Agenda Document Pack - Audit and Scrutiny Committee - 23/09/2025
North Ayrshire Council · 23 September 2025
Back to Audit and Scrutiny Committee — 23 September 2025 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 Tuesday, 23 September 2025 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 Annual Assurance Statement to the Scottish Housing Regulator 2024/25 Submit report by the Executive Director (Communities and Housing) advising of the Council’s Annual Return on the Charter 2024/25 submission and to seek approval for its submission to the Scottish Housing Regulator (copy enclosed). 3 Our Council Plan Year End Progress Reporting including LGBF Analysis Submit report by the Head of Service (Democratic) on Our Council Plan Year End Reporting including LGBF Analysis (copy enclosed). 4 External Audit Report on the 2024/25 Audit Submit report by the Head of Service (Finance) inviting the Committee to note the Annual Audit report for 2024/25 and to consider the verbal report by the external auditor (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) Eleanor Collier Cameron Inglis Tom Marshall Matthew McLean Davina McTiernan Donald L. Reid John Sweeney Chair: Apologies: Attending: 3
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NORTH AYRSHIRE COUNCIL 23 September 2025 Audit & Scrutiny Committee Title: Annual Assurance Statement to the Scottish Housing Regulator 2024/25 Purpose: To advise the Committee of the Council’s Annual Return on the Charter 2024/25 submission and to seek approval for its submission to the Scottish Housing Regulator. Recommendation: That the Committee: (i) notes the Annual Return on the Charter submission 2024/25; (ii) notes the supporting evidence provided to demonstrate compliance with the regulatory framework and relevant legislation; (iii) notes the Council’s areas of non- compliance detailed at paragraphs 2.26-2.30; (iv) notes the amendments which have been made to the Annual Return on the Charter 2023/24 and submitted to the Scottish Housing Regulator; and (v) authorises the Chair to sign the Annual Assurance Statement 2024/25 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 2024/2025 ARC was submitted to the Regulator on 30 May 2025. This committee report provides information on the performance reported in the ARC 2024/25, 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 2024/25 will ensure that the Council complies with regulatory requirements set out in the Housing (Scotland) Act 2010. 1.4 The Annual Assurance Statement 2023/24 report, presented to Audit and Scrutiny Committee on 31 October 2024, advised that Housing Services had recently commissioned an independent consultant to validate the 2023/ 24 ARC submission Agenda Item 2 5
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and enable any improvements to data collection and reporting to be addressed prior to the preparation of the 2024/25 ARC. 1.5 The external validation exercise was undertaken in October 2024 and concentrated on 17 key indicators. The Council’s Internal Audit Service was requested to undertake further validation on some of the remaining indicators. This audit was completed in March 2025 and concentrated on five indicators. As a final measure, a further analysis of the technical guidance was undertaken during the 2024/2025 ARC process, which highlighted some additional changes to the 2023/2024 indicators. 1.6 The findings from the internal and external validation work showed that North Ayrshire Council required to restate 15 indicators for 2023/2024, using the SHR Data Correction Policy. Appendix 3 details the 2023/24 indicators which required to be amended and submitted to the SHR, along with an explanation of the backround and corrective action which has been implemented. As a measure of good practice Housing Services are currently taking steps to further strengthen their processes around the ARC. 1.7 In October 2024, the Regulator was advised that a validation exercise was being undertaken and that any corrections would be reported in due course. A further update was provided by the Head of Service at a meeting with the Regulator on 11 June 2025, prior to the data corrections being formally submitted on 28 August 2025. 2. Background 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. The Council must provide assurance that it complies with the relevant requirements of Chapter 3 of the Regulatory Framework. 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 6
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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 2024/25 was submitted to the SHR on 30 May 2025. The return provides details of the Council’s performance across a range of indicators within the Charter outcomes. Prior to submission of the ARC, a meeting was held on 27 May 2025 with the North Ayrshire Network (NAN), which is our tenant group with representation from local Tenants and Residents Associations (TARAs). At the meeting a range of indicators were discussed, with information on levels of performance and a comparison with 2023/24 data provided to the NAN members. 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 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. 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. Performance 2.9 The Scottish Housing Regulator published their National Report on social landlords’ performance against the standards and outcomes of the Scottish Social Housing Charter for 2024/25 on 29 August 2025. Initial analysis of the 2024/25 national performance information shows that North Ayrshire Council remains a high performing local authority housing service. Of the 35 indicators reported in 2024/25, ranked against other Scottish local authorities North Ayrshire is in: • The top quartile for 17 indicators (49%) • The second quartile for 7 indicators (20%) • The third quartile for 3 indicators (9%) • The bottom quartile for 8 indicators (22%) 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. 7
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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, the housing repairs policy and homelessness prevention. 2.13 The information provided below identifies key areas of high or improving performance as reported in our ARC return for 2024/25, alongside areas where there has been a decline, or where improvement is required. Areas of high or improving performance 2.14 Tenant satisfaction has improved in terms of our overall services as a landlord (91.8% in 2024/25 vs 88.7% in 2021), tenants feeling we are good at keeping them informed about our services and decisions (86.8% in 2024/25 vs 85.5% in 2021), and remains high in relation to opportunities given to tenants to participate in decisions (89.7% vs 91.9% 2023/24). Performance in this area is based on our tri-annual tenant satisfaction survey, which took place during 2024/25 to provide an updated position for the 2024/25 ARC submission. 2.15 The average length of time taken to complete non-emergency repairs decreased from 6.76 days in 2023/24 to 6.60 days and is below the Council’s 7-day average target. The increase in performance is mainly due to the introduction of a new ‘handyman’ multi-trade role which allows Building Services to complete a higher volume of routine multi-trade jobs more quickly and create capacity for qualified operatives to undertake more complex, trade-specific works. Our policies and processes in relation to repairs and maintenance are an area of focus within the Housing transformation programme. 2.16 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 302 on 31 March 2024 to 232 on 31 March 2025. The average number of days to complete an approved adaptation also decreased significantly, from 90.08 days in 2023/24 to 57.25 days in 2024/25. As part of the 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 processes, to ensure the best possible service outcome for tenants and best value for their rent. 2.17 The average time taken to re-let properties decreased from 31.93 days in 2023/24 to 27.89 days in 2024/25. 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. Notwithstanding the improvement in void performance, Housing Services are currently working closely with Building Services to review the current void processes, as part of the Housing Transformation Board work programme. The aim of the workstream is to ensure the delivery of an effective and efficient service that not only creates efficiencies but also assists in futureproofing the housing stock by increasing the number of accessible homes across North Ayrshire. 2.18 The number of court actions resulting in eviction increased from 11.22% in 2023/24 to 13.37% in 2024/25. Of the 172 court actions resulting in 23 evictions in 2024/25, 21 were due to rent arrears and two were due to antisocial behaviour. 8
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Areas with a decline in performance or requiring improvement 2.19 The average length of time taken to complete emergency repairs increased from 2.29 hours in 2023/24 to 2.72 hours in 2024/25. Despite the slight decrease in performance, we continue to out-perform our four-hour target for emergencies, as set out in North Ayrshire Council’s Housing Repairs Policy. 2.20 The percentage of antisocial behaviour cases resolved during 2024/25 was 85.65%, a slight decrease against last year’s performance of 86.50%. However, our performance against locally agreed targets is 96.3% of cases resolved within agreed timescales, which exceeds the target of 94%. 2.21 Satisfaction levels of tenants who had repairs or maintenance carried out in the last 12 months has decreased from 97.51% to 86.78% since 2023/24. This is based on 1,490 responses received during 2024/25. Since September 2023, tenants have been able to complete a satisfaction survey in real time on the tradesperson’s electronic device. Work is continuing to ascertain the most appropriate method of collating this performance information to support continuous improvement in the number of responses received. 2.22 Gross rent arrears as a percentage of rent due increased from 7.48% in 2023/24 to 8.03% in 2024/25. Rent arrears continue to remain a focus for Housing Services and is a priority workstream for the Housing Transformation Board, which is overseeing work to prepare a new Income Collection Strategy. Housing Operations staff follow the Council’s arrears escalation process to recover rent arrears where possible, and proceed with court action for rent arrears over £2,250. Dedicated housing support and welfare rights teams are in place to help maximise income for tenants. The teams continue to prioritise prevention, early intervention and take a person-centred approach to arrears management, recognising the financial challenges many tenants are facing. Our overall performance in relation to rent arrears is monitored by the Housing Services leadership team on a monthly basis, with detailed information provided at a local housing office/ patch level. 2.23 Approaches for homeless assistance in North Ayrshire increased by 8.29% in 2024/25 compared to the previous year. The national performance statistics published annually by the Scottish Government highlight that homelessness is at the highest level nationally since 2011/12, with the number of open homelessness applications and households in temporary accommodation reaching the highest on record. The main reason for homelessness in North Ayrshire during 2024/25 was as a result of a relationship breakdown, accounting for 266 approaches (22.47%). This is followed by people being asked to leave the family home, which accounted for 217 (18.33%) approaches. 2.24 Whilst there is increasing pressure on the housing system locally in North Ayrshire, a range of measures are in place to respond to this, including increasing housing supply through new builds and acquisitions, ensuring our void properties are turned around as quickly as possible for re-let, and managing housing demand from homeless people through our supply of temporary and permanent accommodation. The service delivery model within Housing Operations/Homelessness Services was revised in May 2024 to enable prevention activities to be undertaken at a locality level, with newly integrated teams working to identify and address service priorities within each locality. 9
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This approach ensures that there is a joined-up response to tenants and residents by resolving any issues as they arise at a local level. The Council’s Homelessness Task Force comprises of a range of internal and partner stakeholders who are working together to analyse a range of available datasets to understand the changing dynamics of the homelessness system and associated risk factors. The work of the Task Force includes preparation of a new Homelessness Prevention Strategy, which will consider all levers at partners’ disposal to balance the homelessness system, and will be aligned to the Housing (Scotland) Bill 2024. 2.25 The percentage of tenancy offers refused during the year increased slightly from 42.45% to 43.45%. This is largely attributable to an increase in refusals from tenants on the housing waiting list who have an identified accessible housing need and are looking to transfer from an existing tenancy. The Council and its Common Housing Register partner landlords do not impose any penalties on applicants for refusing offers of housing that are made via the North Ayrshire Housing Allocation Policy. This may have led to applicants receiving multiple offers of housing and refusals being made, therefore the headline decline in performance may not be a true reflection. A further contributory factor to the increase in refusals may be that applicants have expectations of being housed or re-housed in our new build developments. We intend to review our Suspension Policy as part of the future work programme associated with the forthcoming revised Allocations Policy which will be considered by Cabinet on 30 September 2025. Area of non-compliance 2.26 Similar to 2023/24, our two areas of non-compliance relate to gas safety and Electrical Installation Condition Reporting (EICR). In early 2023, a cross-service working group was established to address performance in this area. An improvement plan was developed and implemented, which has delivered a sustained increase in performance. However, our target is 100% compliance, and efforts are ongoing to close the small remaining gap. As part of our improvement plan, a dedicated Compliance Team within PMI was created in 2023, supported by additional resources. An update on gas safety and EICR is provided below. Gas Safety 2.27 During 2024/25, one property did not receive its annual gas safety check within the statutory timescales (compared to 106 in 2022/23 and 25 in 2023/24). The omission in 2024/25 was due to a system administration error, where the property was erroneously removed from the database following demolition of a neighbouring block. 2.28 All efforts were made to ensure compliance at the earliest opportunity and appropriate records were kept. The one property which failed its 12-month compliance check during 2024/25 was completed by 31 March 2025. During 2025/26 to date, no failures have been recorded. Electrical Testing 2.29 At the end of 2024/25, 305 properties were non-compliant due to not having an EICR certificate in place, representing 2.27% of our total housing stock. The Council’s access policy was extended in August 2023 to enable electrical inspections to be 10
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undertaken, similar to the arrangements already in place for gas compliance checks which has assisted in improving performance in that area. 2.30 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 2024/25 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 2025/26, the EICR compliance figure as at end June 2025 was 98.21%. 2023/24 ARC data validation 2.31 The Annual Assurance Statement 2023/24 report, presented to Audit and Scrutiny Committee on 31 October 2024, advised that Housing Services had recently commissioned an independent consultant to validate the 2023/ 24 ARC submission and enable any improvements to data collection and reporting to be addressed prior to the preparation of the 2024/25 ARC. 2.32 The external validation exercise was undertaken in October 2024 and concentrated on 17 key indicators. The Council’s Internal Audit Service was requested to undertake further validation on some of the remaining indicators. This audit was completed in March 2025 and concentrated on five indicators. As a final measure, a further analysis of the technical guidance was undertaken during the 2024/2025 ARC process, which highlighted some additional changes to the 2023/2024 indicators. 2.33 The findings from the internal and external validation work showed that North Ayrshire Council required to restate 15 indicators for 2023/2024, using the SHR Data Correction Policy. Appendix 3 details the 2023/24 indicators which have been amended and submitted to the SHR, and includes explanations and corrective actions taken. 2.34 In October 2024, the Regulator was advised that a validation exercise was being undertaken and that any corrections would be reported in due course. A further update was provided by the Head of Service at a meeting with the Regulator on 11 June 2025, prior to the data corrections being formally submitted on 28 August 2025. 2.35 As a measure of good practice Housing Services are currently taking steps to further strengthen their processes around the ARC, including: • Preparation of clear and prescriptive data for all indicators within the ARC • Monthly monitoring and validation of indicators • Procurement of external support to carry out a ‘level one’ desktop ARC validationexercise, with a full ARC validation every three to five years. 2.36 Housing Services has a long established and strong performance culture. The validation work that has been undertaken during 2024/25 reflects a spirit of continuous improvement and self-assessment, aligned to the SHR’s Regulatory Framework. Assurance 2.37 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 11
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performance information and action plans presented to the North Ayrshire Network, Housing Business Plan Group and Council’s Cabinet regularly during each year. 2.38 Several ARC indicators also form part of the corporate performance monitoring framework, scrutinised by Chief Officers and elected members. 2.39 The Scottish Federation of Housing Associations (SFHA) Self Assurance Toolkit has also been utilised as a further method of self-assessment. The toolkit provides guidance to social landlords on gathering evidence to demonstrate compliance with regulatory requirements and standard and focuses on questions that governing bodies should ask to gain assurance that this is being achieved. 2.40 The ARC 2024/25, 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. 2.41 Supporting evidence to demonstrate compliance with the regulatory framework and relevant legislation is attached at Appendix 2. 2.42 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 non-compliance with our legal responsibilities around gas and 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 2024/25; (ii) notes the supporting evidence provided to demonstrate compliance with the regulatory framework and relevant legislation; (iii) notes the Council’s areas of non-compliance detailed at paragraphs 2.24-28; (iv) notes the amendments which have been made to the Annual Return on the Charter 2023/24 and submitted to the Scottish Housing Regulator; and (v) 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 2024/25 and supporting evidence, and signature of the Annual Assurance Statement, will ensure that the 12
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Council complies with regulatory requirements set out in the Housing (Scotland) Act 2010. 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 None. 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 None. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None. 5. Consultation 5.1 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) For further information please contact Yvonne Baulk, Head of Service (Housing and Public Protection), on 01294 324542. 13
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Background Papers Appendix 1: North Ayrshire Council Annual Assurance Statement 2024/25 (unsigned) Appendix 2: Supporting evidence document 2024/25 Appendix 3: Data corrections spreadsheet - North Ayrshire Council - 2023/24 14
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Appendix 1 North Ayrshire Council Annual Assurance Statement 2024/25 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 gas safety legislation for one property, and electrical testing for 305 properties during 2024/25. The most significant challenge during 2024/25 has been gaining access to properties to carry out statutory compliance works. 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 2024/25. 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 23 September 2025. Authorised by: ________________________ Chairperson of the Committee Printed name: ________________________ Date: ________________________ 15
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Appendix 2 North Ayrshire Council Housing Services Annual Assurance Statement 2024/25 Supporting Evidence September 2025 16
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Appendix 2 Introduction In February 2019, the Scottish Housing Regulator (SHR) 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. We must provide assurance that the organisation complies with the relevant requirements of Chapter 3 of the Regulatory Framework. This document provides evidence to support our Statement that 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; and Comply with all regulatory requirements, encompassing: • Assurance and notification • Tenant and service user redress • Tenant and resident safety • Whistleblowing • Equalities and human rights • Scottish Social Housing Charter Performance. As a landlord, we are also required to meet all legal duties and responsibilities. During 2024/25 we were unable to do this, as some properties did not have an annual gas safety check carried out or an electrical safety certificate in place within the legal timescales due primarily to issues in gaining access to tenants’ homes. We have provided information on this non-compliance in our Annual Assurance Statement and further detail in this supporting evidence. The Scottish Housing Regulator contacted all local authorities and RSLs in March 2025 to ask landlords to continue to include further assurance around tenant and resident safety in their 2024/25 Annual Assurance Statement, in particular: • Gas safety • Electrical safety • Water safety • Fire safety • Asbestos • Dampness and mould • Lift safety 17
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Appendix 2 In January 2025, the Scottish Housing Regulator published new indicators on fire and electrical safety and damp and mould which landlords will be required to submit by the end of May 2026 as part of the ARC submission. Measures have been put in place to ensure we are collating this additional information to inform the ARC return as required. The Scottish Housing Regulator has requested that landlords provide assurance in their Statement that they have appropriate plans to implement an effective approach to the collection of equalities information and that they have started to consider how they can adopt a human rights approach in their work. Regulatory Requirements Assurance and notification We prepare an Annual Assurance Statement in accordance with guidance and submit it to the Scottish Housing Regulator (SHR) annually. The statement is available to tenants and other service users. We will notify the SHR during the year of any material changes to our assurance as set out in the Statement. We can evidence that we meet all legal obligations associated with housing and homelessness services, and equality and human rights. We have not met our legal obligations around tenant and resident safety as we did not comply with gas safety legislation for one property during 2024/25. Due to new legislation introduced during 2021/22 regarding electrical testing, 305 properties were non-compliant with regards to having an electrical installation condition report (EICR) in place during 2024/25. There continues to be an ongoing reluctance by some tenants to grant access to their property; this is an issue we are working to address alongside system issues. In early 2023, a cross-service working group was established to address our performance in this area. An improvement plan was developed and implemented which has delivered a sustained increase in performance from 2022/23 and 2023/24. As part of our improvement plan, a dedicated Compliance Team within PMI was created in 2023, supported by additional resources. We have considered this a material non-compliance and informed the SHR during 2024/25 of this expected outcome and continued to provide them with monthly updates. We notify the SHR of any tenant and resident safety matters involving the Health and Safety Executive or reports from other regulatory bodies relating to safety concerns. There were no issues to report during 2024/25. ‘Customer Connections,’ our Customer Participation Strategy, is available to tenants and service users on the Council website. Customer Connections Strategy (north-ayrshire.gov.uk) 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. 18
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Appendix 2 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. 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 data 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. We use this data to inform decision making, policy making and day to day service delivery. We provide a diverse range of services, and we want to ensure everyone has the same opportunity to access services and that they meet the needs and value the diversity for all our customers. We are currently undergoing a system review alongside our partner landlords within the North Ayrshire Housing Register and have incorporated equalities data into the brief to further develop our approach. We recognise that access to good quality housing is a basic human right and providing this to everyone in North Ayrshire is of the highest priority. Work already takes place across a range of activities: ensuring that accommodation is provided to homeless households when needed; housing support services are provided to council tenants and homeless households to help sustain tenancies; there is a dedicated site to meet the needs of Gypsy/ Travellers; standards of Council-owned accommodation are well maintained and align to the Scottish Housing Quality Standard (SHQS); and we carry out adaptations to properties to make them more accessible for households with disabilities. Scottish Social Housing Charter Performance We submit an Annual Return on the Charter to the Scottish Housing Regulator annually 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. 19
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Appendix 2 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 number 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. 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 tenants have endorsed our publications. In recent years we have developed a social media profile through Facebook and Twitter to encourage digital engagement with a wider and more diverse customer base. 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 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. To do this, Housing Services report to the Network through presenting on performance both mid-year and prior to submitting the Charter annually, working together on developing our annual report to tenants and communicating any changes from the Scottish Housing Regulator directly to the group. A recent review of the NAN’s membership has successfully resulted in an equalities-led approach to recruitment and 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 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. 20
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Appendix 2 Alongside developing the Customer Participation Strategy 2023 – 28 we received gold level accreditation from Tenant Information Service (TIS Scotland) in August 2022 for Excellence in Scrutiny and Charter Performance for 2023 –25. In addition, we received gold level re-accreditation from Tenant Participation Advisory Service (TPAS Scotland) in November 2022 for Excellence in Tenant Participation for 2023 - 25. Our latest tenant satisfaction survey told us that opportunities to take part in decision-making processes has fallen slightly to 90%, from 92% in 2021 but remains high in comparison to the 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, whereas 77% have stated they are not interested in tenant participation activities. This will be addressed through the 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: Quality of housing Our housing stock is in very good condition and is well maintained. We take a proactive approach to housing asset management and target improvements to ensure that our properties are SHQS and EESSH compliant. Properties are refurbished to ensure they remain attractive, meet energy efficiency targets, meet modern requirements, and tenant expectations. We have a range of planned maintenance programmes which are designed to: optimise investment by replacing major element components before they would otherwise require responsive repairs; anticipate changes in minimum acceptable standards; reduce future requirements for cyclical maintenance; and future proof properties to ensure sustainability measures being introduced can be met. A self-assessment of asset management processes and data has been undertaken to develop our approach. This is to enable the delivery of the Housing Asset Management Plan (HAMP) and takes cognisance of the recommended practice on Integrated Asset Management published by the Scottish Housing Regulator (SHR) in February 2023. The workstream is reported to the Housing Asset Management Board and has an action plan developed and monitored to ensure delivery. Alongside property lifecycle data, the outcomes from the action plan will inform future capital investment needs and identify properties where investment required is not economically viable and other solutions may be preferable, such as demolition. We have not met our legal obligations around tenant and resident safety during 2024/25 as we did not comply with gas safety legislation for one property. Due to new legislation introduced during 2021/22 regarding the frequency of electrical testing and the installation of smoke detection equipment, 305 properties were non-compliant with regards to having an up-to-date EICR during 2024/25. There continues to be an ongoing reluctance by some tenants to grant access to their property; this is an issue we are working to address alongside system issues. Additional contracts were put in place to try and achieve this by the date given, however supply chain and labour shortages for contractors have also impacted the 21
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Appendix 2 programme. In early 2023, a cross-service working group was established to address our performance in this area. An improvement plan was developed and implemented which has delivered a sustained increase in performance in 2023/24 and 2024/25. We aim to be 100% compliant and efforts continue to close the remaining gap. However, completing the EICR programme in the context of continuing tenant refusal makes this extremely challenging. Resorting to forcing access using our Access Policy is also extremely resource intensive for both the Council and our contractors. We have a dedicated Contracts, Compliance and Maintenance team within our Property Management and Investment service who ensure all statutory compliance requirements are met with regards to lift maintenance and legionella. We also have a dedicated asbestos compliance officer who works with all officers conducting any form of refurbishment or alteration to buildings to ensure compliance with legislation in all instances. Condensation, Dampness & Mould North Ayrshire Council has a robust approach to dealing with cases where dampness and mould are reported. A strategy - which encompasses our approach to both Council homes and the private sector - and an improved proactive “end to end” process is in place. A comprehensive process map has been developed that sets out the process and ensures issues with damp and mould are effectively addressed. This includes a prioritised work stream where health concerns are present and involves joint service working towards positive outcomes. An anniversary inspection visit has been introduced to measure the effectiveness of earlier interventions and statistics are reviewed per property type to feed into longer term asset management objectives. The core of this process is in place and further elements, such as an expansion in the use of electronic monitoring, are also under consideration. To improve ventilation provision, a humidity tracking fan, instead of a standard extractor fan, is now being installed as a minimum standard in all Projects, Void, and Repair works. Our Building Services Inspection Officers, who inspect instances of dampness and mould, are all from a building trade background and are qualified to HNC in Construction standard as a minimum. Further specialist training in dampness, mould, and timber decay has been undertaken by two officers who have achieved the industry recognised qualification of Certificated Surveyor of Timber and Dampness in Buildings (CSTDB). Tenant engagement has also been increased, with regular information provided via the digital Tenant Chat and social media channels. Close attention is being paid to the implementation of Awaab’s Law in England (October 2025) and consideration is being given to the implications of this being adopted by the Scottish Government. Repairs, maintenance, and improvements North Ayrshire Council is committed to delivering a high quality, efficient and effective reactive and planned maintenance service to all our tenants and factored owners in a manner which maintains high customer satisfaction. Our Repairs Policy sets out the service provided by the Council for repairs and maintenance and aims to ensure the needs of our current and future tenants are met in relation to the provision of high-quality housing. The 22
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Appendix 2 policy is currently under review as part of the Housing Transformation Board workstream and will be developed in consultation with tenant representatives. The average length of time taken to complete emergency repairs increased slightly from 2.29 in 2023/24 to 2.72 hours in 2024/25 and decreased from 6.76 to 6.60 days for non-emergency repairs. Despite the slight decrease in performance to respond to emergency repairs, we continue to remain within our four-hour target for emergencies, as set out in our housing repairs policy. The increase in performance for non-emergency repairs is due to the introduction of a new ‘handyman’ post which enables Building Services to complete a higher volume of routine multi-trade jobs more quickly and creates capacity for qualified operatives to undertake more complex, trade specific works. Satisfaction levels of tenants who had repairs or maintenance carried out in the last 12 months decreased from 97.51% to 86.78% during 2024/25. This is based on responses from 1,490 tenants received. An efficient and effective void repairs service provides a quick turnaround on empty properties, which helps to accelerate the repairs process and reduce void rent loss. Void performance is affected by the additional time taken to rehouse tenants affected by our regeneration projects. A general increase in the number of properties requiring major works such as central heating, rewiring and full decoration has also impacted on performance. The average time taken to re-let properties has decreased from 31.93 days in 2023/24 to 27.89 days in 2024/25. Void performance continues to be affected due to issues with utility meters, which is recognised nationally as a significant issue and has been escalated to the Scottish Government for action. Housing Services are working with Building Services to review the current void process as part of the Housing Transformation Board workstream, to ensure the delivery of an effective and efficient service for tenants and to assist in future proofing our housing stock. Despite the slight increase in the number of days taken to re-let voids we are still ranked a top performer within our SHN benchmarking peer group for 2024/25 and second across all local authorities. Standard 3 – Neighbourhood and community Outcome: Estate management, antisocial behaviour, neighbour nuisance, and tenancy disputes Estate Management covers a broad range of situations and activities such as new tenant visits, permissions for garages and driveways in garden ground, abandoned tenancies, untidy gardens, neighbour disputes, problems with pets, abandoned vehicles, tackling graffiti and illegal dumping/fly- tipping. We have a comprehensive Estate Management procedure manual to ensure we meet our responsibilities as a landlord, and to support tenants to meet their responsibilities as detailed within their Tenancy Agreement. Every effort is made to support tenants to address any breach of the tenancy agreement, however if a tenant is consistently unwilling to do adhere to the tenancy agreement, the Council will pursue appropriate and proportionate action. 23
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Appendix 2 In May 2024, a new integrated service delivery model was implemented, with housing, homelessness, advice, support and anti-social behaviour officers located within locality-based housing offices. Teams are working to identify the service priorities within each town to ensure there is a joined- up response to delivering an improved service to our tenants and residents by resolving any issues as they arise at local level. During 2023/24 the remit of the Estate Caretaker post was reviewed and redesignated as an Estate Officer, with the focus on providing a more proactive, rather than reactive, service for our tenants and residents. The Safer North Ayrshire Partnership (SNAP) is a multi-agency group who work together with local communities and key stakeholders to prevent crime and antisocial behaviour, responding quickly and proportionately to arising issues. We experienced a 13.4% decrease in reports of ASB during 2024/25 compared to the previous year. The Council has locally agreed targets for the closure of ASB cases, which are based on the complexity and level of investigation required to resolve them. Our performance against the locally agreed targets during 2024/25 was 96.3% of cases resolved within agreed timescales, against a target of 94%. Our last tenant satisfaction survey was carried out during 2024/25, with 91.3% of tenants responding that they were satisfied with the management of the neighbourhood they live in. This reflects is a significant improvement to the previous survey, which showed an 80% satisfaction level. Standard 4 – Access to housing and support Outcomes: Housing options and access to social housing We are currently reviewing our Housing Allocation Policy alongside our RSL partners, with implementation expected in November 2025. This review is examining key themes that have emerged from our last review in 2019 and any upcoming legislation that could impact housing allocations. We introduced an Arran Local Letting Initiative in April 2021, which allows island residents and key/ essential workers to be given additional priority for housing on the Island. Trust Housing Association joined the North Ayrshire Housing Register (NAHR) in April 2025 and have adopted the Arran Local Letting Initiative. In relation to our void processes, timescales are mutually agreed by the Housing Officer and Building Services supervisor, based on the amount of work required. The average time taken to re-let properties reduced from 31.93 days in 2023/24 to 27.89 days in 2024/25. Our 2024/25 void performance was affected by issues with utility meters, which is recognised nationally as a significant issue and has been escalated to the Scottish Government for action. We have established a cross-service working group to review and analyse our void processes. The group will scrutinise current working practices to identify opportunities to improve our void processes, turnover performance and to create efficiencies. 24
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Appendix 2 Senior officers from Housing and Building Services (who carry out the majority of works in Council dwellings) have periodic meetings with officers from North Ayrshire Health and Social Care Partnership (NAHSCP) who – in accordance with the Integration Scheme - manage the process for aids and adaptations. This allows us to understand demand and agree, set, and monitor performance in relation to expenditure. NAHSCP have a formal Adaptations Criteria and Policy for staff to adhere to; this ensures a consistent and high-quality adaptations assessment process. Joint complex case reviews are held monthly between NAHSCP and Housing professionals to agree the scope of the works to be undertaken. OT staff have been trained to explore the housing options of housing applicants with long term health conditions, to ensure that accessible housing needs are met where adaptations are not appropriate. These tiers of governance provide a formal procedure for all decision making, ensuring resources are targeted to those most in need of adaptations. There has been a decrease in the number of households waiting for an adaptation to their home, decreasing from 302 in 2023/24 to 232 in 2024/25. The average number of days to complete an approved adaptation has also significantly decreased from 90.08 to 57.25 days. The joint improvement group comprising of Housing Services, Building Services, Property Management and Investment and the Health and Social Care Partnership continue to review demand and current work processes, in order to deliver the best service outcome and value for money for tenants. Homeless people Approaches for homelessness assistance Approaches for homelessness assistance in North Ayrshire increased by 8.29% during 2024/25 compared to the previous year, resulting in rising pressure on the demand for temporary accommodation. The national performance statistics published annually by the Scottish Government have highlighted that homelessness is at its highest level since 2011/12, with the number of open homelessness applications and households in temporary accommodation reaching the highest in the time series (back to 2003 and 2002 respectively). Whilst there is increasing pressure on the housing system locally in North Ayrshire, a range of measures are in hand to respond to this, including increasing housing supply, ensuring our void properties are turned around as quickly as possible for re-let, and managing the demand from homeless people by using our supply of temporary and permanent accommodation. We have changed the service delivery model within Housing Operations/Homelessness services to enable prevention activities to be undertaken at a locality level, with newly integrated teams working to identify the service priorities within each locality. The Homelessness Task Force that we have in place comprises of a range of stakeholders who are working to analyse the variety of datasets we have at our disposal. The purpose of this is to understand the changing dynamics of the homelessness system and risk factors. The work of the task force includes preparation of a new Homelessness Prevention Strategy, which will consider all of the levers at our disposal to balance the system and will also be aligned to the new Housing (Scotland) Bill 2024. In addition, a key component of our current allocations policy review is to understand the impact of increased lets to homeless households and the options available for mitigation. Reasons for approach for homeless assistance 25
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Appendix 2 The main reason for homelessness in North Ayrshire during 2024/25 was as a result of a relationship breakdown, accounting for 266 approaches (22.47%); this is followed by people being asked to leave the family home, which accounted for 217 (18.33%) approaches. Applications from households fleeing domestic abuse accounts for 171 homeless approaches (14.4%) during 2023/24, compared to 170 approaches (15%) in 2023/24. We have had no breaches of the Unsuitable Accommodation Order and have ensured that temporary accommodation continues to be available for anyone who needs it. We have continued the delivery of the Rapid Rehousing Transition Plan (RRTP) and met the year five target to deliver 100 Housing First tenancies for the most vulnerable homeless households in North Ayrshire by 31 March 2024; as at 31 March 2025 we had created 123 tenancies. The North Ayrshire Homelessness Task Force has reviewed the above performance to inform our Homelessness Prevention Strategy moving forward. Standard 5 – Getting good value from rents and service charges Outcomes: Value for money Our robust Housing Revenue Account 30-year Business Plan provides clear strategic direction, ensuring that effective short, medium, and long-term financial planning is undertaken. This clearly details how we will plan for, and deliver, key priorities such as compliance with the Scottish Housing Quality Standard, investment in our current stock, our Council house building programme and rent setting. The Business Plan was developed by a cross stakeholder working group which included representation from elected members, tenant representatives and officers from within Housing, Property Management and Investment, Building Services and Finance. This approach ensured balanced decision- making that can stand up to both internal and external scrutiny. In addition to the business plan, we have an effective budget and performance management reporting framework that makes certain that we continue to provide value for money services to our tenants and, at the same time, keep rents at affordable levels. This is achieved while recognising that we are currently operating within an extremely challenging and evolving economic environment which requires sufficient flexibility to be able to change and adapt investment plans. The Business Plan is easily accessible to stakeholders. It provides information to demonstrate that the Council has a clear picture of its strategic direction and the associated financial position of the service to deliver this, over the 30-year planning period. This plan is reviewed annually, and we are focused on providing value for money through a number of measures, such as operating robust financial management processes, implementing value for money principles, exploring efficiency opportunities, and managing competitive contractual arrangements. 26
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Appendix 2 The HRA Capital Investment Programme, Revenue Budget and Rent Levels report for 2023/24 highlighted that the HRA was facing affordability challenges, primarily due to higher rates of inflation and increased borrowing rates. In order to minimise the risk of these challenges and keep rent increases sustainable, savings and efficiencies were identified, and a Housing Transformation Programme was created. However, during rent setting for 2025/26 it was identified that further work is required to establish efficiencies as it highlighted that there remains a significant risk to the HRA Business Plan and its long-term sustainability, therefore four key projects have therefore been prioritised within Housing’s wider Transformation Programme: • Income maximisation • Repairs & maintenance • Void works • Aids & adaptations During our last tenant satisfaction survey 89.87% of tenants confirmed they felt that the rent for their property represents good value for money. Rents and service charges Our rent levels remain in line with the national average, whilst continuing to invest in our existing stock and new house building programme. Our plans takes account of the strategic context, such as: the prevailing economic situation and expectations/ forecasts for the time horizon of the business plan; the broader context for tenants and other service users such as rent affordability, cost of living, welfare policy and how the labour market is performing; and the broader context for landlords such as cost pressures in repairs, maintenance and development, supply chain issues, investment decisions in meeting net zero obligations and tackling homelessness. We manage these pressures and are committed to delivering services in new, improved and more cost-effective ways. Standard 6 – Other customers Outcomes: Gypsy/travellers North Ayrshire Council recognises Gypsy/Travellers to be a minority ethnic community, as set out by Scottish Government guidelines. As a council we: • recognise Gypsy/Travellers' right to a nomadic life; • respect that they may wish to maintain a travelling way of life as part of their cultural identity. There should be no discrimination against Gypsy/Travellers because of their way of life or culture. 27
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Appendix 2 We provide services, advice and assistance to Gypsy/Travellers living permanently in North Ayrshire and additionally to those who visit on a temporary basis. North Ayrshire Council manages one permanent site at Redburn Grove in Irvine. The site has 16 pitches, and each pitch has its own amenity block with separate kitchen, shower, toilet facilities and utility room. The site is monitored and supported through our Gypsy/Traveller Coordinator. A community room is available on site for partner services to meet tenants and their children within a safe and comfortable environment. The room is used by several services, including Education, the Welfare Reform Advice team, Tenancy Support, the Community Link team, and a regular GP surgery. Our Tenant Participation Team also support Redburn Grove tenants to hold regular tenants’ meetings. The meetings allow tenants the opportunity to work in partnership with Council staff as we consider options for current and future service provision. In 2016 the Scottish Government introduced minimum standards for Gypsy Traveller Sites across Scotland. North Ayrshire Council achieved the minimum standards at Redburn Grove; however, we recognise that significant capital investment is required to ensure that it continues to meet expected standards. Following consultation with current tenants in April 2023, future improvement proposals for the Redburn site have been developed, reflecting on feedback gathered in relation to their preferences for future housing. The proposed development will form part of our Strategic Housing Investment Plan (SHIP) submission for 2026-2031. The Scottish Government has developed a draft design guide for Gypsy/Traveller sites to be used for new sites or major refurbishments of existing sites. The design guide has been provided to give advice on what good quality; culturally appropriate accommodation should look like. The Scottish Government previously had a capital fund available for five years from 2021-25, with criteria clearly outlined for the fund, including how residents and travelling community members would be involved, together with a process for project selection. However, this was put on hold due to funding constraints. During August 2024, the Scottish Government wrote to all local authorities to advise them that the fund will be reintroduced from 2026- 27 onwards. The Scottish Government will work with COSLA and relevant colleagues to ascertain how the fund will be utilised using the information gathered from the demonstration projects completed through the previous fund. Our response to supporting and managing unauthorised encampments fully complies with Scottish Government policy. Our Gypsy/Traveller Coordinator works to build relationships with visiting families to assess their needs. Where necessary they make referrals to partner organisations and provide advice on housing options, if required. The Officer also works closely with private landowners and members of the wider community and provides advice and assistance regarding the rights and responsibilities of Gypsy/Travellers who visit North Ayrshire. We are represented on COSLA’s Gypsy/Traveller Lead Officers Group and their Negotiated Stopping Pilot Working Group. Our latest satisfaction survey carried out during 2024/25 highlighted that 27.3% of the 16 tenants in Redburn Grove are satisfied with the landlord’s management of the site. We instructed a separate in-depth independent Gypsy/Traveller site survey to be conducted alongside our wider tenant satisfaction survey; this has indicated a low level of satisfaction and has provided a greater understanding of the issues. Dissatisfaction with the management of the site is largely in relation to the condition of the site, which has been impacted by availability of funding. Findings from the independent report will inform and influence our investment proposals for the site. Refugees 28
