at the most recent data release. This means we are second in our family group rankings behind Fife Council (97.1%). We are 7th in the overall rankings and within the first quartile. CORP-ASSET1 – Percentage of operational buildings that are suitable for their current use The percentage of operational buildings that are suitable for their current use is 95.2%. This places us third in our family group behind Perth and Kinross Council (96.9%) and Moray Council (96.1%). We are 7th in the overall rankings and within the first quartile. Condition information is gathered across the corporate estate and used to inform asset management decision in relation to property rationalisation and investment decisions. Accommodation changes are presently focused within the Irvine estate with improvements being made to Cunninghame House to enable the relocation of employees from Bridgegate House. Condition improvement works have been completed at Skelmorlie Primary and are currently progressing at Goldcraigs Depot Kilwinning Hayocks Primary School and Caledonia Primary School. 205
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We strive to make our reporting as accessible as possible. If you have any questions or require further information on our Council’s performance please contact: The Corporate Policy and Performance Team Tel: 01294 310000 Email: NorthAyrshirePerforms@north-ayrshire.gov.uk Reports can be viewed at www.north-ayrshire.gov.uk/performance 206
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NORTH AYRSHIRE COUNCIL 24 September 2026 Audit & Scrutiny Committee Title: Annual Assurance Statement to the Scottish Housing Regulator 2025/26 Purpose: To advise the Committee of the Council’s Annual Return on the Charter 2025/26 submission and to seek approval for the submission of the Annual Assurance Statement to the Scottish Housing Regulator. Recommendation: That the Committee: (i) notes the Annual Return on the Charter submission 2025/26 (ii) notes the supporting evidence provided at Appendix 2 to demonstrate compliance with the regulatory framework and relevant legislation (iii) notes the Council’s areas of non-compliance detailed at paragraph 2.27; and (iv) authorises the Chair to sign the Annual Assurance Statement 2025/26 at Appendix 1 for submission to the Scottish Housing Regulator. 1. Executive Summary 1.1 The Scottish Housing Regulator’s framework for the regulation of social housing in Scotland includes the requirement for an Annual Assurance Statement to be submitted alongside the Annual Return on the Charter (ARC). The Statement must be approved by the appropriate Committee within the organisation, prior to submission to the Scottish Housing Regulator (SHR) by 31 October of each year. A copy of this year’s statement is provided at Appendix 1. 1.2 The 2025/2026 ARC was submitted to the Regulator on 29 May 2026. This committee report provides information on the performance reported in the ARC 2025/26, highlighting areas of high or improving performance, areas requiring improvement, and areas of non-compliance. The report also provides information at Appendix 2 on how the Council gains assurance that it is compliant with the regulatory framework. 1.3 Endorsement of the Annual Assurance Statement 2025/26 will ensure that the Council complies with regulatory requirements set out in the Housing (Scotland) Act 2010. 2. Background Agenda Item 4 207
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2.1 The Housing (Scotland) Act 2010 sets out the statutory objectives, functions, duties, and powers of the SHR, a non-ministerial department responsible for regulating social housing in Scotland. 2.2 In 2012, the Scottish Government’s Social Housing Charter was established. It sets out the standards and outcomes that tenants, homeless people, homeowners, and gypsy/travellers can expect from social landlords. This is monitored via landlords’ Annual Return on the Charter submissions to the SHR. 2.3 In February 2019, the Scottish Housing Regulator issued a revised framework for the regulation of social housing in Scotland. The new framework includes the requirement for landlords to submit an Annual Assurance Statement which has been agreed by a Board or Committee within the organisation. On 1 April 2024 the SHR published a new Regulatory Framework and guidance for social landlords to ensure the safeguarding and promotion of the interests of current and future tenants, people who are homeless, factored owners and Gypsy/ Travellers. 2.4 The Annual Assurance Statement is confirmation that, as a landlord, the Council: • meets all legal duties and responsibilities, and adheres to relevant guidance and the requirements of other regulators • meets its statutory duties to prevent and alleviate homelessness • adheres to statutory guidance from the Scottish Housing Regulator • takes account of regulatory advice from the Scottish Housing Regulator and from other regulators • complies with all regulatory requirements The Council must also confirm plans to address any instances where there is a material non-compliance and notify the SHR about any material changes in their level of assurance during the year. 2.5 North Ayrshire Council’s ARC 2025/26 was submitted to the SHR on 29 May 2026. The return provides details of the Council’s performance across a range of indicators within the Charter outcomes. 2.6 The SHR requires landlords to provide assurance in their Statement that they have developed an effective approach to the collection of equalities information and that they have considered how they can adopt a human rights approach in their work. 2.7 As a landlord, North Ayrshire Council collects data relating to each of the protected characteristics for existing tenants, new tenants, people on waiting lists, governing body members, staff, people who are at risk of homelessness and service users on our Gypsy/Traveller site. A systems review is continuing, alongside our partner landlords within the North Ayrshire Housing Register, which incorporates further development of our approach to collation of equalities data. 2.8 Access to good quality housing is recognised as a basic human right and providing this to everyone in North Ayrshire is a key priority, including ensuring accommodation is provided to homeless households, tenancy sustainment, a dedicated site to meet the needs of Gypsy/Travellers, standards of Council-owned accommodation are well maintained and continuing to deliver our new house building programme. 208
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Performance 2.9 Each year, social landlords submit performance information to the Scottish Housing Regulator (SHR) demonstrating how they have performed against the standards and outcomes set out in the Scottish Social Housing Charter. Following the SHR’s publication of the 2025/26 national data, officers assessed North Ayrshire Council's performance against other Scottish local authority landlords. The analysis considered both the Council's ranking and the performance quartile achieved for each indicator. The comparison included 26 local authority landlords. Six authorities were excluded from the analysis as they either had no housing stock or managed 10 or fewer self- contained units: • Argyll and Bute Council • Comhairle nan Eilean Siar (Western Isles Council) • Dumfries and Galloway Council • Glasgow City Council • Inverclyde Council • Scottish Borders Council A total of 50 ARC indicators were included in the analysis. Four indicators were excluded as North Ayrshire Council returned a nil value and meaningful comparison was therefore not possible. Of the remaining 46 indicators, North Ayrshire Council's performance was: • Top quartile: 15 indicators (32.6%) • Second quartile: 16 indicators (34.8%) • Third quartile: 9 indicators (19.6%) • Fourth quartile: 6 indicators (13.0%) Overall, North Ayrshire Council achieved performance within the top two quartiles for 31 of the 46 indicators (67.4%), demonstrating that the majority of services continue to perform at or above the median level when compared with other Scottish local authority landlords. While the analysis highlights areas of strong performance, it also identifies a number of indicators where performance is within the lower quartiles. These areas are subject to ongoing performance monitoring and improvement activity to support continued service improvement and positive outcomes for tenants. A detailed presentation on the Council’s comparative housing performance is being arranged for an Audit and Scrutiny Committee later this year. 2.10 Performance against each of the indicators is being scrutinised to enable plans to be developed to sustain areas of high performance and address areas for improvement. 2.11 Housing Services has a well-developed Performance Management Framework in place, which ensures the monthly scrutiny of performance information with regards to the SHR/ARC, Council Plan and other key performance-related data. 209
