Special A&S Report and Appendices - Revenue Budget 2025-26
North Ayrshire Council · 15 June 2026
Back to Audit and Scrutiny Committee — 15 June 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
NORTH AYRSHIRE COUNCIL 15 June 2026 Audit and Scrutiny Committee Title: Call In: Revenue Budget 2025/26: Financial Performance to 31 March 2026 Purpose: To allow the Committee to consider a call-in request in respect of the decision taken by Cabinet at its meeting on Tuesday 2 June 2026 advising of the financial performance for the Council for 2025/26. Recommendation: That the Committee considers the terms of the call-in and agrees, or otherwise, to make a recommendation to Cabinet. 1. Executive Summary 1.1 In terms of the Scheme of Administration (Section 5), the Audit and Scrutiny Committee has a remit to consider call-in requests and invite at least one of the Members who has requested the reference to call-in to attend the Committee to explain the request. 1.2 This report sets out the background to a call-in request in respect of the decision taken by Cabinet at its meeting on 2 June 2026 in relation to the report on the financial performance for the Council 2025/26. 2. Background 2.1 The Cabinet, at its meeting on 2 June 2026, considered a report on the financial performance for Council 2025/26. Cabinet amended the recommendation to the report by determining to allocate £1.496m of underspend to the 26/27 revenue budget with the funds to be used to create an Our Places, Our Communities fund designed to benefit all North Ayrshire communities with details of the fund being brought to council on the 24th of June for debate and approval. 2.2 A request was received in terms of the call-in procedure set out in the Council's Scheme of Administration and Standing Orders, that the Audit and Scrutiny Committee examine the decision taken by the Cabinet. 2.3 The call-in request, which was signed by Councillors Cullinane, Foster and Montgomerie is in the following terms: - Reason for call-in “In passing its budget, the Council set Council Tax bands at a level required to fund its
Page 2
expenditure requirements, including prioritising investment in areas such as education and roads. The £1.496million underspend should therefore not be spent on another of the administrations pet projects, particularly when the evidence of the last four years shows that these pots of money are not used in a timeous manner. Instead, the underspend should be returned to council taxpayers.” Desired Outcome “That the £1.496million allocated to an ‘Our Places, Our Communities fund’ be re- allocated to provide a Council Tax rebate, reflecting the fact that our expenditure requirements for 2026/27 have already been funded. Although this outcome proposes a Council Tax rebate, we acknowledge officers' advice that as matters relating to setting Council Tax levels are reserved to Council and that for this outcome to be implemented it will require a decision of Full Council, including the suspension of 15.5 and 25.1 of Standing Orders Relating to Meetings and Proceedings of the Council, as Council Tax was set within the last six months. The Audit & Scrutiny Committee is asked to accept the call in and recommend that the matter is referred by Cabinet to Council for further consideration and determination.” 2.4 A copy of the original report presented to Cabinet on 2 June 2026 and the relevant extract of the minute are attached as Appendix 1 to this report. A briefing note has been provided by the Head of Service (Finance) and is attached at Appendix 2. 2.5 The call-in request is valid for consideration by the Committee. The request was received within the appropriate timescale, it was requested by three Elected Members and details were provided on both the reason for the call-in and the desired outcome. 2.6 The Elected Members who have submitted the call-in will be invited to address the Committee to explain the respective call-in request. The appropriate Cabinet Member will then be invited to clarify the reasons for the decision. The relevant senior officer will also be present to provide information on the report presented to Cabinet and on issues raised by the call-in received. The Committee will have an opportunity to ask questions of both parties and of those officers in attendance. 2.7 The Committee will then debate the call-in request and decide whether or not it agrees with the decision of the Cabinet. 2.8 The Audit and Scrutiny Committee:- i) decides if it agrees or not with the decision of the Cabinet; and ii) if it does not agree with the decision, considers what alternative action the Committee would recommend to the Cabinet. 2.9 If the Committee supports the decision of Cabinet and does not accept the call-in, the original decision of Cabinet remains in effect, and no further procedure is required.