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Appendix 2 North Ayrshire Council is fully committed to supporting the UK Humanitarian programmes in place to accommodate and support refugees. This work is coordinated by our inter-agency Refugee Task Force comprising of senior officers from across the Community Planning Partnership (CPP) including Housing, the Health and Social Care Partnership, Education, Department of Work and Pensions, Police Scotland, and voluntary organisations. Our Refugee Support Team work together with the CPP partners to deliver robust resettlement support to assist families to integrate into the local communities and access vital services to meet their individual needs. During 2024/25, the Council and community planning partners have supported 145 Ukrainian households, comprising of 347 individuals, to resettle in North Ayrshire across the different Scottish Government sponsorship schemes. To support the schemes, 33 properties were bought during 2023/24 using our buy-back approach, and allocated to Ukrainian households. In total we have provided 120 units of social housing stock to provide long term accommodation for households. We previously supported a Welcome Hub which was set up within a local hotel to provide interim emergency accommodation and support to a number of individuals and families while they awaited a more appropriate housing solution. The transition of all guests to permanent housing was successfully completed by September 2023. In the last 12 months, in partnership with the Scottish Government, we have redeveloped a large vacant property to provide temporary accommodation for a further three Ukrainian families. We have also purchased 33 ex-local authority properties throughout North Ayrshire to support the Ukrainian resettlement programme. The 33 properties were fully funded by the Scottish Government with the condition that they are utilised for Ukrainian Displaced Persons (UKDPs) for the first three years. Thereafter, they can be utilised for mainstream housing allocations. Housing Services are monitoring resettlement provision carefully to ensure we continue to meet our statutory responsibilities in relation to other priority groups including homeless people. 29
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Appendix 3 Data corrections - North Ayrshire Council - 2023/24 Original Return Updated Return C2 The number of lets during the reporting year by source of let C2.1 The number of lets to existing tenants 139 160 148 C2.2 The number of lets to housing list applicants 328 310 435 C2.3 The number of mutual exchanges 127 117 110 C2.4 The number of lets from other sources 0 0 110 C2.5 The number of lets to homeless applicants 522 525 457 C2.6 Total number of lets excluding exchanges 989 995 1,040 C3 C3.1 The number of ‘general needs’ lets during the reporting year 755 758 780 C3.2 The number of ‘supported housing’ lets during the reporting year 234 237 260 Total 989 995 1,040 15 15.1 The number of cases of anti-social behaviour reported in the last year 961 1030 892 15.2 The number of cases resolved in the last year 882 891 764 Percentage of anti-social behaviour cases reported in the last year which were resolved. 91.78% 86.5% 85.65% C6 C6.1 The number of households the landlord received housing costs directly for during the reporting year 9,303 9,308 9,467 C6.2 The value of direct housing cost payments received during the reporting year £33,549,048.00 £34,066,609.00 £35,461,809 C7 C7.1 The total value of former tenant arrears at year end £1,408,785.00 £1,393,572.14 £1,905,950 C7.2 The total value of former tenant arrears written off at year end £214,705.00 £282,732.26 £708,780 % of former tenant rent arrears written off at the year end 15.24% 20.29% 37.19% 18 18.1 The total amount of rent due for the reporting year £55,954,535.00 £57,883,644.58 £60,150,591 18.2 The total amount of rent lost through properties being empty during the reporting year £226,193.00 £415,263.29 £335,788 % of rent due lost through properties being empty during the last yea 0.40% 0.72% 0.56% Indicator Title 2023/24 Annual Return 2024/25 Annual Return Explanation Partially validated by CDC. Issues with interface between Civica and Northgate identifying some transfer tenants as housing list applicants. Partially validated by CDC. Inappropriate categorisation of some void periods as protracted voids impacting rent due and void rent loss. Guidance on exclusions updated and circulated. New process in place for recording excluded periods and quality assurance checks undertaken monthly. Performance has improved for 2024/25. Corrective Action Interface updated to ensure data is being transferred from Civica to Northgate as required. No corrective action required. Data collation process now updated to reduce/eliminate risk of administrative error. Data collation process now updated to reduce/eliminate risk of administrative error. Number of households for which landlords are paid housing costs directly and the total value of the payments received in the reporting year Percentage of anti-social behaviour cases reported in the last year which were resolved Number of lets during the reporting year, split between 'general needs' and 'supported housing' Annual Return on the Charter (ARC) Amount and percentage of former tenant rent arrears written off at the year end Percentage of rent due lost through homes being empty during the last year Partially validated by CDC. Administrative error. Not validated by CDC. Inappropriate categorisation of some void periods as protracted voids impacting rent due and void rent loss. Originally validated by CDC. Consequence of change to C2. Internal audit finding. Administrative error - 69 cases excluded due to a filter being applied to data. Guidance on exclusions updated and circulated. New process in place for recording excluded periods and quality assurance checks undertaken monthly. 30
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Original Return Updated ReturnIndicator Title 2023/24 Annual Return 2024/25 Annual Return Explanation Corrective Action 26 26.1 The total amount of rent collected in the reporting year £55,823,549.00 £55,117,307.69 £61,073,526 26.2 The total amount of rent due to be collected in the reporting year (annual rent debit) £55,954,534.00 £57,464,478.29 £60,479,757 Rent collected as percentage of total rent due in the reporting year 99.77% 95.92% 100.98% 27 27.1 The total value (£) of gross rent arrears as at the end of the reporting year £3,288,727 £4,327,533 £4,831,586 27.2 The total rent due for the reporting year £55,954,535 £57,883,645 £60,150,591 Gross rent arrears (all tenants) as at 31 March each year as a percentage of rent due for the reporting year 5.88% 7.48% 8.03% 30 30.1 The total number of properties re-let in the reporting year 919 934 979 30.2 The total number of calendar days properties were empty 24,686 29,827 27,305 Average time to re-let properties in the last year 26.86 31.93 27.89 16 16.1.1 Number of tenancies in previous year: Existing Tenants 113 134 139 16.2.1 Number of tenants remaining in their tenancy: Existing Tenants 112 123 133 % of tenancies sustained: Existing Tenants 99.12% 91.79% 95.68% 16.1.2 Number of tenancies in previous year: Homeless 482 487 522 16.2.2 Number of tenants remaining in their tenancy: Homeless 405 409 452 % of tenancies sustained: Homeless 84.02% 83.98% 86.59% 16.1.3 Number of tenancies in previous year: Housing List 473 569 328 16.2.3 Number of tenants remaining in their tenancy: Housing List 440 504 307 % of tenancies sustained: Housing List 93.02% 88.58% 93.60% 16.1.4 Number of tenancies in previous year: Other 0 0 0 16.2.4 Number of tenants remaining in their tenancy: Other 0 0 0 % of tenancies sustained: Other 0 0 0 Partially validated by CDC. Inappropriate exclusion of void period following the death of a tenant and categorisation of properties subject to major works. Originally on-line for validation by CDC, however figures subsequently changed. Inappropriate categorisation of some void periods as protracted voids impacting rent due and void rent loss. Guidance on exclusions updated and circulated. New process in place for recording excluded periods and quality assurance checks undertaken monthly. Performance has improved for 2024/25. Guidance on exclusions updated and circulated. New process in place for recording excluded periods and quality assurance checks undertaken monthly. This is a key focus of the Housing Transformation programme and an Income Collection Strategy is currently being developed. Guidance on exclusions updated and circulated. New process in place for recording excluded periods and quality assurance checks undertaken monthly. Performance has improved for 2024/25. Unable to validate by CDC. Issues with interface between Civica and Northgate transferring information on the source of let. Not validated by CDC. Inappropriate categorisation of some void periods as protracted voids impacting rent due and void rent loss. Interface updated to ensure data is being transferred from Civica to Northgate as required. Performance has improved for 2024/25. Rent collected as percentage of total rent due in the reporting year Gross rent arrears (all tenants) as at 31 March each year as a percentage of rent due for the reporting year Average length of time taken to re-let homes in the last year Percentage of new tenancies sustained for more than a year, by source of let 31
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Original Return Updated ReturnIndicator Title 2023/24 Annual Return 2024/25 Annual Return Explanation Corrective Action 8 8.1 The total number of emergency repairs completed in the reporting year 12,765 19,043 20,675 8.2 The total number of hours taken to complete emergency repairs 27,079 43,626 56,246 Average length of time taken to complete emergency repairs 2.12 2.29 2.72 9 9.1 The total number of non-emergency repairs completed in the reporting year 12,738 15,305 16,330 9.2 The total number of working days taken to complete non-emergency repairs 96,801 103,491 107,745 Average length of time taken to complete non-emergency repairs 7.6 6.76 6.6 10 10.1 The number of reactive repairs completed right first time during the reporting year 10,961 13,803 14,733 10.2 The total number of reactive repairs completed during the reporting year 11,202 13,362 15,379 Percentage of reactive repairs carried out in the last year completed right first time 97.85% 96.81% 95.80% 21 21.1 The total number of days taken to complete all adaptations 77,905 74,317 55,362 21.2 The total number of adaptations made during the reporting year 860 825 967 The average time to complete adaptations (days) 90.59 90.08 57.25 11 11.1 The number of times you did not meet your statutory duty to complete a gas safety check 27 25 1 Unable to validate by CDC. Administrative error. Data collation process now updated to reduce/eliminate risk of administrative error. Performance has improved for 2024/25. Internal audit finding. Administrative error due to inclusion of public holidays and some non-relevant works. Percentage of reactive repairs carried out in the last year completed right first time The average time to complete adaptations Average length of time taken to complete non-emergency repairs Partially validated by CDC. Repairs completed by gas maintenance contractor omitted from original return, and incorrect treatment of non-HRA and communal repairs. Partially validated by CDC. Repairs completed by gas maintenance contractor omitted from original return, and incorrect treatment of non-HRA and communal repairs. Partially validated by CDC. Repairs completed by gas maintenance contractor omitted from original return, and incorrect treatment of non-HRA and communal repairs. How many times in the reporting year did not meet your statutory duty to complete a gas safety check Average length of time taken to complete emergency repairs Data collation process now updated to ensure relevant data is included. Data collation process now updated to ensure relevant data is included. Performance has improved for 2024/25. Data collation process now updated to ensure relevant data is included. Data collation process now updated to reduce/eliminate risk of administrative error. Performance has improved for 2024/25. 32
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NORTH AYRSHIRE COUNCIL 23rd September 2025 Audit and Scrutiny Committee Title: Our Council Plan Year End Progress Reporting including LGBF Analysis Purpose: To consider and approve Our Council Plan Year End Reporting including LGBF Analysis Recommendation: The Audit and Scrutiny Committee agrees to: (i) Consider progress within the LGBF Report as at June 2025 (Appendix 1). (ii) Consider Our Council Plan Six Monthly Progress Report 1 October to 31 March 2025 (Appendix 2). (iii) Consider Our Council Plan Annual Performance Report (Appendix 3). (iv) Note Cabinet approval relates to the content of the report, not the layout or media used to ensure future flexibility for production of accessible format reports. 1 Executive Summary 1.1 Our Council Plan 2023-28 is the overarching strategy of our council and details our council’s strategic priorities. We have a statutory duty to publish information that enables effective scrutiny of our performance. 1.2 This report presents the progress made in delivering Our Council Plan 2023- 2028 as at Year-End 2024-2025. As a result, this report combines three key Council Plan and corporate performance reports: • The Local Government Benchmarking Framework (LGBF) - Analysis of June 2025 Data Release. (Appendix 1) • Our six-monthly Council Plan 2023-28 Progress Update, Year End 2024/25 (Appendix 2) • Our Annual Performance Report 2024/25 (Appendix 3) 1.3 As a continuation of the approach at Mid-Year and following Best Value Thematic Audit recommendations, the report includes further details on: Agenda Item 3 33
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• Transformation workstreams. • Workforce Planning. 1.4 To adhere to the Statutory Performance Information Direction 2024 Cabinet agreed to note that approval of the report is considered as approval of the content of the PDF report. The report formatting may be changed following Cabinet approval to enable publication in more accessible formats such as html on our website and other media. In addition, summaries may be produced for easy read and child friendly versions as appropriate. 1.5 Following Cabinet approval, our corporate performance reports are published on our website www.north-ayrshire.gov.uk/performance. 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 actively manage performance and develop our reporting to make it accessible and engaging. 2.2 How we demonstrate our performance is defined in the Statutory Performance Information (SPI) Direction 2021 for up to year ending 31 March 2025. The Statutory Performance Information Direction 2024 takes effect on reporting of activity that takes place from 1st April 2025 for reporting year 2025-26 for approximately three years. Though outside the scope of Direction 2024, elements from it have been considered within this report. 2.3 One key area for consideration is the need to ensure our reports are both “technically accessible” and “non-technically accessible”. The Direction Guidance refers to “technically accessible” as adhering to accessibility regulations including the use of language, layout of the report, contrast and use of image alternative text. “Non-technically accessible” refers to ensuring our performance is easily understood and engaging, such as the magazine style used for our six-monthly reports. To adapt our reporting effectively to adhere to our statutory obligations and explore the use of html, easy read and child friendly versions while ensuring effective governance, Cabinet agreed to note that approval of the report is considered as being for the content of the PDF reports and that specific wording, layout, format or media used may be adapted to make it suitable for other audiences, such as our young people under the UNCRC (Incorporation) (Scotland) Act 2024, while keeping our performance fully transparent. 2.4 We have embedded key contextual indicators from the Wellbeing Economy Dashboard - which outlines our council’s Wellbeing Economy journey. We will continue to work with the Economic Policy Team to further embed this approach as the new Wellbeing Economy Dashboard becomes established. 34
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3 Assessment of Performance Performance Indicators 3.1 There are 26 performance indicators within our framework. As at Year End, 18 (75%) of our indicators where the status is known are either on target or just slightly adrift of target and 6 (25%) are significantly adrift of target. A comparison to our position at the same period last year is shown below when 88.9% of indicators were on or slightly adrift of target. Status Year End 2023/24 Year End 2024/25 On Target (Green) 14 (77.8%*) 13 (54.2%*) Slightly Adrift of Target (Amber) 2 (11.1%*) 5 (20.8%*) Significantly Adrift of Target (Red) 2 (11.1%*) 6 (25%*) Data Only / Status Unknown 8 2 (* Of PIs where status is known) 3.2 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) 3.3 Of the eight PIs where the status was either data only (target intentionally not set) or status unknown at year end in 2023/24, their status was finalised in this reporting period as three red, one amber and four green. The three red and one amber relate to CP37 (average total tariff score of pupils living in SIMD 20% most deprived areas), CP_06 (average tariff score, all leavers), CP_38 (average total tariff for care experienced young people) and CP_04 (proportion of children meeting developmental milestones) respectively. 35
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3.4 For these PIs, the status was set to data only (i.e. target intentionally not set) for 2022/23, and stretch targets were set for several for 2023/24 (see paragraph 3.35 below). The most recent data relates to 2023/24 academic years and has been released recently. As a result, these statuses are reported for the first time within this year end 2024/25 progress report. 3.5 Though this position makes it difficult to determine conclusively whether our overall performance status based on PIs has improved during the year, the individual PI progress is detailed below and despite being adrift of target, shows consistent progress in many areas. 3.6 Context for the PIs adrift of target and not previously reported in our performance reporting are detailed in Appendix 2 and listed below: 3.7 CP_37 Average total tariff score of pupils living in SIMD 20% most deprived areas (Red) 3.8 Actual is 664.3 against a target of 714 for 2023/24 (most recent data available). The average total tariff score gained from all qualifications by 2024 school leavers from the 20% most deprived SIMD data zones has marginally decreased from the previous year. The endeavour to offer candidates a wider breadth of learning experiences has included more courses (or units of courses) from a wider vocational range of courses and awards that sometimes are graded at the same SCQF level as National Qualifications courses but amass a smaller number of tariff points in the Insight scale. However, these courses can provide learners with a more suitable set of skills and knowledge to prepare them for work, training or further education. 3.9 Though this PI records the total tariff score for SIMD Quintile 1 of S4-6 pupils who left school in 2023/24, the LGBF has a similar measure based on the cohort of young people who would have reached the end of S6 in 2023/24, irrespective of their leaving year. For the same period, 2023/24, the equivalent LGBF measure shows a total tariff score of 685, above both the family group average of 660 and the Scottish average of 658 and leading to our council being ranked 6th in Scotland. 3.10 CP_06 Average tariff score: All Leavers (Red) 3.11 Actual is 840.8 against a target of 908 for 2023/24 (most recent data available). The average total tariff score gained from all qualifications by school leavers has marginally decreased from the previous year but is in line with pre-pandemic as well as recent years’ performance. The 2019/2020 and 2020/2021 results are not comparable with other academic years, as SQA has employed the Alternative Certification Model (ACM) instead of exam-based evaluation for awarding qualifications at SCQF level 5 and above. Advice provided by Scottish Government colleagues emphasises direct comparison to alternative certification years should not be made without further evidence and the impact of these approaches. For all SIMD deciles except SIMD 10 (for which we have a very low number of learners), we continue to outperform national figures. 3.12 Though this PI records the total tariff score of S4-6 pupils who left school in 2023/24, the LGBF has a similar measure based on the cohort of young people who would have reached the end of S6 in 2023/24, irrespective of their leaving 36
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year. For the same period, 2023/24, this measure shows a total tariff score of 845, above the family group average of 829 but below the Scottish average of 917 and ranked 26th in Scotland. 3.13 Closer examination of the LGBF highlights the strong influence that deprivation has on this indicator. When disaggregated by SIMD quintile, our council outperforms both the national figures and the family group for each of SIMD quintiles 1 to 4 and also outperforms the family group for SIMD quintile 5. Despite this strong performance, we know it is important to maintain our holistic, cross- service commitment to our Wellbeing priority in order to reflect this at an absolute level. 3.14 CP_38 Average total tariff for care experienced Young People (Red) 3.15 Actual is 355 against a target of 465. The average total tariff score (ATTS) achieved by North Ayrshire care experienced leavers was lower in 2023/2024, at 355 tariff points, than the general trend over the last five years. A slightly higher proportion than average of care experienced learners left before the end of S6 in 2023/2024, which has contributed in part to the lower average total tariff score. 3.16 Schools have analysed the data locally and have a clear narrative for individual circumstances. The service will continue to focus on improving this benchmark of achievement for care experienced learners. Attainment of care experienced learners is specifically referenced within the Education Service Plan. Quality Improvement visits and attainment discussions with senior school leaders will include a focus on the attainment and achievement of this group of learners to ensure consistency of delivery of interventions with a positive impact. 3.17 CP_40 Number of new build housing units reaching completion (all tenures) (actual not cumulative) (Red) 3.18 Actual 371 against a target of 396. We achieved our target for 2024/2025 with regards to new build social housing and have limited influence over the delivery of new build housing constructed by private housing developers to meet the total 396 homes target. The 25 new homes unable to be delivered during 2024/2025 were across a number of sites throughout North Ayrshire. We exceeded our target for bringing empty homes back into use and intend to review this performance indicator and continue to focus on improving performance in the forthcoming year. (This indicator is linked to action CP_10 detailed below). 3.19 CP_30 Total installed capacity of low carbon heat and electricity generation across the council's estate (Red) 3.20 Actual is 17,630 against a target of 28,499. Our council had aimed to have both solar PV farms energised in December 2024, however this has not been possible due to extended development time required by the Distribution Network Operator. The solar farms have been built and are due to be commissioned in the summer. 3.21 CP_31 % of total household waste that is recycled (calendar year as per SEPA) (LGBF) (Red) 3.22 Actual is 52.8% against a target of 56%. The provisional household waste recycling figure for the calendar year 2024 is 52.8%, subject to verification by SEPA. This has reduced since 2023 as a result of the introduction of the new 37
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SEPA guidance regarding the requirement for Waste Upholstered Domestic Seating (WUDS) to only be sent for incineration, which has negatively affected the amount of bulky waste that can be recycled (this affects all councils). In addition, more wood is being deposited at recycling centres suitable only for biomass recovery rather than recycling. 3.23 For context, LGBF benchmarking information for 2023/24 (2023 calendar year) released in June showed we were ranked third in Scotland. Though our provisional data shows a reduction for 2024/25, as the new SEPA guidance affects all councils we will closely monitor our relative position when comparative data is released over the coming months. 3.24 CP_04 Proportion of children meeting developmental milestones (LGBF) (Amber) 3.25 Actual is 77.5% against a target of 79% for 2023/24 (most recent data available). At the most recent data release for data for 2023/2024, the proportion of children meeting developmental milestones is 77.50%, slightly below the target of 79%. We are working to ensure there is more robust data gathering and analysis within Early Years and are moving towards using CfE levels with inbuilt milestones. This will help improve accuracy and consistency of data as well as improved progression pathways to primary. Roles and remits for Excellence and Equality Leads (EELs) developed this academic session will support this work. 3.26 The challenges we are experiencing in North Ayrshire are reflected in the LGBF comparisons with other local authorities. We are below the family group average of 79.8% and the Scottish Average of 83.3%. As a result we are currently ranked 31 out of the 32 local authorities for our children meeting developmental milestones. This is an area that we know will need specific focus within wider principles of prevention and early intervention, including through the Collaboration for Health Equity in Scotland. 3.27 CP_28 Hectares of vacant and derelict land in North Ayrshire (Amber) 3.28 Actual is 942ha against a target of 925ha. The majority of vacant and derelict land sites are within private ownership, therefore their condition or development timescales to inform if they are added or removed from the register is out with the control of our council. However, we utilise the Repurposing Property Grant Fund to help support landowners and community groups to bring back vacant land and properties to use. Furthermore, in 2024/2025, several of the key external regeneration funds which support the redevelopment of such land, including the national Vacant and Derelict Land Investment Programme, were paused which reduced the potential to regenerate sites. Funding has now been confirmed and works will commence in 2025/2026. 3.29 CP_43 Number of council assets under community management (cumulative) (Amber) 3.30 Actual is 55 against a target of 56. One Community Asset Transfer was delayed until Q1 2025 due to some minor administrative issues within the community group which took longer to resolve than expected. We continue to publicise the range of offers available for management and ownership of assets to our community groups and are currently engaged with around 30 groups at various stages of the CAT process. 38
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3.31 CP_29 Overall carbon emissions (tonnes) (Non-domestic council estate) (Amber) 3.32 Actual is 20,333tCO2e against a target of 19,953tCO2e. This figure is an estimate and will be confirmed at the next data release. Though slightly adrift of target the overall trend is a steady decrease in emissions. 3.33 CP_25 % of Council dwellings that meet the Scottish Housing Quality Standard (LGBF) (Amber) 3.34 Actual is 94% against a target of 97.4%. The target of 97.4% was set as part of last year’s ARC completion. This pass rate is based on a combination of many different compliance criteria for each individual property, including EICR (Electrical Installation Condition Report). When the 97.4% compliance target was set, it was based on 100% compliance regarding the EICR element; however with issues accessing properties, we were unable to achieve this (the EICR compliance outturn figure for 2024/25 was 97.71)%) which has resulted in the slightly lower overall SHQS compliance of 94% against the 97.4% target. 3.35 Education Performance Targets 3.36 As mentioned above several of the education targets are linked directly to the stretch aims previously agreed with the Scottish Government and show figures that are significantly above the attainment levels achieved during the Covid period when the Alternative Certification Model was deployed. 3.37 It is not recommended to draw comparison between these periods. Therefor while we recognise the merits of being aspirational and are committed to delivering ongoing improvement over time, we believe it would be sensible to reconsider the level of these targets to align them more closely to performance in the post-Covid period. This is something we intend to do through appropriate engagement and as part of the process of developing the next three-year service plan due in 2026. Cabinet approval will be sought through the new Education Service Plan in 2026 or Council Plan Progress Reporting as appropriate. Actions One action is currently adrift of target: 3.38 CP10 Increase the number of homes in the area through a mix of private and social developments and bringing empty buildings back into use (Wellbeing Priority). (Amber) 3.39 This action is linked to the indicator “CP_40 Number of new build housing units reaching completion (all tenures) (actual not cumulative)” which is currently significantly adrift of target (red) (see above). We achieved our target for 2024/2025 for new build social housing and we have limited influence over the delivery of new build housing constructed by private housing developers. The 25 new homes unable to be delivered during 2024/2025 were across a number of sites throughout North Ayrshire. We exceeded our target for bringing empty homes back into use and intend to focus on improving performance in the forthcoming year. 39
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Local Government Benchmarking Framework 3.40 LGBF performance is viewed in short, medium or long-term trends in terms of our actual performance as well as our position relative to other councils. In addition, the range of indicators contains those directly reflecting council performance, those where performance is weighted by our demographics (per 10,000 population for example) or contextual (Gross Value Added and area wide CO2 emissions) to reflect our operating environment. This complex landscape means it is difficult to summarise effectively across all 33 priority indicators within this covering report. Some key messages are noted below, however it is demonstrated more fully in the tables from page 4 of Appendix 1. 3.41 As at June 2025, 17 of our 33 priority indicators were in the top two quartiles. Top quartile performance includes areas such as proportion of the highest paid 5% of employees who are women, gender pay gap, percentage of invoices sampled that were paid within 30 days, proportion of total household waste arising that is recycled, percentage of operational buildings that are suitable for their current use and town vacancy rates. 3.42 In the short term (most recent one year period available), 23 of our 33 priority indicators have shown improvement in performance, whereas ten have demonstrated a reduction in performance. In terms of improvement, data shows our council’s commitment to investment in the road infrastructure is displaying positive impacts with an improving Road Condition Index across all classifications. 3.43 In comparison with other councils, eight indicators have improved their quartile, 19 have maintained quartile (nine remaining in the top two quartiles and six in the 4th quartile) and six have declined. 3.44 The information contained within the LGBF is being used to inform delivery across our services. 3.45 Key Highlights • Recent statistics published by the End Child Poverty Coalition showed that child poverty within North Ayrshire decreased from 29.2% in 2022/23 to 24.3% in 2023/24. This reduction of 4.9 percentage points was the largest in Scotland over this time period. • Following a competitive application process, we have been selected as one of three places to engage in the Collaboration for Health Equity in Scotland (CHES) programme. Over the next two years, we will work in partnership with Public Health Scotland and the Institute for Health Equity to reduce health inequity in North Ayrshire through improving the conditions people live and work in. The ultimate goal is to enable people to live longer, healthier lives by addressing the root causes of health inequalities and preventing illness before it starts. • During 2024/2025, our Money Matters team received 5,842 referrals and secured £21.5 million in financial gains through income maximisation for service users. • Our council was successful in becoming one of Scotland’s Fairer Future Partnerships (FFP). This £350,000 investment enabled our new Child Poverty Strategy Team (CPST) to be established in January. It will work with partners to 40
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test ways of mitigating poverty, through addressing the specific needs of our communities. In preparation, the team has appointed the Centre of Excellence for Children’s Care and Protection (CELCIS) as a learning partner • We published our new Participation Strategy which will focus on raising awareness of participation processes including locality partnerships and enhance our budget consultation. • Locality Plans were approved at Locality Partnership meetings in September. • We have expanded our capacity to support Community Asset Transfers (CATs) through engaging with our Active Schools team. Our Community Asset Transfer Team has received 17 expressions of interest during 2024/2025, with 56 council assets under community management to date. • Our Financial Inclusion Partnership is developing a communications plan to help promote services to island residents, our gypsy traveller community, those who are digitally excluded and residents with disabilities. • Installation of our council’s two new solar photovoltaic (PV) farms is now complete with the next phase being the connection to the electricity network and commissioning works. They are expected to generate £400,000 of revenue per year over 25 years as well as reduce our carbon footprint. • 15 households on Cumbrae and 25 in Kilwinning have been identified for improvements via the Energy Efficient Scotland: Area Based Scheme. This will help address the impact of energy costs and address fuel poverty. • A £17.4m award from the Levelling Up Fund Round 3 was secured from the UK Government. This will support Levelling Up for Ayrshire, Commercial and Low Carbon Infrastructure. • Cabinet approved the proposal to vacate Bridgegate House in Irvine and consider future uses as part of the Irvine town centre regeneration work and establishment of the Irvine Town Board. • Our most recent Best Value Thematic Audit focusing on Workforce Innovation was positive, showing how our council is responding to current challenges by building capacity, increasing productivity and innovation. • Our Transformation Programme continues to progress, with key milestones reached within the Digital Workstream, Irvine Property Review as well as the Nethermains and Shewalton Solar PV Farm detailed above. • The Transformation Board is overseeing service reviews across the Learning Resource; Housing Service; Financial Inclusion Services; External Residential Placements; Economic Development, Growth and Regeneration; and Waste Services. • The Irvine Locality Review is progressing to align our operational property estate to complement modern ways of working. To date we have: o Relocated Genealogy from Irvine Townhouse to Irvine Library resulting in increased footfall. o Relocated 255 colleagues to Cunninghame House. o Relocated the Eglington Trophy to the Heritage Centre. o Approved a £300,000 investment in a Community Wealth Building Initiative to support the exploration of a wellbeing enterprise hub at the current Greenwood Conference Centre site. 41
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3.46 Key Next Steps We will: • Through our new Child Poverty Strategy Team – and liaising through the CPP and CPP Senior Officers Group - continue to bring a more systematic approach to addressing child poverty in North Ayrshire. This will include the co-design of mitigations based on the needs of our communities with partners from the third sector. • Establish our local priorities and areas for action as part of the Collaboration for Health Equity in Scotland programme. • Consolidate our financial inclusion services and rebrand as “Money Smart”. • Reach Financial Close on the new state-of-the-art Ardrossan Community Campus and start the construction process. • Review research commissioned by our council into the potential options for developing Community Wealth Building approaches at a locality level including consideration of unique island contexts. • Explore a debt advice resource for non-council tenants to enable a seamless internal pathway to debt advice. • Make progress on the priorities identified through the Community Asset Transfer Start-up Fund review. • Complete our comprehensive approach to application, assessment, award and compliance in relation to community funds and grants. • Continue to work with the Third Sector Chief Officers Group to codesign solutions to develop our strategic understanding and the sector’s capacity. These projects focus on two areas which our council has earmarked funds to support, Child Poverty and the Cost of Living as well as developing our Community Wealth Building aims within our communities. • Launch our new digital Household Waste Recycling Centre booking system. • Continue to develop Community Climate Action Plans for our six localities. • Continue to develop a Renewable Energy Strategy and identify projects which may be suitable for investment. • Deliver the North Ayrshire Network Strategy, aligned with the Scottish Government’s Biodiversity Strategy. • Continue to progress recommendations arising from the Audit Scotland Best Value Thematic Work. • Continue to progress property rationalisation. • Commence preparations for our budget engagement for 2026 to 2027. • Continue to carry out essential works at both Nethermains and Shewalton Solar PV Farms. 42
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4 Proposals 4.1 Cabinet agrees to: The Audit and Scrutiny Committee agrees to: i. Consider progress within the LGBF Report as at June 2025 (Appendix 1). ii. Consider Our Council Plan Six Monthly Progress Report 1 October to 31 March 2025 (Appendix 2). iii. Consider Our Council Plan Annual Performance Report (Appendix 3). iv. Note Cabinet approval relates to the content of the report, not the layout or media used to ensure future flexibility for production of accessible format reports. 5 Implications/Socio-economic Duty Financial 5.1 There are no financial implications arising from this report. Human Resources 5.2 There are no human resource implications arising from this report. Legal 5.3 There are no legal implications arising from this report. Equality/Socio-economic 5.4 There are no equality/socio-economic implications arising from this report. Climate Change and Carbon 5.5 There are no climate change and carbon implications arising from this report. Key Priorities 5.6 The Progress Report enables the effective scrutiny of the delivery of our Council Plan strategic priorities. Community Wealth Building 5.7 There are no Community Wealth Building implications arising from this report. Islands Communities Impact Assessment (ICIA) 5.8 There are no island communities implications arising from this report. United Nations Rights of the Child (UNCRC) 5.9 The Audit and Scrutiny Committee is asked to note that the Cabinet approval of the report relates to the content only, this enables us to explore child friendly reporting in line with the UNCRC (Incorporation) (Scotland) Act 2024 while ensuring effective governance. 43
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Consumer Duty 5.10 There are no consumer duty implications arising from this report. 6 Consultation 6.1 The Executive Leadership Team (ELT) and Cabinet reviewed and scrutinised the report prior to submission to the Audit and Scrutiny Committee. Aileen Craig Head of Service (Democratic) For further information please contact Isla Cruickshanks, Senior Manager (Policy, Performance and Democracy) on 01294 324035 or email IslaCruickshanks@north- ayrshire.gov.uk. 44
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Local Government Benchmarking Framework Analysis of June 2025 Data Release Appendix 1 45
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LGBF Analysis of June 2025 Data Release Page 1 of 32 Contents Introduc�on ................................................................................................................................... 2 LGBF Priority Indicators .................................................................................................................. 3 People Services ........................................................................................................................................... 8 CHN11 – Proportion of pupils entering positive destinations .............................................................................. 11 CHN17 – Percentage of children meeting development milestones (27-30 month Review) ............................... 12 CHN24 – Proportion of Children Living in Poverty After Housing Costs ............................................................... 12 ECON1 – Percentage of Unemployed People Assisted into work from Council Programmes ............................. 13 ECON12a – Claimant Count as a percentage of working age population ............................................................. 14 ECON12b - Claimant Count as a percentage of 16-24 population........................................................................ 14 ECON7 – Proportion of people earning less than the living wage ........................................................................ 15 ECON9 – Town Vacancy Rates .............................................................................................................................. 16 ENV3c – Street Cleanliness Score ......................................................................................................................... 16 HSN1b – Gross Rent Arrears (All Tenants) as a Percentage of rent due for the year ........................................... 17 HSN3 – Proportion of Council dwellings meeting Scottish Housing Quality Standards ....................................... 17 HSN5a – Proportion of council dwellings that are energy efficient ..................................................................... 18 CORP7 – Percentage of income due from Council Tax received by the end of the year ...................................... 18 CORP9 – Percentage of Scottish Welfare Fund Crisis Grant decisions within one day ........................................ 19 CORP10 – Percentage of Scottish Welfare Fund Community Care Grant decisions in 15 days ........................... 19 Other Services ........................................................................................................................................... 20 CLIM1 – CO2 emissions area wide per capita ....................................................................................................... 24 CLIM2 – CO2 emissions area wide: emissions within scope of Local Authority per capita .................................. 24 CLIM3 -CO2 emissions from transport per 1000 population ................................................................................ 25 CLIM4 – CO2 emissions from electricity per 1000 population ............................................................................. 25 CLIM5 – CO2 emissions from natural gas per 1000 population ........................................................................... 26 ECON10 – Immediate available employment land as percentage of total land allocated for employment purposes................................................................................................................................................................ 26 ECON11 – Gross value added (GVA) per capita .................................................................................................... 27 ECON5 – No of business gateway start–ups per 10,000 population .................................................................... 27 ECON4 – Proportion of procurement spent on local enterprises ......................................................................... 28 ENV4b - Percentage of A class roads considered for maintenance treatment .................................................... 30 ENV4c - Percentage of B class roads considered for maintenance treatment ..................................................... 30 ENV4d - Percentage of C class roads considered for maintenance treatment..................................................... 30 ENV4e - Percentage of unclassified roads considered for maintenance treatment ............................................ 30 ENV6 – Percentage of total household waste arising that is recycled ................................................................. 30 CORP3b – Percentage of the highest paid 5% of employees who are women .................................................... 31 CORP3c – Gender Pay Gap .................................................................................................................................... 31 CORP8 – Percentage of invoices sampled that were paid within 30 days ............................................................ 32 CORP-ASSET1 – Percentage of operational buildings that are suitable for their current use .............................. 32 46
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LGBF Analysis of June 2025 Data Release Page 2 of 32 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 2021 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 June 2025 data release. This information alongside the LGBF Dashboard enables us to learn from others to improve services for our residents. LGBF performance is viewed in short, medium or long-term trends in terms of our actual performance as well as our position relative to other councils. In addition, the range of indicators contains those directly reflecting council performance, those where performance is weighted by our demographics (per 10,000 population for example) or contextual (Gross Value Added and area wide CO2 emissions) to reflect our operating environment. This complex landscape means it is difficult to summarise effectively across all 33 priority indicators within this introduction. Some key messages are noted below, however it is demonstrated more fully in the following pages. As at June 2025, 17 of our 33 priority indicators are in the top two quartiles. Top quartile performance includes areas such as proportion of the highest paid 5% of employees who are women, percentage of invoices sampled that were paid within 30 days, proportion of total household waste arising that is recycled, percentage of operational buildings that are suitable for their current use and town vacancy rates. In the short term (most recent one year period available), 23 of our 33 priority indicators have shown improvement in performance, whereas ten have demonstrated a reduction in performance. Some of the indicators which have improved are proportion of children living in poverty (after housing costs), proportion of Scottish Welfare Fund (SWF) Community Care Grant decisions within 15 days and street cleanliness score. In terms of improvement, data shows our council’s commitment to investment in the road infrastructure is displaying positive impacts with an improving Road Condition Index across all classifications. 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. 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 • S�rling Council • Moray Council • South Ayrshire Council • East Ayrshire Council • East Lothian Council • Fife Council 47
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LGBF Analysis of June 2025 Data Release Page 3 of 32 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 declining performance. Each indicator listed is an active html link to the chart further in this document that provides more information on trends, relative performance and comments on performance. In summary, of the 33 indicators over the short term: • Performance has improved for 23 (69.7%) and declined for 10 (30.3%) • Rank has improved for 18 (54.5%), declined for 11 (33.3%), and stayed the same for 4 (12.1%) • Quar�le has improved for 8 (24.2%), declined for 6 18.2%), and stayed the same for 19 (57.6%) Key Performance has improved Performance has stayed the same Performance has 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) 2023-24 96.50% 95.60% 8 19 1 3 CHN – 17 Proportion of Children meeting developmental milestones (CP_04) 2023-24 79.50% 77.50% 26 31 4 4 48
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LGBF Analysis of June 2025 Data Release Page 4 of 32 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) 2023-24 29.20% 24.30% 31 24 4 3 CLIM01 - CO2 emissions area wide per capita 2022-23 4.95 4.64 20 18 3 3 CLIM02 - CO2 emissions area wide: emissions within scope of LA per capita 2022-23 5.29 4.97 22 21 3 3 CLIM03 - CO2 emissions from Transport per capita 2023-24 30.92 29.54 25 22 4 3 CLIM04 - CO2 emissions from electricity per capita 2023-24 45.16 45.83 23 16 3 2 CLIM05 - CO2 emissions from natural gas per capita 2023-24 71.75 72.2 24 25 3 4 CORP03b - Proportion of the highest paid 5% of employees who are women 2023-24 61.3% 64.7% 10 3 2 1 CORP3c – Gender Pay Gap 2023-24 1.10%% 0.0% 11 7 2 1 CORP07 - Percentage of income due from Council Tax received by the end of the year (CP_48) 2023-24 94.7% 93.6% 29 30 4 4 CORP08 - Percentage of invoices sampled that were paid within 30 days 2023-24 93.3% 95.8% 11 7 2 1 49
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LGBF Analysis of June 2025 Data Release Page 5 of 32 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 2024-25 99.0% 99.3% 8 8 1 1 CORP10 - Proportion of SWF Community Care Grant decisions within 15 days 2024-25 99.0% 99.1% 10 11 2 2 CORP-ASSET01 - % of operational buildings that are suitable for their current use (CP_19) 2023-24 95.1% 95.2% 6 6 1 1 ECON01 - Percentage of Unemployed People Assisted into work from Council Programmes 2023-24 21.4% 19.8% 7 10 1 2 ECON04 - Proportion of procurement spent on local enterprises 2023-24 24.1% 23.8% 20 19 3 3 ECON05 - No of business gateway start-ups per 10,000 population 2024-25 12.4 8.1 20 32 3 4 ECON07 - Proportion of people earning less than the living wage 2023-24 11.7% 10.7% 5 9 1 2 ECON09 - Town Vacancy Rates 2023-24 7.4% 7.8% 7 6 1 1 ECON10 - Immediate available employment land as a % of total land allocated for employment purposes 2023-24 46.3% 42.7% 7 9 1 2 50