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2.12 In addition, the Housing Transformation Board continues to monitor improvement workstreams to increase performance in areas such as rent arrears, aids and adaptations, voids management and the housing repairs policy. 2.13 Following the Scottish Housing Regulator's (SHR) review of the Annual Return on the Charter (ARC) indicators in 2024, a range of new performance indicators were introduced for reporting for 2025/26. These indicators are as follows: • Indicator 29 (EICR): Measures the number of missed five-year electrical safety inspections where appropriate certification and records are required • Indicator 30 (Fire safety): Records the number of properties that do not meet the Scottish Tolerable Standard in relation to smoke and heat alarms, including monitoring of installation and renewal dates • Indicator 31 (Damp and mould resolution time): Measures the number of working days taken to resolve damp and mould cases from initial report to completion, categorised by cause (condensation, structural defects, or other factors) • Indicator 32 (Reopened damp and mould cases): Measures the percentage of damp and mould cases that were previously resolved but subsequently reopened within the same reporting year • Indicator 33 (Open damp and mould cases): Records the total number of unresolved damp and mould cases remaining open at the end of the financial year As these indicators have been introduced for the first time in 2025/26, no comparative performance data is available for 2024/25. 2.14 The information provided below identifies key areas of high or improving performance as reported in our ARC return for 2025/26, alongside areas where there has been a decline, or where improvement is required. Areas of high or improving performance 2.15 Tenant satisfaction results are based on our most recent tri-annual tenant satisfaction survey, undertaken during 2024/25, which informs our Annual Return on the Charter (ARC) submissions until the next survey has been undertaken. Key performance measures include overall satisfaction with landlord services (91.8% in 2025/26, up from 88.7% in 2021) and satisfaction with how well we keep tenants informed about services and decisions (86.8%, up from 85.5% in 2021). Satisfaction with opportunities to participate in decision-making remains high at 89.7% (91.9% in 2023/24). 2.16 The average length of time taken to complete emergency repairs decreased slightly, from 2.72 hours in 2024/25 to 2.68 hours in 2025/26. 2.17 There has been a significant improvement in performance relating to adaptations work, with the number of households waiting for an adaptation to their home decreasing from 232 at 31 March 2025, to 25 at 31 March 2026. The average number of days to complete an approved adaptation also decreased significantly, from 57.25 days in 2024/25 to 43.53 days in 2025/26. As part of the Housing transformation programme, a joint improvement group, with representation from the Health and Social Care Partnership, Housing, Building Services and Property Management and Investment, continues to review demand for adapted properties, alongside existing 210
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processes, to ensure the best possible service outcome for tenants and best value for their rent. 2.18 Gross rent arrears as a percentage of rent due decreased from 8.03% in 2024/25 to 7.10% in 2025/26. While this represents an improvement, reducing rent arrears remains a key priority and is a focus of the Housing Transformation Board’s work; this includes development of a new Income Maximisation Strategy. Housing Operations staff actively apply the Council's arrears escalation process and pursue legal action where arrears exceed a certain threshold. Dedicated Housing Support and Welfare Rights teams work with tenants to maximise income and provide early intervention and personalised support, recognising the financial pressures many households continue to face. Rent arrears performance is closely monitored by the Housing Services Leadership Team on a monthly basis, with detailed reporting at both locality and housing patch level to ensure targeted action and continuous improvement. 2.19 The number of court actions resulting in eviction increased from 13.37% in 2024/25 to 15.86% in 2025/26. Of the 145 court actions resulting in 23 evictions in 2025/26, 22 were due to rent arrears and one was due to antisocial behaviour. Areas with a decline in performance or requiring improvement 2.20 The average length of time taken to complete non-emergency repairs increased from 6.60 days in 2024/25 to 8.46 days and is over the Council’s 7-day average but within the 20-day target. Performance has dipped due to reduced labour resources, a national shortage of skilled tradespeople, and the loss of experienced planning staff. Despite exploring all recruitment options, including agency workers and semi-skilled operatives, challenges in attracting suitably skilled candidates have continued to impact service delivery and operational support capacity. Our repairs and maintenance policies and processes are an area of focus within the Housing transformation programme. 2.21 Satisfaction levels of tenants who had repairs or maintenance carried out in the last 12 months has decreased slightly from 95.27% in 2024/25 to 93.72% in 2025/26, based on 2,387 tenant responses received in the year. The response rate should increase over the next reporting year, as operatives’ electronic devices have been reconfigured to require a satisfaction survey to be carried out by the tenant following the completion of every job on site. 2.22 The percentage of antisocial behaviour cases resolved during 2025/26 was 82.45%, a slight decrease against last year’s performance of 85.65%. However, our performance against locally agreed targets is 98.06% of cases resolved within agreed timescales, which exceeds the target of 94%. 2.23 The average time taken to re-let properties increased from 27.89 days in 2024/25 to 35.97 days in 2025/26. Void performance continues to be impacted by delays in resolving meter issues with utility suppliers. This matter has been recognised nationally and has been escalated to the Scottish Government for action. Performance was also affected by a high number of long-term voids being brought back into use following capital refurbishment programmes. A cross-service working group has been established to review and analyse the Council’s void processes. The aim of the group is to scrutinise current working practices and turnover performance to identify improvements and efficiencies. 211