Page 3
2.10 If the Committee accepts the call-in, the matter is referred to Cabinet with a recommendation. When the matter is considered by the Cabinet, the Chairperson or another member of the Audit and Scrutiny Committee will have the right to attend the Cabinet and speak in support of any recommendation. 2.11 In the event that Cabinet declines to accept the recommendation from the Audit and Scrutiny Committee, the matter will be referred to Council for determination. The decision of the Council will be final. 3. Proposals 3.1 It is proposed that the Committee considers the call-in request. 4. Implications/Socio-economic Duty Financial 4.1 The financial implications are outlined in the Revenue Budget 2025/26: Financial Performance to 31 March 2026 report attached at Appendix 1. Human Resources 4.2 The human resource implications are outlined in the Revenue Budget 2025/26: Financial Performance to 31 March 2026 report attached at Appendix 1. Legal 4.3 The legal implications are outlined in the Revenue Budget 2025/26: Financial Performance to 31 March 2026 report attached at Appendix 1. Equality/Socio-economic 4.4 The equality/social-economic implications are outlined in the Revenue Budget 2025/26: Financial Performance to 31 March 2026 report attached at Appendix 1. Climate Change and Carbon 4.5 The climate change and carbon implications are outlined in the Revenue Budget 2025/26: Financial Performance to 31 March 2026 report attached at Appendix 1. Key Priorities 4.6 The key priorities are outlined in the Revenue Budget 2025/26: Financial Performance to 31 March 2026 report attached at Appendix 1. Community Wealth Building 4.7 Any community wealth building implications are outlined in the Revenue Budget 2025/26: Financial Performance to 31 March 2026 report attached at Appendix 1.
Page 4
Islands Communities Impact Assessment (ICIA) 4.8 Any ICIA implications are outlined in the Revenue Budget 2025/26: Financial Performance to 31 March 2026 report attached at Appendix 1. United Nations Rights of the Child (UNCRC) 4.9 Any UNCRC implications are outlined in the Revenue Budget 2025/26: Financial Performance to 31 March 2026 report attached at Appendix 1. Consumer Duty 4.10 Any consumer duty implications are outlined in the Revenue Budget 2025/26: Financial Performance to 31 March 2026 report attached at Appendix 1. 5. Consultation 5.1 None concerning this report. Craig Hatton Chief Executive For further information please contact Shannon Wilson, Committee Services Officer, on shannonwilson@north-ayrshire.gov.uk. Background Papers N/A
Page 5
NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet Title: Revenue Budget 2025/26 : Financial Performance to 31 March 2026 Purpose: To advise Cabinet of the financial performance for the Council for 2025/26. Recommendation: That Cabinet agrees to: (a) note the information and financial outturn position outlined in the report; (b) approve the earmarking of £7.691m identified at 2.4 to meet future year commitments in accordance with funding requirements; (c) note the financial performance for the Health and Social Care Partnership highlighted at 2.5; and (d) approve the virements detailed in Appendix 8. 1. Executive Summary 1.1 The General Services Revenue Estimates for 2025/26 were approved by Council on 26 February 2025. The Housing Revenue Account (HRA) Revenue Budget for 2025/26 was approved by Council on 12 February 2025. 1.2 As part of the monitoring procedures to keep the Cabinet informed of the financial performance of the Council, financial performance reports are presented on a regular basis. This is the fourth report for 2025/26 and covers the period to the end of March 2026 (Period 12). Projections have been made to the year-end. This is the final financial performance information on which the annual accounts for the Council will be prepared. 1.3 At Period 12 the General Fund is reporting a net in-year underspend of (£2.014m), (0.4%), after transferring resources to/from earmarked reserves This is an improvement of (£0.334m) from that reported at Period 10 and is primarily related to additional income, lower than anticipated employee costs within the Facilities Management and Streetscene linked to staff turnover levels and lower than anticipated utilisation of inflationary related provisions during the year. In recognising that there continues to be volatility across certain areas of spend, linked to current global events, this improved position has been partially offset by additional requests for earmarking to meet anticipated cost pressures in 2026/27. The underspend will be added to the General Fund Unearmarked Reserves which would increase the Appendix 1
Page 6