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LGBF Analysis of June 2025 Data Release Page 6 of 32 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 2023-24 £20,301 £20,910 26 25 4 4 ECON12a - Claimant Count as a % of Working Age Population 2024-25 4.4% 4.3% 30 31 4 4 ECON12b - Claimant Count as % of 16-24 Population 2024-25 5.9% 5.8% 32 32 4 4 ENV03c - Street Cleanliness Score (CP_27) 2024-25 89.1% 90.3% 24 20 3 3 ENV04b - Percentage of A class roads considered for maintenance treatment 2022-24 30.70% 28.9% 27 21 4 3 ENV04c - Percentage of B class roads considered for maintenance treatment 2022-24 28.90% 27.4% 19 13 3 2 ENV04d - Percentage of C class roads considered for maintenance treatment 2022-24 39.90% 38.50% 27 26 4 4 ENV04e - Percentage of unclassified roads considered for maintenance treatment 2020-24 35.40% 32.40% 16 11 2 2 ENV06 - Proportion of total household waste arising that is recycled (CP_31) 2023-24 55.3% 56.1% 4 3 1 1 HSN01b - Gross rent arrears (all tenants) as a percentage of rent due for the year (CP_47) 2023-24 7.1% 5.9% 6 4 1 1 51
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LGBF Analysis of June 2025 Data Release Page 7 of 32 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) 2023-24 63.2% 76.9% 16 16 2 2 HSN05a - Proportion of council dwellings that are energy efficient (CP_44) 2021-22 97.6% 97.7% 2 4 1 1 52
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LGBF Analysis of June 2025 Data Release Page 8 of 32 People Services The table below displays the short term, medium term and long term comparisons against our current year for our 15 priority indicators within the People Services family group. Where a 10 year (long term) trend is not available, the most historical figure has been used for the long term comparison. Each indicator is linked to a chart in the following pages for more information. In summary, of the 15 indicators our over the short, medium and long term. • Short Term Family Group Rank – Improved 3 (20%), declined 5 (33.33%) and stayed the same 7 (46.66%) • Medium Term Family Group Rank – Improved 7 (46.66%), declined 2 (13.33%) and stayed the same 6 (40%) • Long Term Family Group Rank – Improved 1 (6.66%), declined 10 (66.66%) and stayed the same 4 (26.66%) 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 2023-24 4 2022-23 3 2020-21 5 2013-14 2 CHN17 - Percentage of children meeting development milestones 2023-24 7 2022-23 4 2020-21 4 2013-14 1 CHN24 - Proportion of Children Living in Poverty After Housing Costs 2023-24 4 2022-23 7 2020-21 7 2014-15 7 53
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LGBF Analysis of June 2025 Data Release Page 9 of 32 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 ECON1 - Percentage of Unemployed People Assisted into work from Council Programmes 2023-24 5 2022-23 4 2020-21 6 2013-14 4 ECON12a - Claimant Count as a percentage of working age population 2024-25 2 2023-24 2 2021-22 3 2014-15 1 ECON12b - Claimant Count as a percentage of 16-24 population 2024-25 1 2023-24 1 2021-22 1 2014-15 1 ECON7 - Proportion of people earning less than the living wage 2023-24 3 2021-22 4 2019-20 3 2012-13 5 ECON9 - Town Vacancy Rates 2023-24 3 2022-23 2 2020-21 4 2014-15 2 ENV3c - Street Cleanliness Score 2024-25 4 2023-24 4 2021-22 5 2014-15 6 54
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LGBF Analysis of June 2025 Data Release Page 10 of 32 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 HSN1b - Gross Rent Arrears (All Tenants) as a Percentage of rent due for the year 2023-24 1 2022-23 1 2020-21 1 2013-14 1 HSN3 - Proportion of Council dwellings meeting Scottish Housing Quality Standards 2023-24 4 2022-23 4 2020-21 2 2013-14 1 HSN5a - Proportion of council dwellings that are energy efficient 2021-22 2 2020-21 2 2018-19 1 2015-16 1 CORP7 - Percentage of income due from Council Tax received by the end of the year 2023-24 7 2022-23 7 2020-21 8 2013-14 2 CORP9 - Percentage of Scottish Welfare Fund Crisis Grant decisions within one day 2024-25 4 2023-24 3 2021-22 4 2018-19 3 CORP10 - Percentage of Scottish Welfare Fund Community Care Grant decisions in 15 days 2024-25 2 2023-24 4 2021-22 3 2018-19 2 55
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LGBF Analysis of June 2025 Data Release Page 11 of 32 (Please note, axis scales used within the following charts vary to ensure trends are visible.) CHN11 – Proportion of pupils entering positive destinations The current proportion of pupils entering positive destinations is 95.6% for 2023 to 2024. Despite a slight decrease from 2022 to 2023 (which represented our highest figure on record), our performance on this indicator is consistently strong, with the only local authorities that are currently higher in terms of pupils entering positive destinations being Glasgow City (95.7%), West Dunbartonshire (96%) and Eilean Siar Councils (97.8%). Data for this indicator is published by the Scottish Government in its ‘School leaver initial destinations and attainment survey’, which collects information on the destination of school leavers (from publicly funded mainstream schools) in September. A school leaver is defined as a young person of school leaving age, who left school during or at the end of the school year. The school year runs from 1 August to 31 July. Data on initial destinations of school leavers is based on approximately three months after the end of the school term and their post review (previously post appeal) attainment information. This publication covers school leavers from all stages of secondary school. For most young people, S4 (15 to 16 year olds) is the last compulsory year of school, but the majority choose to stay on and complete S5 (16 to 17 year olds) and S6 (17 to 18 year olds). School leavers who moved away from Scotland are not included in the results. 56
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LGBF Analysis of June 2025 Data Release Page 12 of 32 CHN17 – Percentage of children meeting development milestones (27-30 month Review) Currently 77.5% (2023 to 2024) of children are meeting developmental milestones which is a decline from 79.5% (2022/2023) with only one authority, East Ayrshire 77.3% performing less well within our family group (and nationally). We currently sit lower than both our Family Group Average (79.8%) and the National Average (83.3%) and remain in the 4th Quartile. We are working to ensure there is more robust data gathering and analysis within Early Years and are moving towards using CfE levels with inbuilt milestones. This will help improve accuracy and consistency of data as well as improved progression pathways to primary. Roles and remits for Excellence and Equality Leads (EELs) developed this academic session will support this work. This is an area that we also know will need specific focus within wider principles of prevention and early intervention, including through the Collaboration for Health Equity in Scotland. CHN24 – Proportion of Children Living in Poverty After Housing Costs The most recent data release shows 24.3% of our children in North Ayrshire are living in poverty (after housing costs) – a decrease of 4.9 percentage points since the previous year - this is below the 57
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LGBF Analysis of June 2025 Data Release Page 13 of 32 family group average of 25.3% and is the largest decrease of all Scottish councils. Four councils within our family group have a higher proportion of children living in poverty (after housing costs): Glasgow City (36.1%), Dundee City (26.1%), North Lanarkshire (24.9%) and West Dunbartonshire (25.2%) Councils. At a national level, the introduction of the Scottish Child Payment is thought to have been significant. Whilst further analysis is required to determine what has been most impactful in reducing child poverty at a local level across North Ayrshire, our council is continually working to address barriers to employment as well as ensuring families are aware of, and can access, the support they are entitled to. ECON1 – Percentage of Unemployed People Assisted into work from Council Programmes Currently 19.8% (2023 to 2024) of unemployed people are assisted into work from council programmes. Within our family group, Eilean Siar (30.8%), Inverclyde (24.2%), North Lanarkshire (22.7%) and West Dunbartonshire (29.3%) Councils are all currently reporting a higher percentage of unemployed people assisted into work, however for context North Ayrshire has the second highest claimant count as a percentage of working population and the highest for those aged 16 to 24 years (see charts below). In 2023 to 2024, the family group average was 20.1% and the national average was 12.1%. Addressing the level of unemployment and the delivery of such support and programmes remains a priority. This also includes a focus on the maximisation of job opportunities available within local enterprises and through new inward investment. 58
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LGBF Analysis of June 2025 Data Release Page 14 of 32 ECON12a – Claimant Count as a percentage of working age population North Ayrshire had the second highest claimant count rates as a percentage of working age population within our family group for 2024 to 2025 at 4.3%. Only Glasgow City Council with 5% has a higher claimant count. Through the work of the Employability and Skills Team, the Local Employability Partnership (LEP) and the extensive network of working relationships the focus on working age employment will continue to improve the outcomes and reduce the claimant count. ECON12b - Claimant Count as a percentage of 16-24 population North Ayrshire had the highest claimant count as a percentage of population aged 16 to 24 years within our family group at 5.8%. North Ayrshire continues to have the highest level across Scotland but maintains a sharp focus on engaging and supporting young people into employment. The Employability Team recently launched youth hubs working in partnership with the Department for Work and Pensions (DWP) and Skills Development Scotland to support our young people. A 59
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LGBF Analysis of June 2025 Data Release Page 15 of 32 participant recruitment incentive has supported those we are supporting into employment by adopting targeting interventions to open opportunities for our young people who are disadvantaged in the labour market. The team has increased their focus on youth transitions, progression and tracking and will continue this to improve outcomes for our young people. Through the keyworker support, they continue to provide in work support to improve employment retention. Through the work of the Employability and Skills Team, the LEP and the extensive network of working relationships this focus on youth employment will continue to improve the outcomes and reduce the youth claimant count ECON7 – Proportion of people earning less than the living wage We currently have 10.7% (2023 to 2024) of people earning less than the living wage. Currently we are ranked 3rd in our family group (behind Glasgow City and Dundee City Councils). 2023 to 2024 data is not available for Argyll and Bute, East Renfrewshire, Eilean Siar, Midlothian, Orkney Islands and Shetland Islands Councils. The national average is currently 10.2% and the Family Group Average is 11.4%. North Ayrshire Council is performing strongly in supporting employers to pay the Real Living Wage. This has been supported by the work led by Employability Team through Fair Work and Skills and aligning fair work to the continuing Ayrshire Skills Investment Fund to support more employers to pay the Real Living Wage (RLW). 60
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LGBF Analysis of June 2025 Data Release Page 16 of 32 ECON9 – Town Vacancy Rates Town Vacancy rates have increased from 7.4% in 2022 to 2023 to 7.8% in 2023 to 2024. Town vacancy rates are a measure of the performance of our town centres and cannot be viewed in isolation. A suitable mix of various retail and service organisations in our towns is crucial to support ongoing regeneration. Although we have seen a slight increase, we are still currently below the family group average of 11.2% and the national average of 12.3%. Town centres remain a priority and focus for the Regeneration Team and for national funding opportunities including the Place Based Investment Programme and the Plan for Neighbourhoods, formerly the Long-Term Plan for Towns. Programmes such as the Repurposing Property Grant Fund aim to contribute to further improving the vacancy rates alongside our Business Support and Development activities. ENV3c – Street Cleanliness Score Our Street Cleanliness Score for 2024 to 2025 was 90.3% which is improved from 89.1% in 2023 to2024, this has resulted in an improvement in rank and quartile, moving our council from the 4th to the 3rd quartile. In 2024 to 2025 we performed higher than our family group average (88.9%) but slightly lower than the national average (91.7%). East Ayrshire (92.6%), Eilean Siar (92.4%) and Inverclyde (91.1%) Councils are the only authorities within our family group that have a higher street cleanliness score. 61
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LGBF Analysis of June 2025 Data Release Page 17 of 32 HSN1b – Gross Rent Arrears (All Tenants) as a Percentage of rent due for the year The gross rent arrears (all tenants) as a percentage of rent due for the year was 5.9%. This is lower than the family group average of 8.3% as we are the strongest performing local authority in our family group. Between 2022 and 2024 we have risen in rank from 6th to 4th. We remain in the 1st quartile. Our most recent local data shows that the estimated percentage for 2024 to 2025 is 8.03%. HSN3 – Proportion of Council dwellings meeting Scottish Housing Quality Standards The proportion of Council dwellings meeting Scottish Housing Quality Standard (SHQS) for the reporting period was 76.9%, in comparison only West Dunbartonshire Council reported a lower compliance rate which was 51.2%. The SHQS incorporates the Energy Efficiency Standard for Social Housing (EESSH), along with another 54 tests that must be satisfied prior to a property passing. The main challenge for North Ayrshire has been gaining access to properties to carry out statutory compliance works (EICR). However, this has improved throughout 2024 to 2025 and the updated local figure for 2024 to 25 is 94%. 62
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LGBF Analysis of June 2025 Data Release Page 18 of 32 HSN5a – Proportion of council dwellings that are energy efficient The proportion of council dwellings that are energy efficient remains high, with performance improving slightly from 97.6% in 2020 to 2021 to 97.7% in 2021 to 2022. This is the second strongest performance in our family group behind East Ayrshire Council and higher than the Scottish average of 87.6%. To improve the relevance of this measure, the basis on which it is calculated was changed in 2019 to 2020. It is now based on progress towards meeting the Energy Efficiency Standard for Social Housing (EESSH). Data for this indicator for 2022 to 2023 onwards has not been collected or published due to the Scottish Government review of EESSH2. (As reported in our Mid-Year report). However, we can confirm our locally recorded figures for 2022 to 2023 was 98.2%, for 2023 to 2024 it was 98.01% and for 2024 to 2025 it was 97.66% CORP7 – Percentage of income due from Council Tax received by the end of the year The most recent data release shows that 93.6% of income due from Council Tax was received by the end of the year compared to the family group average of 94.2%. We remain in the 4th quartile as we have declined from 29th to 30th in the rankings. We are currently performing less strongly than our family group with only West Dunbartonshire Council having a lower percentage of income due by the end of the year (93.2%). 63
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LGBF Analysis of June 2025 Data Release Page 19 of 32 CORP9 – Percentage of Scottish Welfare Fund Crisis Grant decisions within one day The most recent data shows that 99.3% of Scottish Welfare Fund Crisis Grant decisions were made within one day. Only Eilean Siar and Inverclyde Councils had a higher percentage with both authorities reaching 100%. 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 99.1%. Only Eilean Siar (94.3%) and Inverclyde (99.4%) Councils currently have a higher percentage of Scottish Welfare Fund Community Care Grant decisions in 15 days 64
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LGBF Analysis of June 2025 Data Release Page 20 of 32 Other Services The table below displays the short term, medium term and long term comparisons against our current year for 18 priority indicators within our Other Services family group. Where a 10 year (long term) trend is not available, the most historical figure has been used for the long term comparison. Each indicator is linked to a chart in the following pages for more information. In summary, of the 18 indicators our over the short, medium and long term. • Short Term Family Group Rank – Improved 8 (44.44%), declined 4 (22.22%) and stayed the same 6 (33.33%) • Medium Term Family Group Rank – Improved 9 (50%), declined 4 (22.22%) and stayed the same 5 (27.77%) • Long Term Family Group Rank – Improved 9 (50%), declined 1 (6.66%) and stayed the same 8 (44.44%) 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 Peoples 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 2022-23 4 2021-22 5 2019-20 5 2012-13 5 CLIM2 – CO2 emissions area wide: emissions within scope of Local Authority per 2022-23 4 2021-22 4 2019-20 4 2012-13 5 CLIM3 -CO2 emissions from transport per 1000 population 2023-24 6 2022-23 6 2020-21 6 2017-18 6 65
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LGBF Analysis of June 2025 Data Release Page 21 of 32 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 Peoples 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 2023-24 3 2022-23 7 2020-21 7 2017-18 6 CLIM5 – CO2 emissions from natural gas per 1000 population 2023-24 8 2022-23 8 2020-21 7 2017-18 8 ECON10 – Immediate available employment land as percentage of total land allocated for employment purposes 2023-24 2 2022-23 1 2020-21 3 2014-15 7 ECON11 – Gross value added (GVA) per capita 2023-24 6 2022-23 6 2020-21 6 2013-14 6 ECON5 – No of business gateway start – ups per 10,000 population 2024-25 8 2023-24 6 2021-22 7 2014-15 5 ECON4 – Proportion of procurement spent on local enterprises 2023-24 6 2022-23 5 2020-21 7 2013-14 6 66
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LGBF Analysis of June 2025 Data Release Page 22 of 32 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 Peoples 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 2022-24 6 2021-23 7 2019-21 7 2012-14 6 ENV4c - Percentage of B class roads considered for maintenance treatment 2022-24 3 2021-23 3 2019-21 4 2012-14 7 ENV4d - Percentage of C class roads considered for maintenance treatment 2022-24 8 2021-23 7 2019-21 8 2012-14 8 ENV4e - Percentage of unclassified roads considered for maintenance treatment 2020-24 3 2019-23 4 2017-21 4 2010-14 5 ENV6 – Percentage of total household waste arising that is recycled 2023-24 1 2022-23 2 2020-21 4 2013-14 1 CORP3b – Percentage of the highest paid 5% of employees who are women 2023-24 1 2022-23 3 2020-21 1 2013-14 1 67
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LGBF Analysis of June 2025 Data Release Page 23 of 32 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 Peoples Services Year Rank Year Rank Rank improve / decline Year Rank Rank improve / decline Year Rank Rank improve / decline CORP3c – Gender Pay Gap 2023-24 2 2022-23 3 2020-21 3 2015-16 5 CORP8 – Percentage of invoices sampled that were paid within 30 days 2023-24 2 2022-23 3 2021-22 1 2014-15 3 CORP-ASSET1 – Percentage of operational buildings that are suitable for their current use 2023-24 3 2022-23 3 2020-21 2 2013-14 4 68
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LGBF Analysis of June 2025 Data Release Page 24 of 32 (Please note, axis scales used within the following charts vary to ensure trends are visible.) CLIM1 – CO2 emissions area wide per capita Currently our CO2 Emissions Area wide per Capita is 4.64tCO2e. Perth and Kinross (4.68), Fife (7.81) and East Lothian (10.02) Councils currently rank higher in our family group. In the production of the 2022 estimates, new data was introduced, together with some improvements to the underlying methodology. To ensure that the data for 2005 to 2021 is consistent with the data now available for 2022, the estimates for these years have been revised to incorporate both the new data and the improvements in the underlying methodology. For some local authorities, these revisions have resulted in noticeable changes to the emissions estimates in historic years, with only slight changes for North Ayrshire. CLIM2 – CO2 emissions area wide: emissions within scope of Local Authority per capita Currently our CO2 emissions area wide: emissions within scope of local authority per capita is 4.97tCO2e compared to Perth & Kinross (5.90), South Ayrshire (5.11) Stirling (5.74) and Moray (6.94) Councils. In the production of the 2022 estimates, new data was introduced, together with some improvements to the underlying methodology. To ensure that the data for 2005 to 2021 is consistent 69
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LGBF Analysis of June 2025 Data Release Page 25 of 32 with the data now available for 2022, the estimates for these years have been revised to incorporate both the new data and the improvements in the underlying methodology. For some local authorities, these revisions have resulted in noticeable changes to the emissions estimates in historic years, with only slight changes for North Ayrshire. CLIM3 -CO2 emissions from transport per 1000 population Currently our CO2 emissions from transport per capita is 29.54tCO2e for 2023 to 2024. Only Moray and Fife Councils have higher emissions from transport per capita with 38.64 and 32.67 respectively. CLIM4 – CO2 emissions from electricity per 1000 population Currently our CO2 emissions from electricity per capita is 45.83tCO2e for 2023 to 2024. Only Perth and Moray Councils currently have lower CO2 emissions per capita from electricity with 33.70 and 32.61 respectively. 70
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LGBF Analysis of June 2025 Data Release Page 26 of 32 CLIM5 – CO2 emissions from natural gas per 1000 population Currently our CO2 emissions from natural gas per capita is 72.20tCO2e. We have the highest emissions within our family group by a significant margin. ECON10 – Immediate available employment land as percentage of total land allocated for employment purposes In North Ayrshire, immediately available employment land as a percentage of total land allocated for employment purposes is 42.7%. Only East Ayrshire Council has a higher percentage with 42.8%. Attracting and securing inward investment opportunities remains a priority. 71
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LGBF Analysis of June 2025 Data Release Page 27 of 32 ECON11 – Gross value added (GVA) per capita Gross Value Added (GVA) is something we can help influence as a local authority; however, it relies on all industry within North Ayrshire and is monitored for context. ECON5 – No of business gateway start–ups per 10,000 population At year end 2024 to 2025, we had 8.1 business gateway start-ups per 10,000 population. Data for this indicator is available on a monthly basis. The yearly values represent an average of the monthly values. The ongoing review of Economic Development Growth and Regeneration services will provide greater focus on business start-up activity. 72
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LGBF Analysis of June 2025 Data Release Page 28 of 32 ECON4 – Proportion of procurement spent on local enterprises This indicator is a useful comparison for benchmarking purposes; however, it does not capture all spend as detailed in our 2020 to 2021 Mid-Year Council Plan Progress Report. “The LGBF calculation excludes certain spend, most notably it excludes all suppliers spend below £1,000 and excludes all suppliers not categorised as core trade organisations. This is Local Government Benchmarking Framework is therefore not an accurate reflection of the economic activity within North Ayrshire. As we have access to the source data used by the LGBF we are able to capture all spend data and refine the calculation at a local level to better capture our spend with local enterprises and shorten the time delay in reporting.” Our local figure for 2023 to 2024 was 24.48% which, though not a direct comparison with the LGBF measure, would put us ranked 4th in our family group and 19th nationally.” Our most recent local figure is 26.8% for 2024 to 25. 73
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LGBF Analysis of June 2025 Data Release Page 29 of 32 Percentage of A Class Roads Considered for Maintenance Treatment Percentage of B Class Roads Considered for Maintenance Treatment Percentage of C Class Roads Considered for Maintenance Treatment Percentage of Unclassified Roads Considered for Maintenance Treatment 74
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LGBF Analysis of June 2025 Data Release Page 30 of 32 ENV4b - Percentage of A class roads considered for maintenance treatment Within North Ayrshire the Percentage of A class roads considered for maintenance treatment is 28.9%. This indicates improvement of 1.8% from figures reported in 2023 and is equal to the Scottish Average for A class roads. (Chart on previous page.) ENV4c - Percentage of B class roads considered for maintenance treatment Within North Ayrshire the Percentage of B class roads considered for maintenance treatment is 27.4%. This indicates an improvement of 1.5% and is below the Scottish average of 32.5% (Chart on previous page.) ENV4d - Percentage of C class roads considered for maintenance treatment Within North Ayrshire the Percentage of C class roads considered for maintenance treatment is 38.5%. This indicates an improvement of 1.4%. (Chart on previous page.) ENV4e - Percentage of unclassified roads considered for maintenance treatment Within North Ayrshire the Percentage of unclassified roads considered for maintenance treatment is 32.4%. This indicates an improvement of 3% and is below the Scottish average of 36.2% (Chart on previous page.) Overall, data shows our council’s commitment to investment in the road infrastructure is displaying positive impacts with an improving Road Condition index across all classifications. ENV6 – Percentage of total household waste arising that is recycled The most recent percentage of total house waste arising that is recycled was 56.1% and our family group average was 52.3%. This is the strongest performance within our family group. The estimated household waste recycling figure for the calendar year 2024 is 52.8%, subject to verification by SEPA. This has reduced from 2023 as a result of the introduction of the new SEPA guidance regarding the requirement for Waste Upholstered Domestic Seating (WUDS) to only be sent for incineration, which has negatively affected the amount of bulky waste that can be recycled (this will affect all Councils), as well as increased contamination levels within the purple bin for glass, cans and plastics. A reduction in organic waste arisings in 2024 and increased contamination has also contributed to the reduction in performance, as well as more wood being deposited at recycling centres that was only suitable for biomass recovery and not for recycling. 75
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LGBF Analysis of June 2025 Data Release Page 31 of 32 CORP3b – Percentage of the highest paid 5% of employees who are women 64.7% of our highest paid 5% of employees are women. This is the highest in our family group. CORP3c – Gender Pay Gap The most recent figures reported for North Ayrshire Council show that the average hourly rates for women and men are identical, indicating no gender pay gap for 2023-24. This is below both the national (2.5%) and family group (2.1%) average. 76
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LGBF Analysis of June 2025 Data Release Page 32 of 32 CORP8 – Percentage of invoices sampled that were paid within 30 days The percentage of invoices sampled that were paid within 30 days was 95.8%, compared to the 89.5% family group average. We are currently second highest in our family group with only Fife Council (96.4%) having a higher percentage. 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 currently 95.2%. This is the third highest with Perth and Kinross (96%) and Moray (97.4%) Councils having stronger performance. 77
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Local Government Benchmarking Framework – June 2025 Analysis Page 33 of 24 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 78
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Our Council Plan Six Monthly Progress Report 1 October 2024 to 31 March 2025 Appendix 2 79
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Contents Our Performance at a Glance ................................................................................................. 1 Welcome ................................................................................................................................. 2 Wellbeing ....................................................................................................................... 4 Communi�es and Local Democracy ............................................................................. 14 Climate Change ............................................................................................................ 23 A Sustainable Council ................................................................................................... 30 Our Transforma�on Programme .................................................................................. 32 Audits, Inspec�ons and Accredita�ons ........................................................................ 37 Performance Summary ......................................................................................................... 43 Performance Indicators Adri� of Target ....................................................................... 43 Indicator Amendments and Recommenda�ons .......................................................... 46 Ac�ons Adri� of target ................................................................................................. 46 Performance Indicators ........................................................................................................ 47 Ac�on Tracker ....................................................................................................................... 51 80
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 1 of 56 Our Performance at a Glance £21.5 million income secured for our residents through 5,842 Money Matters referrals Free school meals extended to eligible Primary 6 and Primary 7 Pupils £171,377 of Participatory Budgeting Funding awarded to 190 groups 423,077sq.ft of commercial/industrial floor space within our council portfolio Our new Digital Learning Strategy for our young people was launched Our Strategic Housing Investment Plan 2025-2030 was approved 90 climate change and energy lessons delivered to 29 primary schools to date ECO4 Flex Scheme Funding of £902,809 has supported 32 North Ayrshire households to improve the energy efficiency of their homes Our Local Heat and Energy Efficiency Strategy procurement framework was launched 56.1% of our household waste is recycled Over 4,400 responses to our 2025-2026 Budget Consultation 81 Skills for Life Placements created in 2024-2025 81
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 2 of 56 Welcome Welcome to our Year-End Progress Report on our Council Plan 2023 to 2028. This report covers the period 1 October 2024 to 31 March 2025. Our Council Plan is our contract with our residents and details how we are progressing our four priori�es of Wellbeing, Communi�es 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 posi�vely with 69% of our indicators where the status is known are either on target or just slightly adri� of target, and 98% of our ac�ons are on target or just slightly adri� of target. We regularly compare our performance to other local authori�es with similar demographic traits through the Local Government Benchmarking Framework (LGBF) and include informa�on on this within our Council Plan repor�ng. There are 33 LGBF indicators that link closely with our Council Plan priori�es and of these 33 indicators, 17 are in the top two quar�les. We commenced our 2025 to 2026 Budget Consulta�on in October 2024 and received over 4,400 responses from our residents and community groups. Learning from previous consulta�ons, we adapted and tailored our approach in order to reach more of our communi�es enabling our residents to comment on the areas which matered most to them. The increased response rate shows that our approach to consulta�on is improving. Our Money Maters team received 5,842 referrals in 2024 to 2025 and maximised the income of our residents by £21.5m. This is in addi�on to Welfare Reform Advice who received 1,899 referrals for welfare rights and debt advice, resul�ng in £5.7m of financial 82
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 3 of 56 support being accessed by our tenants. In order to deliver accessible welfare rights and money advice services for our more vulnerable residents, our Money Maters and Welfare Reform Advice Team will be rebranded as “Money Smart” and will be accessible via a single access point. These changes will maximise our resources and capacity to deliver these services. Advancing on the exis�ng provision of Free School Meals for all Primary One to Primary Five pupils, we are now also offering free school meals to Primary Six and Primary Seven pupils in receipt of the Sco�sh Child Payment. Enabling our residents to par�cipate in local decision making, our 2024 to 2025 Par�cipatory Budge�ng (PB) round was held both on and offline. This ensured that individuals and groups who may face barriers to online par�cipa�on could s�ll contribute and have their say. As a result, 15,882 votes were cast across North Ayrshire. We have supported 32 households with the installa�on of over 134 energy saving measures to improve home energy efficiency. This was a part of our ECO4 Flex scheme which looks at funding for energy efficiency improvements in homes, primarily targe�ng low-income and vulnerable households. The scheme, part of the wider Energy Company Obliga�on (ECO) program, offers financial assistance for measures like insula�on, hea�ng upgrades and renewable energy installa�ons. 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: 133,570 (2023) 24.3% of our children live in poverty after housing costs (2023-24) 28% of our households live in fuel poverty (2021-22) 65.2% of working age population is in employment (June 2024) 10.4% of people earn less than the living wage (2023) Area wide CO2 emissions are 682kt CO2 (July 2023) 83
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 4 of 56 Wellbeing To transi�on to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people. Key Ac�vi�es Child Poverty A North Ayrshire that is fair for all requires every child to have the same opportuni�es in life. Recent sta�s�cs published by the End Child Poverty Coali�on showed that child poverty within North Ayrshire decreased from 29.2% in 2022-23 to 24.3% in 2023-24. This reduc�on of 4.9 percentage points was the largest in Scotland over this �me period. Many ac�ons within our Council Plan help address child poverty including mi�ga�ng barriers to employment as well as ensuring families are aware of, and can access, the support they are en�tled to. At a na�onal level, the introduc�on of the Sco�sh Child Payment is thought to have had a posi�ve impact on our most vulnerable families. However, no child should be living in poverty, and we s�ll have a lot of work ahead of us. As part of the Fairer Futures Partnership (FFP) with the Sco�sh Government, our new Child Poverty Strategy Team (CPST) was established in January 2025. A key part of the CPST ac�vity will be undertaking a co-designed place-based test of change. In prepara�on, the team has appointed the Centre of Excellence for Children’s Care and Protec�on (CELCIS) as a learning partner. Our Third Sector Interface partners are suppor�ng this work and £45,000 has been allocated to The Ayrshire Community Trust. This will enable third sector organisa�ons to be funded as co-design partners and support the involvement of residents with lived experience. Health Equity Across the UK, there are marked regional differences in life expectancy, par�cularly among people living in areas of high depriva�on. Following a compe��ve applica�on process, we have been 84
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 5 of 56 selected as one of three areas to engage in the Collabora�on for Health Equity in Scotland (CHES) programme. Over the next two years, we will work in partnership with Public Health Scotland and the Ins�tute for Health Equity – led by Professor Sir Michael Marmot - to reduce health inequity in North Ayrshire through improving the condi�ons people live and work in. The programme was officially launched in February 2025 with over 70 delegates from our partners. A local steering group has been established to support iden�fica�on of local priori�es, which will be informed by local data and community engagement. The ul�mate goal is to enable people to live longer, healthier lives by addressing the root causes of health inequali�es and prevent illness before it starts. By crea�ng condi�ons where communi�es can thrive, the ini�a�ve aims to create las�ng posi�ve change. Money Maters Welfare advice provides a range of benefits by helping individuals navigate complex social security systems and access the financial support they are en�tled to. During 2024 to 2025, our Money Maters team received 5,842 referrals and secured £21.5 million in financial gains through income maximisa�on for local residents. These figures are slightly higher than 2023 to 2024 but are provisional following the use of a new case management system in September - the actual totals may be higher. In addi�on, our Welfare Reform Advice team received a total of 1,899 referrals for welfare rights and debt advice for council tenants, an increase of 28% compared to 2023 to 2024. The total financial gain for North Ayrshire tenants was £5.7million, up from £3.8 million in 2023 to 2024. In addi�on, the Financial Inclusion Officers: • Undertook 507 ‘pre-tenancy visits’ for new tenants and tenancies to ensure tenants understand changes to their benefits due to taking on a tenancy, and their responsibili�es to help them sustain their tenancy - for example: priority bills, support with accessing grants and furnishings for their new home, and support to claim all their en�tlements. • Assisted Universal Credit claims for 2,334 tenants who were also taken through a support plan ‘matrix’ to iden�fy and ac�on wider needs. Our advice services con�nue to be available throughout our communi�es in nine priority GP surgeries, schools, foodbanks and larders and local housing offices. Macmillan Cancer Research also provides funding to support advisers to ensure people living with cancer receive welfare rights advice and support. Our Money Maters advisers are also embedded within Health and Social Care Partnership services including Children and Families, Addic�ons and Community Jus�ce services. The Welfare Rights Officers in Schools team now cover Early Years Centres and primary schools. Community Wealth Building Community Wealth Building (CWB) is about working with communi�es and businesses to build a strong, fair and sustainable local economy. Our Economic Policy team has supported the forma�on of the CWB Prac��oners 85
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 6 of 56 Network with support from the Improvement Service. The Network provides opportuni�es for knowledge- sharing and collabora�on on common challenges across local authori�es. It also seeks to deliver a comprehensive and up- to-date overview of CWB implementa�on across Scotland while strengthening connec�ons between CWB and other policy areas. We have refreshed the Wellbeing Economy Dashboard – a suite of socio- economic indicators which are used to monitor progress towards the delivery of a Wellbeing Economy in North Ayrshire and provide context within our Council Plan Progress Reports. Employability and Skills Skills enable people to par�cipate in the labour market and lead more fulfilling lives. We con�nued to deliver our broad ‘Your Next Move, Working North Ayrshire’ programme with partners including our successful Modern Appren�ceship and Skills for Life programmes. Available to residents across our six locali�es, the programme is delivered in partnership with the Youth Services team who are a pivotal part of our council’s Community Learning and Development team, delivering in excess of 2,000 youth groups and ac�vi�es across the locali�es of North Ayrshire. We delivered a range of awareness-raising and recruitment events with partners to showcase the opportuni�es available across North Ayrshire. We are also planning for our next Employability Week in May 2025. We created a Disability Employment Hub at Lochshore Park to provide a range of training opportuni�es for grounds maintenance work, allowing trainees to gain the skills and experience to complete their hor�culture qualifica�ons, while improving the public area too. A programme of tree plan�ng and environmental improvements will be developed with the stakeholders including Streetscene, Friends of Lochshore and Conserva�on Volunteers, providing added value for all involved. Work to further progress the Hub will con�nue in 2025 to 2026. Atainment The overriding aim of our Educa�on Service remains to improve the educa�onal outcomes for all learners, par�cularly those most disadvantaged learners. To support this, we are strengthening the strategic use of data to drive con�nuous improvement and raise atainment across our schools. Innova�ve approaches include analysing Insight leavers data to iden�fy strengths and development areas, which will shape priori�es in the Service Improvement Plan 2025 to 2026. Senior Leaders par�cipated in a data clinic to enhance their use of data for improvement and, together with our Data Service Improvement Group, we have launched a pilot exploring new tracking and monitoring tools for literacy and numeracy. The group is also evalua�ng these tools to establish effec�ve metrics for measuring progress and achievement. Our Digital Learning Strategy was launched in March for young people aged from two years old to 18. The strategy was created collabora�vely by our Educa�on Service, teachers and early years employees. It aims to develop 86
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 7 of 56 learners’ digital skills in prepara�on for an increasingly complex world. It will ensure our young people are confidently able to use a range of digital technologies to deliver exci�ng, suppor�ve, relevant and engaging learning experiences. All of our educa�onal establishments will adopt the strategy from 2025 to 2026 onwards as part of the approach to raising atainment. Members of our Educa�on Execu�ve Team met with the Associa�on of Directors of Educa�on in Scotland (ADES) Quads group (Dundee, North Ayrshire, Glasgow City and North Lanarkshire Council) to iden�fy areas of common improvement for the next academic session. Senior Managers will visit Dundee to gather informa�on around their improvements in Achievement of Curriculum for Excellence Levels for Literacy Primary One, Primary Four, and Primary Seven in May 2025. Our Cyber Explorers programme focuses on enhancing the cyber skills of our young people aged 11 to 14 years old. The ini�a�ve is designed to engage young people with cyber security concepts, digital skills and poten�al career opportuni�es in the field of technology. With educa�on increasingly integra�ng digital tools, Cyber Explorers presents a unique opportunity for our young people. Delivery of the programme began in late 2024 in Greenwood Academy with Second Year pupils. The programme was delivered during �metabled compu�ng classes and was carried out as a group to ensure everyone could proceed at the same pace. Some of the comments from par�cipants included: “I will take compu�ng a�er doing this, I love gaming.” “I thought this was really fun, and I learned a few things from it, coding is my favourite.” Free School Meals There is strong evidence of the posi�ve impact that a nutri�ous meal can have on a pupil’s learning and achievement in school as well as on their health outcomes. Free school meals (FSM) also save North Ayrshire families who take up the offer almost £400 per eligible child per year. The latest phase of the expansion of FSM launched on 24th February. This phase will encourage families of Primary Six and Primary Seven pupils in receipt of the Sco�sh Child Payment to register. Lifelong Learning Opportuni�es The Mul�ply project focused on suppor�ng maths skills and qualifica�ons in adults. To deliver Mul�ply we worked with partners including CHAP, TACT, University of Highlands and Islands, Ayrshire College and 15 community organisa�ons. Throughout the year Mul�ply delivered 521 ac�vi�es including one to one support, group work, community based programmes and support drop-in sessions. 2,339 adults par�cipated with 505 achieving qualifica�ons. Referrals over the project were received from a wide range of services, including Neighbourhood Networks Ltd, the Church of Scotland, Social Services, the NHS, Employability, Financial Inclusion, Customer Services, the Department for Work and Pensions (DWP), Turning Point and HSCP services. Working with local third sector and na�onal organisa�ons we con�nue to provide access to learning opportuni�es. The adult learning 87
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 8 of 56 programme supports increased confidence, progression into further learning, training or employment, reduced social isola�on and enhanced community engagement. Mental Health & Wellbeing A key focus for our Community Learning and Development team has been suppor�ng schools by delivering our ‘Bounce Back Your Resilience’ youth work programme. This programme is delivered by our young people in local primary schools, is tailored to empower Primary Six and Seven pupils across North Ayrshire and helps our Youth Work Modern Appren�ces to gain experiences in suppor�ng emo�onal awareness. Upon comple�on of the six-week programme, pupils become ‘BeeYou Mental Health Ambassadors’ for peers in their primary school. The interac�ve sessions have raised our children and young people’s knowledge on: • What is mental health • Resilience • Social Networks • Friendships and bullying • Making decisions • Self-Care Feedback from pupils has been posi�ve: “You all helped me realise not to care so much about what others think.” “The youth workers were all amazing there was nothing I didn’t like.” “I have learned to believe in myself and try to stop doub�ng myself if I fail.” Our annual Youth Forum was held at Ardeer Community Centre on Saturday 22nd February, which brought 50 young people aged between 12 and 25 years together to network, share their ideas and influence local decision making. The day had a series of workshops including Money and Mental Health with training provided by Change Mental Health and Mental Health UK. Youth groups and representa�ves in atendance included North Ayrshire Ac�ve Schools (NAAS) team, Kilwinning Youth Forum, North Coast Youth Forum, Garnock Valley Youth Forum, our council’s Youth Execu�ve (with pupils from across North Ayrshire secondary schools), Garnock Valley Youth Synergy, the Umbrella Club and Members of Sco�sh Youth Parliament (MSYPs). Feedback on the day was encouraging with our young people sharing: “It was good to develop tools to help us in the future with managing money and also overcome the hurdle of speaking about money openly.” “I’m excited about my ideas being shared with people in the council so that I can do my part to make a difference in other schools.” “I feel really good and it felt brilliant to be actually listened to.” Equali�es Our Ayrshire Shared Bri�sh Sign Language (BSL) Local Plan 2018 to 2024 Final Report and Ayrshire Shared BSL Opera�onal Plan 2024 to 2030 was approved by Cabinet in January 2025. This plan con�nues to align to the key aims within the Sco�sh Government strategy and support our BSL community across East, South and North Ayrshire. Care Experienced Young People We are commited to keeping the promise 88
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 9 of 56 and ensuring all care-experienced children grow up loved, safe and respected, enabling them to reach their full poten�al. In October, our council took part in our ‘Care Experienced Week Celebra�on’. The purpose of the event was to celebrate the work of North Ayrshire-wide Corporate Parents and the achievements of our Care Experienced young people over the past year. We highlighted the development of the Champions Board and Promise Champions Network. This Included a feature on employability support, an introduc�on from our Promise Delivery Partner and an on-stage discussion with Corporate Parents from Mo�va�on, Commitment and Resilience (MCR) Pathways, Ac�ve Schools, Educa�onal Psychology, Dance Therapy and the English for Speakers of Other Languages (ESOL) Hub based in Auchenharvie Academy. The event was atended by 61 adults and young people with engagement from Corporate Parents and our young people. Atendees commented on a good balance of content between our work, North Ayrshire-wide ac�vi�es and our young people’s work. This event was very important in terms of our Youth Work and Community Learning and Development Strategic Plan Priori�es to: • Highlight posi�ve des�na�ons that our young people can and have accessed. • Share young people’s experiences in a non-s�gma�sing way. • Promote and celebrate our young people’s health, wellbeing, atainment and achievement. • Showcase the ways we are reducing poverty and inequality for our Care Experienced young people. • Provide feedback to our young people about what has happened over the past year in response to what they have said they wanted to see improve or con�nue. Ayrshire Area Support Team Our Ayrshire Area Support Team (AST) is responsible for helping administer the opera�ons of Children’s Hearings Scotland (CHS). In December they welcomed the Na�onal Convenor of Children’s Hearings 89