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2.24 Approaches for homeless assistance in North Ayrshire decreased by 9.54% in 2025/26 compared to the previous year. However, demand for temporary accommodation remains high, with only a 3% reduction in the number of households in temporary accommodation as at 31 March 2026. Relationship breakdown was the main reason for homelessness in North Ayrshire during 2025/26, accounting for 207 approaches (19%). This is followed by people being asked to leave the family home, which accounted for 179 (17%) approaches. 2.25 North Ayrshire's housing system continues to face increasing pressure; however, a range of measures are in place to respond to them. These include increasing housing supply through new build developments and utilisation of the Housing Acquisition Strategy, minimising void periods to maximise the availability of housing, and managing homelessness demand through the provision of temporary and permanent accommodation. Housing Operations and Homelessness Services operate through locality-based, integrated teams, enabling early intervention and prevention activity tailored to local needs. This approach supports a coordinated response to tenants and residents and helps resolve issues at the earliest opportunity. The Council's Homelessness Taskforce brings together internal services and partner organisations to analyse homelessness trends, demand pressures and associated risks. A key focus of the Taskforce is the development of a new Homelessness Prevention Strategy, aligned with the Housing (Scotland) Act 2025, which will set out a coordinated, prevention-focused approach to reducing homelessness and improving outcomes across North Ayrshire. Area of compliance 2.26 During 2025/26, there were no gas failures, resulting in achieving 100% compliance in relation to gas safety. Area of non-compliance 2.27 During 2025/26, 6,531 properties were reported as non-compliant with the requirement for an Electrical Installation Condition Report (EICR) to be completed within the previous five years. However, at the year-end, only 126 properties did not hold a valid EICR; the larger figure reflects properties that had exceeded the prescribed five-year inspection interval. 2.28 The reported compliance position reflects a change in the way electrical safety performance is measured rather than a deterioration in the safety of the housing stock. The new indicator requires properties to have an EICR completed within the previous five years. Historically, a number of properties were inspected under a ten- year testing cycle and therefore do not meet the revised reporting requirement despite continuing to hold valid electrical certification and remaining electrically safe. 2.29 Implementation of the revised five-year testing cycle was further impacted by delays to the electrical testing programme during the COVID-19 period and subsequent access challenges. As a result, a significant proportion of the housing stock fell outside the new five-year reporting threshold over a relatively short period, creating an apparent reduction in compliance performance. 2.30 The Council's priority has been to ensure the ongoing electrical safety of tenants' homes. Current records confirm that over 99% of properties hold a valid EICR, with 212
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the small number of outstanding cases primarily attributable to difficulties in securing access. Programmes are now in place to align all properties with the five-year cyclical inspection regime and achieve full compliance with the revised reporting requirements. 2.31 The reported performance should therefore be viewed as a technical reporting matter arising from changes to regulatory measurement criteria rather than an indication of widespread electrical safety concerns within the housing stock. 2.32 All efforts were made to ensure electrical safety compliance at the earliest opportunity and appropriate records were kept; officers have assessed this a material non- compliance and the SHR was informed during 2025/26 of the expected outcome. Property Management and Investment have been providing monthly updates to the SHR in relation to both gas and electrical safety compliance since January 2023. For 2026/27, the EICR compliance figure as at the end of July 2026 was 98.96%. 2025/26 ARC data validation 2.33 The Council's Annual Return on the Charter (ARC) for 2025/26 was completed and submitted to the Scottish Housing Regulator on 29 May 2026 in compliance with the required submission deadline of 31 May 2026. The return was prepared using the Scottish Housing Regulator's ARC Technical Guidance to ensure that performance information was collected, calculated and reported consistently and accurately. 2.34 To strengthen assurance around the accuracy and quality of the ARC submission, Housing Services undertook a comprehensive review of all indicators during the preparation of the 2025/26 return. This included validation of data sources, calculation methodologies and supporting evidence to ensure compliance with the Regulator's requirements. 2.35 Housing Services also incorporated supplementary guidance and good practice issued by the Scottish Housing Network (SHN) in relation to the interpretation and reporting of ARC indicators. This supported a consistent approach to data collection and performance reporting across service areas. 2.36 During 2024/25 and 2025/26, the Scottish Housing Network carried out two independent validation visits to review the Council's arrangements for the collection, verification and reporting of ARC data. The findings and recommendations arising from these reviews were considered and incorporated into the preparation of the 2025/26 ARC submission. 2.37 The validation activity confirmed that appropriate governance, quality assurance and performance management arrangements are in place to support the accurate reporting of ARC information. Where opportunities for improvement were identified, these have been reflected within service procedures and guidance to further strengthen future reporting arrangements. 2.38 Collectively, the application of the Scottish Housing Regulator's Technical Guidance, supplementary advice provided by the Scottish Housing Network, and the independent validation undertaken during the year provides a high level of assurance 213
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regarding the accuracy and robustness of the Council's 2025/26 ARC submission and demonstrates the service's commitment to continuous improvement. Assurance 2.39 The overall performance of the Housing Service is continuously reviewed by the Head of Service and Housing Senior Management Team on a monthly basis, with key performance information and action plans presented to the North Ayrshire Network, Housing Business Plan Group and Council’s Cabinet regularly during each year. 2.40 Several ARC indicators also form part of the corporate performance monitoring framework, scrutinised by Chief Officers and elected members. 2.41 The ARC 2025/26, which can be accessed at North Ayrshire Council | Scottish Housing Regulator demonstrates the Council’s performance against the outcomes in the Scottish Social Housing Charter. 2.42 Supporting evidence to demonstrate compliance with the regulatory framework and relevant legislation is attached at Appendix 2. 2.43 The Annual Assurance Statement, which is attached at Appendix 1, confirms that the Council has complied with the regulatory framework, all standards, and outcomes. It highlights North Ayrshire’s material non-compliance with our legal responsibilities around electrical safety. It also confirms the equalities data currently captured, and how North Ayrshire adopts a human rights approach in our work. This Statement will be made available to tenants as part of the Council’s performance reporting process. 3. Proposals 3.1 It is proposed that the Committee (i) notes the Annual Return on the Charter submission 2025/26; (ii) notes the supporting evidence provided at appendix 2 to demonstrate compliance with the regulatory framework and relevant legislation; (iii) notes the Council’s areas of non-compliance detailed at paragraph 2.27; and (iv) authorises the Chair to sign the Annual Assurance Statement at Appendix 1 for submission to the Scottish Housing Regulator. 4. Implications/Socio-economic Duty Financial 4.1 None Human Resources 4.2 None Legal 4.3 Approval of the Annual Return on the Charter submission 2025/26 and supporting evidence, and signature of the Annual Assurance Statement, will ensure that the Council complies with regulatory requirements set out in the Housing (Scotland) Act 2010. 214