available balance to 2.3% the revised General Services Revenue Budget which is within the recommended range of 2 – 4%. From the underspend, a total of £0.518m is required to ensure unearmarked reserves are retained at a minimum level of 2% within this range. Whilst the current level of unearmarked reserves remains at the lower end of good practice, this still reflects a prudent position to help address areas of significant risk to the Council through 2026/27, most notably through the financial performance of the HSCP. 1.4 The Housing Revenue Account is reporting a net in-year underspend of (£3.943m), (6.0%). This is a movement of (£1.617m) from the previously reported underspend at Period 10. The movement is primarily related to reduced expenditure on property costs and increased income. The underspend will be added to the HRA earmarked balances to support service delivery in future years. 1.5 Work is ongoing to confirm the final Health and Social Care Partnership out-turn position for the year, and the final confirmation of the NHS budget outturn is awaited. The final outturn for the Council services element has been confirmed as an underspend of £1.818m. From this, £1.359m will be earmarked to meet future costs. This leaves a £0.459m surplus to be added to the HSCP’s unearmarked reserves bringing the reported position to a net break-even position. This is an improvement of £1.941m from the previously reported Council services position. A further report will follow from the HSCP in the new year. 1.6 Management action is ongoing to address absence levels across services. However, employee absence rates remain above targets, and there has been a marginal 0.9% increase in days lost during the period when compared to the same period last year. 2. Background General Fund 2.1 The Council set a balanced budget for 2025/26. In addition to the budget approved on 26 February 2025, earmarked funds of £85.088m were carried forward from 2024/25 for service expenditure in 2025/26 and beyond. These funds are reflected in the figures within the 2025/26 financial performance reports as they are drawn down. 2.2 A net in-year underspend of £2.014m is reported, net of transfers to/from reserves. The undernoted table details the final position on a service-by-service basis. Service Expenditure App No. Annual Budget £ million Actual Expenditure to 31 March 2026 £ million Variance for year (Fav)/Adv £ million Requests for Carry Forwards £ million Variance after Carry Forward (Fav)/Adv £ million Note Corporate Services 1 22.748 21.767 (0.981) 0.186 (0.795) (i) Education 2 191.980 192.050 0.070 (0.193) (0.123) (ii) Place 3 60.889 58.371 (2.518) 3.363 0.845 (iii) Communities & Housing 4 17.116 16.344 (0.772) 0.233 (0.539) (iv) Other Corporate Items 5 15.971 10.781 (5.190) 3.357 (1.833) (v) Sub Total 308.704 299.313 (9.391) 6.946 (2.445)
Page 7
Health and Social Care Partnership 9 142.676 140.858 (1.818) 1.818 0.000 Balance for Services 451.380 440.171 (11.209) 8.764 (2.445) Financing Charges 6 13.751 13.751 0.000 0.000 0.000 Contribution to Loans Fund Reserve 6 10.187 10.187 0.000 1.500 1.500 (vi) Total Planned Expenditure 475.318 464.109 (11.209) 10.264 (0.945) Aggregate External Finance 6 (394.613) (394.637) (0.024) 0.000 (0.024) Council Tax 6 (71.939) (72.984) (1.045) 0.000 (1.045) (vii) Use of Earmarked Funds 6 (8.766) (8.766) 0.000 0.000 0.000 Total Planned Income (475.318) (476.387) (1.069) 0.000 (1.069) Net Expenditure/ (Income) 0.000 (12.278) (12.278) 10.264 (2.014) 2.3 The reported Aggregate External Finance within Planned Income includes several adjustments to Scottish Government funding from that reported at Period 10, as detailed in the following table: Movements on Planned Income General Revenue Grant £ million Non Domestic Rates £ million Specific Grants £ million TOTAL AEF £ million Revised Budget at P10 (342.866) (42.606) (8.101) (393.573) Pupil Equity Fund C/F 0.655 0.655 Discretionary Housing Payment Undistributed (0.781) (0.781) Teacher Pay Award (0.756) (0.756) CSC Pay Uplift Adjustment 0.083 0.083 Revised Planned Income (344.320) (42.606) (7.446) (394.372) 2.4 Commentary on Significant Movements from Period 10 The Council's overall financial forecast against the revised budget is an improvement of (£0.334m) from the previously reported position. A brief explanation of the significant movements at a service level are outlined as follows: (i) Corporate Services – underspend of (£0.795m), an improvement of (£0.200m) from the previously reported underspend The movement is primarily related to: • Vacancy management across the services; • Revisions to Statutory additions (£0.070m); • Lower than anticipated ICT contract costs in-year (£0.067m).; and • Underspend in Election costs (£0.081m)
Page 8