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 10 of 56 Scotland to celebrate the first anniversary of the new ‘Tribunal Support Model’ which was rolled out across Scotland in December 2023. At the mee�ng, the AST was praised for its achievements over the past year. This included strong leadership, sharing best prac�ce and innova�on, and commending the AST for being a high achieving region where the Clerking team has a strong reputa�on across the county for hard work and support of its volunteers, par�cularly with their wellbeing. Partnership working with colleagues across the Health and Social care Partnership, Educa�on, Champions Boards and advocacy providers was also highlighted. The North Ayrshire Wellbeing Alliance As part of The North Ayrshire Wellbeing Alliance‘s focus on ensuring everyone is given an opportunity to enjoy life and cope with challenges, a pilot with the Local Employability Partnership (LEP) in Blacklands, Kilwinning, has been designed. This pilot will look at holding a series of family fun and drop-in events in April to bring the community together in an engaging and informal way via: • Fun ac�vi�es for all ages with refreshments. • Free wellbeing checks. • Opportuni�es to connect with local services. • Informa�on on volunteering, health, lifestyle, training and employment support. Leisure Facili�es In March 2025, Auchenharvie Leisure Centre hosted the World Wheelchair Curling Championships. We worked closely with colleagues from KA Leisure, Curling Scotland and other na�onal bodies to deliver this event at short no�ce. It is the only Olympic or Paralympic Qualifying Event which will be held in the United Kingdom during 2025. The Duke of Edinburgh atended the event as Patron of the Bri�sh Paralympic Associa�on. He also visited the Doon the Beach project in Stevenston, one of the many examples of community led ac�vity within North Ayrshire which offers employability support and leisure ac�vi�es as well as a café facility. In recogni�on of the contribu�on they make the Duke met with some of the volunteers to learn more about the projects. Housing Our Strategic Housing Investment Plan 2025 to 2030 was approved in December 2024 and submited to the Sco�sh Government. The Strategic Housing Investment Plan (SHIP) is reviewed annually and sets out the priori�es and loca�ons for affordable housing investment by our council and registered social landlords in North Ayrshire for a five-year period. The focus of our plan is to deliver the Sco�sh Government’s Affordable Housing Supply Programme (AHSP) to ensure affordable housing in North Ayrshire. The provision of new build housing has many benefits, including helping to regenerate the area, providing sustainable housing solu�ons which help address fuel poverty and support educa�onal atainment. It also assists our ageing popula�on and people with addi�onal needs to live more independently. During 2024 to 2025 we delivered 71 new homes at the following loca�ons across North Ayrshire: • Former St Mary’s Primary school site, Largs. 90
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 11 of 56 • Former Stanecastle School site, Irvine. • James McFarlane School site, Ardrossan. • Newhouse Drive site, Kilbirnie. • Laburnum Avenue site, Beith. • Ayrshire Central Hospital Site, Irvine. • Garnock Academy site, Kilbirnie. • Former Kings Arms Hotel, Irvine. Our Local Housing Strategy 2023 to 2028 annual update was approved at Cabinet in January 2025. We included a new ac�on that supports the work undertaken by the Arran Housing Task Force established in 2023. This involves a wide range of partners to assess the demand for affordable housing on Arran and iden�fy issues that may be limi�ng economic sustainability and growth. A survey commissioned by the task force is ongoing to seek opinions on the current housing provision on the island as well as future aspira�ons. The survey is open to homeowners and tenants, landlords, second homeowners, business owners, anyone living and working on the island as well as those considering moving to Arran. The Sheltered Housing Reprovisioning Programme con�nues to be implemented. The next phase planned for refurbishment includes Laigh Court in Beith and Vineburgh Court in Irvine. We con�nue to invest in and maintain our current housing stock and our estates. We are proac�vely installing sustainability measures to ensure they are as thermally efficient as possible to reduce fuel bills for tenants. Measures include installing external wall insula�on and solar photovoltaic (PV) technology to suitable proper�es. We are also undertaking a pathfinder project to explore a 'whole house' retrofit approach to our exis�ng homes. This will inform future asset investment for different property types to achieve our energy efficiency targets and reduce fuel costs for our tenants. Wellbeing Hub A non-recurring investment of £300,000 was approved by Council in February to support the explora�on of a new wellbeing enterprise hub at the former Greenwood Academy conference centre. The hub will support the co-loca�on and development of local third sector organisa�ons focused on various aspects of wellness alongside learning opportuni�es for our young people. A feasibility study to explore the viability of a hub and poten�al opera�ng model will be progressed during 2025. Great Harbour, Irvine Our Great Harbour project con�nues with construc�on on site at Irvine Beach Park. Our Coastal Hub Play Park is due for comple�on by the end of September 2025, followed by a new skate park and pump track and improvements to connec�ons to the area and around the Grade B listed Pilot House building. When complete, the Coastal Hub area will provide improved outdoor space and facili�es for a range of ages and abili�es. The naming of the play park was discussed with schools and local groups and an event has been arranged involving local schools to announce the chosen name in June 2025. Design work for Phase 2, the Mari�me Mile, along Harbour Street, will commence in June 2025 with stakeholder engagement taking place as part of the development work. 91
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 12 of 56 Next Steps • Through our new Child Poverty Strategy Team – and liaising through the Community Planning Partnership (CPP) and CPP Senior Officers’ Group - we will con�nue to bring a more systema�c approach to addressing child poverty in North Ayrshire. This will include the co-design of place- based tests of change with partners from the third sector. • We will establish our local priori�es and areas for ac�on as part of the Collabora�on for Health Equity in Scotland programme. • We will consolidate our financial inclusion services and rebrand as “Money Smart”. • We will explore a debt advice resource for non-council tenants to enable a seamless internal pathway to debt advice. • We will roll out the Performing Engineering Opera�ons (PEO) course currently available at Ardrossan Academy to all secondary schools from August 2025. This course provides fundamental engineering skills, o�en for beginners in the field. • We will review research commissioned by our council into the poten�al op�ons for developing CWB approaches at a locality level including considera�on of unique island contexts. • We will work with anchor ins�tu�ons to deliver CWB across Ayrshire through the CWB Commission, Regional Economic Strategy Delivery Group and CWB Anchor Charter. • We will progress the delivery of our Levelling Up Fund Round 3 Commercial and Low Carbon Infrastructure project. • We will con�nue to provide support for local enterprise through the Business Recovery and Sustainability Fund. • We will reach Financial Close on the new Ardrossan Community Campus and start the construc�on process. This transforma�onal redevelopment will bring significant investment to one of our most deprived communi�es. • Our Tenant Inspec�on Panel will scru�nise our Aids and Adapta�ons provision. • We will con�nue to deliver new build housing and regenera�on programmes to deliver sustainable housing solu�ons. • We will progress the review of our North Ayrshire Housing Register Alloca�ons Policy. • We will further develop the Disability Employment Hub at Lochshore Park. • We will seek the approval of the Irvine Neighbourhood Plan by winter 2025. • We will further consult and engage to inform the development of the investment plan in rela�on to the Plan for Neighbourhoods. • We will support the delivery of the Ayrshire Regional Economic Strategy and Highlands and Islands Economic Strategy. • We will work with island stakeholders to influence the development of the new Na�onal Islands Plan for Scotland due for publica�on in late 2025. • We will review the Arran Task Force Survey assessing the demand for affordable housing on Arran. 92
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 13 of 56 Case Study - Winter Warmer Breakfast The Winter Warmer Breakfast returned for a third year offering free breakfasts across all nine secondary schools and Lockhart Campus. During Winter 2024 to 2025, the free breakfast was available from the beginning of November 2024 and ran un�l the end of March 2025. A range of hot and cold breakfast items were available for all secondary school pupils designed as a ‘grab and go’ service. Each year the catering teams have refined the service to ensure it con�nues to meet the needs of our young people. The winter of 2024 to 2025 saw the highest uptake of this service over the three years it has been running, with an average of 1,200 items being served every school day and a total of over 100,000 breakfast items being distributed over five months. A posi�ve unintended consequence of this provision has been an increase in pupils eligible for free school meals not using their lunch credit at morning break. They are instead using their credit at lunch�me to access a full lunch as intended. Hidden hunger is an issue in secondary schools as pupils are free to leave the school grounds at breaks, therefore there is no way of knowing if pupils are accessing food if they are not atending the school dining facility. This service helps to address the issue of hidden hunger even if just in a small way, by offering dignified free food provision at breakfast. School breakfast provision is intended to address classroom hunger and strengthen academic performance by improving children’s energy, concentra�on, behaviour and overall readiness to learn. 93
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 14 of 56 Communi�es and Local Democracy We will have ac�ve, inclusive and resilient communi�es. Key Ac�vi�es Community Learning and Development Youth Work In the final six months of 2024 to 2025 youth work programmes and ini�a�ves reached 5,164 young people aged under 12 years old and 6,582 young people over 12 years old. Key areas of focus and achievement include: • Early Interven�on and Founda�onal Skills (Under 12s): Programmes focused on building founda�onal social skills, promo�ng healthy lifestyles, fostering crea�vity, and encouraging early engagement in community ac�vi�es. • Empowerment and Future Pathways (Over 12s): Ini�a�ves concentrated on developing leadership skills, enhancing employability, promo�ng mental and physical well-being, and facilita�ng ac�ve par�cipa�on in local decision- making. • Community Cohesion and Partnership Working: We con�nued to strengthen our partnerships with schools, local community groups, third-sector organisa�ons, and other council services. Youth work is having a posi�ve impact on our young people such as: • Improved Mental Health and Wellbeing: Through targeted interven�ons and suppor�ve environments, we contributed to improved mental, physical, and emo�onal well-being with 6,971 par�cipants. • Equality in Community Connec�ons: Our programmes fostered a sense of belonging and encouraged ac�ve par�cipa�on in community life, including work with 189 New Scots young people, targeted work with our care experienced young people and the crea�on of our equali�es youth network. • Cyber Resilience: This year has seen the roll out of our Cyber Explorers work, with our young people achieving their SCQF Level four and five, equipping them with cyber skills for life and future employment, with 704 accounts ac�vated, 139 comple�ng SCQF Level four and 53 achieving SCQF Level 5. Members of the Sco�sh Youth Parliament Our local Members of the Sco�sh Youth Parliament (MSYPs) atended the na�onal si�ng of the Sco�sh Youth Parliament in October. As part of the Youth Parliament, they were involved in delivering their mo�ons in the deba�ng chamber at Holyrood. There were 15 mo�ons raised covering a range of issues including an�- social behaviour, broadband for rural areas, global climate reputa�on, protec�ng university funding, cost of living educa�on, xenophobia and racism, training for transport workers, vaping adverts, Gaelic educa�on, mental health in curriculum, 94
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 15 of 56 femicide, student and appren�ce support, period products and including Bri�sh Sign Language in the curriculum. Our MSYPs really enjoyed the event. As well as mee�ng other MSYPs, they had the opportunity to meet Members of the Sco�sh Parliament at a parliamentary recep�on. This meant they could discuss their roles and the work they are involved in locally. They felt immensely proud of their opportunity to sit in the deba�ng chamber that would normally be filled with MSP’s and represent not only their local communi�es but young people from across Scotland. Duke of Edinburgh Awards Record numbers of our young people par�cipated in the Duke of Edinburgh Award scheme in North Ayrshire this year. The numbers of par�cipants at each level were: Bronze: 696, Silver: 252, Gold: 58. An awards ceremony was held at St Mathews Academy in March to recognise the achievement of our young people comple�ng their awards, where 182 received a bronze award, 59 Silver and 11 Gold. Older People Our Community Learning and Development teams, in partnership with Locality Workers and residents across North Ayrshire, hosted an Older People’s Conference at Saltcoats Town Hall in February as part of our Older People’s Voice Par�cipa�on Strategy. The event welcomed over 60 atendees. With a focus on ensuring older voices are heard, respected and acted upon, especially around issues like local service delivery and the impact of climate change, the conference promoted meaningful dialogue and collabora�on. Atendees learned about local ini�a�ves addressing social isola�on and felt more confident about accessing and par�cipa�ng in these opportuni�es. New connec�ons were made across our locali�es. The promo�on of Discovery Groups, a learning award for those aged over 50 years, led to increased registra�ons and a wide range of skills being shared. One recent newcomer to the area discovered local ac�vi�es through the event and has since been elected secretary for her local community associa�on. New Scots Our Community Learning and Development team hosted the first mee�ng of Afghan women from across North Ayrshire at the Towerlands Community Centre. This ini�al mee�ng was in recogni�on of several new Afghan families who are geographically diverse and isolated. All of the women were invited to an ini�al mee�ng to discuss whether group ac�vi�es would be helpful and what they would like to be involved in. The group has agreed to meet monthly to con�nue to develop friendships, networks and reduce isola�on. They also requested opportuni�es for men and children to meet and network, so in partnership with the Health and Social Care Partnership an Afghan Family fun day is planned for early April. Community Grants and Funding Par�cipatory Budge�ng (PB) enables communi�es to have a say in how council budgets are used. Our 2024 to 2025 small grants PB saw 15,882 votes cast across North Ayrshire. To make sure that as many residents as possible were able to have their say in the 95
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 16 of 56 process, we not only used our online Consul pla�orm for vo�ng but also offered paper-based vo�ng opportuni�es alongside Consul. This ensured that individuals and groups who don’t have digital access or may find using online tools difficult could s�ll contribute and have their say. Our young people also took part in both Youth and Locality PB processes, using the Consul online pla�orm to vote and give their views. £171,377 was awarded to 190 groups across North Ayrshire through the small grants PB process. This funding enabled a wide range of community-led projects and ini�a�ves to address local needs. A diverse range of projects were funded which focused on youth services, community wellbeing, environmental improvements, and support for vulnerable groups. 8,620 young people contributed to Youth PB by ac�vely par�cipa�ng in online vo�ng, deciding on how local money was spent to enhance or create new projects for our young people. Our digital approach to PB, par�cularly around Youth PB, was included as an example of good prac�ce at the interna�onal Consul Conference in February. We reviewed how well small grants PB worked during 2024. This review collected feedback and recommenda�ons from our community PB Champions, and our employees including Modern Appren�ces who are involved in its delivery. We used this feedback to create an in-person session which will help to develop the approach for the next round of PB. Community reviewers will also be invited to provide their feedback and recommenda�ons on the last cycle. Our Community Investment Fund (CIF) con�nued to support locality-based projects which contribute to delivering our priori�es. Locality Partnerships awarded funding to a range of groups across North Ayrshire including: • £41,000 for Beith Hive to support transport connec�vity for childcare in the Garnock Valley. • £49,500 for Irvine Cricket Club to improve and expand their facili�es to allow more par�cipa�on in the sport from local families. • £25,000 for Corsehill Community Associa�on to progress with redevelopment of the local play park. • £92,685 for Largs Development Trust to develop a local community hub and associated ac�vi�es including community radio. • £100,000 for Winton Rovers to renew their stand roof as part of a major redevelopment package aimed at improving the facili�es on offer to the community. Our Connected Communi�es teams, together with colleagues from the Third Sector Interface, con�nue to provide support and informa�on to local groups about the funding opportuni�es available to them. Our Communi�es and Place Fund and Repurposing Property Grant Fund con�nued to support local community organisa�ons to deliver a broad range of projects and develop proposals to bring vacant and derelict land and property into posi�ve use. 96
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 17 of 56 Community Planning Partnership Developing our work remains a key feature in how our Community Planning Partnership (CPP) func�ons. We have now embedded our Child Poverty and Cost of Living programme of work as part of our main CPP ac�vi�es, in recogni�on of the need for a partnership approach and the centrality of the work to our priori�es. Our focus is on understanding where we can work together as partners, including our residents, to use our resources most effec�vely and improve the lives of our children, families and communi�es. Our ongoing development work with the Third Sector Chief Officers Group, which brings together key stakeholders from the third sector within North Ayrshire, has been codesigning projects to develop our strategic understanding and the sector’s capacity. These projects focus on two areas which our council has earmarked funds to support, firstly Child Poverty and the Cost of Living and secondly, developing our Community Wealth Building aims within our communi�es. During the year we undertook a review of our Locality Planning arrangements. Locality Planning is a way of bringing together communi�es, council services and partners to address local priori�es and reduce inequali�es. With support from our community members and partners, we iden�fied improvements including a more interac�ve approach to Locality Partnership mee�ngs, a renewed focus on our Locality Plans and stronger leadership to support the Partnerships in their work. The recommenda�ons have been approved by Cabinet and a programme of work to implement them is now underway. Community and Voluntary Sector The Third Sector Chief Officers Group con�nues to go from strength to strength. We are transforming our partnership with the community and voluntary sector, recognising the vital role they play in delivering lifeline services and support to many vulnerable people. The group has co-designed a programme of work, including considera�on of how we 97
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 18 of 56 strengthen community wealth building at a locality level. The group has also collaborated to develop a number of innova�ve proposals to be supported through our council’s Child Poverty and Early Interven�on Fund. Community Asset Transfer Community Asset Transfer (CAT) involves the transfer of responsibility for an asset from our council to any suitably qualified community, voluntary or social enterprise group. For context, assets may include public halls and community centres, public conveniences, parks, sports facili�es and play areas. In the previous 12 months, our CAT team has received 17 expressions of interest - ini�al enquiries that allow us to ascertain if the asset is available and if the group is a compliant applicant. Earlier this year, our Cabinet agreed to approve the asset transfer of the Brisbane Centre to Clyde Coast and Cumbraes Men’s Shed at the recommended terms of transfer of 5% of the property valua�on of £74,000 (totalling £3,700). The Clyde Coast and Cumbraes Men’s Shed moved into the Brisbane Centre in October 2022. Since then, they have been delivering a valuable service and successfully opera�ng the facility in the heart of the local community. Further developments include: • Enhancing the facility to meet the specific needs of the Men’s Shed - allowing the club and its members to expand and grow. • Increasing membership, thus widening involvement with the local community and deepening the impact of their work. • Providing stability and a strong base from which to operate and deliver events to support the wider community. Plan for Neighbourhoods Irvine is one of fi�y-five towns benefi�ng from up to £20 million of investment through endowment style funding over a 10-year period. The Irvine Neighbourhood Board is collabora�ng with our council to develop the objec�ves and projects for the ini�al four-year neighbourhood plan. The Plan for Neighbourhoods, previously known as Long-Term Plan for Towns, seeks to place communi�es at the heart of the decision-making process and to provide the funding to support delivery. The programme requires a partnership approach between our council, the Neighbourhood Board and the community. A ten-year vision for the town and more detailed four-year investment plan must be approved by UK Government prior to implementa�on by winter 2025. Further consulta�on and engagement are planned in 2025 to 2026 to inform the development of the investment plan. Tenant Sa�sfac�on Overall service sa�sfac�on among North Ayrshire Council tenants has risen to 92%, marking an improvement on the previous result for 2021 of 88.74%. Our three yearly tenant sa�sfac�on survey ran from November 2024 to January 2025, with 1,490 responses represen�ng 40% of all our sampled tenants. As part of our ongoing commitment to consulta�on and improvement, the survey covered several important issues rela�ng to our tenant’s homes, the service we provide and their local neighbourhood. An 98
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 19 of 56 ac�on plan is currently being developed to further improve our service. Islands North Ayrshire Islands Programme was a finalist in COSLA’s Excellence Awards in the category of ‘Strengthening Communi�es and Local Democracy’, in recogni�on of the unique partnership approach taken. We con�nue to work closely, posi�vely and progressively with partners to ensure the Island Plan priori�es are front and centre of local decision making where possible. We have been ac�ve in the development of the new Highlands and Islands Regional Economic Strategy, led by Highlands and Islands Enterprise (HIE) with collabora�on and input from across the Regional Economic Partnership membership. It outlines the strategic approach to economic development for the Highlands and Islands region, including the islands of Arran and Cumbrae and sets out the collabora�ve opportuni�es and ac�ons for the Highlands and Islands Regional Economic Partnership. This includes a range of policy areas such as Housing, Popula�on Atrac�on and Reten�on, Skills, Childcare, Local Visitor Levy, Community Wealth Building and Community Benefit. 99
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 20 of 56 Next Steps • We will implement the recommenda�ons of our review of Locality Planning with our communi�es and partners. • We will further embed our locality-based approaches to service delivery and decision making within our council. • We will hold dedicated network mee�ngs and informa�on days for older people as well as pop up informa�on sessions. • We will deliver our essen�al skills adult learning programme with support from UK Shared Prosperity Funding. • We will develop a coordinated partnership approach to recrui�ng, suppor�ng and recognising our volunteers in North Ayrshire. • We will work with the University of the West of Scotland to promote qualifica�ons and support upskilling our employees and volunteers in Community Educa�on. • We will make progress on the priori�es iden�fied through the Community Asset Transfer Start-up Fund review. • Well will complete our comprehensive approach to applica�on, assessment award and compliance in rela�on to community funds and grants. • We will con�nue to work with the Third Sector Chief Officers Group to codesign solu�ons. • We will con�nue to develop our new virtual Community Directory for community members in crisis. • We will prepare our CPP Project Plan for 2026 to 2027. • We will carry out Community and Locality Planning training sessions for partners and community representa�ves. • We will test our streamlined Council Tax process with our Lived Experience Group in November. • We will refresh our Local Island Plans following the review of Locality Partnerships and the launch of the new Na�onal Islands Plan for Scotland. • We will work in partnership with our island communi�es to maximise the opportuni�es from the Sco�sh Government Islands Programme, Cost of Living Crisis Emergency Fund (COLCEF) and Carbon Neutral Islands Capital Fund. • We will contribute to an inaugural Islands Economy Showcase at the Sco�sh Parliament in April. 100
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 21 of 56 Case Study – Towerlands Graffi� Mural In response to a recent surge in vandalism at Towerlands Local Community Hub, Irvine, a unique restora�ve project was created in partnership with the Irvine Locality Partnership and Locality Team, our Council, Police Scotland and commitee members from Towerlands Community Centre. Five young people were involved in a mural project established as part of the Locality Ac�on Plan for a targeted group of Greenwood Academy pupils who had played their part in recent an�-social behaviour. With the help of local graffi� ar�st, Tragic O’Hara, the pupils par�cipated in six restora�ve youth work sessions at Towerlands Community Centre. The aim of the Cyber Explorers mural project is for our young people to create a historic graffi�-inspired design where they can come together to celebrate the value of their local community centre and give something back. The group collaborated to map out a design with key elements celebra�ng community groups such as the kni�ng club, Irvine Pipe Band and the Dachshund Group who all operate out of the hub. Engaging with commitee members from Bourtreehill and Broomlands Community Associa�on (BABCA), the next phase will see the crea�on of a mural to promote the centre to passers-by. This will depict the history of the community centre, celebrate what the vibrant community hub offers and how the hub sets its sights on the digital age. This work symbolises regenera�on and resilience and offers the young par�cipants an opportunity to be responsible, crea�ve, collaborate and demonstrate how shared ar�s�c engagement can help strengthen and rebuild community rela�onships. Police Constable, Irvine Locality Policing Team: “Working with our partners and youngsters in the local area, we’ve been able to emphasise the importance of facili�es like this and try to prevent criminal ac�vity. We’ve developed an understanding with these teens, which is helping to improve rela�ons between groups of youths and police in the area and will benefit the whole community going forward. This project has also allowed youngsters to channel their energy and learn skills which they can use for their future” 101
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 22 of 56 Case Study – Storm Eowyn When Storm Eowyn swept across Scotland in March, bringing gale force winds of up to 100mph and widespread flooding, North Ayrshire experienced some of the storm’s most intense effects, triggering an immediate and determined response to protect residents and keep cri�cal services running. As weather warnings intensified, Roads crews were mobilised allowing fallen trees and debris to be cleared quickly and efficiently ensuring emergency access and restoring key transport links. To protect residents and staff, we made the early decision to close council buildings for the dura�on of the storm. Our council priori�sed support for vulnerable individuals, carrying out welfare checks through our care networks, as well as delivery of food parcels. Temporary drop in hubs were made available across several of our community facili�es where prolonged outages were iden�fied. Addi�onally, our Building Services Repairs Team responded to emergency repairs. People were kept informed through regular updates on our social media channels and our customer services helpline was available to provide advice, support and emergency referrals, handling almost 3,000 calls within the first 72 hours. There were 917,371 social media impressions (number of �mes people had the opportunity to view our posts on their social feeds). These included posts shared from other accounts and pages such as Sco�sh Fire and Rescue, Transport Scotland, Police Scotland and the Met Office. Addi�onally, we kept our employees informed through our own internal communica�ons. In the wake of the storm, we launched a review into storm resilience, focusing on infrastructure investment, flood mi�ga�on and strengthening community preparedness. Storm Eowyn tested our resilience but the response from council services, mul�-agency partners and volunteers demonstrated what is possible when communi�es come together. 102
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 23 of 56 Climate Change To achieve net-zero by 2030. Key Ac�vi�es Energy The ECO4 Flex scheme provides funding for energy efficiency improvements in homes, primarily targe�ng low–income and vulnerable households. The scheme, part of the wider Energy Company Obliga�on (ECO) program, offers financial assistance for measures like insula�on, hea�ng upgrades and renewable energy installa�ons. Our funding of £902,809 has supported 32 households with the installa�on of over 134 energy saving measures to improve home energy efficiency. Our Local Heat and Energy Efficiency Strategy (LHEES) is a long-term plan, developed in line with Sco�sh Government guidance, to address heat demand, decarbonise hea�ng and improve energy efficiency in both domes�c and non-domes�c buildings. Since it was launched, we have established our LHEES Working Group and engaged with other local authori�es and distribu�on network operators. In March, we launched our LHEES procurement framework to undertake feasibility work to inves�gate heat network zones and explore our role in localised heat networks to support low carbon affordable warmth. Biodiversity In response to the Global Climate and the Nature Emergency, the Sco�sh Government launched its Sco�sh Biodiversity Strategy to 2045 which states local authori�es will be responsible for delivering a Nature Network in their own area. In response, our Cabinet approved our North Ayrshire Nature Network (NANN) strategy in March 2025. The delivery of this strategy will involve considerable community buy in, partnership working and interdepartmental coopera�on. The inten�on is to establish: • An explana�on of what Nature Networks are and what they will deliver. • The na�onal and local policy context. • A methodology for developing a Nature Network for North Ayrshire, following the NatureScot Nature Network delivery guidance. • An ac�on plan for the implementa�on and delivery of the NANN. 49,026 trees have been planted in line with our 2030 Woodland: A Tree Plan�ng Strategy through various projects and by community partners. This remains a key focus, with support being provided to local community groups and the assessment of suitable plan�ng sites and species for our council's tree plan�ng con�nuing. A proposal to plant a further 5,500 trees in the Annick Valley Park has been well received with plan�ng scheduled for Autumn 2025. Plan�ng of an addi�onal 2,420 mixed species of trees at Milgarholm in Irvine has now been completed. A new grounds maintenance management plan for Lochshore Park in Kilbirnie is being implemented. This will include a habitat management plan which is being created jointly between our council and the Friends of Lochshore volunteer group. We have also assisted in facilita�ng plan�ng of 120 fruit trees by the Friends of Stevenston Conserva�on Group, in Auchenharvie, Stevenston. 103
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 24 of 56 Net Zero Accelerator The Net Zero Accelerator (NZA) programme which helps businesses increase sustainability, reduce their carbon footprint and work towards elimina�ng greenhouse gas emissions, has progressed with a number of projects being developed to reflect our business base. As part of phase one, cohorts have been developed with Net Zero Na�on and partners. We have also further developed phase two with an aim to embed and develop enhanced green adop�on and skills development for those businesses seeking to enhance their sustainability opportuni�es. Other NZA workstreams developed and supported include: • Locally Owned Energy Projects: Collabora�ve buying consor�um. • Carbon Assistants Training Programme: Upskilling employees to develop skills in Carbon Accoun�ng. • Solar Funding Challenges to support energy cost saving. • Circular Economy – Suppor�ng waste reduc�on and new product development. The first of its kind islands NZA has been developed, specifically aimed at the unique needs and challenges of island based businesses. 16 small and medium sized enterprises (SME) enrolled from the Isles of Arran and Cumbrae. Part funded by Zero Waste Scotland, collabora�ve projects are emerging. Waste and Recycling During the 2024 to 2025 financial year, our bulky waste reuse partner, Cunninghame Furniture Recycling Company, collected 902 matresses (24 tonnes) and 212 tonnes of household furniture as part of an ini�a�ve to promote opportuni�es for their reuse, assis�ng 1,787 households to furnish their homes whilst also employing 17 staff within North Ayrshire. As part of a new Circular Economy and Waste Route Map for Scotland, our officers are working closely with COSLA, SOLACE and the Sco�sh Government through a co-design process, to develop a revised statutory Code of Prac�ce for Household Waste Recycling and key policy ac�ons. The Route Map and the revised Code of Prac�ce (expected late 2026) will be key in informing the development of our council's Zero Waste Strategy to explore further opportuni�es for improving reuse and recycling performance. In partnership with deep cleaning specialists and the volunteering network, a gum removal ini�a�ve was carried out addressing chewing gum removal and preven�on. This involved deep cleaning of our pavements and use of signage to encourage proper disposal. The 'Sea Starts Here' campaign with the Irvine Clean Up Crew to raise awareness of the impact of marine liter is ongoing. A key method of raising awareness has been the use of semi-permanent stencilling on our pavements, displaying messages such as, “Please Don’t Liter” and “The Sea Starts Here”. The pilot of our 'LiterLoto' liter campaign has now concluded and has proved to be extremely successful since its introduc�on in April 2024. Data is showing an increase in those disposing of liter appropriately. In January 2025, 583 items of liter were binned responsibly by app users in North Ayrshire and in February 2025 this number increased to 24,089, increasing further to 24,742 in March. 104
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 25 of 56 The booking system for our four Household Waste Recycling Centres (HWRC’s) was approved by Cabinet in October. The new system will make visits smoother and quicker, enabling residents to book slots at recycling sites at a �me convenient to them. In addi�on, the change will enable staff to assist customers to dispose of their household waste safely and correctly, minimising contamina�on and improving recycling. Renewable Energy Our Council con�nues to support wider ac�on on climate change out with our own estate. The Community Renewable Energy Genera�on Fund (a scheme which offers funding to community organisa�ons for renewable energy projects) is promoted during the Community Climate Ac�on Plan visits with local communi�es. Four community renewable projects have been awarded funding through this fund, totalling approximately £130,000. Addi�onal awareness raising ac�vity is underway to increase the uptake of the available funding with support from Connected Communi�es. The appointment of a new Energy Awareness Officer will help to promote and engage with communi�es further in 2025 to 2026. Our work con�nues at the Solar PV farm developments at our former landfill sites of Nethermains and Shewalton. The installa�on of these is now complete and the next phase will see the connec�on to the electricity network and commissioning works undertaken. Decarbonisa�on of the Fleet A Decarbonisa�on of the Fleet Board has been established to help progress the wider roll-out of electric vehicles and the possibility of other fossil fuel alterna�ves. We have switched 36 refuse collec�on vehicles from diesel fuel to Hydrotreated Vegetable Oil (HVO). HVO, otherwise known as ‘renewable diesel’, is produced from waste cooking oil, animal fat and forestry materials that are saturated with hydrogen at a high temperature and pressure in a process known as hydrotreatment. It can be used in vehicles or equipment designed for standard diesel, without any changes to the engine or infrastructure, and can reduce CO2 emissions by up to 90%. Over a 12-month period, there is poten�al for our council to save around 2,529 tonnes of carbon emissions. Work on the next phase of our Electric Vehicle Workplace charging network has progressed to procurement stage. This will support wider electrifica�on of our council’s fleet. Sustainability Our Sustainability Team has delivered 90 climate change and energy lessons to 29 primary schools to date. The lessons support awareness of ac�on on climate change and encourages ac�on within schools through their climate ac�on plans. In partnership with Keep Scotland Beau�ful, we con�nue to support free energy resources for Secondary Schools. Development is also underway on a community carbon literacy training pack for small community groups in conjunc�on with APSE Energy for 2025 to 2026. As part of our Sustainable North Ayrshire Strategy, a key priority is the crea�on of Community Climate Ac�on Plans for each locality. Building on the momentum of the Climate Ac�on Town Stevenston ini�a�ve, we have engaged with local groups by 105
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 26 of 56 atending community events to explore poten�al climate ini�a�ves and understand the barriers they face. The next phase will see the delivery of three interac�ve workshops in each locality, co- designed with community members. These sessions will be supported by the Ayrshire Climate Hub. In partnership with the Ayrshire Nectar Network, a project led by the Sco�sh Wildlife Trust (in partnership with East and South Ayrshire Councils), we have supported the establishment of new wildflower meadows. The ambi�on of this project is to create pollen rich habitats in response to the decline of pollinators. We have provided support to the Friends of Stevenston Shore and the Friends of Lochshore. In partnership with Nature Scotland, we con�nue our work to implement areas of naturalised open space to create habitats for wildlife and encourage bees and insects through diverse seeding in our wild meadows. This includes allowing tree debris to be le� on site (where safe to do so), to help promote natural habits. We con�nue to be a key and ac�ve member in the North Ayrshire Biodiversity Partnership. A funding applica�on has been submited for reconstruc�on works on the banking of Shewalton pond to both improve access while protec�ng valuable habitats for flora and fauna. In November 2024, the third and final stage of the Fairlie Coastal Path was completed with the opening of a new, improved and safer access to the coastline for residents and visitors to the area (see case study below). This phase has completed the link between Bay Street and the Fairlie Viewpoint path, crea�ng 800m of a con�nuous, traffic free walking, wheeling and cycling path for people of all abili�es. Travel Smart Our council’s Travel Smart Behaviour Change programme con�nues to provide informa�on and ac�vi�es to the public and workplaces promo�ng ac�ve travel and suppor�ng behaviour change. Through a broad programme of ac�vi�es aimed to raise awareness and build confidence, people are encouraged to walk and cycle more for short journeys. Short group walks take place across North Ayrshire enabling par�cipants to increase their stamina and confidence and develop a beter knowledge of routes. New and less confident cyclists receive training to improve both their on and off-road cycling skills. Further training is provided for those wishing to develop their bike maintenance skills. We con�nue to work with Paths for All, providing walk leader training for people wan�ng to support exis�ng groups or develop new walking opportuni�es. We provide informa�on stalls at libraries, workplaces and other venues. Since October 2024 we have delivered over 213 ac�vi�es with over 2,100 people taking part. Next Steps • We will launch our new digital HWRC booking system. • We will con�nue to develop Community Climate Ac�on Plans for our six locali�es. • We will con�nue to develop a Renewable Energy Strategy and iden�fy projects which may be suitable for investment. • We will deliver the North Ayrshire Network Strategy, aligned with the Sco�sh Government’s Biodiversity Strategy. 106
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 27 of 56 • We will con�nue to work with our partners at South and East Ayrshire Councils to procure a concession contract for the delivery of 307 EV charge points across the area. • We will install a new permanent self- led sustainability trail at Eglinton Park. • We will con�nue to develop projects for future Ac�ve Travel and Infrastructure funding opportuni�es. • We will con�nue to deliver our Travel Smart behaviour change programme. 107
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 28 of 56 Case Study – Fairlie Coastal Path In November 2024, the village of Fairlie celebrated the official opening of the Fairlie Coastal Path, an accessible walkway designed to enhance local connec�vity, encourage outdoor ac�vity and boost tourism, represen�ng a significant step forward in sustainable local development and community wellbeing. Forming part of the wider Ayrshire Coastal Path, the Fairlie Coastal Path is a 1 km route linking key parts of the village with the nearby shoreline and natural reserves ensuring a con�nuous traffic- free walking, wheeling and cycling path along the waterfront for people of all abili�es. Developed in close collabora�on with local residents and marine engineers, the £633,084 project was funded by the Sco�sh Government and designed and delivered through a partnership between our council and Sustrans. The path priori�ses accessibility and includes viewing points, rest areas and safe access to coastal features. Community consulta�on was central to this project with local residents contribu�ng ideas for the path’s layout and features through surveys and planning sessions. The strong sense of community ownership has been key to the project’s success. Since its opening, the path has become a popular des�na�on for walkers, cyclists, families and nature enthusiasts. It has strengthened connec�ons between people and place, offering a safe welcoming space for recrea�on, learning and social interac�on. Early feedback indicates increased local foo�all and interest from visitors, providing poten�al extra foo�all for nearby businesses. The Fairlie Coastal Path demonstrates how small-scale infrastructure can have a big impact when rooted in community collabora�on and respect for the natural environment. It not only improves access and wellbeing but also preserves the unique character of Fairlie’s coastal landscape for future genera�ons. Head of Na�onal Cycle Network at Sustrans Scotland: “We are delighted to see work finish on this phase of the Fairlie Coastal Path project. When we make it easier and safer for people to walk, wheel and cycle, we save lives. This new route has created a vital traffic-free space, enabling residents and visitors to travel ac�vely along the waterfront away from busy roads, while accessing key services and the local coastline.” 108
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 29 of 56 Case Study – Community Renewable Energy Genera�on Fund Our council launched the Community Renewable Energy Genera�on Fund (CREGF) in 2023 to support community-led renewable energy projects. CREGF is a compe��ve council fund, where approved applica�ons are agreed on merit. Funding available for projects is £350k from our council’s Investment Fund as part of a par�cipatory budge�ng approach to enable crowdfunding for environmental works. The fund supports our council’s Climate Change priority, achieving net-zero carbon emissions by 2030. The aim of CREGF is to provide one-off funding for projects to increase the level of community owned renewable energy genera�on opportuni�es and accelerate community benefits from local renewable energy. To be eligible, applica�ons had to be from cons�tuted North Ayrshire community groups. Applica�ons from na�onal organisa�ons were also accepted if their project demonstrated direct benefits to the communi�es of North Ayrshire. Projects were required, where possible, to include match funding from other non-council funding sources. Renewable energy genera�on projects could include solar photovoltaic (PV), wind turbines, hydropower, heat pumps or green hydrogen. The funding was available for different stages of projects including feasibility, business case, planning, development or installa�on. It is expected that any surplus, profit or reduced energy costs delivered by the scheme will be used en�rely for the benefit of the community group and/or wider community. So far funding of £128,939 has been awarded to projects within the Garnock Valley, Three Towns and Arran locali�es. Awards have been granted for the development of a solar PV farm, wind turbine, air source heat pump and batery storage. Beith Community Development Trust installed Solar PV on their roof, combined with a batery storage facility in December 2024. This enabled them to reduce energy use and costs while genera�ng green renewable electricity. CREGF con�nues to be promoted amongst community groups as part of the ongoing work to develop Community Climate Ac�on Plans (CCAPs). The overall aim of the CCAPs is to lower the area-wide carbon emissions of North Ayrshire. The CCAPs will contain the climate views of our communi�es and help to iden�fy climate ac�ons which also support the local priori�es of each of the six locali�es. These ac�ons can be taken by community groups and supported by our council. An applica�on to the CREGF can then be made to support the climate ini�a�ves. Our council will con�nue to provide financial assistance by promo�ng the CREGF to support community-based ac�on. This is a key outcome within the Council Plan Climate Change priority, where the fund aims to unlock the poten�al of community owned energy genera�on to bring new income streams into communi�es and help them take direct ac�on to combat climate change. The Sustainable North Ayrshire Strategy 2024-27 supports the vision of a sustainable, climate ready North Ayrshire where we all play our part, whether as a local authority, business, school, community group or individual. 109
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 30 of 56 A Sustainable Council To transi�on to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people. Key Ac�vi�es Modern Appren�ce Employability Programme Five of our modern appren�ces completed their 18-month Youth Work Modern Appren�ceship accredita�on. They gained a SCQF7 Youth Work qualifica�on, the equivalent to an Advanced Higher, a Higher Na�onal Cer�ficate or the first year of a degree programme. In addi�on, they gained accredita�on for First Aid, Mental Health Resilience, An�-Sectarianism and Mental Health Awareness. One Modern Appren�ce stated: “Since star�ng in 2023, I have gained a tremendous amount of confidence and social skills. I am much beter at talking to new people and engaging in conversa�ons. Also, I have improved my �me management, reading, wri�ng, and decision-making skills. I am so happy I decided to apply. It has truly been the best decision I’ve made.” Skills for Life Programme In 2024 to 2025, 81 Skills for Life placements were created in partnership with the following services and organisa�ons: Streetscene; Facili�es; Clerical (various departments); Pupil Support Assistants; Third Sector; Step Into Sustainable Business; as well as Care At Home and Stores through the Health and Social Care Partnership. 51 of the placements were across other council services. Accessibility Our Customer Services, IT and Transforma�on teams have been ensuring our public services, both digitally and locally, are accessible. This includes raising awareness of our “No Wrong Door” approach, which aims to ensure residents are directed to support no mater which service they ini�ally contact. This has included employee Drop-In Sessions across locali�es which were well received. These are being followed by employee awareness sessions targeted at front line colleagues. The Web Team has been working steadily to improve the accessibility of our online content and services, ensuring our website meets recognised accessibility standards. We con�nue to explore how we can, with our residents’ consent, use the informa�on we hold to proac�vely offer them the support they are en�tled to. This is part of our Single Shared Assessment model. Progress is being made within our Benefits team. Workshops are underway to review the current customer facing processes, how we can streamline applica�ons for benefits and then iden�fy how these can link to a wider Single Shared Assessment model. Using Data to Inform Decisions Our tackling poverty dashboard has been tested, and the data is available for use by relevant services. U�lising this provides an understanding of child poverty priority groups and helps to iden�fy ways to target unmet need, supported by the Child Poverty Strategy and Customer Service teams. 110
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 31 of 56 Agile Workstyle Wellbeing Survey In December 2024 we hosted an Agile Workstyle Wellbeing Survey and invited all 1,987 employees who were deemed as agile workstyle to take part. Key insights were gathered from the 947 responses received on how the agile workstyle impacted on recruitment and reten�on, work-life balance, benefits to employees, engagement and collabora�on and the uptake of wellbeing ini�a�ves. A summary of the results is below: Recruitment and Reten�on: 27% of respondents had joined the Council within the past four years, with feedback indica�ng that the agile workstyle posi�vely influences recruitment and reten�on. Engagement and Collabora�on: 89.4% felt that the amount of �me spent with their manager (for work/task related issues) was suitable. 86% felt that the amount of �me with their manager (to discuss wellbeing, career growth) was suitable. 80.9% felt that the amount of �me to collaborate with colleagues in other teams was suitable. 85.2% felt that the amount of �me spent on online team mee�ngs was suitable and 80.3% felt that the amount of �me spent on in person team mee�ngs was suitable. Benefits of agile working: 80% of respondents felt that agile working increased the quality of their work and/or produc�vity. 62% said that agile working increased their job sa�sfac�on. 79% said that agile working improved their work life balance with 72% stated reduced travel �me supported their health and wellbeing. 66% said agile working reduced their travel costs. 48% stated that agile working helped improve their health and wellbeing rela�ng to caring responsibili�es. Overall, the survey responses showed that employees view agile working posi�vely and would like this to con�nue. They felt agile working benefits them as individuals, and teams, improves produc�vity and the quality of their output. There is evidence that agile working has had a posi�ve impact on recruitment, widening the pool of candidates who are able to apply for posts. Most respondents feel agile working is a factor in retaining them within our council. This shows workstyle has a posi�ve impact on atrac�ng and retaining talent. An ac�on plan has been created to support improvements. Digital Skills Development To support the development of a digitally confident and capable workforce, our council conducted a Digital Skills Survey in November 2024. The survey, open to all employees, received 717 responses and aimed to provide an evidence-based understanding of current digital skills and areas for development. The findings indicate a high level of proficiency in core digital tasks, including device use, communica�on, and informa�on handling. In response, a targeted Digital Skills Ac�on Plan has been developed. This plan will priori�se improving access to training, increasing awareness of available resources, and promo�ng peer support opportuni�es. The overall aim is to ensure our workforce can work efficiently, securely, and confidently in an increasingly digital environment. 111