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Equality/Socio-economic 4.4 As a landlord, data is collated relating to each of the protected characteristics for existing tenants, new tenants, people on waiting lists, governing body members, staff, people who apply to us as homeless and service users on our Gypsy/Traveller site. This data is used to inform decision making, policy making and day to day service delivery. Climate Change and Carbon 4.5 See paragraph 4.6 below. Key Priorities 4.6 The matters referred to in this report contribute to all four of the Council Plan priorities; Wellbeing, Climate Change, A Sustainable Council and Communities and Local Democracy by ensuring our housing stock is well maintained, energy efficient and compliant with all statutory duties. Housing Services ensure matters relating to housing stock investment and compliance are consulted with and reported to our North Ayrshire Network (NAN) tenants group and other affected services. Community Wealth Building 4.7 N/A Islands Communities Impact Assessment 4.8 N/A United Nations Rights of the Child (UNCRC) 4.9 N/A Consumer Duty 4.10 N/A 5. Consultation 5.1 Consultation has taken place with tenant representatives, and relevant senior officers within: Housing and Public Protection; Sustainability, Transport and Corporate Property; Corporate Performance; Health and Social Care Partnership; and the Scottish Housing Regulator during the preparation of the Annual Return on the Charter and Annual Assurance Statement. David W. Hammond Executive Director (Communities & Housing) 215
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For further information please contact Fiona Ellis, Senior Manager (Housing Strategy & Development), on 01294 324031. Background Papers Click here to enter text. Report to Audit & Scrutiny Committee on 23 September 2025: Annual Assurance Statement to the Scottish Housing Regulator 2024/25 216
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Appendix 1 North Ayrshire Council Annual Assurance Statement 2025/26 North Ayrshire Council complies with the requirements set out in Chapter 3 of the Regulatory Framework. North Ayrshire Council is assured that we: Adhere to relevant guidance and the requirements of other regulators Meet our statutory duties to prevent and alleviate homelessness Adhere to statutory guidance from the Scottish Housing Regulator Take account of regulatory advice from the Scottish Housing Regulator and from other regulators Comply with all regulatory requirements, encompassing: • Assurance and notification • Tenant and service user redress • Whistleblowing • Equalities and human rights • Scottish Social Housing Charter Performance. We did not meet our legal obligations around tenant and resident safety as we did not comply with electrical testing legislation for 6,531 properties during 2025/26. During 2025/26, 6,531 properties were reported as non-compliant with the requirement for an Electrical Installation Condition Report (EICR) to be completed within the previous five years. This figure does not represent properties without a valid EICR certificate. At year-end, 126 properties did not hold a valid EICR; the larger figure reflects properties that had exceeded the prescribed five-year inspection interval. All efforts were made to ensure compliance at the earliest opportunity and appropriate records were kept. The Scottish Housing Regulator was notified of this expected outcome at the earliest opportunity and was provided with monthly updates during 2025/26. As a landlord, we collect data relating to protected characteristics for existing tenants, new tenants, people on waiting lists, governing body members, staff, people who apply to us as homeless and service users on our Gypsy/Traveller site. A systems review is currently being undertaken alongside our partner landlords within the North Ayrshire Housing Register, which incorporates further development of our approach to collation of equalities data within the brief for the review. We recognise that the right to housing is a human right and providing this to everyone in North Ayrshire is of the highest priority with work already taking place across a range of activities. North Ayrshire Council’s Audit and Scrutiny Committee has considered sufficient evidence to give this assurance. The Annual Assurance Statement was approved by Audit and Scrutiny Committee on 24 September 2026. Authorised by: ________________________ Chairperson of the Committee Printed name: ________________________ Date: ________________________ 217
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Appendix 2 North Ayrshire Council Housing Services Annual Assurance Statement 2025/26 Supporting Evidence September 2026 218
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Appendix 2 Introduction In February 2019, the Scottish Housing Regulator (SHR) introduced a revised Regulatory Framework for Social Housing in Scotland. This framework requires landlords to submit an Annual Assurance Statement, approved by the relevant Board or Committee, confirming compliance with the requirements set out in Chapter 3 of the Regulatory Framework. This document provides the evidence supporting North Ayrshire Council's Annual Assurance Statement 2025/26 and demonstrates that the Council: • Complies with relevant legislation, statutory guidance and the requirements of other regulators • Meets its statutory duties to prevent and alleviate homelessness • Takes account of guidance and regulatory advice issued by the SHR and other regulators • Meets the SHR's regulatory requirements relating to: o assurance and notification o tenant and service user redress o tenant and resident safety o whistleblowing o equalities and human rights o Scottish Social Housing Charter performance As a landlord, the Council must comply with all legal duties and responsibilities. During 2025/26 we were unable to achieve full compliance with electrical safety requirements, as some properties did not have a valid Electrical Installation Condition Report (EICR) in place within the required timescales. This was primarily due to difficulties gaining access to tenants' homes. This non-compliance has been reported within our Annual Assurance Statement and is explained in more detail within this supporting evidence. Landlords are expected to maintain comprehensive, accurate and up-to-date information on the construction, condition and key components of their homes. This information is essential for demonstrating tenant and resident safety and supporting effective asset management and financial planning. In January 2025, the SHR introduced new Annual Return on the Charter (ARC) indicators relating to fire safety, electrical safety, dampness and mould. Landlords were required to submit this information within the ARC 2025/26, for submission to the SHR by May 2026, and arrangements were put in place within the Council to ensure the necessary data was collected and reported. The SHR has also requested assurance that landlords have appropriate plans in place to improve the collection of equalities data and have begun considering how a human rights-based approach can be embedded within service delivery and decision-making. In March 2026, the SHR wrote to all local authorities and registered social landlords seeking additional assurance in relation to: • the quality and completeness of housing stock data • compliance with the Scottish Government's minimum site standards for Gypsy/Traveller sites. This evidence demonstrates the Council's position in relation to these requirements and supports the assurance provided within the Annual Assurance Statement. 219