This has been offset by a request to Earmark £0.283m in relation to anticipated ICT contract inflation in 26/27 (£0.138m), resources to support the outcome of a Service review (£0.060m) and the carry forward of Election resources to support the democratic process (£0.085m). (ii) Education – underspend of £0.123m, a favourable movement of (£0.724m) from the previously reported position The movements are primarily related to: • Increase in the underspend within Facilities management of £0.679m primarily relating to vacancy management and reduced expenditure across supplies and services. • Reduction in the overspend within ASN of £0.402m as a result of reduced day placement costs and a reduction in external residential placement numbers and associated costs, through the work of the Brighter Pathways programme. This has been offset by increased teacher costs across Primary and Secondary Schools. It is requested that £0.010m is earmarked to meet costs in relation to Furniture and updated equipment for the Visual Impairment team in ASN. (iii) Place – overspend of £0.845m, an increase of £0.434m from the previously reported overspend The movement is primarily related to: • Funds received from the Extended Producer Responsibility Payment (£1.087m) in accordance with the payment schedule. • Increased underspend within Transport of £0.310m due to reduced expenditure on repairs and maintenance, fuel and additional income. • A favourable movement within Streetscene of £0.196m largely due to a reduction in staff costs and increased income • An over-recovery of Largs car park income as a result of the new pricing structure. This is offset by requests to earmark £1.939m, further to the £1.424m previously approved, to support anticipated additional expenditure during 2026/27 in relation to: • Waste pressures and investments in accordance with Extended Producer Responsibility funding requirements, £0.950m • Programme of Fire risk Assessments and essential works, £0.400m • Programme of Water Quality Assessments and essential works, £0.100m • Largs Car Park income to be retained in Largs Car Park Fund, £0.104m • Anticipated Fuel cost pressures in view of current global events, £0.274m • Investment in Car parking infrastructure, £0.076m • Provision for the Making Waves Festival, £0.035m
Page 9
Virements in relation to the realignment of budgets within Roads and Employability have been included within Appendix 8. (iv) Communities and Housing – underspend of £0.539m, an improvement of (£0.139m) from the previously reported underspend The movement is primarily related to: • Increase in the underspend within Housing of £0.197m largely relating to reduced Bad debt provision and write off costs. • Reduced expenditure within connected communities of £0.261m relating to lower than anticipated storm damage costs and service management of budget lines to offset the impact of delay in implementing previously approved libraries savings. • Additional income within protective services of £0.255m • Reduced expenditure on employee costs due to ongoing service redesign of £0.094m • An underspend due to the reprofiling of the local development plan into 2026- 27 • A surplus of £0.057m within Building services. This has been partially offset by : • An overspend of £0.314m in relation to demolition costs as a result of significant fire damage at the Forum Centre Irvine. • Requests to earmark £0.463m to support anticipated additional expenditure during 2026/27 in relation to: Further anticipated costs in relation to the demolition of the Forum centre following the major fire damage, £0.400m Local Development Plan, £0.043m Holiday Playschemes and Activities budget as part of a delivery programme of activities in Summer 2026, £0.020m (v) Other Corporate Items – underspend of £1.833m, an increase of (£0.757m) from the previously reported underspend The movement is primarily related to: • Centrally held provisions not drawndown during the year, including pay inflation, energy sustainability funding and energy cost provisions which have been subject to ongoing volatility, even after allowing for a proportion of advanced purchasing arrangements, (£2.041m) • Workforce Planning cost provisions not required in year including Severance costs and Equal pay £1.257m • Funding to support ongoing Transformation activity secured as part of the 2025/26 Budget, not utilised in year £0.750m This is offset by :
Page 10