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 32 of 56 Our Transforma�on Programme Our current Transforma�on Programme was approved in 2023 and developed alongside our Council Plan 2023-28. The programme being delivered by our Council has been progressed around the key priori�es within our Council Plan, driving change and transforma�on, using technology and innova�on where possible to deliver efficient services to help address the financial challenges facing our council. Through embedding a culture of con�nuous improvement, crucially the delivery of our Transforma�on programme can protect the services we provide to our residents. As part of our council’s annual audit arrangements, the focus of the Accounts Commission this year has been on how councils are responding to the financial challenges through transforma�on and redesign of services. Audit Scotland recently completed this Best Value Thema�c Audit for our council. The findings of the audit will be presented to our Audit and Scru�ny Commitee in May 2025. Our Transforma�on programme con�nues to be progressed at scale and pace. This sec�on provides a summary of progress across our main Transforma�on themes and areas of service review. Digital Workstream Our Transforma�on Board agreed in August 2024 to create a new Digital workstream, incorpora�ng the principles and aims of the Accessing Our Council programme, to progress our council’s digital journey. In such a fast-paced landscape the new workstream will capture progress on digital ini�a�ves across our council, ensuring they are aligned to our Digital Strategy, as well as tes�ng new areas of innova�on, including Ar�ficial Intelligence (AI), and ensuring North Ayrshire supports na�onal ini�a�ves through the Sco�sh Government, Digital Office, Improvement Service (IS) and SOLACE. To date the following progress has been made: • A na�onal planner of digital ac�vi�es and projects has been shared with the Digital Working Group to ensure appropriate updates and representa�on. • Mee�ngs have been held with the Improvement Service and Digital Office to explore opportuni�es to be involved in the IS and SOLACE Transforma�on Programme and Digital Office Na�onal Digital Strategy Refresh. • At the March 2025 Transforma�on Board, a pipeline of projects was agreed, these include AI Policy and inves�ga�on of products (Magic Notes, M365 CoPilot proof of concept), na�onal opportuni�es such as Parents Portal, which is being taken forward by Educa�on and Digital Economy and how best to u�lise the investment in Digital Infrastructure and Connec�vity being led by Economic Development, Growth and Regenera�on. • A Purchase to Pay service review is underway which will review the end-to- end procurement process across our council, consider the op�mal process for delivery and further progress supplier e-invoicing. 112
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 33 of 56 Following the launch of our new council website, more customers are shi�ing towards digital as their channel of choice to access our services. We recognise that our digital services are key to suppor�ng this change in behaviour and embedding digital opportuni�es across our organisa�on, whilst also recognising residents will con�nue to be supported through more tradi�onal access routes. The newly established Digital Workstream repor�ng into the Transforma�on Board and Digital Working Group will drive our digital journey. Irvine Locality Property Review The Irvine Locality Property Review con�nues to be progressed as part of the Land and Property workstream. The main purpose of the review is to align our opera�onal property estate to complement modern ways of working, leading to a carefully managed ra�onalisa�on of our property estate and to support Community Wealth Building ambi�ons through greater community use of council owned property. This programme aligns closely to our strategic priori�es. The focus of the first phase of the property review has been Irvine which has our most significant concentra�on of property assets, taking a whole locality approach. Extensive feasibility work, alongside several service engagement sessions with key stakeholders, was completed to develop the property ra�onalisa�on concept, generate op�ons and assess costs, benefits and risks. The informa�on gathered from this work led to the iden�fica�on of a set of recommenda�ons for our property estate within Irvine for implementa�on on a phased basis and was approved by Cabinet in March 2024: • Vacate and subsequently market property assets including Quarry Road, Trinity Church and Galt House to consolidate opera�ons within, and op�mise u�lisa�on of, Cunninghame House. • Vacate Bridgegate House and consider future uses as part of the Irvine town centre regenera�on work and establishment of the Irvine Town Board, aligned to the Irvine Town Board Plan for Neighbourhoods. Work completed to date includes: • Reloca�on of Genealogy from Irvine Townhouse to Irvine Library resul�ng in increased foo�all. • A contract awarded for the Training Suite and Customer Services Centre at Cunninghame House, Irvine with a start date of June 2025. • A procurement exercise is underway for construc�on changes at Quarry Road. • 255 employees relocated to Cunninghame House. • Reloca�on of the Eglington Trophy to the Heritage Centre. • Approval of a £300,000 investment in a Community Wealth Building Ini�a�ve to support the explora�on of a wellbeing enterprise hub at the current Greenwood Conference Centre site. 113
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 34 of 56 The employee moves from buildings noted above are expected to be complete by May 2026 with ra�onalisa�on providing the following benefits: • Op�misa�on of under-u�lised property assets. • Reduc�on of carbon emissions by an es�mated 286tCO2e. • Reduc�on of property running costs and property maintenance costs, with combined es�mated poten�al revenue savings of up to £0.357m per annum. • Genera�on of poten�al capital receipts or revenue income through leasing arrangements following marke�ng of the surplus buildings. Nethermains and Shewalton Solar PV Farm Construc�on work is complete on the two new solar PV farms at the former Nethermains landfill site in Kilwinning and the former Shewalton landfill site in Irvine. The new solar farms will make a major contribu�on to renewable energy genera�on and carbon reduc�on, as well as bringing sterile land back into produc�ve use, whilst also providing funding for community ini�a�ves through the renewable energy community benefits scheme. The projects are scheduled for energisa�on by mid-2025. The programme of works carried out in the final 6 months of 2024 to 2025 included: • Comple�on of moun�ng structure at both sites. • Comple�on of substa�on works at both sites. • Comple�on of the grid connec�on works by SP Energy Networks (SPEN). • Compound area and road installa�on at the Nethermains site. Commercial Property The Commercial Property workstream’s vision is of a more efficient property por�olio across three themes. Progress across each workstream includes: 1. Maximise occupancy from the current estate por�olio Income of £886,199 was generated for 2024 to 2025, which was below expecta�ons due to a number of factors, including the financial resilience of tenants leading to rent arrears and even business closures. It is also recognised that the progress being made in the Irvine Locality Review has had a consequen�al impact on the availability of commercial proper�es. A detailed review including commercial property performance and associated marked condi�ons is being prepared for the Transforma�on Board and will inform next steps for 2025 to 2026. The Irvine Property Board agreed works to maintain the marketable value of Galt House for disposal funded under the Sco�sh Government’s Place Based Investment Programme (PBIP). Works include external improvements and roof repairs. The wider poten�al for the property will be considered in partnership with the Irvine Neighbourhood Board in developing the Plan for Neighbourhoods Investment Plan. 114
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 35 of 56 2. Maximise opportuni�es from Economic Development, Growth and Regenera�on (EDG&R) and Ayrshire Growth Deal (AGD) investment (exis�ng projects) The following ac�vi�es have been progressed during this period to maximise the opportuni�es from investment: • Annickbank Pavilion Phase 3 – Following comple�on of the project in March 2024, a closing date was set for July 2024, with a preferred tenant iden�fied for the ground floor. A subsequent closing date was set for February 2025 to enable bidders to consider the service charge implica�ons of par�al occupancy. Discussions are currently ongoing with the preferred bidder. • Montgomerie Park Retail Phase 1 – The property was successfully marketed for sale, with a preferred bidder iden�fied. The sale is subject to condi�ons, with a planning applica�on submited by the bidder in July 2024. • Montgomerie Park Sites E to G – Following a successful marke�ng strategy, a preferred bidder has been iden�fied for all three sites. Heads of Terms are currently being dra�ed, with the sale subject to condi�ons and considera�on by Cabinet for approval in June 2025. • i3 Flexible Space, Irvine: The Ayrshire Growth Deal programme has provided modern commercial industrial property with the comple�on of one 18,180 sq. � (1,689m2) unit as part of the i3 Flexible Space project in Irvine. The unit is currently being marketed for occupa�on. • Portland Rd. Land Sale - Marke�ng of the vacant industrial land, formerly occupied by NACCO, at Portland Road, Irvine recommenced December 2024, with a closing date set in April 2025. A review of offers will then be carried out. 3. Develop proposals for new investment and securing Return On Investment (future projects) • An award for the Levelling Up for Ayrshire – Commercial and Low Carbon Infrastructure under the Levelling Up Fund (LUF) Round 3 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. The Irvine investment concentrates on Kyle Road, Annickbank and i3 sites, the following progress has been made to date: − Kyle Rd Phase 2, Irvine: Delivery of 1200m² of new Class 4/5/6 business space capable of sub-division located at Irvine Industrial Estate, building upon the success of Kyle Road Phase 1. The proposed design is complimentary to the Phase 1 development. The proposal provides a Gross Internal Area (GIA) of 1137m2 that is subdivided into nine units, eight with an area between 70m2 and 120m2, and one larger unit on the internal corner with an area of 265m2. 115
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 36 of 56 − Annickbank Innova�on Campus, Irvine: Delivery of three 500m² new Class 4/5/6 business spaces located at Annickbank Innova�on Campus, Irvine, to complement the exis�ng provision. − i3 Flexible Space Phase 2: Design work is currently being finalised to support a tender issue in Autumn 2025 for the construc�on of a new industrial building c.1,700m2. − Ac�ve travel routes are being designed to improve east/west connec�ons between the commercial development areas including investment at Heatherhouse Road, Long Drive, Riverside Way and along the River Irvine at i3 Enterprise Area. The project will progress to implementa�on in 2025/26, subject to the necessary permissions and approvals. Service Reviews As part of the budget se�ng process, it was agreed that there would be a comprehensive review of the Waste Service during 2023 to 2025. The key elements of the Waste Service are mainly statutory, however there is an opportunity within the statutory provision element to review service demand, collec�on frequencies and technology that may help to track and capture data or provide solu�ons to current issues. The Waste Service Review has focused on several projects across the service. During 2024 to 2025 the work detailed below has been successfully delivered: • Implementa�on of a Household Waste Recycling Centre booking system. • A comprehensive review of opera�onal arrangements and supervisory/management arrangements, leading to service produc�vity improvements. • Streamlining of the current Assisted Collec�ons process with recommenda�ons for improvements. • Implementa�on of a streamlined three weekly collec�on frequency for Absorbent Hygiene Products. • Review and streamlining of the payment process for Commercial Waste customers, introducing a digital payment process. Extensive benchmarking and feasibility work with mul�ple other local authori�es was undertaken as part of this delivery, supported by regular service engagement and consulta�on mee�ngs with several poten�al system suppliers. 116
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 37 of 56 Audits, Inspec�ons and Accredita�ons Best Value Thema�c Approach – Workforce Innova�on The Best Value Thema�c Audit on Workforce Innova�on was presented to the Audit and Scru�ny Commitee in August 2024 demonstra�ng how our council is responding to current workforce challenges through building capacity, increasing produc�vity and innova�on. The recommended ac�ons arising from the audit including progress updates are below: Recommendation Agreed Management Action Action The council should establish corporate workforce planning priorities and develop a SMART action plan to allow progress in delivering these priorities to be measured. The Workforce Strategy will be updated to include corporate workforce planning priorities and an action plan to allow progress to be measured. The Workforce Strategy has been fully updated to align with internal and external factors, workforce challenges, Council Plan priorities and other key strategies and plans. An Action Plan and Corporate Performance Indicators have also been included to allow progress to be measured. This refreshed Strategy was agreed at Cabinet on 18th March 2025. The council’s workforce strategy should be updated to align with all four Council Plan 2023 to 2028 priorities and with other key strategies and plans. It should include an analysis of council-wide workforce data and set out what the required skills, learning and development needs of its staff are. The Workforce Strategy will be updated to ensure alignment to all Council Plan priorities, other key strategies and plans and include an extract of council-wide workforce data. The Workforce Strategy has been fully updated to align with internal and external factors, workforce challenges, Council Plan priorities and other key strategies and plans. The Strategy has also been updated to include an extract of council wide workforce data. This refreshed Strategy was agreed at Cabinet on 18th March 2025. The council should build on the work it has done to date to demonstrate and quantify what workforce benefits and productivity gains have been made through its use of digital technology. Further work will be undertaken to capture and quantify efficiencies from digital improvements and for this work to be incorporated within our council’s Medium Term Financial Planning. Complementing the Accessing Our Council workstream the Transformation Board recently approved the creation of a new Digital Programme workstream. The intention is that this will allow digital activities to be monitored against the Council’s Digital Strategy. To provide some initial evidence of progress, the Council’s Budget on the 26th February 117
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 38 of 56 Recommendation Agreed Management Action Action 2025 included savings associated with the Channel shift to digital solutions of £100,000 per year for 2025 to 2026 and 2026 to 2027. Two posts were identified in 2025 to 2026 (through non-filling of vacant posts), and further posts will be identified for 2026 to 2027 as part of the Council’s Purchase to Pay project which aims to centralise the accounts payable process and further advance e- invoicing. Reporting progress through the new digital workstream provides the framework to capture and monitor the workforce benefits. The council should consider conducting another digital skills survey to inform the support it provides for improving the digital skills and knowledge of its workforce. A digital skills survey will be conducted to inform future development interventions. The Digital Skills survey was conducted during November and December 2024 and was open to all North Ayrshire Council employees. The survey focused on key themes designed to assess digital confidence and competence across a range of everyday and work-related tasks. Completion of this survey has captured a comprehensive picture of digital skills that are relevant both in the workplace and in personal life to inform future development intervention. An Action Plan has been created to monitor the progress of interventions. The council should consider gathering further feedback from staff on the impact of agile working on wellbeing and productivity. Further feedback will be gathered from those employees who are deemed an agile workstyle to gauge continued benefits on wellbeing and productivity. The Agile Working wellbeing survey was conducted during December 2024 and was open to all council employees deemed as an agile workstyle. The survey focused on key themes designed to assess how people viewed agile working, their productivity, work-life balance and wellbeing. An Action Plan has been developed in line with key themes arising from the results. Chief Officers have also received specific results in relation to their directorate and service to allow any local action to be considered and progressed. 118
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 39 of 56 Recommendation Agreed Management Action Action The council should explore further where it can work together with partners to share services and increase collaboration. The Medium-Term Financial Planning process for 2025 to 2026 and 2027 to 2028 will include the exploration of further opportunities for sharing services and collaboration across partner organisations. Collaborative opportunities continue to be explored with South and East Ayrshire Councils on options around sharing services on a regional basis. The work to date has been led by the three Ayrshire Chief Executives. A recent £500,000 bid was submitted to the Scottish Government Public Sector Reform Fund to further develop opportunities on a spend to save basis. It is anticipated that, should the bid be successful, this work will form part of the SOLACE transformation programme. 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. Workforce planning updates and progress against priorities will be regularly reported through Council Plan Progress Reports and other means. The Action Plan aligned to the Workforce Strategy has been agreed and set up on Pentana. Lead officers will provide regular updates which will be included in the regular reporting of the Council Plan (these reports). In addition, an update will be provided on a regular basis to the 1st Tier JCC. The council should develop a performance dashboard to provide a user-friendly overview of the impact of its workforce planning. This could help to inform future workforce planning. A performance dashboard will be developed to monitor and inform future workforce planning. A performance dashboard has been scoped in line with the Performance Indicators agreed as part of the Workforce Strategy. This dashboard is currently in design stage and on track for completion by the end of September 2025. Next Steps • We will con�nue to progress recommenda�ons arising from the Audit Scotland Best Value Thema�c Work. • We will con�nue to progress property ra�onalisa�on. • We will commence prepara�ons for our budget engagement for 2026 to 2027. • We will carry out full site tes�ng and energisa�on of both of our Solar PV Farms and progress with an Agreement of Purchase Power Agreement (PPA) for the sale of energy produced at Nethermains and Shewalton. 119
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 40 of 56 Case Study – Budget Consulta�on 2025 to 2026 To inform our budget se�ng process, we launched a comprehensive public consulta�on in October to help shape the 2025 to 2026 budget. Due to the scale of the projected £15.7 million funding gap, our aim was to ensure transparency and collabora�on with our communi�es and gain insight from their views. Using collabora�ve methods, a wide-ranging budget engagement exercise was undertaken. The aim of our approach was to ensure we gained a high number of informa�ve responses from across our diverse communi�es in North Ayrshire. This was achieved through online, paper and supported survey comple�on via telephone (through our Customer Contact Centre) as well as in person engagement. We used a cross-service joined up approach to improve on previous consulta�ons, develop the surveys and engage our communi�es. The consulta�on was publicised through our website, press releases and on social media. Of the 68 posts on social media, we received 81,891 impressions, 211 reac�ons, 178 comments and 256 shares. The surveys were divided into six themes to improve the quality and range of responses. • Addi�onal Council Tax Levy on Second Homes (507 responses) • Community Facili�es and Car Parking (1,850 responses) • Schools and Related Services for Children and Young People (714 responses) • Service Delivery (254 responses) • Taxes and Levies (398 responses) • Waste Services (738 responses) Specifically, this was to: • Minimise survey fa�gue as respondents could select the areas they wanted to respond to quickly. • Improve accessibility, as it was easier to support paper and telephone responses through our frontline services and Customer Contact Centre. • Ensure a more balanced range of responses across each survey and a higher comple�on rate. (A single survey may have led to the ini�al ques�ons being answered fully with less detailed or par�al responses for later ques�ons.) We consulted with a range of community groups across North Ayrshire, some on mul�ple occasions and at various loca�ons across our area. We reached as broad a range of community groups as possible. Most of the community engagement was in person, however there were opportuni�es for video calling to ensure as many people as possible could contribute their views. This resulted in an increased response. Whereas in 2024 we received 200 responses through our Budget Challenge tool for the 2024 to 2025 budget engagement in addi�on to substan�al engagement with our community groups, this year we received 4,461 responses in addi�on to community discussions. 120
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 41 of 56 (It is important to note that the 4,461 responses do not equate to the same number of respondents, as more than one survey is likely to have been completed by several individuals.) In addi�on, several pe��ons have been considered by the Audit and Scru�ny Commitee and were referred to Cabinet rela�ng to some of the proposals including: • Saltcoats and Ardrossan Libraries • Parking charge enforcement in Kilwinning • Dreghorn Library • Beith Library • Eglinton Park This informa�on was examined by Officers in order to develop proposals for considera�on by Elected Members in se�ng the budget. In parallel, as we asked for demographic informa�on within the surveys, it was used to inform the Equality and Children’s Rights Impact Assessments (ECRIAs) at each stage to ensure we fully considered the impact of proposals on our residents and communi�es. The outcome of the engagement was presented to Elected Members at Council on 12th February ahead of the final budget decision. On 26th February 2025, Council approved a £459 million budget for 2025 to 2026 which includes measures to support residents and maintain frontline services. We will con�nue to learn and improve our approaches and would like to thank everyone who contributed to the budget consulta�on process. 121
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 42 of 56 Case Study – Skills for Life Jane* was eager to return to employment. A single mother, she had been out of work since 2020 and faced significant barriers such as childcare costs and availability as well as a lack of confidence a�er years away from a working environment. A conversa�on with her health visitor led her to the We Work for Families project. Upon joining the project, Jane completed a detailed Needs Assessment and Ac�on Plan. Her goals were clear - regain confidence, upskill and find sustainable employment. Our Employability team enrolled her in confidence-building and job-readiness courses, supported her with childcare costs and provided “beter off in work” calcula�ons to help her plan financially. Through the Skills for Life Clerical Programme with our council she secured a 26-week paid placement in their Parental Employment Team. With on-the-job experience and a suppor�ve team, she quickly setled into the role, gaining valuable skills and confidence. Jane received tailored In-Work Support, including CV building, interview prepara�on and job applica�on guidance. She applied for mul�ple roles, fine-tuned her interview skills and con�nued to receive help naviga�ng childcare solu�ons. Her efforts paid off as she went on to secure a permanent part-�me clerical posi�on with our council with flexible hours that suit her family’s needs. "Skills for Life gave me the confidence to get back into the workplace. The In-Work Support helped me build my CV and perfect my interview responses. I finally feel like I’m building a stable future for me and my son." (*Name has been changed) 122
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 43 of 56 Performance Summary Performance Indicators Adri� of Target This sec�on details the performance indicators adri� of target and the ac�on being taken to address performance. Due to expected data lags, the most recent data may relate to previous �me periods but may only now be available to report. To avoid duplica�on, only data that has not previously been reported to our Cabinet through Council Plan progress repor�ng is included in this sec�on. Further details can be found in the Performance Indicators sec�on within this report. CP_37 Average total tariff score of pupils living in SIMD 20% most deprived areas (Red) Actual is 664.3 against a target of 714 for 2023 to 2024 (most recent data available). The average total tariff score gained from all qualifica�ons by 2024 school leavers from the 20% most deprived SIMD data zones has marginally decreased from the previous year. The endeavour to offer candidates a wider breadth of learning experiences has included more courses (or units of courses) from a wider voca�onal range of courses and awards that some�mes are graded at the same SCQF level as Na�onal Qualifica�ons courses but amass a smaller number of tariff points in the Insight scale. However, these courses can provide learners with a more suitable set of skills and knowledge to prepare them for work, training or further educa�on. Though this PI records the total tariff score for SIMD Quin�le 1 of S4-6 pupils who le� school in 2023 to 2024, the LGBF has a similar measure based on the cohort of young people who would have reached the end of S6 in 2023 to 2024, irrespec�ve of their leaving year. For the same period, 2023 to 2024, the equivalent LGBF measure shows a total tariff score of 685, above both the family group average of 660 and the Sco�sh average of 658 and leading to our council being ranked 6th in Scotland. CP_06 Average tariff score: All Leavers (Red) Actual is 840.8 against a target of 908 for 2023 to 2024 (most recent data available). The average total tariff score gained from all qualifica�ons by school leavers has marginally decreased from the previous year but is in line with pre-pandemic as well as recent years’ performance. The 2019 to 2020 On Target, 45, 98% Slightly Adrift of Target, 1, 2% Actions On Target, 13, 50% Slightly Adrift of Target, 5, 19% Significantly Adrift of Target, 6, 23% Data Only, 2, 8% Performance Indicators 123
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 44 of 56 and 2020 to 2021 results are not comparable with other academic years, as SQA has employed the Alterna�ve Cer�fica�on Model (ACM) instead of exam-based evalua�on for awarding qualifica�ons at SCQF level 5 and above. Advice provided by Sco�sh Government colleagues emphasises direct comparison to alterna�ve cer�fica�on years should not be made without further evidence and the impact of these approaches. For all SIMD deciles except SIMD 10 (for which we have a very low number of learners), we con�nue to outperform na�onal figures. Though this PI records the total tariff score of S4-6 pupils who le� school in 2023 to 2024, the LGBF has a similar measure based on the cohort of young people who would have reached the end of S6 in 2023 to 2024, irrespec�ve of their leaving year. For the same period, 2023 to 2024, this measure shows a total tariff score of 845, above the family group average of 829 but below the Sco�sh average of 917 and ranked 26th in Scotland. Closer examina�on of the LGBF highlights the strong influence that depriva�on has on this indicator. When disaggregated by SIMD quin�le, our council outperforms both the na�onal figures and the family group for each of SIMD quin�les 1 to 4 and also outperforms the family group for SIMD quin�le 5. Despite this strong performance, we know it is important to maintain our holis�c, cross-service commitment to our Wellbeing priority in order to reflect this at an absolute level. CP_38 Average total tariff for care experienced Young People (Red) Actual is 355 against a target of 465. The average total tariff score (ATTS) achieved by North Ayrshire care experienced leavers was lower in 2023 to 2024, at 355 tariff points, than the general trend over the last five years. A slightly higher propor�on than average of care experienced learners le� before the end of S6 in 2023 to 2024, which has contributed in part to the lower average total tariff score. Schools have analysed the data locally and have a clear narra�ve for individual circumstances. The service will con�nue to focus on improving this benchmark of achievement for care experienced learners. Atainment of care experienced learners is specifically referenced within the Educa�on Service Plan. Quality Improvement visits and atainment discussions with senior school leaders will include a focus on the atainment and achievement of this group of learners to ensure consistency of delivery of interven�ons with a posi�ve impact. CP_40 Number of new build housing units reaching comple�on (all tenures) (actual not cumula�ve) (Red) Actual 371 against a target of 396. We achieved our target for 2024 to 2025 with regards to new build social housing and have limited influence over the delivery of new build housing constructed by private housing developers to meet the total 396 homes target. The 25 new homes unable to be delivered during 2024 to 2025 were across a number of sites throughout North Ayrshire. We exceeded our target for bringing empty homes back into use and intend to review this performance indicator and con�nue to focus on improving performance in the forthcoming year. (This indicator is linked to ac�on CP_10 detailed below). CP_30 Total installed capacity of low carbon heat and electricity genera�on across the council's estate (Red) Actual is 17,630 against a target of 28,499. Our council had aimed to have both solar PV farms energised in December of 2024, however this has not been possible due to extended development �me required by the Distribu�on Network Operator. The solar farms have been built and are due to be commissioned in the summer. 124
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 45 of 56 CP_31 % of total household waste that is recycled (calendar year as per SEPA) (LGBF) (Red) Actual is 52.8% against a target of 56%. The provisional household waste recycling figure for the calendar year 2024 is 52.8%, subject to verifica�on by SEPA. This has reduced since 2023 as a result of the introduc�on of the new SEPA guidance regarding the requirement for Waste Upholstered Domes�c Sea�ng (WUDS) to only be sent for incinera�on, which has nega�vely affected the amount of bulky waste that can be recycled (this affects all councils). In addi�on, more wood is being deposited at recycling centres suitable only for biomass recovery rather than recycling. For context, LGBF benchmarking informa�on for 2023 to 2024 (2023 calendar year) released in June showed we were ranked third in Scotland. Though our provisional data shows a reduc�on for 2024 to 2025, as the new SEPA guidance affects all councils we will closely monitor our rela�ve posi�on when compara�ve data is released over the coming months. CP_04 Propor�on of children mee�ng developmental milestones (LGBF) (Amber) Actual is 77.5% against a target of 79% for 2023/24 (most recent data available). At the most recent data release for data for 2023 to 2024, the propor�on of children mee�ng developmental milestones is 77.50%, slightly below the target of 79%. We are working to ensure there is more robust data gathering and analysis within Early Years and are moving towards using CfE levels with inbuilt milestones. This will help improve accuracy and consistency of data as well as improved progression pathways to primary. Roles and remits for Excellence and Equality Leads (EELs) developed this academic session will support this work. The challenges we are experiencing in North Ayrshire are reflected in the LGBF comparisons with other local authori�es. We are below the family group average of 79.8% and the Sco�sh Average of 83.3%. As a result we are currently ranked 31 out of the 32 local authori�es for our children mee�ng developmental milestones. This is an area that we know will need specific focus within wider principles of preven�on and early interven�on, including through the Collabora�on for Health Equity in Scotland. CP_28 Hectares of vacant and derelict land in North Ayrshire (Amber) Actual is 942ha against a target of 925ha. The majority of vacant and derelict land sites are within private ownership, therefore their condi�on or development �mescales to inform if they are added or removed from the register is out with the control of our council. However, we u�lise the Repurposing Property Grant Fund to help support landowners and community groups to bring back vacant land and proper�es to use. Furthermore, in 2024 to 2025, several of the key regenera�on funds which support the redevelopment of such land, including the Vacant and Derelict Land Investment Programme, were paused which reduced the poten�al to regenerate sites. Funding has now been confirmed and works will commence in 2025 to 2026. CP_43 Number of council assets under community management (cumula�ve) (Amber) Actual is 55 against a target of 56. One Community Asset Transfer was delayed un�l Q1 2025 due to some minor administra�ve issues within the community group which took longer than expected. We con�nue to publicise the range of offers available for management and ownership of assets to our community groups and are currently engaged with around 30 groups at various stages of the CAT process. 125
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 46 of 56 CP_29 Overall carbon emissions (tonnes) (Non-domes�c council estate) (Amber) Actual is 20,333tCO2e against a target of 19,953tCO2e. This figure is an es�mate and will be confirmed at the next data release. Though slightly adri� of target the overall trend is a steady decrease in emissions. CP_25 % of Council dwellings that meet the Sco�sh Housing Quality Standard (LGBF) (Amber) Actual is 94% against a target of 97.4%. The target of 97.4% was a set as part of last year’s ARC comple�on. This pass rate is based on a combina�on of many different compliance criteria for each individual property, including EICR (Electrical Installa�on Condi�on Report). When the 97.4% compliance target was set, it was based on 100% compliance regarding the EICR element; however with issues accessing proper�es, we were unable to achieve this (the EICR compliance outurn figure for 2024 to 2025 was 97.71)%) which has resulted in the slightly lower overall SHQS compliance of 94% against the 97.4% target. Indicator Amendments and Recommendations CP_44a % of council dwellings that are energy efficient (Formerly known as SHSN05a) Originally sourced from the LGBF, due to the Energy Efficiency in Social Housing (EESH) regula�ons being updated from EESH1 (recorded in LGBF) to poten�ally more stringent EESH2 requirements, the Improvement Service (who administer the LGBF) has paused data recording of this indicator. EESH2 is being established na�onally and to ensure we remain transparent in our performance in this area, it is recommended we con�nue to monitor EESH1 within a new PI (CP_44a). This will contain all the historical informa�on from the original LGBF but present local data, consistent with historical data, from 2022 to 2023 to avoid gaps in our performance informa�on. This approach will be reviewed once the LGBF recommences recording of this area. Educa�on Performance Targets The educa�on targets in the above indicators are linked directly to the stretch aims previously agreed with the Sco�sh Government and show figures that are significantly above the atainment levels achieved during the Covid period when the Alterna�ve Cer�fica�on Model was deployed. It is not recommended to draw comparison between these periods. Therefor while we recognise the merits of being aspira�onal and are commited to delivering ongoing improvement over �me, we believe it would be sensible to reconsider the level of these targets to align them more closely to performance in the post-Covid period. This is something we intend to do through appropriate engagement and as part of the process of developing the next three-year service plan due in 2026. Ac�ons Adri� of target This sec�on details ac�ons adri� of target and the measures being taken to address performance. Further details can be found in the Ac�on Tracker sec�on 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 into use (Wellbeing Priority). (Amber) This ac�on is linked to the indicator “CP_40 Number of new build housing units reaching comple�on (all tenures) (actual not cumula�ve)” which is currently significantly adri� of target (red) (see above). We achieved our target for 2024 to 2025 for new build social housing and we have limited influence over the delivery of new build housing constructed by private housing developers. The 25 new homes unable to be delivered during 2024 to 2025 were across a number of sites throughout North Ayrshire. We exceeded our target for bringing empty homes back into use and intend to focus on improving performance in the forthcoming year. 126
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 47 of 56 Performance Indicators PI Code and Descrip�on 2021- 22 Value 2021- 22 Target 2021- 22 Status 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 Target CP_36 Number of residents par�cipa�ng in community learning and development ac�vity including youth work No data No data No data 17,804 23,503 18,700 28,102 19,500 23,500 CP_04 Propor�on of children mee�ng developmental milestones (LGBF) 78.7% 79.5% 77.50% 79% Data Available May 2026 79% 79% CP_37 Average total tariff score of pupils living in SIMD 20% most deprived areas 704.8 670.2 664.3 714 Data Available March 2026 720 720 CP_06 Average tariff score: All Leavers 905.6 880 847.2 840.8 908 Data Available February 2026 910 910 CP_38 Average total tariff for care experienced Young People 450.3 411.5 355 465 Data Available March 2026 470 470 CP_07 % of school leavers entering posi�ve des�na�ons (LGBF) 96% 93.5% 96.5% 95.6% 96.4% Data Available February 2026 96.8% 96.8% PI Status Significantly Adrift of Target Slightly Adrift of Target On Target Data Not Available Data Only 127
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 48 of 56 PI Code and Descrip�on 2021- 22 Value 2021- 22 Target 2021- 22 Status 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 Target CP_39b Number of unemployed people that have progressed to employment as a result of par�cipa�on in council funded or operated employability ac�vi�es 555 427 475 Data Available November 2025 475 450 CP_10a % of procurement spend on local enterprises 22.93% 24% 26.04% 25% 24.48% 26% 26.8% 27% 27% CP_40 Number of new build housing units reaching comple�on (all tenures) (actual not cumula�ve) No data No data No data 562 384 295 371 396 436 CP_41 Number of empty homes brought back into use (actual) 335 120 378 200 375 300 350 CP_28 Hectares of vacant and derelict land in North Ayrshire 1,198 1,144 1,130 1,094 951 1,094 942 925 925 CP_27 Street Cleanliness Index - % Clean (LGBF)1 86.7 94 84.6 90 89.1 87 90.3% 87 89 CP_20 Overall percentage of road network that should be considered for maintenance treatment 33.9% 37.5% 34.8% 33.8% 32.5% 34.8% Data Available September 2025 32.5% 32% CP_42 Provided floor space of commercial/industrial space within our council por�olio (sq. �) No data No data No data 400,991 404,897 404,755 423,077 423,077 423,077 1 *Sourced from the Local Environmental Audit and Management System (LEAMS) audit conducted by Keep Scotland Beau�ful. 128
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 49 of 56 PI Code and Descrip�on 2021- 22 Value 2021- 22 Target 2021- 22 Status 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 Target CP_02 % of council budget directed via par�cipatory methods 2.32% 1.1% 2.74% 1% 2.05% 1.5% 1.97%. 1.5% 1.5% CP_43 Number of council assets under community management (cumula�ve) No data No data No data 49 53 54 55 56 57 CP_30 Total installed capacity of low carbon heat and electricity genera�on across the council's estate 11,680 11,000 12,104 11,800 15,992 12,000 17,630 28,499 30,137 CP_29 Overall carbon emissions (tonnes) (Non-domes�c council estate)2 21,791 21,247 20,896 21,000 20,745 19,500 20,333 19,953 19,824 CP_44a % of council dwellings that are energy efficient (Formerly known as SHSN05a) (LGBF)3 97.7 98.2 98.01% 98.1 97.66% 98.5 98.7% CP_45 Length of new or improved ac�ve travel routes per annum (Metres) No data No data No data 1,090 3,900 2,000 2,500 2,000 2,000 CP_46 Number of trees planted under the North Ayrshire 2030 Tree Plan�ng Strategy No data No data No data No data No data No data 36,531 40,000 49,026 47,000 60,000 CP_19 Propor�on of opera�onal buildings that are suitable for their current use (LGBF) 91.1% 93% 95.1% 93% 95.2% 92.1% 95.4% 93% 93% 2 This 2024-25 value is a provisional figure and will be confirmed in the next data release. 3 LGBF repor�ng has paused on this indicator whilst EESSH2 is established therefore the values from 2022-23 onwards are provisional and sourced locally. (See Indicator Amendments and Recommenda�ons above.) 129
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 50 of 56 PI Code and Descrip�on 2021- 22 Value 2021- 22 Target 2021- 22 Status 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 Target CP_31 % of total household waste that is recycled (calendar year as per SEPA) (LGBF)4 56.3% 53.1% 55.3% 56.9% 56.1% 57% 52.8% 56% 53% CP_25 % of council dwellings that meet the Sco�sh Housing Quality Standard (LGBF)5 49.3% 99.5% 63.2% 76.9% 72.5% 94% 97.4% 97.57% CP_47 Gross rent arrears (all tenants) as at 31 March each year as a percentage of rent due for the repor�ng year (LGBF)6 6.6% 7.1% 5.9% 6.5% 8.03% 7.0% CP_48 % of income due from council tax received by the end of the year (LGBF) 93.34% 94.7% 93.6% 94% Data Available September 2025 98% 94% 4 The 2024-25 value is a provisional figure and will be updated in the LGBF data release in October 2025. 5 The 2024-25 value is a provisional figure and will be updated in the LGBF data release in September 2025. 6 The 2024-25 value is a provisional figure and will be updated in the LGBF data release in September 2025. 130
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 51 of 56 Ac�on Tracker 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). - - - - - - - - - - - - CP09 Through our housebuilding programme and wider Housing Investment provide homes for life that meet the needs of our residents (Wellbeing Priority). - - - - - - - - - - - - 131
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 52 of 56 7 Delivery of this ac�on 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 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).7 - - - - - - - - - - - - - - - - - - - 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). - - - - - - - - - - - - CP17 Providing support for community organisations in achieving their goals, including as Community Wealth Building anchor organisations (Communities and Local Democracy Priority). - - - - - - - - - - - - 132
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 53 of 56 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 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). - - - - - - - - - - - - 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). - - - - - - - - - - - - 133
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 54 of 56 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 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 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). - - - - - - - - - - - - 134
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 55 of 56 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 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 the 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). - - - - - - - - - - - - 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). - - - - - - - - - - - - 135
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 56 of 56 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 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). - - - - - - - - - - - - 136
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Our Council Plan Progress Update – Year End 2024 to 2025 Page 57 of 56 For further informa�on on this report please contact: Corporate Policy and Performance North Ayrshire Council Email: NorthAyrshirePerforms@north-ayrshire.gov.uk Tel: 01294 310000 137
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North Ayrshire Council Annual Performance Report 2024 to 2025 Appendix 3 138
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Welcome to our Annual Performance Report 2024 to 2025 This Annual Performance Report is the second annual report relating to Our Council Plan. Our Council Plan 2023-28 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 2024 to 2025. You can find full details in our magazine style Council Plan Progress Reports published on our website (Council performance (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. 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. 139
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2024 to 2025 About us Elected Members • 12 Scottish National Party (SNP) • 11 Labour Group Members (8 Scottish Labour Party and 3 Labour and Co-operative Party) • 6 Scottish Conservative and Unionist • 2 Reform UK • 2 Independent Employees • 6,406.64 Full Time Equivalent employees • 7,578 employees • 76% female • 24% male Key facts • Population: 133,570 • 64,633 households • Life Expectancy: o Female: 79.3 years o Male: 74.9 years • 19,208 children and young people attend our schools and early years centres (including partner early years centres) • 24.3% of children in North Ayrshire live in poverty (after housing costs) • 70.3% of residents are in employment • 40.9% 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 16 beaches (including three Sites of Special Scientific Interest (SSSI) • 44 Local Authority Early Years Provisions • 15 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) • 13,315 council homes • 1,118 km carriageway • 3,900mm footpaths • Approximately 23,750 streetlights • Over 275 Hectares of woodland • 15,992kW installed capacity of low carbon heat and electricity generation across our council’s estate 140
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Financial Overview Chief Executive's , £20.782, 5% Education, £170.791 , 39% Communities & Housing, £11.865 , 2% Place, £57.815, 13% Health and Social Care Partnership, £135.243, 31% Other Corporate Items, £9.573, 2% Financing Costs, £34.445, 8% Allocation (£000's) Scottish Government General Grant, £326.331, 74% Scottish Government Specific Grant, £6.664, 2% Non Domestic Rates, £41.38, 9% Council Tax, £66.139, 15% Funding (£000's) 141
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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 Council performance (north-ayrshire.gov.uk) Wellbeing • Recent statistics published by the End Child Poverty Coalition showed that child poverty within North Ayrshire decreased from 29.2% in 2022-23 to 24.3% in 2023-24. This reduction of 4.9 percentage points was the largest in Scotland over this time period. • We have been selected as one of three places to engage in the Collaboration for Health Equity in Scotland (CHES) programme. Over the next two years, we will work in partnership with Public Health Scotland and the Institute for Health Equity to reduce health inequity in North Ayrshire through improving the conditions people live and work in. The ultimate aim is to enable people to live longer, healthier lives by addressing the root causes of health inequalities and preventing illness before it starts. • During 2024 to 2025, our Money Matters team received 5,842 referrals and secured £21.5 million in financial gains through income maximisation for service users. • Our council was successful in becoming one of Scotland’s Fairer Future Partnerships (FFP). This £350,000 investment enabled our new Child Poverty Strategy Team to be established in January. It will enhance a systematic approach to addressing child poverty in North Ayrshire. • We have implemented our Strategic Housing Investment Plan 2024 to 2029, including starting on-site at Ayrshire Central Hospital in Irvine and at the former Garnock Academy site in Kilbirnie and completion of sheltered housing refurbishment projects at Cheviot Court, Irvine and Barnett Court, Saltcoats. • Montgomerie Park Primary School, Moorpark Primary School and Marress Early Years Centre all opened in the second half of 2024. Montgomerie Park Primary is the first Passivhaus school in the region, which means the school has been built to a standard which provides a high level of comfort for pupils and employees while using very little energy for heating and cooling. • Almost £2.1 million in external funding has been secured to advance the Local Transport and Active Travel Strategy. • We commissioned a study into opportunities for Community Transport, specifically examining the existing public transport provision on Arran and in the Garnock Valley. • A key focus for our Community Learning and Development Team has been supporting schools by delivering our ‘Bounce Back Your Resilience’ youth work programme. This programme is delivered by young people in local primary schools and is tailored to empower Primary Six and Seven pupils across North Ayrshire. Our young people said: “You all helped me realise not to care so much about what others think.” “The youth workers were all amazing there was nothing I didn’t like.” “I have learned to believe in myself and try to stop doubting myself if I fail.” • During 2024 to 2025 we delivered 71 new homes across North Ayrshire. 142