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Appendix 2 Regulatory Requirements Assurance and notification We prepare and submit an Annual Assurance Statement to the Scottish Housing Regulator (SHR) each year in accordance with regulatory requirements. The Statement is made available to tenants and other service users, and we notify the SHR of any material changes to our assurance position during the year. We are able to demonstrate compliance with our legal obligations relating to housing and homelessness services, as well as equality and human rights requirements. However, we have not achieved full compliance with our legal obligations relating to tenant and resident safety. During 2025/26, 6,531 properties were reported to the SHR as non-compliant with the requirement for an Electrical Installation Condition Report (EICR) to be completed within the previous five years. At 31 March 2026, 126 properties did not hold a valid EICR; the larger figure of 6,531 reflects those properties that had exceeded the prescribed five-year inspection interval. The primary challenge in achieving full compliance continues to be difficulties in gaining access to some tenants' homes. We have treated this as a material non-compliance and regular monthly progress updates were provided to the SHR during 2025/26, demonstrating sustained improvement towards full compliance. We also notify the SHR of any tenant or resident safety incidents involving the Health and Safety Executive, or matters raised by other regulatory bodies. There were no such notifications during 2025/26. The Gypsy/Traveller site at Redburn Grove, Irvine, continues to meet the Scottish Government's minimum site standards. To maintain compliance, formal site inspections are carried out quarterly to identify any defects, health and safety issues, or maintenance requirements. The on-site Gypsy/Traveller Co-ordinator is responsible for reporting routine repairs and ensuring that all compliance certificates are current and securely maintained. Our Customer Participation Strategy, ‘Customer Connections’, is available to tenants and service users on the Council website. Tenant and service user redress Information on how to report any concerns around significant performance failures is available to tenants. Further information is contained in the Scottish Housing Regulator leaflet. North Ayrshire Council’s Complaints Handling Procedure is readily available to tenants and other service users. It sets out the information they need to exercise their right to complain and seek redress. Responses are provided within timescales set out in the procedure, in accordance with guidance from the Scottish Public Services Ombudsman (SPSO). We have mechanisms in place to learn from complaints and other tenant and service user feedback, in accordance with SPSO guidance. Whistleblowing North Ayrshire Council has a policy and procedure in line with the Public Interest Disclosure Act 1998 for whistleblowing by staff and elected members. This is readily available on the Council website and promoted through staff bulletins. 220
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Appendix 2 Equalities and human rights Equality is one of North Ayrshire Council's core values. The principles of equality and fairness are central to all Council activities. Our Equality and Children’s Rights Impact Assessment process for all policies, procedures and proposals ensures we meet legislative requirements. All decisions made by the Council’s committees include an assessment of equalities implications. As a landlord, we collect information on protected characteristics for existing and prospective tenants, housing applicants, governing body members, employees, people presenting as homeless, and users of our Gypsy/Traveller site. This information helps inform decision-making, policy development and service delivery, ensuring our services are accessible, inclusive and responsive to the diverse needs of our customers. We are currently undertaking a housing management system review with our partners in the North Ayrshire Housing Register and have included enhanced equalities data collection within the project scope to strengthen our approach. We recognise that access to good quality housing is a fundamental human right and a key priority for North Ayrshire Council. We support this through a range of activities, including providing accommodation for homeless households, delivering housing support services to help sustain tenancies, maintaining a dedicated site for Gypsy/Travellers, ensuring Council housing continues to meet the Scottish Housing Quality Standard (SHQS), and carrying out property adaptations to improve accessibility for disabled residents. Scottish Social Housing Charter Performance We submit our Annual Return on the Charter to the Scottish Housing Regulator in accordance with published guidance. We have agreed our approach to this through the North Ayrshire Network (NAN), a group of representatives from the various Registered Tenant Organisations in North Ayrshire. You can read about our approach in ‘Customer Connections,’ our Customer Participation Strategy 2023 - 2028. Each year, we report on performance in our autumn edition of Tenancy Matters. The NAN work with us to agree the content of the report, which includes comparisons with previous years, other landlords and national performance. Within this report we identify how we will address areas for improvement and ask for feedback on our approach. Standard 1 – The customer / landlord relationship Outcomes: Equalities We promote equality and embrace diversity in all parts of Housing Services. All the information we produce is in line with the Council’s Communications Strategy. All leaflets, and a range of documents, are published in plain English and can be made available in large print, braille, tape, or CD, and can be translated on request. For information published digitally, North Ayrshire Council is committed to making its website accessible, in accordance with the Public Sector Bodies (Websites and Mobile Applications) (No. 2) Accessibility Regulations 2018. Communication Housing Services provide a comprehensive range of information which is made available in leaflets, on the Council website and on social media. The Tenant Editorial Panel approves all leaflets prior to issue to ensure they are fit for purpose and easy to understand. Our ‘tenant approved’ logo shows 221