• An overspend on insurance reflecting high level of excesses largely relating to storm damage. £1.106m • Requests to earmark £3.496m to support anticipated additional expenditure during 2026/27 in relation to: o Equal Pay Provision required to help address future risks, £0.494m o Workforce Planning and Transformation resources required to support ongoing programme £1.732m o Property – Energy sustainability funding to address current volatility, £0.500m o DWP Housing Benefit Accuracy award, £0.018m o Rapid Rehousing Transition Plan rolling programme £0.024m o SG Resettlement programme funding £0.095m o SG Nature Restoration funding £0.073m o SG Island support funding £0.288m o On-going Service re-design costs £0.031m o SG NDR Empty Property Relief funding £0.241m (vi) Contribution to Loans Fund Reserve – Overspend of £1.500m, an increase of £1.500m from the previously reported position In view of the current conflict in the middle east and the anticipated inflationary impacts, the Bank of England forecast for interest rates now reflects an increase from the current base rate of 3.75% up to 5.25% potentially during 2026/27. In order to address the impact this will have on borrowing costs through 2026/27, it is requested that £1.500m is earmarked and transferred to the Loans Fund reserve. (vii)Council Tax – over-recovery of (£1.045m), an increase of £0.448m from the previously reported over-recovery The movement reflects growth in the Council Tax base from additional new builds, properties previously registered as self-catering holiday units for NDR purposes that have come onto the Council tax register, and the impact of the application of 100% premium on Council tax for second homes when measured against the original financial planning assumptions. Health and Social Care Partnership 2.5 The final HSCP financial performance report for the year will be presented to the Integration Joint Board on 18 June 2026 and will outline the 2025/26 financial performance in more detail. Work is ongoing to confirm the final outturn position for the year and the HSCP is awaiting final confirmation of the NHS budget outturn. The final outturn for the Council services element has been confirmed as an underspend of £1.818m. £1.359m is to be earmarked to meet costs in relation to ADP, Whole Family Wellbeing Fund, Community alarms, Magic Notes and Adult Social work Restructure costs. This leaves a £0.459m surplus which is to be added to the HSCP’s unearmarked reserves bringing the reported position to a net break-even position. This is an improvement of £1.941m from the previously reported Council services position. A further report will follow from the HSCP in the new year.
Page 11
Absence Management 2.6 The programme of work to monitor absence levels and effectively implement relevant policies has been ongoing and initially resulted in a significant reduction in reported absence levels across the Council. However, the year-end position shows a marginal increase in days lost during 2025/26 when compared to 2024/25 i.e. 12.87 days lost compared to 12.76 in 2024/25. The absence levels for the year exceed the target of 10.22 days. Within the Education Service, the number of days lost for teaching staff has reduced by almost 8% when compared to the previous year (5.78 days compared to 6.25 last year). The HSCP and the Communities and Housing directorate’s number of days lost have increased by 20% and 4% respectively, with the Place directorate showing a 14% improvement for the period. Risks 2.7 Due to the anticipated outturn position of the HSCP in 2025/26, from the Council services element, the level of HSCP unearmarked reserves will increase by £0.459m. Moving forward into 2026/27, under the terms of the Health and Social Care Integration Scheme, a recovery plan is required in order to address any projected shortfalls in future years. There is a risk that, if the recovery plan is not successful, this would have an impact on the level of financial contributions from the funding parties. In such a circumstance the Council would be asked to make interim funds available. The funding could be made available for repayment by the HSCP across a period of future years or as an additional contribution. This HSCP position will continue to be monitored through 2026/27, however, in view of the level of pressures faced by the HSCP and the scale of savings required in 2026/27 to operate within available resources, there is a risk that spend will exceed available resources. It is recognised the Council’s underspend position 2025/26 will help provide a level of financial mitigation to this risk. The other main risks are linked to current global events and the potential impacts on inflation and interest rates through 2026/27. Again, to address these, further mitigations through the earmarking of financial resources have been included in the year end position. Housing Revenue Account 2.8 The Housing Revenue Account budgeted for a breakeven position in 2025/26. An underspend of (£3.942m), net of transfers to/from reserves, has been reported. This is an improvement of (£1.617m) from the previously reported position and is summarised in the following table with further details provided in Appendix 7. The underspend will be added to the HRA earmarked balances to support delivery of the HRA Business Plan.