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Communities and Local Democracy • We completed a review of our locality planning framework, agreeing a number of recommendations informed by feedback from participants, which will further strengthen local democracy • We published our new Participation Strategy which will focus on raising awareness of participation processes including locality partnerships and enhance our budget consultation. • Our Community Investment Fund continued to support our priorities through community groups. This included £41,000 for Beith Hive to support transport connectivity for childcare in the Garnock Valley. • Our Community Asset Transfer Team has received 17 expressions of interest during 2024 to 2025, with 56 council assets under community management to date. We have expanded our capacity to support Community Asset Transfers (CATs) through engaging with our Active Schools team. • A number of activities were delivered for our care experienced young people through our Corporate Parenting Summer Programme, as well as Active Schools and Community Partnership Officers working closely with our Health and Social Care Partnership. 638 of our young people took part, with 71% supported into longer term extra-curricular activity. Over 65% of attendees felt safer, that they were achieving more and/or felt more respected. • Our council services delivered a coordinated approach to protect our residents and keep critical services running during Storm Eowyn. • Our Financial Inclusion Partnership is developing a communications plan to help promote services to island residents, our gypsy traveller community, those who are digitally excluded and residents with disabilities • The Multiply project focused on supporting maths skills and qualifications in adults. To deliver Multiply we worked with partners including CHAP, TACT, University of Highlands and Islands, Ayrshire College and 15 community organisations. Throughout the year Multiply delivered 521 activities, 2,339 adults participated with 505 achieving qualifications. • Our 2024 to 2025 small grants participatory budgeting saw 15,882 votes cast across North Ayrshire, with £171,377 awarded to 190 groups across North Ayrshire • 8,620 young people contributed to youth participatory budgeting through online voting and deciding how local money could be sent of projects to benefit our young people. Our digital approach was included as an example of good practice at the international Consul Conference in February. • Overall service satisfaction among North Ayrshire Council tenants has risen to 92%, marking an improvement on the previous result for 2021 of 88.74%. Our three yearly tenant satisfaction survey ran from November 2024 to January 2025, with 1,490 responses representing 40% of all our sampled tenants. • Our North Ayrshire Islands Programme was a finalist in COSLA’s Excellence Awards in the category of ‘Strengthening Communities and Local Democracy’, in recognition of the unique partnership approach taken. We continue to work closely, positively and progressively with partners to ensure the Island Plan priorities are front and centre of local decision making where possible. 143
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Climate Change • Installation of our council’s two new solar photovoltaic (PV) farms is now complete with the next phase being the connection to the electricity network and commissioning works. They are expected to generate £400,000 of revenue per year over 25 years as well as reduce our carbon footprint whilst also providing funding for community initiatives through the renewable energy community benefits scheme. • A £17.4m award from the Levelling Up Fund Round 3 was secured from the UK Government. This will support Levelling Up for Ayrshire, Commercial and Low Carbon Infrastructure. • 15 households on Cumbrae and 25 in Kilwinning have been identified for improvements via the Energy Efficient Scotland: Area Based Scheme. This will help address the impact of energy costs and address fuel poverty. • Four community renewable projects have been awarded £130,000 in funding through the Community Renewable Energy Generation Fund. • The ECO4 Flex scheme provides funding for energy efficiency improvements in homes, primarily targeting low income and vulnerable households. Our funding of £902,809 has supported 32 households with the installation of over 134 energy saving measures to improve home energy efficiency. • 16 small and medium sized enterprises (SMEs) have enrolled for a first of its kind islands Net Zero Accelerator programme. This helps businesses increase sustainability, reduce their carbon footprint and work towards eliminating greenhouse gas emissions. Part funded by Zero Waste Scotland, collaborative projects are emerging. • Over the year our bulky waste reuse partner, Cunninghame Furniture Recycling Company, collected 902 mattresses (24 tonnes) and 212 tonnes of household furniture as part of an initiative to promote opportunities for their reuse, assisting 1,787 households to furnish their homes whilst also employing 17 people within North Ayrshire. • We have switched 36 refuse collection vehicles from diesel fuel to Hydrotreated Vegetable Oil (HVO). • In November 2024, the third and final stage of the Fairlie Coastal Path was completed with the opening of a new, improved and safer access to the coastline for residents and visitors to the area. 144
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A Sustainable Council • Our most recent Best Value Thematic Audit focusing on Workforce Innovation was positive, showing how our council is responding to current challenges by building capacity, increasing productivity and innovation. • Our Transformation Programme continues to progress, with key milestones reached within the Digital Workstream, Irvine Property Review as well as the Nethermains and Shewalton Solar PV Farm detailed above. • The Transformation Board is overseeing service reviews across the Learning Resource; Housing Service; Financial Inclusion Services; External Residential Placements; Economic Development, Growth and Regeneration; and Waste Services. • The Irvine Locality Review is progressing to align our operational property estate to the changing workstyles of our workforce. To date we have: o Relocated Genealogy from Irvine Townhouse to Irvine Library resulting in increased footfall. o Relocated 255 colleagues to Cunninghame House. o Relocated the Eglington Trophy to the Heritage Centre. o Approved a £300,000 investment in a Community Wealth Building Initiative to support the exploration of a wellbeing enterprise hub at the current Greenwood Conference Centre site. • We have generated £886,199 in income from our commercial property estate. • £17.4m was secured from the UK Government via the Levelling Up Fund. • In 2024 to 2025, 81 Skills for Life placements were created in partnership with the following services and organisations: Streetscene; Facilities; Clerical in various departments; Pupil Support Assistants; Third Sector; Step Into Sustainable Business; Care At Home and the Stores through the Health and Social Care Partnership. 51 of the placements were across other council services. • We delivered a comprehensive public engagement exercise to inform our budget setting process for 2025 to 2026. The revised approach generated increased engagement from our communities, with 4,461 responses received in addition to community group feedback. 145
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Next Steps Next steps for the next 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. 146
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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) 147
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NORTH AYRSHIRE COUNCIL 23 September 2025 Audit & Scrutiny Committee Title: External Audit Report on the 2024/25 Audit Purpose: To invite Committee to note the Annual Audit Report for 2024/25 and to consider the verbal report by the external auditor. Recommendation: That Committee: (a) Notes the findings of the 2024/25 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 to the Report; and (d) Approves the audited Annual Accounts for signature. 1. Executive Summary 1.1 As part of the external audit for 2024/25, Audit Scotland have produced the attached Annual Audit Report which includes an opinion on the Council’s financial statements and reports on progress in delivering Best Value over the same period. 1.2 The unaudited accounts for the year to 31 March 2025 were approved by Council on 25 June 2025 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 2024. 1.3 The Annual Audit and Best Value report also provide the Audit and Scrutiny Committee with the external auditor’s findings in relation to the arrangements for securing best value and the audit dimensions. Agenda Item 4 149
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1.4 The overall conclusions of the reports state that the Council: • The Council continues to demonstrate a strong culture of continuous improvement; • The Council’s transformation programme planning and programme management arrangements are clear; • The Council actively works with partners to identify better ways of delivering its ambitions; • The Council systematically measures and reports on its performance across its strategic priorities • Financial management is effective; • The Council has appropriate governance and decision-making arrangements; and • The Council’s performance, taken from national benchmarking data, shows an improving position year on year. 1.5 As detailed in Section 1 of the Annual Audit Report, a number of adjustments have been identified during the audit process. However, these adjustments are in relation to the valuation of non-current assets and the introduction of revised accounting requirements in relation to leases and do not impact on the reported balance of Unearmarked Reserves which remain unchanged at £9.181 million. 1.6 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 2024/25 audit of the Council’s accounts was conducted by Audit Scotland, the third 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. In addition, this report details Audit Scotland’s conclusions on the Council’s performance in meeting its Best Value duties and the wider scope areas of: • Financial Management; • Financial Sustainability; • Vision, Leadership and Governance; and • Use of Resources to Improve Outcomes. 2.3 The Council’s accounts for the year to 31 March 2025 were submitted to Audit Scotland by the deadline of 30 June 2025. 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. 150
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2.4 During the audit, Audit Scotland and Council officers identified a number of significant errors and adjustments relating to the valuation of the Council’s assets and the introduction of revised accounting arrangements for leased assets, including the schools constructed under PPP and DBFM arrangements. The total value of these errors and adjustments was £82.374m. These have been corrected in the Audited Annual Accounts. 2.5 In addition, Audit Scotland has identified a historical error in the calculations for the valuation of Council Dwellings. A review of the methodology has been carried out and the value of Council Dwellings previously reported during 2023/24 has been adjusted by £33.673m. 2.6 The overall level of unusable reserves has not been impacted by any of these adjustments, and the reported balance of Unearmarked Reserves has remained unchanged at £9.181 million. 2.7 In relation to the Council’s charitable trusts, Audit Scotland have issued an unqualified opinion in relation to the charitable trust accounts. 2.8 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. 2.9 As well as auditing the financial statements, Audit Scotland considered the Council’s arrangements in relation to Best Value and the audit dimensions. A summary of the key conclusions from the report include: Best Value • The Council has continued to demonstrate a strong culture of continuous improvement; • The Council’s transformation programme planning and programme management arrangements are clear; • The Council systematically measures and reports on its performance across its strategic priorities; • The Council actively works with partners to identify better ways of delivering its ambitions for North Ayrshire; and • The Council complies with the requirements of the Statutory Performance Information Direction. Financial Management • Financial management is effective • The Council reported a service underspend of £17.0 million against its 2024/25 budget and there was a £3.489 million increase in usable reserves; • There is a planned use of reserves over the medium term to mitigate funding gaps; • A new General Fund Capital Investment Programme 2024/25 to 2033/34 is used to inform capital investment and support Council Plan priorities; • Long-term borrowing levels has increased in support of the council’s capital programme; • Financial systems of internal control were effective and internal audit provided a reasonable level of assurance over the Council’s framework of governance, risk management and control arrangements. 151
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Financial Sustainability • The Council approved a balanced budget for 2025/26, but only after planning to utilise £5.0 million of reserves, non-recurring savings of £9.5 million for reduced pension contributions and further savings of £4.8 million across Directorates; • Significant risks exist to achieving financial balance in 2024/25.; • The latest MTFO which covers the three-year period to 2027/28 has identified a structural funding gap of £46.7 million; • In 2024/25 the council released 85 staff which delivered approximately £2.5 million recurring savings. A further 45 staff reductions are anticipated in 2025/26; • Discussions are also currently ongoing on how efficiencies could be realised through delivering council services differently in partnership with others. Elected members will need to make difficult decisions on how the use of resources is prioritised going forward, within its recurring funding; and • High absence rates continue to be reported in areas which require cover arrangements, specifically teachers and waste collection incurring additional costs of £2.6 million. Vision, Leadership and Governance • There is openness and transparency within the council together with appropriate governance and decision-making arrangements; • There are appropriate governance and decision-making arrangements in place at the council; and • The council offers a training programme for members in addition to e-learning and the opportunity to attend Improvement Service events and webinars. Use of Resources to Improve Outcomes • There has been regular reporting of the council’s progress with its Council Plan priorities, with good progress made in completing actions for year two of the plan; • The council’s performance, taken from national benchmarking data, shows an improving position year-on year, but overall performance relative to other councils has remained constant; and • HMIe reported positively on how the council supports schools to improve the quality of education. 2.10 The recommended actions arising from the audit are detailed in Appendix 1 to the report, including: • A review of capital accounting processes and procedures; • An impairment review should be conducted whenever there is an indication that an asset might be impaired; and • 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. 2.11 A link to the final audited accounts will be issued to all members for their information. 2.12 Representatives from Audit Scotland will be in attendance at Committee and will present a verbal report highlighting the main findings of the 2024/25 report. 152
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3. Proposals 3.1 It is proposed that Committee: (a) Notes the findings of the 2024/25 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 to the 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 2025. 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. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None. 153
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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 David Forbes, Senior Manager (Strategic Business Partner), on 01294 324551. Background Papers North Ayrshire Council Unaudited Accounts 2024/25 –Council, 25 June 2025; North Ayrshire Council Charitable Trusts: Unaudited Trustees’ Annual Report 2024/25 – Council, 25 June 2025 154
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HEAD OF FINANCE: Mark Boyd Cunninghame House, Irvine KA12 8EE Tel: 01294 310000 www.north-ayrshire.gov.uk Your Ref: Our Ref: If telephoning please ask for: Mark Boyd 01294 324560 23 September 2025 Fiona Mitchell-Knight FCA Audit Scotland 4th Floor, The Athenaeum Building 8 Nelson Mandela Place Glasgow G2 1BT Dear Fiona, North Ayrshire Council Annual Accounts 2024/25 This representation letter is provided in connection with your audit of the annual report and accounts of North Ayrshire Council and its group, for the year ended 31 March 2025 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 2025. General I have fulfilled my responsibilities for the preparation of the 2024/25 annual accounts as set out in your 2024/25 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 2024/25 (2024/25 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. 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 and its group at 31 March 2025 and the transactions for 2024/25. 155
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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 2024/25 Code, where applicable. Where the 2024/25 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 2024/25 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 2025 of which I am aware have been reported in the financial statements. Where a rolling programme of asset valuations has been used, I have satisfied myself that the carrying amount of assets at 31 March 2025 does not differ materially from that which would be determined if a revaluation had been carried out at that date. I carried out an assessment at 31 March 2025 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 2025. 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 2025 of which I am aware have been reported in the financial statements. Provisions have been recognised in the financial statements for all liabilities of uncertain timing or amount at 31 March 2025 of which I am aware where the conditions specified in IAS 37, as adapted by the 2024/25 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 2025. 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 2025, or to reflect material changes in the assumptions underlying the calculations of the provisions. 156
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The accrual recognised in the financial statements for annual leave untaken by 31 March 2025 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 2024/25 Code. With specific reference to equal pay claims, I can confirm that it is not possible to quantify the contingent liability. 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 2024/25 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 2024/25 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. 157
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Corporate Governance I confirm North Ayrshire Council has undertaken a review of the system of internal control during 2024/25 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 2025 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 2024/25 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. Common Good Fund I confirm, to the best of my ability, that all material common good assets have been identified and correctly accounted for within the common good financial statements and, where appropriate, common good assets in use by the Council have been assessed and accounted for in line with appropriate accounting standards. Events Subsequent to the Date of the Balance Sheet All events subsequent to 31 March 2025 for which IAS 10, as adopted by the 2024/25 Code, requires adjustment or disclosure have been adjusted or disclosed. Other representations I confirm that the prior year adjustment in relation to the valuation of council houses has been appropriately accounted for and disclosed in the financial statements in accordance with ISA (UK) 710. Yours sincerely Mark Boyd Chief Financial Officer and Head of Finance North Ayrshire Council 158
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HEAD OF FINANCE: Mark Boyd Cunninghame House, Irvine KA12 8EE Tel: 01294 310000 www.north-ayrshire.gov.uk Your Ref: Our Ref: If telephoning please ask for: Mark Boyd 01294 324560 23 September 2025 David Jamieson Audit Scotland 4th Floor, The Athenaeum Building 8 Nelson Mandela Place Glasgow G2 1BT Dear David, North Ayrshire Council Trust Funds Anderson Park Trust SC042136 Douglas Sellers Trust SC042101 Margaret Archibald Bequest SC042117 North Ayrshire Council Trust SC025083 Dalry Trust SC043644 Kilbirnie & Glengarnock Trust SC043600 Kilwinning Trust SC043374 Largs Trust SC043494 Annual accounts 2024/25 This representation letter is provided in connection with your audit of the annual report and financial statements of North Ayrshire Council Trust Funds, for the year ended 31 March 2025 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 Trust Funds Annual Report and Financial Statements for the year ended 31 March 2025. General I acknowledge my responsibility and that of North Ayrshire Council, as the administering authority, for the preparation of the 2024/25 financial statements on behalf of the trustees. All the accounting records requested have been made available to you for the purposes of your audit. All material agreements and transactions undertaken by the registered charitable trusts have been properly reflected in the financial statements. All other records and information have been made available to you, including minutes of all management and other meetings. 159
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The information given in the Trustees’ Annual Reports presents a balanced picture of each charity and is consistent with the financial statements. I am not aware of any 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 2006 Regulations, I have ensured that the financial statements properly present the receipts and payments of the charities for the year ended 31 March 2025 and the transactions for 2024/25. 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 2024/25 accounting code where applicable. All accounting policies applied are appropriate to North Ayrshire Council Trusts’ circumstances and have been consistently applied. Going Concern Basis of Accounting I have assessed North Ayrshire Council Trusts’ 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 Trusts’ ability to continue as a going concern. Assets The cash fund, land and buildings and investments shown in the Statement of Balances at 31 March 2025 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 As reflected in the financial statements there are no liabilities at 31 March 2025 of which I am aware. 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. 160
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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 2024/25 Code. I have made available to you the identity of all of North Ayrshire Council Trusts’ 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 2024/25 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 2025 for which IAS 10, as adopted by the 2024/25 Code, requires adjustment or disclosure have been adjusted or disclosed. Yours sincerely Mark Boyd Head of Finance, North Ayrshire Council, for and on behalf of the trustees of the charities administered by North Ayrshire Council. 161
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North Ayrshire Council 2024/25 Annual Audit Report Prepared for North Ayrshire Council and the Controller of Audit September 2025 162
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North Ayrshire Council: 2024/25 Annual Audit Report | 2 Contents Key messages 3 Introduction 6 1. Audit of 2024/25 Annual Accounts 8 2. Best Value audit 24 3. Financial management 32 4. Financial sustainability 46 5. Vision, leadership and governance 54 6. Use of resources to improve outcomes 57 Appendix 1 64 Appendix 2 71 Accessibility You can find out more and read this report using assistive technology on our website www.audit.scot/accessibility. 163
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Key messages | 3 Key messages Audit of the annual accounts 1 An unmodified independent auditor’s report has been issued for the 2024/25 Annual Accounts of the council and its group and the eight section 106 charities administered by the council. 2 The financial statements now give a true and fair view of the financial position of the council and were properly prepared in accordance with the financial reporting framework. However a number of significant amendments have been required to the draft accounts to ensure in particular the non-current asset figures are fairly stated. These amendments do not change the reported outturn position or the usable reserves of the council. Best Value 3 The council has continued to demonstrate a strong culture of continuous improvement. It has robust arrangements in place to secure Best Value. The council has made good progress with prior year Best Value recommendations. 4 The council’s transformation programme planning and programme management arrangements are clear. 5 Officers are clear that future recurring savings will not be sufficient from transformation and workforce changes, cuts in services, and council tax and fees and charges increases are also needed. In 2024/25 the council released 85 staff which delivered approximately £2.5 million recurring savings. A further 45 staff reductions are anticipated in 2025/26. 6 The council actively works with partners to identify better ways of delivering its ambitions for North Ayrshire 7 The council is systematically measuring and reporting on its performance across its strategic priorities. Financial management 8 Financial management is effective. The council reported a service underspend of £17.0 million against its 2024/25 budget and there was a net increase of £3.489 million in the council’s usable reserves to £129.829 164
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Key messages | 4 million. There is planned use of reserves over the medium term to close funding gaps. 9 A new General Fund Capital Investment Programme 2024/25 to 2033/34 is used to inform capital investment and support Council Plan priorities. Cost risks have been identified across a number of projects. 10 Long term borrowing has increased in support of the council’s capital programme. The council understands the future revenue implications of servicing this debt. Financial sustainability 11 The council approved a balanced budget for 2025/26, which included a council tax increase of seven per cent (£5.0m) and the use of £4.0 million of reserves, non-recurring savings of £9.5 million from reduced pension contributions and further savings of £4.8 million across directorates. An extensive programme of engagement and consultation with communities was undertaken that helped shape the 2025/26 budget. 12 Risks to delivery of the 2025/26 budget include pay awards in excess of the budgeted contribution and the financial challenges facing the IJB. 13 The latest Medium Term Financial Outlook to 2027/28 has identified a structural funding gap of £46.7 million. While the council currently has reserves to support the fundings gaps, the reserves can only be spent once. The cost base is not sustainable and there is a risk to the longer term financial sustainability of council services. Elected members will need to make difficult decisions on how the use of resources is prioritised going forward, within its recurring funding. 14 Discussions are also currently ongoing on how greater efficiencies could be realised through delivering council services differently in partnership with others. Vision, leadership and governance 15 There is openness and transparency within the council together with appropriate governance and decision-making arrangements. 16 The council offers a training programme for members in addition to e-learning and the opportunity to attend Improvement Service events and webinars. 165
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Key messages | 5 Use of resources to improve outcomes 17 There has been regular reporting of the council’s progress with its Council Plan priorities. Good progress has been made in completing actions for year two of the plan however the council does not set out in advance what criteria have to be met for an ‘on target’ judgement to be made for each action. 18 Of the 33 Local Government Benchmarking Framework Performance Indicators (PIs) directly linked to Council Plan 2023-2028 priorities, seventeen priority PIs (52%) were within the top two quartiles for 2023/24. 19 The council’s performance, taken from national benchmarking data, shows an improving position year-on year, but overall performance relative to other councils remains constant. 20 HMIe reported positively on how the council supports schools to improve the quality of education. 166
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Introduction | 6 Introduction 1. Fiona Mitchell-Knight (Audit Director) has been appointed by the Accounts Commission as auditor of North Ayrshire Council for the period from 2022/23 until 2026/27. The 2024/25 financial year was the third of her five-year appointment. Her appointment coincides with the Code of Audit Practice which was introduced for financial years commencing on or after 1 April 2022. 2. We would like to thank councillors, senior management, and other staff, particularly those in finance, for their cooperation and assistance this year. 3. This report summarises the findings from the 2024/25 annual audit of North Ayrshire Council (the council). The scope of the audit was set out in our Annual Audit Plan presented to the 13 March 2025 meeting of the Audit and Scrutiny Committee. This Annual Audit Report comprises: • significant matters arising from an audit of the council’s Annual Accounts. • conclusions on the council’s performance in meeting its Best Value duties. • conclusions on the following wider scope areas that frame public audit as set out in the Code of Audit Practice 2021: − Financial Management − Financial Sustainability − Vision, Leadership, and Governance − Use of Resources to Improve Outcomes. 4. This report is addressed to the members of council and the Controller of Audit and will be published on Audit Scotland's website www.audit- scotland.gov.uk in due course. Responsibilities and reporting 5. The council has primary responsibility for ensuring the proper financial stewardship of public funds. This includes preparing Annual Accounts that are in accordance with proper accounting practices. The council is also responsible for compliance with legislation and putting arrangements in place for governance and propriety that enable it to successfully deliver its objectives. 167
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Introduction | 7 6. The responsibilities of the independent auditor are established by the Local Government (Scotland) Act 1973 and the Code of Audit Practice 2021, and supplementary guidance and International Standards on Auditing in the UK. 7. Weaknesses or risks identified are only those which have come to our attention during our normal audit work and may not be all that exist. Communicating these does not absolve management of the council from its responsibility to address the issues we raise and to maintain adequate systems of control. 8. This report contains an agreed action plan at Appendix 1. It sets out specific recommendations, the responsible officers, and dates for implementation. Communication of fraud or suspected fraud. 9. In line with ISA (UK) 240 (The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements), in presenting this report to the Audit and Governance Panel we seek confirmation from those charged with governance of any instances of actual, suspected, or alleged fraud that should be brought to our attention. Should members have any such knowledge or concerns relating to the risk of fraud within the council, we invite them to communicate this to the appointed auditor for consideration prior to the Annual Accounts being certified. Auditor Independence 10. We can confirm that we comply with the Financial Reporting Council’s Ethical Standard. We can also confirm that we have not undertaken any non-audit related services and we are not aware of any relationships that could compromise our objectivity and independence. 11. We add value to the council by: • Identifying and providing insight on significant risks and making clear and relevant recommendations. • Providing clear and focused conclusions on the appropriateness, effectiveness and impact of corporate governance, arrangements to ensure the best use of resources and financial sustainability. • Sharing intelligence and good practice identified. 168
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1. Audit of 2024/25 Annual Accounts | 8 1. Audit of 2024/25 Annual Accounts The council is required to prepare Annual Accounts comprising financial statements and other related reports. These are principal means of accounting for the stewardship public funds. Main judgement An unmodified independent auditor’s report has been issued for the 2024/25 Annual Accounts of the council and its group and the eight section 106 charities administered by the council. The financial statements now give a true and fair view and were properly prepared in accordance with the financial reporting framework. However a number of significant amendments have been required to the draft accounts to ensure in particular the non-current asset figures are fairly stated. Identified misstatements of £82.374 million , were adjusted for in the Annual Accounts and we have a number of significant findings to report. These adjustments to not change the reported outturn position or the usable reserves of the council. The audited part of the Management Commentary, Annual Governance Statement and Remuneration Report were all consistent with the financial statements and properly prepared in accordance with the relevant regulations and guidance. Audit opinions on the Annual Accounts of the council and its group are unmodified. 12. The Annual Accounts for the council and its group for the year ended 31 March 2025 were approved by the Audit and Scrutiny Committee on 23 September 2025. As reported in the independent auditor’s report: • The financial statements give a true and fair view and were properly prepared in accordance with the financial reporting framework. 169
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1. Audit of 2024/25 Annual Accounts | 9 • The audited part of the Management Commentary, Annual Governance Statement and Remuneration Report were all consistent with the financial statements and properly prepared in accordance with the relevant regulations and guidance. 13. We concluded that there were no matters upon which we are required to report, by exception, to the Accounts Commission. The unaudited Annual Accounts were received in line with the agreed audit timetable. 14. The unaudited Annual Accounts were received in line with our agreed audit timetable on 25 June 2025. The Annual Accounts submitted for audit were of a good standard and supporting working papers were reasonable. Finance staff provided good support to the audit team which helped ensure the final accounts audit process ran smoothly. Audit Fee 15. The audit fee for the 2024/25 audit was reported in the Annual Audit Plan and was set at £384,980. We have also agreed an audit fee of £1,100 for the audit of the registered charities administered by the council. There have been no developments that impact on planned audit work required, therefore the audit fee reported in the Annual Audit Plan remains unchanged. Our audit testing reflected the calculated materiality levels. 16. Broadly, the concept of materiality is applied by auditors to determine whether misstatements identified during the audit could reasonably be expected to influence the economic decisions of users of the financial statements, and hence impact their opinion set out in the independent auditor’s report. Auditors set a monetary threshold when considering materiality, although some issues may be considered material by their nature. It is ultimately a matter of the auditor’s professional judgement. 17. Our initial assessment of materiality was carried out during the risk assessment and planning phase of the audit. This was reviewed on receipt of the unaudited Annual Accounts and is summarised in exhibit 1. Exhibit 1 Materiality values for the council and its group Materiality Council Group Overall materiality: This is the figure we calculate to assess the overall impact of audit adjustments on the financial statements. Materiality has been set based on our assessment of the needs of the users of the £16.5 million £20.4 million 170
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1. Audit of 2024/25 Annual Accounts | 10 financial statements and the nature of the council’s operations. It has been set at 2 per cent of gross expenditure as at 31 March 2025. Performance materiality: This acts as a trigger point. If the aggregate of errors identified during the Annual Accounts audit exceeds performance materiality, this would indicate that further audit procedures should be considered. Using our professional judgement, we have assessed performance materiality at 65 per cent of overall materiality. £11.5 million £14.3 million Reporting threshold: We are required to report to those charged with governance on all unadjusted misstatements more than the ‘reporting threshold' amount. £0.500 million £1.0 million Source: Audit Scotland Identified misstatements of £82.374 million were adjusted in the 2024/25 accounts. 18. We identified misstatements of £82.374 million in the unaudited Annual Accounts. These arose as a result of classification and valuation of Property, Plant and Equipment. Management have adjusted the Annual Accounts to correct the identified issues. In addition a prior year adjustment resulted in a reduction of £33.673 million in the valuation of the council’s housing stock in 2023/24. 19. Further details of these adjustments are included in Exhibit 2. We have significant findings to report on our audit of the Annual Accounts. A number of significant amendments have been required to ensure in particular the non-current asset figures are fairly stated. 20. Under ISA (UK) 260 (Communication with Those Charged with Governance), we communicate significant findings from the audit to members, including our view about the qualitative aspects of the council’s accounting practices. 21. The Code of Audit Practice also requires all auditors to communicate key audit matters within the Annual Audit Report under ISA (UK) 701 (Communicating key audit matters in the Independent Auditor’s Report). These are matters that we judged to be of most significance in our audit of the financial statements. Our significant findings are detailed in exhibit 2. Where a finding has resulted in a recommendation to management, a cross reference to the action plan in Appendix 1 has been included. 22. The qualitative aspects of the council’s accounting practices, accounting policies, accounting estimates and accounts disclosures are satisfactory and appropriate. In accordance with normal audit practice, a 171
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1. Audit of 2024/25 Annual Accounts | 11 few presentational and disclosure amendments were discussed and agreed with management. The disclosure changes were satisfactory. Exhibit 2 Significant findings and key audit matters from the audit of the Annual Accounts Issue Resolution 1. Application of International Financial Reporting Standard (IFRS) 16 IFRS 16 Leases applied for the first time in 2024/25 and we identified this as an area where there was a significant risk of material misstatement. Through our audit procedures, we identified significant errors in the methodology adopted to apply IFRS 16: • On transition to IFRS 16, the council discounted the existing lease liability. This accounts for the concept of time value of money and the principle that money today is worth more than the same amount in the future. Under the previous accounting standard that applied, International Accounting Standard (IAS) 17, the leases had already been discounted. The council discounted the lease liability again in error resulting in a £24.861 million understatement of the council’s lease liability. • IFRS 16 states that the lease liability should be remeasured when changes due to indexation take effect in the cash flows. The council’s service concession contracts all increase on the 1 April in line with changes in the RPI index. The increase in the council’s lease payments due to changes in the RPI index were inaccurately applied resulting in an overstatement of the council’s lease liability. Correction for this is included in the overall remeasurement of £24.861 million above. • Clyde Valley Waste is a Private Financial Initiative (PFI) contract which the council has a 17% share in. The council had not initially applied IFRS 16 to this contract. After discussion with other local authorities, the council judged that IFRS 16 should apply to this agreement. We agree with this view. This resulted in a £0.692 million understatement of the council’s lease liability. The council have amended the 2024/25 accounts. The value of the council’s lease liability has increased by £25.553 million. Recommendation 1 – Appendix 1 Action Plan 172
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1. Audit of 2024/25 Annual Accounts | 12 Issue Resolution 2. i3 Strategic Investment Campus In 2024/25, the council agreed to sell the i3 Strategic Investment Campus in Irvine. In error, on putting the asset up for sale, the council created a new asset and did not re-classify the existing asset on its asset register. This resulted in the asset being double counted on the Balance Sheet. The council have amended the 2024/25 accounts. The value of Property, Plant and Equipment on the Balance Sheet has reduced by £7.281 million. In addition, the revaluation reserve has reduced by £4.1 million and impairments recognised in the Comprehensive Income and Expenditure Statement have increased by £3.181 million. Recommendation 1 – Appendix 1 Action Plan 3. Garages and Lockups The council own 203 lock-up garages and 1,217 garage sites which were all valued in 2024/25. In error, the council included the £0.880 million value of these sites in both council dwellings and land and buildings. This resulted in the asset being double counted on the Balance Sheet. The council have amended the 2024/25 accounts. The value of Property, Plant and Equipment on the Balance Sheet has reduced by £0.880 million. Recommendation 1 – Appendix 1 Action Plan 4. Moorpark Primary School The newly built Moorpark Primary School was operational in October 2024. At this point, the old school was no longer being used and should have been classified as a surplus asset. In the 2024/25 unaudited accounts, we identified that the council were in error still classifying the old school building as an operational asset. We have been advised the old school is due to be demolished in 2025/26. The council have amended the 2024/25 accounts. Confirmation of classification as a surplus asset resulted in a reduction in value of £1.250 million. Recommendation 1 – Appendix 1 Action Plan 5. Assets Held for Sale Accounting standards prescribe assets should only be classified as held for sale if it is expected the assets will be disposed of in the next 12 months. We identified two assets where the council had estimated that the assets would be sold in 2026/27. As this is over the 12 month period, both assets should have been classified as surplus assets rather than assets held for sale. The council have amended the 2024/25 accounts. Surplus assets have increased by £4.742 million and assets held for sale have reduced by the same amount. Recommendation 1 – Appendix 1 Action Plan 6. External Works A significant proportion by value of the council’s assets are valued on a Depreciated Replacement Cost (DRC) basis. For DRC valuations, we would The council have amended the 2024/25 accounts. 173
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1. Audit of 2024/25 Annual Accounts | 13 Issue Resolution normally expect an external works value to be added to the base calculation to include costs of paving, lighting and fencing for example. In the DRC valuations undertaken in 2024/25, there was no value added for external works. Following discussion with the council’s valuers, it was agreed that an external works percentage of 5% should be added to schools revalued in 2024/25 which in the valuers’ professional opinion is a reasonable estimate across the asset class. For other DRC assets revalued during 2024/25 we agreed that no external works value required to be added, as costs for external works were considered minimal. The value of Property, Plant and Equipment on the Balance Sheet has increased by £2.037 million. Recommendation 1 – Appendix 1 Action Plan 7. Valuation of Assets, Differs Materially In Note 40 to the unaudited accounts ‘Assumptions Made About the Future and Other Major Sources of estimation uncertainty’, the council noted that a materiality threshold of £15.8 million, per asset group, was set in order to determine if the value of assets (with a valuation date other than 31 March 2025) was materially different from their carrying values as at 31 March 2025. The note also explained that when applied to the value of Depreciated Replacement Cost assets which had not been valued in 2024/25, this indicated that the closing value of this asset group may have been £24.4 million lower than their reported value if they had been revalued in 2024/25. In accordance with agreed procedures, a more detailed review was undertaken by Royal Institute of Chartered Surveyors (RICS) qualified staff to assess the impact on values of all other assets within the DRC category of assets. The review raised significant concerns relating to the basis of valuation used in the 2022/23 external valuation of school properties and the valuation team completed a desktop exercise to estimate the potential decrease in value of all those properties impacted. This resulted in a reduction in the valuation of £49.447 million for those schools which has been adjusted for in the 2024/25 accounts. A prior year restatement was not required. This will be supplemented by a full valuation exercise for all impacted school properties during 2025/26. The council have amended the 2024/25 accounts. The value of Property, Plant and Equipment on the Balance Sheet has reduced by £49.447 million We are satisfied that the assets covered by this year’s valuation programme, together with the further work undertaken and the adjustments made to the 2024/25 accounts, have provided sufficient evidence that there is no further indication of material movements with those assets not subject to revaluation in 2024/25. Recommendation 1 – Appendix 1 Action Plan 174
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1. Audit of 2024/25 Annual Accounts | 14 Issue Resolution 8. Prior year adjustment to valuation of council houses In previous years the average rent figure used in the valuations of the council’s stock incorrectly included properties used for temporary accommodation at a significantly higher weekly rent. The council excluded these from the 2024/25 valuation but did not apply a retrospective adjustment to the 2023/24 valuation as required by accounting standards. The council have amended the 2023/24 accounts. The value of Property, Plant and Equipment on the Balance Sheet has reduced by £33.673 million. 9. Pension balance The funded pension balance represents the difference between expected future payments to pensioners and the underlying value of pension fund assets available to meet this liability. The council is a member of Strathclyde Pension Fund. Valuation of pension fund assets and liabilities is assessed by an independent firm of actuaries (Hymans Robertson LLP). Pension assets and liabilities are calculated annually for each individual member body, by the actuary, for inclusion in the Annual Accounts. Annual valuations are dependent on a number of external variables, including projected rates of return on assets, projected rates of price and pay inflation, interest rates, and mortality estimates. As required by accounting standards, the amount that can be recognised as an asset is limited to the estimated future service cost less the minimum contribution required, otherwise known as the asset ceiling. The asset shown in the council’s Balance Sheet has been limited to £0 for 2024/25 (2023/24 asset of £0). Additionally, the council’s Balance Sheet includes an amount for discretionary enhancements to retirement benefits e.g. payments for early retirement. These are referred to as unfunded liabilities as they are paid by the council rather than the pension fund. Although they are treated the same way as retirement benefit costs as explained above, the council does not have a right to set off the unfunded liability against a pension asset. The unfunded liability recognised in the council’s Balance Sheet is £20.067 million (2023/24: £23.183 million). We are satisfied that the council’s disclosure, and accounting treatment, of its pension balance complies with required accounting practices. 175
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1. Audit of 2024/25 Annual Accounts | 15 Source: Audit Scotland Other matters identified from our audit of the Annual Accounts 23. In addition to our findings in exhibit 2 above, the following was identified through our audit testing: • 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. In our opinion that has not resulted in a material misstatement of the assets at 31 March 2025. Recommendation 2 In order to prevent overstatement of asset values, an impairment review should be conducted whenever there is an indication that an asset might be impaired such as physical damage, obsolescence or restructuring. The existence of an impairment indicator may also suggest that the remaining useful life needs to be adjusted even if no impairment loss is recognised. 24. The council’s 2024/25 Management Commentary provides a fair and balanced picture of its performance and operational activity for the year. 25. The Annual Governance Statement provides an appropriate level of disclosure on the council’s governance arrangements during 2024/25. 26. The audited part of the Remuneration Report was consistent with the Annual Accounts and has been prepared in accordance with applicable regulations. Our audit work responded to the risks of material misstatement we identified in the Annual Accounts. 27. We have obtained audit assurances over the identified significant risks of material misstatement in the Annual Accounts. Exhibit 3 sets out the significant risks of material misstatement to the financial statements we identified in our 2024/25 Annual Audit Plan. It also summarises the further 176