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Appendix 2 tenants have endorsed our publications. In recent years we have developed a social media profile through Facebook to encourage digital engagement with a wider and more diverse customer base. We have recently created a Housing WhatsApp channel to share important updates directly with tenants. We commission an independent organisation to undertake a tenant satisfaction survey at least every three years. The results of these surveys help us to focus our efforts in improving communication and participation and understand what is important to our customers. Our last survey took place during quarter three of 2024/25. Participation The North Ayrshire Network (NAN) has responsibility for ensuring that we continually improve the way we deliver services to tenants and customers. Part of their role is to challenge our performance against the indicators, outcomes and standards in the Charter. Housing Services present performance information to the Network, both mid-year and prior to submitting the Annual Return on the Charter, working together to develop our annual report to tenants and communicate any changes from the Scottish Housing Regulator directly to the group. A recent review of the NAN’s membership has resulted in an equalities-led approach to recruitment and better representation of North Ayrshire’s communities. We are committed to tenant-led scrutiny of housing services to ensure that we continue to meet our tenants' needs and aspirations. Each year our Tenant Inspection Panel identify one service area to scrutinise and independently review performance, policy and processes and customer experience, with support from housing officers. Scrutiny provides an opportunity for tenants to drive improvement in the services most important to them. We have reviewed/ relaunched our Customer Participation Strategy for 2023 – 28, which encompasses the requirements of the Scottish Social Housing Charter and relevant Council Plan priorities. Collectively these three documents emphasise the importance of supporting our communities’ tenants and residents to grow and develop opportunities for active engagement and participation for all citizens, by listening to local needs and aspirations. Alongside relaunching the Customer Participation Strategy 2023–2028, we are delighted to report that during 2026 North Ayrshire Council successfully attained its third successive Gold award from Tenants Information Service (TIS) in Scrutiny Approved Accreditation. The Council was first awarded gold accreditation in 2016 and successfully retained its gold standard in 2021 for a further three-year term. In addition, in November 2022 we received gold level ‘Excellence in Tenant Participation’ re- accreditation from Tenant Participation Advisory Service (TPAS Scotland) for 2023-2025. Our latest tenant satisfaction survey told us that tenants’ opportunities to take part in decision-making processes has fallen slightly - from 92% in 2021 to 90% in 2024 - but remains high in comparison to the Scottish council housing average of 82% (Knowledge Partnership 2025). The survey found that 9% of survey respondents would prefer to participate and share their views via survey, while 77% have stated they are not interested in tenant participation activities. This feedback will be addressed through delivery of the Customer Participation Strategy, by reviewing our tenant participation structures through an equalities-led approach to increase participation and satisfaction. Standard 2 – Housing quality and maintenance Outcomes: 222
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Appendix 2 Quality of housing Our housing stock is in good condition and is proactively maintained and upgraded to ensure it remains safe, sustainable and meets tenants' needs. Through targeted investment and planned maintenance programmes, we ensure properties continue to meet the Scottish Housing Quality Standard (SHQS) and Energy Efficiency Standard for Social Housing (EESSH). These programmes are designed to maximise the lifespan of key components, reduce future repair and maintenance costs, anticipate changes in regulatory standards and support the long-term sustainability of our homes. To strengthen our asset management approach, we have undertaken a self-assessment of our asset management processes and data, informed by the Scottish Housing Regulator's guidance on Integrated Asset Management (IAM). To support this work, the Council commissioned external support to develop an IAM model that provides a comprehensive assessment of housing stock performance. The model draws together data from the Council’s NEC Housing, Apex and URM systems, incorporating factors such as property condition, repair costs and volumes, deprivation data, future investment requirements, housing demand and tenancy information. This self-assessment will inform more effective strategic planning and investment decision-making. During 2025/26, we achieved 100% compliance with gas safety requirements, with no missed inspections or gas safety failures. This is a small improvement on 2024/25 performance, when one failure was reported. We continue to work towards full compliance with electrical safety requirements. Significant improvements have been achieved through a targeted improvement programme; however, access to a small number of properties remains a challenge due to tenant refusal. A cross-service working group established in 2023 has overseen the implementation of an improvement plan, resulting in sustained performance improvements during 2024/25 and 2025/26. While our objective remains 100% compliance, achieving this continues to be difficult where access cannot be secured. The use of the Council's Access Policy remains an option but is resource-intensive for both the Council and contractors. In relation to smoke detection standards, three properties were recorded as non-compliant during 2025/26. These properties were awaiting demolition and were therefore exempt from the requirement. The Council has a dedicated Contracts, Compliance and Maintenance team responsible for ensuring compliance with statutory requirements, including lift maintenance and legionella management. In addition, a dedicated Asbestos Compliance Officer supports all refurbishment and alteration works to ensure compliance with relevant legislation and safety standards. Condensation, Dampness & Mould North Ayrshire Council has a robust system for managing dampness, mould and condensation across our housing stock. A comprehensive strategy and end-to-end process are in place to ensure cases are identified, prioritised and resolved effectively, including joint working where health concerns are identified. A detailed process map supports a risk-based approach to case management, with follow-up inspections undertaken to assess the effectiveness of interventions and inform longer-term asset 223
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Appendix 2 management planning. Ventilation standards have also been enhanced, with humidity-tracking extractor fans now installed as the minimum standard in all relevant projects, voids and repair works. Building Services Inspection Officers are appropriately qualified and experienced, with specialist dampness and mould expertise available within the team through industry-recognised Certificated Surveyor of Timber and Dampness in Buildings (CSTDB) accreditation. Further specialist training is being rolled out to Building Services staff, alongside awareness training for Housing Officers and technical training for operational teams. Preparations for the introduction of Awaab's Law in October 2026 are well advanced. A dedicated ‘Hazard Case’ module is being developed within the repairs management system to improve case recording, monitoring, reporting and compliance with statutory requirements. Processes have been reviewed to ensure reporting timescales commence from the point of awareness, regardless of how concerns are raised. Additional staffing resources have been approved, and recruitment is underway to support anticipated increases in demand, surveying and case management requirements. Contractor procurement arrangements have also been strengthened to provide additional capacity when required. While challenges remain around the availability of specialist trades and experienced staff, mitigating measures are in place to maintain service delivery. A communications programme is planned to raise awareness of residents' rights and responsibilities under Awaab's Law, including reporting routes and expected timescales. During 2025/26, the Council managed 1,090 dampness and mould cases, with an average resolution time of 34.34 days. As this is a new performance indicator, no comparative data is available for previous years. Repairs, maintenance, and improvements North Ayrshire Council is committed to delivering high-quality, efficient and effective reactive and planned maintenance services for tenants and factored owners, while maintaining high levels of customer satisfaction. Our Repairs Policy sets out how repairs and maintenance services are delivered and supports our commitment to providing quality homes that meet the needs of current and future tenants. The policy is currently being reviewed through the Housing Transformation Board workstream and will be updated in consultation with tenant representatives. During 2025/26, the average time taken to complete emergency repairs improved slightly from 2.72 hours to 2.68 hours. The average completion time for non-emergency repairs increased from 6.60 days to 8.46 days. Although performance reduced, it remained within the targets set out in our Repairs Policy. Contributing factors included reduced workforce capacity, a national shortage of skilled tradespeople and the loss of experienced planning staff. Despite efforts to recruit permanent employees, agency workers and semi-skilled operatives, challenges in attracting suitably qualified staff continued to impact service delivery. Tenant satisfaction with repairs and maintenance services reduced slightly, increasing from 95.27% in 2024/25 to 93.72% in 2025/26, based on feedback from 2,387 tenants. The Council continues to monitor and review its void management processes to minimise the time properties remain empty and maximise the availability of housing. During 2025/26, the average time taken to re-let a property increased from 27.89 days to 35.97 days. Performance was affected by 224
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Appendix 2 ongoing issues relating to utility meter installations and transfers, which has been recognised nationally as a significant issue and is being pursued by the Scottish Government due to its impact on housing supply and homelessness across the country. Targeted capital investment works to bring long-term void properties back into use also impacted performance in the year. An overarching Voids Transformation Strategic Working Group was established in 2024. The group includes representation from Housing Services, Building Services and Property Maintenance and Investment (PMI) and aims to improve efficiency, reduce costs, and allocate resources more effectively while maintaining the quality and appeal of properties for prospective tenants. Following a review of the voids process during 2025/26, a major change was implemented on 20 April 2026, with Building Services taking responsibility for void inspections, scoping of works and post inspections to remove duplication of officer time and allow delivery of a more efficient and effective voids management service. The benefits of the new process are evidenced by an improvement in Q1 2026-27 relets performance. Despite the increase in re-let times, North Ayrshire Council ranked third within its SHN benchmarking peer group and eighth among all Scottish local authorities in 2025/26, demonstrating strong overall performance in comparison with other landlords. Standard 3 – Neighbourhood and community Outcome: Estate management, antisocial behaviour, neighbour nuisance, and tenancy disputes Estate management encompasses a wide range of activities, including new tenant visits, permissions for alterations such as garages and driveways, addressing abandoned tenancies, untidy gardens, neighbour disputes, pet-related issues, abandoned vehicles, graffiti, and fly-tipping. A comprehensive Estate Management Procedure Manual is in place to ensure the Council meets its responsibilities as a landlord and supports tenants in meeting their obligations under their Tenancy Agreement. Where tenancy breaches occur, we work with tenants to resolve issues and sustain tenancies wherever possible. However, where tenants are unwilling to comply with their tenancy conditions, appropriate and proportionate enforcement action may be taken. Our Estates Officers take a proactive approach to estate management, focusing on early intervention and prevention rather than responding solely to issues as they arise. The Safer North Ayrshire Partnership (SNAP) brings together the Council, local communities and partner organisations to prevent crime and antisocial behaviour and respond effectively to emerging issues. During 2025/26, reports of antisocial behaviour increased by 14% compared with the previous year. Despite this increase, performance remained strong, with 98.06% of cases resolved within locally agreed timescales, against a target of 94%. Our most recent Tenant Satisfaction Survey, undertaken in 2024/25, found that 91.3% of tenants were satisfied with the management of their neighbourhood. This represents a significant improvement on the previous survey result of 80%, demonstrating continued progress in delivering effective neighbourhood management services. 225
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Appendix 2 Standard 4 – Access to housing and support Outcomes: Housing options and access to social housing The North Ayrshire Housing Allocation Policy sets out how social housing is allocated through the North Ayrshire Housing Register (NAHR). Partner landlords have a responsibility to ensure the policy complies with legislative and regulatory requirements and supports the outcomes of the Scottish Social Housing Charter. During 2025, NAHR partners completed a comprehensive review of the Policy to ensure it remained fit for purpose and reflected current legislation, regulation, housing need and housing supply. The review was supported by detailed modelling and informed by operational experience, stakeholder engagement and consultation. A clear project plan was developed to guide the review process, including timescales, resource requirements and opportunities for stakeholder involvement. The revised Policy was approved by Cabinet on 30 September 2025. Housing Services and Building Services work closely with the North Ayrshire Health and Social Care Partnership (NAHSCP) who – in accordance with the Integration Scheme – manage the process for aids and adaptations to help tenants live independently in their homes. Regular meetings are held to assess demand, monitor expenditure and review performance. The NAHSCP's Adaptations Criteria and Policy provide a consistent framework for assessing need, while monthly multi-agency case reviews ensure appropriate decisions are taken for complex cases. Occupational Therapy staff also consider wider housing options for applicants with long-term health conditions where adaptations may not be the most suitable solution. This collaborative approach helps ensure resources are targeted effectively and those most in need receive timely support. Performance in this area improved significantly during 2025/26. The number of households waiting for an adaptation at the end of the year reduced from 232 to 25, while the average time taken to complete an approved adaptation decreased from 57.25 days to 43.53 days. A joint improvement group comprising Housing Services, Building Services, Property Management and Investment, and the Health and Social Care Partnership continues to review demand and working practices to deliver the best outcomes and ensure value for money for tenants. Homeless people Approaches for homelessness assistance in North Ayrshire decreased by 9.5% during 2025/26 compared with the previous year. Despite this reduction, demand for temporary accommodation remains high. As at 31 March 2026, 276 homeless households were living in temporary accommodation, compared with 285 households at the same point in 2025, a reduction of 3%. Relationship breakdowns were the most common cause of homelessness during 2025/26, accounting for 207 applications (19%). This was followed by applicants being asked to leave the family home, which accounted for 179 applications (17%). Applications from households fleeing domestic abuse remained significant, with 167 applications (16%) recorded during the year, compared with 171 applications (14%) in 2024/25. North Ayrshire Council remains committed to the principles of Rapid Rehousing, which continue to underpin both national and local approaches to tackling homelessness. While the original Rapid Rehousing Transition Plan was a time-limited national change programme, rapid rehousing is now 226