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1. Audit of 2024/25 Annual Accounts | 16 audit procedures we performed during the year to obtain assurances over these risks and the conclusions from the work completed. Exhibit 3 Significant risks of material misstatement in the Annual Accounts Audit risk Assurance procedure Results and conclusions 1. Risk of material misstatement due to fraud caused by management override of controls As stated in ISA (UK) 240 (The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements), management is in a unique position to perpetrate fraud because of their ability to override controls that otherwise appear to be operating effectively. Assess the adequacy of controls in place for identifying and disclosing related party relationship and transactions in the financial statements. Assess 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 and other adjustments. Test journals at the year-end and post-closing entries and focus on significant risk areas. Evaluate significant transactions outside the normal course of business. We will assess any changes to the methods and underlying assumptions used to prepare accounting estimates compared to the prior year. Substantive testing of income and expenditure transactions around the year-end to confirm they are accounted for in the correct financial year. Focussed testing of accounting accruals and prepayments. Results: Our critical assessment of the council’s arrangements for identifying and disclosing related party transactions found arrangements in place were satisfactory. We assessed the design and implementation of controls over journal entry processing. No issues were identified. Journal adjustments were tested, and no indication of management override of controls were found. We reviewed transactions during the year - no issues were identified with significant transactions outside the normal course of business. Judgements and estimations applied were tested to confirm they were appropriate and reasonable. We tested accruals and prepayments and confirmed that income and expenditure was properly accounted for in the financial year. Conclusion: No instances of management override of controls were identified. 2. Valuation of Property, Plant and Equipment North Ayrshire Council held £1,313.3 million of Review the information provided to the valuer to assess for completeness. Results: We did not identify any issues with the information provided to the valuer. However our review identified a number of issues 177
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1. Audit of 2024/25 Annual Accounts | 17 Audit risk Assurance procedure Results and conclusions property, plant, and equipment (PPE) at 31 March 2024, of which £1,052.4 million was land and building assets. North Ayrshire 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. Risk: Valuations of these assets are materially misstated. Evaluate the competence, capabilities, and objectivity of the professional valuer. Obtain an understanding of management’s involvement in the valuation process to assess if appropriate oversight has occurred. Critically evaluate the approach the council has adopted to assess the risk that assets not subject to valuation are materially misstated and consider the robustness of that approach. Test the reconciliation between the financial ledger and the asset register. Evaluate management’s assessment of why it considers that the land and buildings not revalued in 2024/25 are not materially misstated. We will critically assess the appropriateness of any assumptions. Critically assess the adequacy of the council’s disclosures regarding the assumptions in relation to the valuation of other land and buildings and council dwellings. relating to the classification and valuation of PPE. Our review of the council’s valuation team’s work, and the current external valuer, identified that External Works had been incorrectly excluded from valuations of DRC properties undertaken during 2024/25. We did not identify any further non- compliance with RICS guidance. An internal review raised significant concerns relating to the basis of valuation used in the 2022/23 external valuation of school properties. We found that management have an appropriate level of involvement and oversight of the valuation process. We did not identify any issues with the reconciliation between the financial ledger and the property asset register. We found that appropriate disclosures have been made regarding the assumptions in relation to the valuation of land and buildings. Conclusion: We concluded that the assets covered by this year’s valuation programme, together with the further work undertaken and the required amendments to the 2024/25 accounts, have provided sufficient evidence that there is no evidence of material misstatement of asset values. The required 178
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1. Audit of 2024/25 Annual Accounts | 18 Audit risk Assurance procedure Results and conclusions amendments are set out in Exhibit 2 above. 3. Implementation of IFRS 16 From 1 April 2024, a new International Financial Reporting Standard, IFRS 16, came into effect for Local Authorities. IFRS 16 introduces a new ‘Right of Use’ asset class to the Balance Sheet and recognises the corresponding lease liability. This applies to all leases – property, land, vehicles, plant, and equipment. Specifically, this will also impact on the council’s school service concession arrangements (PPP and DBFM). IFRS 16 will change the way in which the council accounts for operating leases, including recognising assets and liabilities for the rights and obligations arising from leases previously classified as operating leases. Risk: Valuations of these leases are materially misstated. Evaluate the design and implementation of controls established by the council over the implementation of IFRS 16. Assess whether service concession arrangements have been accounted for in accordance with the requirements of IFRS 16. Test the IFRS 16 transitional accounting adjustments and confirm these are accurate and comply with the financial reporting framework. Results On transition to IFRS 16, the council discounted the existing lease liability. However, under IAS 17 the lease had already been discounted resulting in an understatement of the council’s lease liability. The council’s service concession contracts all increase on the 1 April in line with changes in the RPI index. The increase in the council’s lease payments due to changes in the RPI index were inaccurately applied resulting in an overstatement of the council’s lease liability. The council incorrectly judged that IFRS 16 did not apply to a PFI contract in which the council has a share. This resulted in a understatement of the council’s lease liability. Conclusion: We identified significant errors in the methodology adopted to apply IFRS 16. The required amendments to the 2024/25 accounts are set out in Exhibit 2 above. Source: Audit Scotland 179
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1. Audit of 2024/25 Annual Accounts | 19 Correspondence referred to the auditor by Audit Scotland/Statutory objections to the accounts 28. 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. 29. 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. Based on the low numbers of entrants in a similar competition planned previously, there was not sufficient income available from the trust fund to meet the costs of organising the competition and awarding prizes. 30. 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 31. 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 32. 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 33. 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 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. 180
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1. Audit of 2024/25 Annual Accounts | 20 • There was no evidence of management bias in making the accounting estimates. 34. 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 3. Disclosures in the financial statements 35. 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 36. The body is part of a group and prepares group financial statements. The group is made up of seven components, including the council which is the parent of the group. As outlined in the Annual Audit Plan, audit work was required on two of the group’s components for the purposes of the group audit, and this work was performed by a combination of the audit team and the components’ audit teams. 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 4. Exhibit 4 Summary of audit work on the group’s components Group component Audit procedures Results of audit work performed North Ayrshire Council Audit Scotland– full scope audit See above; the results of the work are as reported in this Annual Audit Report Common Good Funds Audit Scotland– analytical procedures at group level Analytical procedures at the group level were performed by the audit team, and no significant issues were identified. Trust Funds Audit Scotland– analytical procedures at group level Analytical procedures at the group level were performed by the audit team, and no significant issues were identified. North Ayrshire Ventures Trust Analytical procedures at group level Analytical procedures at the group level were performed by the audit team, and no significant issues were identified. 181
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1. Audit of 2024/25 Annual Accounts | 21 Group component Audit procedures Results of audit work performed North Ayrshire Leisure Limited* Analytical procedures at group level Analytical procedures at the group level were performed by the audit team, and no significant issues were identified. Strathclyde Partnership for Transport Audit Scotland– obtained 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 and valuation of pension liability balance in SPT. Strathclyde Concessionary Travel Scheme Joint Board Audit Scotland – analytical procedures at group level Analytical procedures at the group level were performed by the audit team, and no significant issues were identified. Ayrshire Valuation Joint Board Audit Scotland – analytical procedures at group level Analytical procedures at the group level were performed by the audit team, and no significant issues were identified. North Ayrshire Integration Joint Board Audit Scotland – analytical procedures at group level Analytical procedures at the group level were performed by the audit team, and no significant issues were identified. Source:Audit Scotland *The unaudited group accounts were prepared using the 2023/24 accounts for North Ayrshire Leisure Limited as the 2024/25 accounts are not yet available. We are satisfied that this has not had a material impact on the group accounts . Good progress has been made on prior year audit recommendations relating to the Annual Accounts. 37. The council has made good progress towards implementing the two agreed prior year recommendations relating to the Annual Accounts. Both remain ongoing. The Best Value recommendations are considered in the next section of this report and the charities recommendation is considered at paragraphs 43 to 45 below. For actions not yet completed, full implementation is planned for 2025/26 with the exception of the charities recommendation, as recorded in Appendix 1. 182
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1. Audit of 2024/25 Annual Accounts | 22 Our audit opinions on the Annual Accounts of the eight section 106 charities administered by the council are unmodified. 38. 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 Council Trust – Charity number SC025083 Dalry Trust – Charity number SC043644 Kilbirnie & Glengarnock Trust – Charity number SC043600 Kilwinning Trust – Charity number SC043374 Largs Trust – Charity number SC04349439. 39. 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. 40. As a result of the interaction of the Local Government in Scotland Act 1973 with the charities legislation, 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. 41. Our duties as auditors of the charities administered by North Ayrshire Council are to: • 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). 42. The council has made full use of the connected charities provision and reports all charities within one set of accounts. 43. Seven trusts have been dormant for a period of 3 years or more and of these, three Trusts have been dormant for over 7 years. The dormancy of 183
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1. Audit of 2024/25 Annual Accounts | 23 each identified Trust is disclosed on page 6 of the Trustees annual report. 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. This was raised as a recommendation in our 2022/23 Annual Audit Report. The council will continue to promote the various funding sources, trusts and bequests available for distribution, ensuring that our staff teams, partners and communities are aware of the available financial supports as recorded in Appendix 1. 44. In order to encourage the utilisation of funds across communities, in particular where the Trusts have been dormant or have low levels of income, the Council agreed in February 2025 that, with the exception of those Trusts with significant balances, the full balance of the Trusts are approved as available for disbursement in 2025/26. Any disbursement which utilises the full capital balance will result in closure and will require the approval of OSCR. 45. During 2024/25 the remaining capital within James Dyer Simpson Fund, H Watt Trust and J H Watt Trust, held within the North Ayrshire Charitable Trust, was disbursed. Approval will be sought from OSCR for winding up of these Trusts. During 2025/26, the funds within Dalry Trust, Kilwinning Trust, Kilbrinie & Glengarnock Trust, Largs Trust, Douglas Sellers Trust and Anderson Park Trust will be exhausted. Approval will also be sought from OSCR for the disbursement of any remaining capital and winding up of these Trusts. 46. The Council approved the Trust Fund Investment Strategy 2024/25 on 18 December 2024. The Strategy set out the principles which ensure that all investments are made on a socially responsible basis. Following an assessment of the external investments held by the Margaret Archibald Trust and the North Ayrshire Council Charitable Trust, two specific shareholdings have been identified as being inconsistent with the strategy and will be sold. The capital receipts will be reinvested through North Ayrshire Council’s Loans Fund. 47. We have given an unqualified opinion on the Annual Accounts of the eight charities administered by the council. 184
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2. Best Value audit | 24 2. Best Value audit Councils have a statutory duty to make arrangements to secure continuous improvement in the performance of their functions. Conclusion The council has continued to demonstrate a strong culture of continuous improvement. It has robust arrangements in place to secure Best Value. The council has made good progress with prior year Best Value recommendations. The council’s transformation programme planning and programme management arrangements are clear. Officers are clear that future recurring savings will not be sufficient from transformation and workforce changes, cuts in services, and council tax and fees and charges increases are also needed. There is scope for the council to consider opportunities for more radical transformational change with partners. The council is systematically measuring and reporting on its performance across its strategic priorities. Good progress has been made in completing actions in year two of the Council Plan. The council actively works with partners to identify better ways of delivering its ambitions for North Ayrshire. The council complies with the requirements of the Statutory Performance Information Direction. Best Value work in 2024/25 48. Councils have a statutory duty to make arrangements to secure continuous improvement in the performance of their functions. Expectations are laid out in the Best Value Revised Statutory Guidance 2020. 49. As set out in the Code of Audit Practice 2021, Best Value audit is integrated with other wider-scope annual audit work. For 2024/25 the scope of Best Value work included conclusions on: 185
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2. Best Value audit | 25 • The Accounts Commission’s requested thematic work on Transformation – How councils are redesigning and delivering more efficient services to achieve planned outcomes.” • Progress made against Best Value improvement actions made in previous years. • Council service performance improvement. • Effectiveness of council performance reporting. 50. In addition to the work set out in the remainder of this section, Best Value work has informed the content and conclusions set out in parts 3 to 6 of this Annual Audit Report. We have concluded that the council has continued to demonstrate a strong culture of continuous improvement. It has robust arrangements in place to secure Best Value. 51. At least once over the five-year appointment, the Controller of Audit will report to the Accounts Commission on the Council’s performance in meeting its Best Value duties. North Ayrshire Council is included in the third year of the programme. The Controller of Audit Report will be discussed with the Accounts Commission in October 2025. The council’s transformation planning and programme management arrangements are clear. Officers are clear that future recurring savings will not be sufficient from transformation and workforce changes, cuts in services, and council tax and fees and charges increases are also needed. 52. This year auditors were asked to focus on how the council is redesigning and delivering more efficient services to achieve planned outcomes. The results of this work were reported to the council’s elected members at the May 2025 Audit and Scrutiny Committee. 53. The key findings in this report were as follows: • The council’s current transformation programme, known as its Sustainable Change Programme, was approved in 2023 and clearly sets out how it intends to transform its services, in line with its priorities, through five workstreams and six service reviews. Between 2021/22 and 2024/25 the council achieved financial efficiencies from its Sustainable Change Programme of £3.136 million. It plans to make further efficiencies of £8.5 million over the next three years. • The council’s latest Medium Term Financial Outlook has identified a structural funding gap of £46.7m in the three-year period to 2027/28 (including HSCP pressures). Projected savings from transformation fall significantly short of the savings required. Officers are clear that 186
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2. Best Value audit | 26 future recurring savings also need to be made through workforce changes, cuts in services, and council tax and fees and charges increases. However, the transformation programme needs to be sufficiently ambitious to respond to the scale of the financial challenges. • The council has robust officer-led governance arrangements in place to monitor its Sustainable Change Programme through its Transformation Board. The Executive Leadership Team are all members of the Transformation Board and so are well-sighted on the council’s transformation projects. However, there is scope for the council to improve its public reporting on transformation to provide assurance about how the council plans to change, to sustain services in the future. • The council has a well-established and well-resourced transformation team. It has a Change and Service Redesign Fund - an investment fund created by the council more than eight years ago to help drive transformation. Nearly £0.8 million has been drawn down from the Fund in the last two years although not all of this has been spent on transformation. • The council has shared examples of where it is working well with partners to deliver transformation with the aim of generating savings and improving outcomes, but its current transformation programme is primarily internally focused. There is scope for the council to consider opportunities for more radical transformational change with partners. • There are discussions ongoing across the senior leadership of North Ayrshire, East Ayrshire and South Ayrshire Councils to explore further opportunities for public sector reform and collaboration including the Ayrshire Economic Strategy. These developments will be subject to scrutiny by elected members as they progress. Elected members will need to make difficult decisions on how the use of limited resources is prioritised going forward. Plans need to be innovative and ambitious. • The council has provided good examples of consulting with its communities in relation to transformation projects and using the results to influence how services are delivered. The recent extensive budget engagement process included consultation with residents on many activities overseen by the Transformation Board. • The council provides regular and detailed information on the financial and non-financial benefits of individual transformation workstreams and service reviews to the Transformation Board. The benefits of individual projects are also reported in individual council reports. 187
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2. Best Value audit | 27 • The council has provided evidence of using Equality and Children’s Rights Impact Assessments in relation to its transformation projects, where appropriate, and has provided examples of engagement with user groups leading to changes being made in how services are delivered. 54. Overall, the key messages reflect positively on the council’s transformation planning and programme management arrangements. Two audit improvement recommendations were included in the thematic report and are replicated in Appendix 1 of this report. This includes details on the council’s response to the recommendations. We will report on progress over the term of our audit appointment. The council has made good progress with prior year Best Value recommendations. 55. As part of our 2024/25 audit work we followed up on the two outstanding management actions from our 2022/23 work on leadership in the development of the council’s strategic priorities. Both have now been implemented: • The plan to refresh the performance dashboard was completed in August 2025 and the performance dashboard has been developed and published on Sharepoint. In September 2025 Cabinet approved the re- use of performance reporting content in other forms to increase accessibility. This will support the dashboard finalisation. Publication is expected by 31st March 2026 (soft launch based on Mid-Year data). • There is now a dedicated Climate Change webpage, ‘Environment and Sustainability’ which holds links to all related public information. In addition, work is ongoing to include the Improvement Service's 'Scottish Climate Intelligence Service' Climate View Platform by early 2026. 56. As part of our 2024/25 audit work, we also followed up on the eight management actions agreed from our 2023/24 thematic work on workforce planning. 57. We have concluded that good progress has been made on all of the recommendations and six are fully implemented, including: • The Workforce Strategy has been fully updated to align with internal/external factors, workforce challenges, Council Plan priorities and other key strategies/plans. • An Action Plan aligned to the Workforce Strategy has been agreed and set up on Pentana. • The Transformation Board has approved the creation of a Digital Programme workstream. The intention is that this will allow digital activities to be monitored against the Council’s Digital Strategy. 188
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2. Best Value audit | 28 • A Digital Skills survey, together with an Agile working wellbeing survey were conducted during November/December 2024 which were open to all North Ayrshire Councils employees. 58. Further work is still ongoing on the two actions agreed relating to joint workforce arrangements and development of a performance dashboard to support workforce planning. These actions are included in Appendix 1 for further follow up next year. The council actively works with partners to identify better ways of delivering its ambitions for North Ayrshire 59. There are discussions ongoing across the senior leadership of East Ayrshire, North Ayrshire and South Ayrshire Councils to explore further opportunities for public sector reform and collaboration including the Ayrshire Economic Strategy. These developments as they progress will be subject to scrutiny by elected members The delivery of physical regeneration across North Ayrshire is monitored through the Regeneration Delivery Plan Action Programme 60. The Council’s Regeneration Delivery Plan (approved in March 2021) sets out the Council’s priorities for delivering on the regeneration ambitions of the Council Plan and Community Wealth Building strategy. This is to be achieved working in partnership with others and the communities. A 2025 update was presented to Cabinet in June 2025 and reported on a range of initiatives. Examples include: • The council carried out significant work with Transport Scotland and Peel Ports Group to progress a revised business case for Ardrossan Harbour. In February 2025, the Scottish Government announced its intention to enter negotiations directly with Peel Ports Group to purchase the port. The Scottish Government updated the Ardrossan Task Force members on 1 September 2025 to advise that Caledonian Maritime Assets Limited (CMAL) continue to actively negotiate with Peel Ports Group on the principles of the ‘Head of Terms’. There has been considerable work on this by both parties and this is intensifying further over the coming weeks with a view to finalising the commercial terms of the sale. • The 2024/25 round of Participatory Budgeting (PB) concluded in December 2024, with 15,882 votes cast across Locality and Youth PB funding rounds. The council’s hybrid approach to participation saw voting taking place online and in schools, libraries and community group settings across North Ayrshire, with local people aged 8 and over allocating £171,377 to 190 community-led projects. • The use of Community Asset Transfers (CATs) continues to allow community groups to increase their capacity and improve local use and ownership of assets. Between May 2024 and May 2025, sixteen Expressions of Interest were submitted, ten groups were working on a full 189
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2. Best Value audit | 29 application and 2 full applications were received. Two CATs were concluded and one was amended from a lease to full ownership to better meet local needs. The Ayrshire Growth Deal is a ten year programme of investment with partners 61. The Ayrshire Growth Deal (AGD) was signed by the three Ayrshire Councils and the UK and Scottish Governments in March 2019. The Deal is a 10 year programme of investment in the Ayrshire economy with the UK and Scottish Governments contributing £103 million each, with further funding of £45.5 million from the three councils. The Deal is based around five programmes and is projected to unlock private investment of at least £300 million and generate 7,000 jobs. 62. Delivery of North Ayrshire’s share of the £251 million Growth Deal programme includes: manufacturing space and a digital hub at i3 in Irvine, International Marine Science & Environmental Centre at Ardrossan; Centre for Research into Low Carbon Energy & Circular Economy at Hunterston; the development of island marina projects and the Great Harbour project in Irvine. 63. The AGD Annual Report 2024/25 notes that one of the key challenges facing AGD is that the delays from previous years have increased the pressure on the pace toward the successful delivery of the Deal. The Report also notes that The Economy and Fair Work Inquiry into City Region Growth Deals highlights many of the challenges facing the AGD and that many of the recommendations contained in that report have resonated with the AGD. The council is systematically measuring and reporting on its performance across its strategic priorities. 64. The Best Value Revised Statutory Guidance 2020 says that performance management arrangements should be in place to promote the effective use of the local authority’s resource, which includes effective performance reporting. 65. In Our Council Plan 2023-28 the council has listed what it wants to achieve for each of its four priorities. These are set out in sections headed up ‘We will know we’re making progress when…’ and includes: • There is a sustained decrease in the percentage of children living in poverty. • Communities are directly managing and operating more assets and are allocating community funding to initiatives that are local priorities. • Carbon emissions are reducing with a clear pathway to net zero. • Lived experience is central in our approach to improving services and developing policy. 190
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2. Best Value audit | 30 66. The ‘Our Council Plan Performance Management Framework’ was approved by Cabinet in August 2023. It includes 26 performance indicators directly linked to the council’s priorities. Ten of these 26 indicators are from the Local Government Benchmarking Framework (LGBF). All 26 indicators included a baseline value and a target for 2024/25. The council has also identified 33 LGBF indicators that closely link to its priorities within the Council Plan. 67. The council reports on its progress against the priorities set out in ‘Our Council Plan 2023-28’ every six months to Cabinet and subsequently to the Audit and Scrutiny Committee. The latest six-monthly Council Plan progress report for the period 1 October 2024 to 31 March 2025 was published in September 2025. Progress reports include: • progress in 26 indicators directly linked to the council’s priorities, set out in its Performance Management Framework • updates on Our Council Plan actions • case studies to capture real lived experience • contextual information. A locally developed tool, the Inclusive Growth Dashboard, provides contextual data on trends within North Ayrshire including indicators such as child poverty rates, employability and area-wide climate measures • progress on the 33 LGBF indicators directly linked to the council’s priorities. The council complies with the requirements of the Statutory Performance Information Direction. 68. The Accounts Commission issued a new Statutory Performance Information (SPIs) Direction in December 2021 which applies for the three years from 2022/23. It requires a council to report its: • performance in improving local public services (including those provided with its partners and communities), and progress against agreed desired outcomes (SPI 1). The Commission expects this reporting to allow comparison both over time and with other similar bodies (drawing on LGBF and/or other benchmarking activities). • own assessment and audit, scrutiny, and inspection body assessments of how it is performing against its duty of Best Value, and how it has responded to these assessments (SPI 2). 69. The council’s public performance reporting includes: • The newly designed Council website was launched in July 2024, and went fully live in September 2024. The website home page has been updated to include a link to the Council plan within the Council Activity section (SPI 1). 191
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2. Best Value audit | 31 • Best Value reports, and the council’s updates on its progress in addressing the recommendations within them, are included on its website along with inspection body reports (SPI 2). • Inspections, audits, awards and accreditations are included in the six monthly Council Plan Progress Reports with the initial report for the new Council Plan (Mid-Year 2023-24) approved by Cabinet in January 2024. These reports are also published on the council’s website (SPI 2). • the ‘Our Council Plan Performance Management Framework’ includes 26 performance indicators directly linked to the council’s priorities (SPI 1). 70. In addition to its own performance reporting, the council presented its analysis of the national LGBF 2023/24 results to Cabinet in September 2025 and published the result of this on its website. Further commentary on the LGBF and the council’s performance in year is at paragraphs 169 to 174. 71. In our view, the council’s public performance reporting complies with the requirements of the Statutory Performance Information Direction. 192
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3. Financial management | 32 3. Financial management Financial management means having sound budgetary processes, and the ability to understand the financial environment and whether internal controls are operating effectively. Conclusion Financial management is effective. The council reported a service underspend of £17.0 million against its 2024/25 budget and there was a net increase of £3.489 million in the council’s usable reserves to £129.829 million. There is planned use of reserves over the medium term to close funding gaps. A new General Fund Capital Investment Programme 2024/25 to 2033/34 is used to inform capital investment and support Council Plan priorities. Cost risks have been identified by the council across a number of projects. Long term borrowing levels has increased in support of the council’s capital programme. The council understands the future revenue implications of servicing this debt. Financial systems of internal control were effective and internal audit provided a reasonable level of assurance over the council’s framework of governance, risk management and control arrangements. The council reported a general fund service underspend of £17.0 million. 72. The Council approved a balanced budget for 2024/25 of £427.3 million in February 2024. The budget included a £5.0 million contribution from reserves and additional approved savings of £4.2 million. Budget adjustments throughout the year resulted in a revised budget for 2024/25 of £455.8 million. In addition, earmarked funds of £84.9 million were carried forward from 2023/24 for service expenditure in 2024/25 and were reflected in the figures within the 2024/25 financial performance reports as they were drawn down. 193
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3. Financial management | 33 73. In the 2024/25 Annual Accounts, the council reported a total service underspend of £17.0 million. Significant variances against budget are summarised in Exhibit 5, Exhibit 5 Summary of significant variances against budget Area £m Reason for variance Underspends Employee costs £3.2 million Underspend in relation to vacancy management across services. This net overspend is after overspends for mandatory cover for teacher absence (£1.952 million) and waste collection staff absences (£0.693 million). Financing costs £11.2 million Underspend includes revision to annual debt repayment charges under the revised service concession arrangements of £2.7m and £5.2m from a planned underspend linked to the treasury and investment strategy. Other corporate items £4.1 million Includes additional Scottish Government Grants not utilised in year (£2.0m), centrally held provisions in relation to Storm Eowyn not drawn down by services (£0.8m) and centrally held inflationary provisions not drawn down (£0.7m). £2.3 million Renewable energy and other approved strategic investments not spent in year. Service income and recharges £1.3 million Higher than anticipated income across services. Source: North Ayrshire Council 2024/25 Annual Accounts 74. There was also an overspend of £1.915 million relating to additional costs for external residential and non-residential placements for children and a non-recurring budget transfer of £2.036 million to the IJB, equivalent to the level of overspend on council services within the HSCP. The Housing Revenue Account underspent by £1.816 million in 2024/25. 75. The Housing Revenue Account budgeted for a breakeven position in 2024/25. An underspend of £1.816 million has been reported, mainly due to savings on loan charges on the HRA Capital Programme. The accumulated 194
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3. Financial management | 34 Housing Revenue Account reserve at 31 March 2025 is £22.141 million, this is to support delivery of the HRA Business Plan. There was a £3.489 million increase in usable reserves to £129.829 million at 31 March 2025. There is planned use of reserves over the medium term to mitigate funding gaps. 76. One of the key measures of the financial health of a council is the level of reserves held. In 2024/25 there was a net increase of £3.489 million in the council’s usable reserves, resulting in a total balance of £129.829 million at 31 March 2025 (Exhibit 6). 77. The March 2023 CIPFA Bulletin 13 Local Authority Reserves and Balances, says there is no prescribed level of reserves, but 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 6 North Ayrshire Council – usable reserves Reserve 31 March 2023 £ million 31 March 2024 £ million 31 March 2025 £ million General fund £110.115 £93.385 £94.269 Housing revenue account £13.685 £20.566 £22.141 Insurance fund £2.998 £2.558 £2.233 Capital fund £8.882 £9.831 £11.186 Total usable reserves £135.680 £126.340 £129.829 Source: North Ayrshire Council Annual Accounts 2022/23 to 2024/25 78. Within the general fund reserve the most significant movements were: • Planned use of £15.8 million for earmarked spend agreed through decisions taken by members during the year, including £6.5 million to support expansion of Early Learning provision and Education recovery, £3.8 million to support delivery of the Council's Renewal and Recovery Strategy, and £5.0 million to support the 2024/25 budget. 195
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3. Financial management | 35 • Increase of £19.1 million mainly due to planned contributions of £11.2 million to the Loans Fund Reserve and £4.1 million relating to specific projects in 2025/26 and beyond. 79. At 31 March 2025, the general fund reserve includes an unearmarked balance of £9.2 million, representing 2% of the expenditure budget for 2024/2025. 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. 80. The earmarked general fund reserve of £85.1 million includes an earmarked Prudential Investment Fund (Loans Fund Reserve) of £38.0 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. 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 (which resulted in an average contribution of £3.4 million from 2022/23) and the utilisation of the balance of savings from the temporary reduction in the Strathclyde Pension Fund employers’ superannuation contributions during 2024/25 and 2025/26 totalling £8.5 million. Delivery of the council’s Capital Investment Programme is discussed further at paragraphs 83 to 89. 81. The remainder of the General Fund Reserve, £47.1 million, is earmarked for specific purposes such as the supporting the council’s renewal and recovery strategy (£5.2 million) and supporting the medium- term financial planning strategy (£9.3 million). 82. The level of reserves has enabled the council to deliver medium to long-term strategies, fund one-off costs and smooth its core revenue budget requirement. However the Head of Service (Finance) acknowledges that delivering balanced Budgets over the medium-term will be very challenging and will require a range of approaches, including reduced investment in services, further service reform / re-design, income generation, efficiencies from the Sustainable Change Programme, use of council reserves and a level of Council Tax increase that balances inflation against the impact on citizens. 196
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3. Financial management | 36 A new General Fund Capital Investment Programme 2024/25 to 2033/34 is used to inform capital investment and support Council Plan priorities. 83. In February 2024 the Council approved a revised the Capital Investment Programme 2024/25 to 2033/34. The review considered the current Capital Investment Programme and cognisance of subsequent changes, including: • The ongoing impact of construction industry inflation, cost volatility and supply chain issues across the overall Capital Investment Programme; • Reductions in Scottish Government capital grants as detailed in the Local Government Finance Settlement 2024/25; • 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. 84. The review included an assessment of all funding sources over the 10 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 capital programme, is expected to deliver a total programme of £406.459m to 2033/34. Total available funding has been projected at £189.987m. The balance of funding required to deliver the capital programme will be met through prudential borrowing and is anticipated at £216.472m. 85. In both 2022/23 and 2023/24 we reported that there was scope 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. Officers have confirmed that in response to our recommendation, 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 has 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. 86. 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. 197
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3. Financial management | 37 87. 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. 88. The council’s asset management plans include details of lifecycle investment costs required to maintain assets and infrastructure to an appropriate standard that supports service delivery. Progress is reported to Cabinet on a bi-annual basis. The council has classified its assets into six categories: Open Space; Property; Fleet, Plant and Equipment ; Roads, Structures and Lighting; ICT; and Housing. 89. Due to the significant investment planned by North Ayrshire Council over the period to 2033/34, it is projected that the Prudential Investment Fund will be exhausted before the end of the current 10 year Capital Investment Programme. The council acknowledge 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. A review of these budgets was undertaken in February 2024 as part of the General Services Revenue Estimates 2024/25 to 2026/27, to support the delivery of the Capital Investment Programme. An incremental contribution of £0.250 million per annum from 2024/25, increasing to £0.450 million from 2025/26 and £0.500 million per annum from 2026/27 was approved. In February 2025 a further incremental contribution of £0.025 million per annum from 2026/27 was approved. Approximately 19% of planned capital expenditure in both 2024/25 and 2025/26 has been rephased for delivery in later years. 90. The General Services (GS) Capital Investment Programme included a budget of £118.728 million for 2024/25. The Housing Revenue Account (HRA) Capital Investment Programme included a budget of £52.011 million for 2024/25. 91. The final outturn report for GS is an underspend of £0.4 million against a revised budget of £91.379 million, as shown in Exhibit 7 below. The final outturn position for the HRA is an underspend of £2.897m against a revised budget of £41.863m. 198
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3. Financial management | 38 Exhibit 7 North Ayrshire Council – capital expenditure to 31 March 2025 Source: North Ayrshire Council There continue to be challenges in the construction industry that may impact on the council’s capital programmes. 92. Areas of cost risk have been identified by the council across a number of projects. These risks are linked to a number of factors, including cost volatility linked to inflationary pressures; limited availability of contractors, supply chain issues and material shortages which are impacting on tender returns and the cost of materials; delays resulting from interaction with external agencies and regulators; and other contract management issues across a number of projects. 93. Specific projects where cost risks have been identified or are anticipated, include Ardrossan North Shore development, incorporating the new campus which will deliver primary, secondary, and early years provision as well as community use sport, theatre and leisure facilities. Some mitigation has been built into the capital programmes in the form of flexibility budgets, totalling £25 million over the next few years, although it 199
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3. Financial management | 39 is recognised that cost pressures may exceed this provision. Officers have confirmed that these risks will be quantified as individual projects are completed and tendering exercises are finalised, with the impact on the costs of the programme being monitored and reported to Cabinet as appropriate. 94. Total capital investment of £331.483 million from the Council’s General Fund is planned over the period from 2025/26 to 2033/34 and £375.868 million from the HRA is planned over the period from 2025/26 to 2034/35, supporting the four key strategic priorities from the Council Plan. This includes planned expenditure of £64.0 million towards the Ayrshire Growth Deal (AGD) to 2029/30. The total level of AGD investment across Ayrshire will be in the region of £251.5m (including £103m commitments from both the UK and Scottish Governments). 95. The GF Capital Plan includes £111.7 million planned investment in Education. This includes: • £86.8 million for the Ardrossan Campus (see paragraph 96); and • £6.5 million relating to Universal school meals expansion; • £7.5 million relating to schools ICT investment. Other major projects include Roads Improvement/Reconstruction (£34.3 million) and B714 Improvements ((£27.0 million). 96. In a report to Council in June 2025, cost pressures were reported throughout the Ardrossan Campus project which has resulted in a projected final cost for the Ardrossan Campus of £114.6 million which is £27.8 million (32%) above the initial budget allocation of £86.8 million. In particular, a review of project costs identified a significant gap between the cost plans prepared prior to market testing and the actual plans. Action taken to reduce cost pressures in the project included a move away from the Passivhaus building standard under which the buildings’ fabric is superior to most current building standards, to deliver potential energy savings year after year. We are told this is a change that has been made by a number of councils. 97. The Council approved the additional budget provision of £27.8 million to be funded through £4 million additional awarded by Scottish Futures Trust, a re-direction of £7.8 million from existing capital flexibility and additional borrowing of up to £16 million, at an annual revenue cost of £0.912 million per annum. 98. The HRA Capital Investment Plan supports the delivery of 1,641 new homes by 2029 and planned buybacks of 65 units over the next five years, as well as £184.847 million of improvements to existing stock. 200
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3. Financial management | 40 Roads backlog maintenance stands at £38.5 million with a ‘steady state’ requirement for maintaining the roads at present condition of £5.5 million per year. 99. North Ayrshire Council’s roads are the council’s largest community asset. The estimated carriageway maintenance backlog figure for North Ayrshire is currently £38.5m. The latest 2025 Road Condition Indicator (RCI) for the council is 30.6, which signifies that 30.6% of roads should be considered for treatment. This shows a 1.9% positive shift when compared to the 2024 figure of 32.5%. 100. The ‘steady state’ figure for maintaining the roads at present condition is £5.5m per year. The capital budget supported by revenue funding is £4.3 million for 2025/26. At the Council’s budget setting meeting on 26 February 2025 a further £1.0 million was allocated to road maintenance providing a total budget for 2025/26 of £5.3 million. 101. 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. Additional revenue funding will reduce the gap between investment and the ‘steady state’ figure and counter inflationary increases in contractor and material costs. However, it does not contribute towards the challenge of backlog maintenance of £38.5 million. 102. The average annual budget calculated in the models for each authority, to maintain ‘steady state’, excludes any allowance for inflation or discount levels over the next ten-year period. It also excludes the additional costs associated with surfacing works on Arran. The council acknowledge that if does not maintain the above steady state expenditure over the next ten years for carriageway surfacing, then the carriageway asset will deteriorate, resulting in an increase in the overall network RCI. Long term borrowing has increased by 64% in support of the council’s capital programme. 103. A greater reliance on borrowing to fund capital programmes increases the pressures on revenue budgets over the longer term. At 31 March 2025, long term borrowing stood at £377.608 million, an increase of £123.192 million (64%) on the 2024 level of £254.416 million. During the same period, short-term borrowing decreased from £65.151 million to £54.451 million, a decrease of £10.7 million. The reduction reflects the scheduled repayments of debt which matured during the financial year. 201
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3. Financial management | 41 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 and investment strategy. 104. The council remained within its authorised capital financing requirement (CFR) of £541.275 million, with gross external debt being £469.138 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 23.4 per cent for housing and 3.0 per cent 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. 105. The national average ratio of financing costs to net revenue stream in 2023/24 was 23.8 per cent for housing and 5.8 per cent for non- housing. North Ayrshire Council are performing well with the non-housing ratio being around 3 per cent lower than the Scottish average. The rising ratio within the HRA is indicative of the significant capital investment programme as outlined in the Strategic Housing Investment Plan. 106. The Treasury Management Strategy for 2025/26 sets out that the borrowing needs to support delivery of the capital programme will increase to £821.544m by 2030/31 and then reduce annually to 2033/34. This could present a risk to the council because if interest rates were to increase again or remain elevated for an extended period, a higher proportion of revenue spend would be spent on paying interest costs. 107. The council acknowledge this, and it is anticipated that if there is a significant risk of a sharp rise in long and short-term rates than currently forecast, then the portfolio position will be re-appraised with the likely action that fixed rate funding will be drawn whilst interest rates are still lower than they are expected to be in the next few years. 108. The council continues to manage its borrowing through its treasury management and investment strategy. Updates on the investment position 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. There are well-established budget monitoring and reporting processes in place. 109. 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. 202
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3. Financial management | 42 110. 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 managed its financial pressures effectively to date 111. Exhibit 8 shows how the council has managed its financial pressures to date Exhibit 8 Key financial information Budget setting 2022/23 (£m) 2023/24 (£m) 2024/25 (£m) Planned 2025/26 (£m) Budget gap 12.315 19.267 22.574 18.867 Planned to be met via: Savings and flexibilities -9.876 -12.448 -17.562 -8.539 Use of reserves 0.000 -3.410 -5.000 -4.000 Additional council tax / funding -2.439 -3.409 -0.012 -6.328 Actual Savings delivered* -9.876 -12.448 -17.562 -8.539 Reserves Use of / (contribution to) reserves 0.000 -3.410 -5.000 -4.000 Total usable reserves carried forward 135.680 126.340 129.829 General Fund: Earmarked 102.062 84.940 85.088 Uncommitted 8.053 8.445 9.181 Source: North Ayrshire Council’s annual accounts and Council Revenue Plans 203