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Appendix 2 embedded within core service delivery and supported through Scottish Government funding, performance monitoring and wider homelessness prevention policy. Although homelessness applications have reduced, the housing system continues to face significant pressures. Demand for temporary accommodation remains high and access to settled housing is increasingly challenging. Sustained reductions in homelessness will require continued innovation, earlier intervention and strong partnership working, with a focus on preventing homelessness and reducing repeat homelessness wherever possible. Through the North Ayrshire Homelessness Taskforce, the Council and its partners are developing North Ayrshire's first Homelessness Prevention Strategy 2026-2031. The strategy will establish a prevention-focused, whole-system approach to homelessness, informed by stakeholder engagement, service data and local evidence of homelessness risk. It will align with the Housing (Scotland) Act 2025 and emerging Ask and Act duties, strengthening arrangements to identify and respond to homelessness risk at the earliest opportunity. The strategy will focus on early intervention, strengthening support pathways for households most at risk, improving partnership working across public and third-sector organisations, and helping people sustain accommodation. The Strategy will be supported by a detailed action plan and performance framework, overseen by the Homelessness Taskforce. In summary, North Ayrshire Council is committed to delivering a prevention-led homelessness system, underpinned by Rapid Rehousing principles, to ensure fewer people experience homelessness and those who do are supported to access settled, sustainable housing as quickly as possible. Standard 5 – Getting good value from rents and service charges Outcomes: Value for money Our Housing Revenue Account (HRA) 30-Year Business Plan provides a clear strategic and financial framework to support effective short, medium and long-term planning. It sets out how we will deliver key priorities, including maintaining compliance with the Scottish Housing Quality Standard (SHQS), investing in existing homes, delivering our new build programme and ensuring sustainable rent- setting arrangements. The Business Plan is managed through a collaborative approach involving elected members, tenant representatives and officers from Housing Services, Property Management and Investment, Building Services and Finance. This ensures decisions are informed, balanced and subject to appropriate challenge and scrutiny. To support the Business Plan, we have robust budget monitoring and performance management arrangements in place to ensure services deliver value for money while keeping rents affordable for tenants. These arrangements provide the flexibility needed to respond to an increasingly challenging economic environment and changing priorities. Our Business Plan demonstrates the Council's long-term strategic direction and financial sustainability over the 30-year planning period. It is reviewed annually and supports our commitment 227
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Appendix 2 to delivering value for money through strong financial management, continuous improvement, efficiency measures and effective contract management. Recognising the challenge of maintaining affordable rent increases while managing rising costs, Housing Services has a Transformation Programme in place to drive service improvement, innovation and efficiencies. Supported by strong governance and dedicated resources, the programme has already identified recurring savings of £0.25 million for inclusion within the Business Plan, with further opportunities being progressed across four key workstreams. Our most recent Tenant Satisfaction Survey found that 89.87% of tenants considered their rent to represent good value for money. Rents and service charges Our rent levels remain broadly in line with the national average, while continuing to support investment in existing homes and the delivery of our new build programme. When setting rents, we consider a range of factors, including the wider economic outlook, rent affordability, cost-of-living pressures, welfare reform and labour market conditions. We also take account of increasing costs associated with repairs, maintenance, housing development, supply chain pressures, achieving net zero ambitions and responding to homelessness. Through careful financial planning and ongoing service improvement, we remain committed to delivering high-quality, efficient and cost-effective services while ensuring rents remain affordable and sustainable for tenants. Standard 6 – Other customers Outcomes: Gypsy/travellers North Ayrshire Council recognises Gypsy/Travellers as a minority ethnic community and respects their right to maintain a nomadic way of life as part of their cultural identity. We are committed to ensuring that Gypsy/Travellers do not experience discrimination because of their culture or lifestyle. The Council manages a permanent Gypsy/Traveller site at Redburn Grove, Irvine, comprising 16 pitches, each with its own amenity block. The site is supported by a dedicated Gypsy/Traveller Co- ordinator and includes a community room used by a range of partner services, including Education, Welfare Reform Advice, Tenancy Support and healthcare services. Regular tenants' meetings are also supported to ensure residents can influence service delivery and future developments. Redburn Grove meets the Scottish Government's minimum site standards. However, significant investment is required to maintain and improve the site. Following consultation with residents, the site has been included for future redevelopment in the Council's Strategic Housing Investment Plan (SHIP) 2026-2031. Our approach to unauthorised encampments complies with Scottish Government guidance. The Gypsy/Traveller Co-ordinator works with visiting families to assess support needs, provide advice and facilitate access to services where required. The Council also participates in national COSLA working groups to help shape policy and share good practice. 228
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Appendix 2 An independent survey undertaken in 2024/25 identified low satisfaction with the management of Redburn Grove, with concerns largely relating to the condition of the site. The findings are being used to inform future investment plans and improve services for residents. Refugees North Ayrshire Council’s voluntary involvement in the UK Government’s Resettlement programmes (UKRS/ARAP/ACRS/ARP) has recently been paused, following our successful delivery of pledges across each of the various programmes. Our Refugee Support Team and Community Planning Partnership colleagues continue to support resettled refugees who have arrived via the various UK Humanitarian programmes, and provide housing advice and homelessness assistance to locally placed households following positive asylum decisions. During 2025/26, the Council and community planning partners welcomed and supported twelve Ukrainian (Homes 4 Ukraine) households and three Afghan (Afghan Resettlement Programme) households to resettle in North Ayrshire and supported nine asylum seeking households following the notification of positive asylum decisions. Housing Services continues to monitor resettlement provision carefully to ensure we continue to meet our statutory responsibilities in relation to priority groups, including homeless people. 229
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