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3. Financial management | 43 *savings delivered equals savings planned because amounts are top-sliced from departmental budgets Financial systems of internal control were effective. 112. 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 2024/25 Annual Accounts. 113. 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. Internal audit provided a reasonable level of assurance over the council’s framework of governance, risk management and control arrangements during 2024/25. 114. The internal audit service provides members and management with independent assurance on risk management, internal control and corporate governance processes as well as providing a deterrent effect to potential fraud. 115. The internal audit plan was approved by the Audit and Scrutiny Committee in March 2024 with a mid-year change to the plan approved in October 2024. The mid-year revised plan included 17 assignments where an audit output was anticipated with a further 3 unplanned investigations undertaken during the year. At the end of May 2025, 10 of these assignments had been completed, 2 were at draft report stage, 7 were currently work in progress and one had not yet started. The results of the draft reports and work in progress assignments will be reported to a future meeting of the Audit and Scrutiny Committee. 116. Internal audit’s annual report, presented to the May 2025 Audit and Scrutiny Committee, concluded that reasonable assurance can be placed over the framework of governance, risk management and control and that adequate controls were in place and were operating throughout the Council in 2024/25 117. All audit reports finalised during 2024/25 were reported to meetings of the Audit and Scrutiny Committee. The outcomes from the audit work during the year provided mostly substantial and reasonable assurance opinions however five resulted in a limited assurance opinion. These related to: • Education Leavers and Movers – A number of findings were identified including a lack of formal notification procedures, forms not being completed in full and/or on time and a lack of routine 204
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3. Financial management | 44 reviews by school management to identify staff who had left or moved. • Missing Laptops – A review of the arrangements surrounding the delivery and deployment of devices to Lockhart, in August 2021, identified that standard receipting and deployment processes were not adhered to at the time and supporting documentation was no longer available due to staff leaving and a change in the IT case management system. Some devices remain unaccounted for. • Accounts Payable Transaction Testing – Invoice testing identified that a certificate of payment for £3.7 million for a large capital project was paid twice in error and subsequently corrected following notification from the contractor. The review also identified a further 41 potential duplicate invoices totalling £123,282.71 which had not already been identified. The Accounts Payable team have reviewed the potential duplicates and confirmed the value of actual duplicates was £60,294.75 which they are in the process of recovering. • Community Associations – An audit of the arrangements for ensuring that community associations (CA) were complying with the terms of their SLAs, identified that there was no formal process for monitoring compliance with SLAs and evidence of compliance was not always retained by the Council. • HSCP Online Bank Account – The audit identified that purchases had been made from the account that did not adhere to the Council’s procurement processes, the records held for the bank account were incomplete and staff responsible for the management of the account had not completed financial training. The account was held outwith the Council’s corporate bank accounts. 118. A number of actions have been agreed to address these issues. 119. In line with the Public Sector Internal Audit Standards (PSIAS) there is a requirement for the internal audit function to be independently reviewed once every five-years. We reported in 2022/23 that the review of the Council's Internal Audit team was completed by West Dunbartonshire Council and was reported to the Audit and Scrutiny Committee in September 2022. Overall, the assessor was able to provide substantial assurance that the Council's Internal Audit team complies with the requirements of the PSIAS. The council has in place appropriate arrangements for the prevention and detection of fraud and corruption. 120. The council has a range of established procedures for preventing and detecting fraud and irregularity including counter fraud and corruption strategy, whistleblowing policy and procedures, and codes of conduct for members and officers. 205
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3. Financial management | 45 121. A Corporate Fraud Team provides the Council with the capacity to investigate fraud both within and against the organisation. The team received 331 referrals for investigation during 2024/25 (2023/24: 398 referrals). All referrals made to the team are investigated. 359 cases were closed during 2024/25 (2023/24: 385 cases) with results achieved (fraud, error or other recovery/action) in 113 cases. Fraud and error totalling £0.057 million was identified. 122. 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. The latest data sets were submitted to the Cabinet Office in October 2024, with initial matches released in December 2024. Further releases have occurred since December and more are expected throughout 2025. This information has been disseminated to the appropriate teams across the council for investigation as matches are released. Data was uploaded in support of the ReCheck exercise in January 2025, with matches released back to the Council in January 2025 and again in March 2025. 123. 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. 206
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4. Financial sustainability | 46 4. Financial sustainability Financial Sustainability means being able to meet the needs of the present without compromising the ability of future generations to meet their own needs. Conclusion The council approved a balanced budget for 2025/26, which included a council tax increase of seven per cent (£5.0m) and the use of £4.0 million of reserves, non-recurring savings of £9.5 million from reduced pension contributions and further savings of £4.8 million across Directorates. An extensive programme of engagement and consultation with communities was undertaken that helped shape the 2025/26 budget. Significant risks exist to achieving financial balance in 2025/26. These include pay awards in excess of the budgeted contribution and the financial challenges facing the IJB. The latest MTFO which covers the three-year period to 2027/28 has identified a structural funding gap of £46.7 million. The underlying service cost base is not sustainable and reserves will be depleted over the longer term unless future recurring savings are made through transformation of services, service reduction, service withdrawal and income generation. In 2024/25 the council released 85 staff which delivered approximately £2.5 million recurring savings. A further 45 staff reductions are anticipated in 2025/26. Discussions are also currently ongoing on how efficiencies could be realised through delivering council services differently in partnership with others. Elected members will need to make difficult decisions on how the use of resources is prioritised going forward, within its recurring funding. High absence rates continue to be reported in areas which require cover arrangements, specifically teachers and waste collection incurring additional costs of £2.6 million. 207
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4. Financial sustainability | 47 The council approved a balanced budget for 2025/26. To achieve this there council tax was increased by seven per cent (£5.0m) and the use of £4.0 million of reserves was approved. Non-recurring savings of £9.5 million from reduced pension contributions and savings of £4.8 million across directorates were also required. 124. . The council, alongside other local authorities, is navigating substantial fiscal pressures that are projected to widen budget gaps in the coming years. In its January 2025, Local Government in Scotland Financial Bulletin 2023/24, the Accounts Commission noted that: • In 2023/24, councils’ total revenue and income fell, including another real terms decrease in revenue funding from the Scottish Government; • In 2023/24, capital funding remained constrained, with councils borrowing more and managing a range of complex funding models; • In 2023/24, usable reserves, which are those that can be used to support service delivery, reduced and most are already committed for specific purposes; and • Councils need to intensify transformation activity, progressing at scale and pace to ensure their financial sustainability. 125. In its May 2025 Local government budgets 2025/26 briefing, the Accounts Commission commented that councils must cover a budget shortfall of £647 million in 2025/26 and that whilst councils have partly met this shortfall through service savings and increased charges for services, continuing to use reserves and make one-off savings isn’t sustainable. The Accounts Commission also commented that longer-term change in the way services are delivered is happening but must accelerate. 126. Against this increasingly challenging financial environment, the Council were presented in February 2025 with a balanced budget for 2025/26 of £459.065 million. To achieve this there council tax was increased by seven per cent (£5.0m) and the use of £4.0 million of reserves was approved. Non-recurring savings of £9.5 million from reduced pension contributions and further savings of £4.8 million across Directorates were also required. Total funding also includes an annual uplift of 5% to fees and charges. 127. Directorate savings of £4.8 million are required in 2025/26. In addition to £2.254 million savings which had already been built into the budget, the excess of expenditure over funding produced a further savings requirement of £2.547 million for 2025/26. Ten savings proposals were included in the budget papers for members approval to deliver a balanced budget. New savings proposed included realignment of teaching resources of £1.174 million relating to a reduction in teacher numbers of 208
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4. Financial sustainability | 48 28.0 FTE, £0.305 million from a review of KA Leisure and £0.211 million from a 5% increase in fees and charges (excluding school meals). 128. North Ayrshire Council's anticipated Scottish Government funding support, as distributed, for 2025/26 is £375.310 million. The Local Government Settlement resulted in an increase of £7.254 million in core grant funding (2.05%) when compared to the 2024/25 settlement. The Settlement did not include any funding to support the increase in employer national insurance contributions that came into effect from April 2025. For the council the total cost of this policy change in relation to direct staff is £6.618 million (including the HSCP). 129. Council Tax income represents around 16% of the council’s funding. The MTFP includes an increase of 7% in Council Tax in 2025/26, with a further 5% increase planned for 2026/27 and 2027/28. Councils have the power to vary the Council Tax charge for second homes from the current 100% charge, to include a premium of up to a further 100% of the applicable Council Tax charge. Following a period of consultation during 2024/25, North Ayrshire Council at its meeting on 12 February 2025 approved the application of the 100% premium. The council has approximately 1500 second homes, almost all of which are on Arran and Cumbrae. There are risks exist to the council achieving the 2025/26 budget. 130. There are a number of significant financial risks that the council is managing for 2025/26. The first relates to the risk of the 2025/26 pay award being agreed at a level in excess of the budgeted 3% contribution. This has now been settled at 4% for 2025/26 (excluding Teachers who have not yet settled). Without any further Scottish Government support this will have a material impact on the council’s finances. 131. The second risk relates to the IJB’s ability to address budget pressures through the delivery of equivalent savings and with the use of any available reserves. The council provided additional financial support to the IJB of £2.036 million in 2024/25 equivalent to the level of overspend on Council services. At 31 March 2025, the IJB held no unearmarked reserves and £3.2 million of earmarked reserves which are anticipated to be drawn down during 2025/26. The IJB set a balanced budget for 2025/26 on 20 March 2025. This did not include any draw on reserves but did include the approval of £4.019 million of savings to achieve financial balance. 132. The position reported to Cabinet in August 2025 indicates that the IJB project an overspend of £5.187 million (1.5%) on council services in 2025/26, reduced to £1.175 million through identified financial recovery actions. A Finance Working Group which includes the council’s Head of Service (Finance), meets monthly to facilitate increased oversight and scrutiny of the financial position and transformation programme. The 209
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4. Financial sustainability | 49 current planning assumption for years 2026/27 and 2027/28 from the Council is that the financial pressures facing the IJB will be met by savings and recovery actions. The council’s latest medium-term financial outlook (MTFO) which covers the three-year period to 2027/28 has identified a structural funding gap of £46.7 million (including the HSCP). 133. The council has well-established processes for setting and monitoring budgets. Its General Fund Long Term Financial Outlook (LTFO) is central to the Council’s strategic financial framework and establishes a sound basis for the development of the Medium-Term Financial Outlook (MTFO) and subsequent annual budgets, enabling the Council to address the challenges it faces and align resources to key priorities in the Council Plan. The LTFO ensures that strategic initiatives which require long-term revenue and capital commitments are properly incorporated into the financial planning process. 134. The latest LTFO 2024/25 to 2033/34 was presented to the Council in December 2023 and identifies an estimated funding shortfall of £127 million over the next ten years which the Council requires to address. This includes anticipated pressures in relation to the HSCP and is based on best estimates with sensitivity analyses highlighting the implications of changes to the underlying assumptions. While the council currently has reserves to support it’s fundings gaps , the reserves can only be spent once. The cost base is not sustainable and there is a risk to the longer term financial sustainability of council services. 135. The latest MTFO for the period 2025/26 to 2027/27 was presented to the Council in October 2024, draws on the same data and projections as the LTFO and has identified a number of specific financial challenges in relation to the availability of Scottish Government funding for local authorities, the impact that anticipated demographic profile and other demand and cost pressures will have on the Council’s cost base, and the strategies available to address the resultant funding gap. This has identified a structural funding gap of £46.7 million (including the HSCP) which must be addressed as part of the Council’s Medium-Term Financial Plan. Given the current financial landscape, future savings must be made through the urgent transformation of services to bridge this gap. 136. Key assumptions within the MTFO include: • Workforce costs - The current planning assumption across the medium and long-term is for the Council funding element of pay awards to remain at a 3% increase each year. Also included is the planned decrease to Strathclyde Pension Fund contribution rates from 19.3% to 6.5% for 2025/26 before increasing to 17.5% from 2026/27. • Local Government Funding - The LTFO forecast includes a flat cash funding projection over the duration of the next 2 years followed by funding 210
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4. Financial sustainability | 50 reductions from 2027/28 as the impact of the declining North Ayrshire population demographic reduces the proportionate share of national resources. For 2025/26 Council tax was projected at a 5% increase (actual 7%) and 3% for 2026/27 and 2027/28. • Reserves - Approved reserves to support the budgets are £4 million in 2025/25, £3.5 million in 2026/27 and £2.8 million in 2027/28. 137. The anticipated funding gap position of the Council (including the HSCP) over the period is provided in Exhibit 9 below. This does not incorporate any planned use of reserves noted above. Exhibit 9 MTFO - budget gap 2025/26 - 2027/28 2025/26 £’million 2026/27 £’million 2027/28 £’million Total gap £’million General Fund Gross Funding gap 13.2 7.4 7.9 28.5 HSCP Pressures 5.4 6.4 6.4 18.2 Total 18.6 13.8 14.3 46.7 Source: North Ayrshire Council • HSCP: Information on anticipated pressures and proposed savings options are shared with North Ayrshire Council to inform the allocation of resources delegated to the IJB. The level of contribution to the HSCP is based on an anticipated “flat cash” planning assumption where the HSCP address budget pressures through the delivery of equivalent savings and with the use of any available reserves. The HSCP have identified financial pressures of £18.2 million over the next 3 years. 138. An updated MTFO is expected to be presented to the Council in December 2025 following confirmation of the Scottish Budget for 2026/27 and the Local Government settlement. An extensive programme of engagement and consultation with communities was undertaken as part of the 2025/26 budget process that set out the scale of the financial challenge facing the council. 139. Before the Council considered the range of budget proposals and the level of Council tax for 2025/26, an extensive programme of engagement 211
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4. Financial sustainability | 51 and consultation with communities was undertaken that set out the scale of the financial challenge facing the council. The engagement ran from 10 October 2024 to 21 November 2024 and included surveys across six main themes as well as in person and online focus groups. The six main themes each included a number of proposals which included: • Realign the level of teaching resource across North Ayrshire schools (£2.0 million saving each year) • Review of School Crossing Patrollers (£0.3 million saving in 2025/26) • Apply a 100% Council Tax Premium on Second Homes (£1.5 million additional revenue in 2025/26) • Increase in the level of Council Tax (the consultation sets out the annual Council tax bill based on increases from 1% to 10% with additional revenue of £0.6 million to £6.5 million) 140. The programme resulted in 4,461 responses across the six themes, with more detailed feedback on proposals and engagement with community groups across North Ayrshire. The engagement has 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 12 February 2025, for elected member consideration in advance of setting the Council Budget on 26 February 2025. The Transformation Board provides the strategic integration and ownership of the council's transformation plans. 141. Our May 2025 Best Value thematic report outlined at Section 2, identifies that good progress continues to be made in developing the Sustainable Change Programme and that financial efficiencies generated from the programme will help address budget gaps over the medium-term. The Transformation Board continues to look for new projects that have the potential to deliver a material financial benefit to the council. The current workstreams include: • Use of Land and Property Assets including commercial and non- commercial property - This includes a major operational property review within the Irvine locality and a programme to maximise all commercial property revenue; • Transport and Travel and decarbonisation of the Council fleet; • Sustainability initiatives including major solar renewable energy investment in Nethermains and Shewalton; 212
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4. Financial sustainability | 52 • Digital Initiatives – Including Accessing Our Council and Financial Inclusion services, maximising digital opportunities around support and contact; and • A range of Service reviews including Waste Services, Housing Services, Learning resources, Additional support needs, Economic Development, Growth and Regeneration and the Brighter Pathways programme led by the HSCP which looks at high cost external residential placements for children and considers alternative settings of care to deliver better outcomes and reduce cost. 142. Officers are clear however that future recurring savings will not be sufficient from transformation. National initiatives through the Improvement Service and Digital Office could also provide further opportunities for councils to take a collective approach to areas of service delivery but these are at an early stage. The Council also continues to explore opportunities for delivering services working with partners. This is discussed further in the Best Value section of the report. In 2025/26 the workforce is projected to reduce by 45.2 FTE’s. 144. During 2024/25 the Council continued to progress a Voluntary Early Release (VER) programme. This process has considered the scale of the financial challenges and an assessment of the impact on service delivery and associated costs of exit for those staff who have volunteered for consideration. A total of 85 staff were released by 31 March 2025 which delivered approximately £2.5 million recurring savings. 145. At 1 April 2025, North Ayrshire Council employed 7,621 staff, equivalent to 6,451 FTE posts. Anticipated workforce implications associated with the MTFP are summarised in Exhibit 10 below. Exhibit 10 MTFP – anticipated workforce implications 2024/25 – 2027/28 Category 2025/26 FTE 2026/27 FTE 2027/28 FTE Operational budget adjustment (8.0) (5.0) - Previously approved savings (0.7) - - Pressures and growth 6.0 - - New savings options (42.5) (2.3) -- Total workforce implications (45.2) (7.3) Source: North Ayrshire Council 146. In 2025/26 the workforce is projected to reduce by 45.2 FTE’s. The reduction will be managed through natural attrition, vacancy management, 213
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4. Financial sustainability | 53 through the Vacancy Scrutiny Panel, redeployment and, where appropriate, voluntary early release. High absence rates continue to be reported in areas which require staff cover arrangements, specifically teachers and waste collection. In 2024/25 this resulted in additional costs of £2.6 million. 147. In 2024/25, the average days lost through sickness increased, per FTE to 12.76 days (10.82 days in 2023/24). This is above the council’s target rate of 10.47 days. High absence rates continue to be reported in areas which require cover arrangements, specifically teachers (costing £1.952 million) and waste collection (costing £0.693 million). Waste Services report cumulative sickness absence rate of 30.42 days per employee from April 2024 to March 2025. Overtime costs of £1.05 million were incurred by the HSCP to provide absence cover requirements. 148. Officers have confirmed that during 2024/25, increased emphasis has been managing sickness absence through improved data recording and reporting, increasing monitoring and re-education of managers. They have highlighted: • 64% of Services/Sections either met their absence target or improved their days lost per FTE from 2023/24; • The Council absence position improved at Q4 2024/25 compared to Q4 2023/24; • There was a reduction in the number of long term absence cases in 2025 compared to 2024; • A higher percentage of the workforce had no absence up to Q4 2024/25 compared to the previous year; • The Council has the joint 4th lowest level of absence for both the Teaching and Non-Teaching categories within their Local Government Benchmarking Framework family group 2023/24. Additionally, the Council’s figure is lower than the Scotland overall absence figure in the Non-Teaching category; and • High levels of engagement have been experienced with attendance at the HR absence sessions for line managers. 149. A dedicated resource has been recruited to monitor and review the absence management process in waste management. The absence rates reflect an improving position, however they are still above target rates. Resources out-with waste collections have received HGV training to help provide cover for collections. An overall review of the waste service in light of legislative changes and current service demands is ongoing. 214
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5. Vision, leadership and governance | 54 5. Vision, leadership and governance Public sector bodies must have a clear vision and strategy and set priorities for improvement within this vision and strategy. They work together with partners and communities to improve outcomes and foster a culture of innovation. Conclusion There is openness and transparency within the council together with appropriate governance and decision-making arrangements. There are appropriate governance and decision-making arrangements in place at the council. The council offers a training programme for members in addition to e- learning and the opportunity to attend Improvement Service events and webinars. Partners should review the range of Ayrshire Growth Deal papers considered ‘in private’. There is openness and transparency in decision-making by the council. 150. The council has implemented several measures to ensure that the decision-making processes are accessible to the public. These include the live streaming of meetings and the publication of meeting agendas, papers, and video recordings on the council website. 151. The council publishes its Annual Accounts on its website, which include a Management Commentary. This 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. 215
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5. Vision, leadership and governance | 55 152. The council website also provides the public with a wide range of corporate information including details of the Council Plan and performance, equality, and diversity reporting. There are appropriate governance and decision-making arrangements in place at the council. 153. Members and management of the council are responsible for ensuring effective governance arrangements are in place, to ensure that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded. Effective governance arrangements also enable the council to monitor how effectively it is using its resources. 154. 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 offers a training programme for members in addition to e-learning and the opportunity to attend Improvement Service events and webinars 155. 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. 156. A report on development support provided to members during the period September 2024 to August 2025, on attendance rates, feedback from current activities and on future planned development was presented to the August 2025 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. The number of internal development sessions held between September 24 – August 25 was 18 sessions. Individual member attendance varied between attendance at 16 sessions to attendance at none. 157. The report also noted that members have access to e-learning modules on the iLearn system and although take up of this learning is low although, one member completed eleven courses. These courses included Cyber Security, Procurement and Transformation. Overall there were 155 separate Member attendances at development sessions between Sep 24 and Aug 25. These figures include those aimed at specific committee members (i.e. Appeals and Planning Committees). 158. The Council offers members an annual 1-2-1 Personal Development Plan discussion to discuss their development needs. The report notes 216
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5. Vision, leadership and governance | 56 that whilst take up for this is historically low several members have approached Learning & Organisational Development with specific requests which have been actioned. Progress with the Ayrshire Growth Deal is reported but the AEPB considers many papers in private 159. The Economy and Fair Work Inquiry report notes that in its 2023 report, Scotland's City Region and Growth Deals: Progress of the 2020 audit report recommendations, Audit Scotland highlighted the need for transparency, and that information should be available to the public so that people can see why particular decisions on specific growth deal projects were made. The report also notes that whilst deals have made good progress in raising public awareness, this is not consistent across all deals and in some cases decisions and information on project selection are hard to find in council committee papers. 160. The reporting process within the Council for the Ayrshire Growth Deal progress involves routine capital and revenue monitoring through the Capital Programme Assets Group and revenue budgetary control reporting to committee. There are also special bi-monthly Executive Leadership Team meetings. Progress reports are also submitted to the Project Management Office (PMO) which sits within East Ayrshire Council. These reports are provided monthly, quarterly, bi-annually and annually and the PMO collates the returns from the three Ayrshire councils and reports to the Ayrshire Economic Partnership Board (AEPB). 161. Our review of available agendas and reports for 2024 and 2025 AEPB meetings found that whilst some agendas are available, many of the papers are not because ‘information contained within the following report is confidential information within the meaning of Section 50A of the 1973 Act.’ One of the papers not available is the AGD Annual Report 2024/25. The council representatives on the AEPB should review the range of reports it discusses in private and consider whether they feel it is getting the balance right between open and closed consideration of items. 217
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6. Use of resources to improve outcomes | 57 6. Use of resources to improve outcomes Public sector bodies need to make best use of their resources to meet stated outcomes and improvement objectives, through effective planning and working with strategic partners and communities. Conclusions There has been regular reporting of the council’s progress with its Council Plan priorities. Good progress has been made in completing actions for year two of the plan however the council does not set out in advance what criteria have to be met for an ‘on target’ judgement to be made for each action. Of the 33 LGBF PIs directly linked to Council Plan 2023-2028 priorities, seventeen priority PIs (52%) were within the top two quartiles for 2023/24. The council’s performance, taken from national benchmarking data, shows an improving position year-on year, but overall performance relative to other councils has remained constant. HMIe reported positively on how the council supports schools to improve the quality of education. There has been regular reporting of the council’s progress with its Council Plan priorities. Good progress has been made in completing actions for year two of the plan however the council does not set out in advance what criteria have to be met for an ‘on target’ judgement to be made for each action. 162. Annual performance reporting to Cabinet in September 2025 combined three key Council Plan and corporate performance reports: • The Council Plan Six Monthly Progress Report (1st October 2024 to 31st March 2025) • The Annual Performance Report 2024/25 218
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6. Use of resources to improve outcomes | 58 • The Local Government Benchmarking Framework (LGBF) - Analysis of June 2025 Data Release 163. The latest six-monthly Council Plan progress report for the period 1 October 2024 to 31 March 2025 highlights that of the 46 actions in the Plan, 45 were assessed as on target and only one was assessed as slightly 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). 164. The actions within the Council Plan are high level and mapped to the four priorities and strategies. Progress on the actions is explained within the narrative of the six-monthly report as well as in the “Performance Summary” section, with RAG status recorded in the “Action Tracker” at the end of the report. In the narrative, a “Next Steps” section is included under each priority to record improvement actions. Officers have confirmed that this provides an opportunity to immediately respond to, or pre-empt areas for improvement and development without waiting for strategies to be amended or for actions to become off-target. 165. However by recording areas identified for improvement, this does not necessarily corroborate that the 46 areas are ‘on track’. We reviewed background information on progress recorded in Pentana for a sample of eight ‘on target’ actions and concluded that for two of the sample, CP24 - Ensuring an inclusive, fair, rights-based and asset-based approach in our work, and CP41 - Using dynamic data and lived experiences to inform decision making, there was a lack of transparency in how that conclusion was reached. 166. 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. Recommendation 3 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. 167. Of the 26 performance indicators in the Council Plan: • 13 were on target • 5 were slightly adrift of target • 6 were significantly adrift of target 219
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6. Use of resources to improve outcomes | 59 • 2 were assessed as data not known/available. 168. The following six indicators were significantly adrift of target: • CP_37 Average total tariff score of pupils living in SIMD 20% most deprived areas - actual is 664.3 against a target of 714 for 2023 to 2024 (most recent data available). The endeavour to offer candidates a wider breadth of learning experiences has included more courses from a wider vocational range of courses and awards that sometimes are graded at the same SCQF level as National Qualifications courses but amass a smaller number of tariff points in the Insight scale. • CP_06 Average tariff score: All Leavers - actual is 840.8 against a target of 908 for 2023 to 2024 (most recent data available). The council notes that for all SIMD deciles except SIMD 10 (for which they have a very low number of learners), they continue to outperform national figures. • CP_38 Average total tariff for care experienced Young People - actual is 355 against a target of 465. The service continue to focus on improving this benchmark of achievement for care experienced learners. • CP_40 Number of new build housing units reaching completion (all tenures) (actual not cumulative) - Actual is 371 against a target of 396. The council note that they have limited influence over the delivery of new build housing constructed by private housing developers to meet the total 396 homes target. • CP_30 Total installed capacity of low carbon heat and electricity generation across the council's estate - Actual is 17,630 against a target of 28,499. The council had aimed to have both solar PV farms energised in December of 2024, however this has not been possible due to extended development time required by the Distribution Network Operator. • CP_31 % of total household waste that is recycled (calendar year as per SEPA) (LGBF) - Actual is 52.8% against a target of 56%. This has reduced since 2023 as a result of the introduction of the new SEPA guidance regarding the requirement for Waste Upholstered Domestic Seating to only be sent for incineration, which has negatively affected the amount of bulky waste that can be recycled. 220
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6. Use of resources to improve outcomes | 60 Of the 33 LGBF PIs directly linked to Council Plan 2023- 2028 priorities, during 2023/24, seventeen priority PIs were within the top two quartiles. 169. The council participates in the Local Government Benchmarking Framework (LGBF). The framework 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. In analysing the LGBF data we recognise that local policy choices about council services and strategic priority areas will have an impact on the results. 170. The most recent National Benchmarking Overview Report 2023/24 by the Improvement Service was published in June 2025. The results were considered by the Cabinet in September 2025 along with council specific commentary on where improvement activity is planned or already underway. The council has identified 33 key LGBF measures that relate directly to Council Plan priorities, 12 of which are included in the Performance Management Framework and reported six-monthly. The information reported to members records that: • During 2023/24, 17 priority PIs were within the top two quartiles. These include proportion of the highest paid 5% of employees who are women, gender pay gap and percentage of invoices sampled that were paid within 30 days. • Over the short term (comparison with previous year), performance has improved for 23 (69.7%) and declined for 10 (30.3%). Rank has improved for 18 (54.5%), declined for 11 (33.3%), and stayed the same for 4 (12.1%). Quartile has improved for 8 (24.2%), declined for 6 18.2%), and stayed the same for 19 (57.6%). • 30% of long term indicators (10 years or most recent data available) have improved, 33% have declined and 37% have stayed the same. The council’s performance, taken from national benchmarking data, shows an improving position year-on year but overall performance relative to other councils has not improved. 171. The 2023/24 LGBF data on the council, published by Improvement Service in June 2025, shows that, of the 107 indicators reported to date that are relevant to the council, 61 (57 per cent) of these have improved over time since the base year. Over the most recent year, 44 (42%) have improved. 172. . However, the number of indicators in the top two quartiles has remained at 50 per cent from the base year to 2023/24 (exhibit 11). These 221
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6. Use of resources to improve outcomes | 61 results indicate an improving position year-on year but overall performance relative to other councils has remained constant. Exhibit 11 Proportion of indicators in the top two quartiles from the base year to 2023/24 Source: Improvement Service – LGBF 2023/24 • Childrens Services: Of the indicators in the area, the council is in the top two quartiles in 31 per cent of these, down from 47 per cent in the base year. The council continues to rank significantly above both the family average and the national average in cost per primary pupil and cost per secondary pupil. The council is also below both the family average and the national average in the % of P1, P4 and P7 pupils achieving expected CFE levels in both Literacy and Numeracy. North Ayrshire’s school attendance rate of 89.1% in 2023/24 reflects a slight improvement from the previous year but still ranks among the lowest in Scotland (5th= lowest). Persistent absence remains a critical challenge for North Ayrshire, with 37.9% of pupils missing more than 10% of possible attendances in 2023/24, which is the highest rate in Scotland and is significantly higher than the Scotland-wide figure of 31.4%. • Adult Social Work Services: Since the base year, the council’s top two quartile position relative to others has increased from 0 per cent to 36 per cent. However, the council continues to rank significantly below both the family average and the national average in the number of days people spend in hospital when they are ready to be discharged, and Self- Directed Support spend on adults as a % of total social work spend. 173. Given the service demand and cost pressures facing councils it is unlikely that they will be able to maintain performance across all the services they currently provide. This means that councils will need to 222
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6. Use of resources to improve outcomes | 62 make increasingly difficult choices about what their service and performance priorities are. 174. North Ayrshire Council will continue to use the LGBF data alongside its own performance management framework and its engagement with its communities to assess its local performance and priorities. This will provide it with a breadth of data to help inform and identify where improvements and better outcomes for its communities can be achieved. Publication of the LGBF forms part of each council’s statutory requirements for public performance reporting. HMIe reported positively on how the council supports schools to improve the quality of education 175. A local area network (LAN) of auditors and inspectors who cover the Council’s activities met during the year to share intelligence, to ensure the scrutiny of the councils is targeted and proportionate in relation to identified risks and to avoid duplication of coverage. HMIe is a member of the LAN. 176. In June 2024, His Majesty’s Chief Inspector of Education (HMIe) launched a national thematic inspection of Scotland’s local authorities. This inspection focused on how effectively local authorities support school improvement with a focus on how they support schools to improve the quality of education. All 32 local authorities were inspected between September and October 2024. In September/ October 2024, a team of inspectors from Education Scotland visited North Ayrshire Council. Findings specific to North Ayrshire were generally very positive, including: • The Quality Improvement Framework (QIF) provides clear guidance on self-evaluation, planning, and reporting, ensuring consistency; • Strong leadership and collaboration foster trust, enabling honest discussions and tailored support for schools; • A rigorous quality improvement cycle includes school visits, data analysis, and peer collaboration; • The Professional Learning Academy (PLA) offers structured, in- school support, including “in residence” training; • A strong culture of professional challenge and support ensures accountability while fostering positive relationships; 177. Local recommendations for future consideration were to: • Further strengthen learner involvement in school evaluation and planning; 223
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6. Use of resources to improve outcomes | 63 • Enhance cross-sector collaboration – expand peer evaluation, subject networks, and transition links between primary and secondary schools; and • Enhance systematic evaluation of impact of professional learning to support long-term effectiveness. 178. Officers have confirmed that these local recommendations will be incorporated into the Education Service Improvement Plan from session 2025/26 onwards. 224
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Appendix 1 | 64 Appendix 1 Action plan 2024/25 2024/25 recommendations including Best Value (BV) Thematic Issue/risk Recommendation Agreed management action/timing 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. A large number of audit adjustments were required to the financial statements to correct misstatements identified from the audit. In particular, we identified misstatements of £82.374 million in the unaudited Annual Accounts which arose as a result of errors in the classification and valuation of Property, Plant and Equipment. This is outwith the norm following an audit and has added additional pressure for the audit team and council staff in concluding the audit. Risk: The deadline of 30 September for concluding the audit is not achieved. The council should review its arrangements for preparing the Annual Accounts. This should include a review of capital accounting processes and procedures. (Exhibit 2) Accepted 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 225
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Appendix 1 | 65 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. Risk: There is a risk that asset values are overstated. An impairment review should be conducted whenever there is an indication that an asset might be impaired such as physical damage, obsolescence or restructuring. The existence of an impairment indicator may also suggest that the remaining useful life needs to be adjusted even if no impairment loss is recognised. (Paragraph 23) Accepted 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 226
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Appendix 1 | 66 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. Risk: There is a lack of transparency in how progress is assessed for Council Plan actions. 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. (Paragraph 166) Accepted Management response: 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 227
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Appendix 1 | 67 BV1. Transformation savings fall significantly short of the savings required 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. Accepted Management response: It is recognised that the level of financial efficiencies should be commensurate with the scale of the financial challenges. Further work will be progressed as part of the council’s medium-term financial planning to set out clearly how the council plans to address budget gaps through further transformation and reform activity and through a broader package of measures, including areas of service review and possible reduction, opportunities for further revenue generation and an ongoing planned use of council reserves. Responsible officer: Head of Service (Financial Services) Actioned by: 31 March 2029 BV2. Public reporting on progress with transformation 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. Accepted Management response: The development of more public facing material will be produced to demonstrate the council’s progress on the Sustainable Change Programme. This will include use of the council’s new website to further promote activity and the progress being made to address the financial challenges. Responsible officer: Head of Service (Financial Services) Actioned by: 30 September 2025 228
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Appendix 1 | 68 2023/24 agreed management actions where action is still outstanding Issue/risk Recommendation Agreed management action/timing 1. Asset register – fully depreciated assets The asset register included around 840 assets which were fully depreciated with an original cost and accumulated depreciation of £57.226 million. Where assets are no longer in use they should be formally scrapped or sold. Significant assets continuing in use should be revalued and depreciated over the remaining useful economic life. Where significant fully depreciated assets are still in use they should be revalued and depreciated over their remaining useful economic life. Other assets should be considered for disposal. The council should obtain evidence at least annually to confirm that assets on the asset register remain in use. Ongoing A review of fully depreciated assets was carried out during 2024/25 and items with a value of £27 million were removed from the asset register where appropriate. A further review will take place in October 2025 in conjunction with services to update valuations and useful economic lives as required. We will monitor full implementation of this recommendation as part of our 2025/26 audit. 2. Sickness absence High absence rates were reported in areas which require cover arrangements, specifically teachers and waste collection. In 2023/24 this resulted in additional costs of £1.980m associated with mandatory cover for teacher absence. There was also a £0.653 million overspend in employee costs for Waste Services. The statutory nature of the service requires additional resources to cover unforeseen absences. The effectiveness of existing measures to reduce absence levels should be assessed to ensure they are appropriate and can deliver improved attendance at work. Ongoing During 2024/25, significant emphasis has been placed on strengthening data interrogation, improving recording and reporting, increasing monitoring and re-education of managers, and that this has been demonstrated through an improved council absence position improved at Q4 2024/25 compared to Q4 2023/24. See paragraphs 147 to 149. We will monitor full implementation of this recommendation as part of our 2025/26 audit. 229
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Appendix 1 | 69 2023/24 agreed Best Value (BV) thematic actions where action is still outstanding Issue/risk Recommendation 2024/25 update BV1. 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. Risk: There is a risk the council may not be utilising opportunities for shared services and collaboration opportunities across partner organisations. The council should explore further where it can work together with partners to share services and increase collaboration. Accepted Management response The Medium-Term Financial Planning process for 2025/26 to 2027/28 will include the exploration of further opportunities for sharing services and collaboration across partner organisations. Responsible officer Mark Boyd Actioned by 31 March 2026 BV2. Measuring the impact of workforce planning There is scope for the council to draw upon the information it already collects to develop a performance dashboard to monitor and inform future workforce planning practice. Risk: There is a risk that the workforce planning information the council already collects is not being used to full effect. The council should develop a performance dashboard to provide a user-friendly overview of the impact of its workforce planning. This could help to inform future workforce planning. Accepted Management response A performance dashboard will be developed to monitor and inform future workforce planning. Responsible officer Fiona Walker Actioned by 30 September 2025 230
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Appendix 1 | 70 2022/23 agreed management actions where action is still outstanding Issue/risk Recommendation 2024/25 update Dormant trusts Six charitable Trusts have been dormant for 3 years or more. There is no clear plan on how to bring the Trusts back in to use. This indicates that the Trusts are not meeting the requirement of public benefit. Risk: The Trusts do not meet the requirement of public benefit. The body should ensure all Trusts have adequate governance documentation enabling grants to be issued. The Trust should also be suitably advertised. Ongoing North Ayrshire Council continues to promote the various funding sources, trusts and bequests available for distribution, ensuring that our staff teams, partners and communities are aware of the available financial supports. This is a long term piece of work and part of a strategic aim to ensure coordination of funding support across council services is clear and consistent. We will review this further as part of our 2025/26 audit. 231
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Appendix 2 | 71 Appendix 2 Supporting national and performance audit reports Report name Date published Local government budgets 2024/25 15 May 2024 Scotland’s colleges 2024 19 September 2024 Integration Joint Boards: Finance and performance 2024 25 July 2024 The National Fraud Initiative in Scotland 2024 15 August 2024 Transformation in councils 1 October 2024 Alcohol and drug services 31 October 2024 Fiscal sustainability and reform in Scotland 21 November 2024 Public service reform in Scotland: how do we turn rhetoric into reality? 26 November 2024 NHS in Scotland 2024: Finance and performance 3 December 2024 Auditing climate change 7 January 2025 Local government in Scotland: Financial bulletin 2023/24 28 January 2025 Transparency, transformation and the sustainability of council services 28 January 2025 Sustainable transport 30 January 2025 A review of Housing Benefit overpayments 2018/19 to 2021/22: A thematic study 20 February 2025 Additional support for learning 27 February 2025 Integration Joint Boards: Finance bulletin 2023/24 6 March 2025 Integration Joint Boards finances continue to be precarious 6 March 2025 General practise: Progress since the 2018 General Medical Services contract 27 March 2025 Council Tax rises in Scotland 28 March 2025 232
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North Ayrshire Council 2024/25 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.5.0 233
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