Page 12
2.9 Commentary on Significant Movements from Period 10 A brief explanation of the significant movements from the previous forecasts is outlined as follows: (i) Property Costs – underspend of £1.092m, a favourable movement of (£1.250m) from the previously reported position The movement is primarily related to reduced expenditure on Aids and Adaptation, (£0.191m), Void Repairs (£0.276m), Planned and Cyclical Maintenance (£0.466m) and Other Property Costs (£0.293m). (ii) Administration Costs – underspend of £0.212m, a movement of (£0.208m) from the previously reported position The movement is primarily related to reduced expenditure on legal fees (£0.103m), Central Recharges (£0.053m) and Insurances (£0.025m) (iii) Third Party Payments – underspend of £0.061m, a favourable movement of (£0.122m) from the previously reported position The movement is primarily related to reduced recharges from other Council departments. (iv) Transfer payments – underspend of £0.053m, a movement of (£0.053m) from the previously reported position The movement is due to an underspend in disturbance allowances. (v) Other Expenditure – overspend of £0.398m, a movement of £0.398m from the previously reported position Housing Revenue Account Annual Budget £ million Actual Expenditure to 31 March 2026 £ million Variance for year (Fav)/Adv £ million Projected Variance at P10 (Fav)/Adv £ million Movement Note Employee Costs 5.294 5.294 0.000 0.002 (0.002) Property Costs 25.628 24.536 (1.092) 0.158 (1.250) (i) Supplies and Services 2.145 2.130 (0.015) (0.006) (0.009) (ii) Transport and Plant Costs 0.016 0.015 (0.001) 0.000 (0.001) Administration Costs 2.114 1.902 (0.212) (0.004) (0.208) (iii) Third Party Payments 3.832 3.771 (0.061) 0.061 (0.122) (iv) Transfer Payments 0.177 0.124 (0.053) 0.000 (0.053) Other Expenditure 0.550 0.948 0.398 0.000 0.398 (v) Capital Financing 26.270 23.834 (2.436) (2.372) (0.064) (vi) Gross Expenditure 66.026 62.554 (3.472) (2.161) (1.311) Income (66.026) (66.496) (0.470) (0.164) (0.306) (vii) Net Expenditure 0.000 (3.942) (3.942) (2.325) (1.617)
Page 13
The movement is due to an increase in the bad debt provision. (vi) Capital Financing Costs – underspend of £2.436m, a movement of (£0.064m) from the previously reported position The movement is primarily related to revised loan charges reflecting the revised profile of capital project delivery, leading to a lower level of in-year borrowing. These funds will be required to support the HRA capital programme in future years. (vii) Income – over recovery of £0.470m, a movement of (£0.306m) from the previously reported position The movement is primarily related to an over-recovery in Council House rents (£0.147m) and other income (£0.157m). 3. Proposals 3.1 It is proposed that Cabinet agrees to: (a) note the information and financial outturn position outlined in the report; (b) approve the earmarking of £7.691m identified at 2.4 to meet future year commitments in accordance with funding requirements; (c) note the financial performance for the Health and Social Care Partnership highlighted at 2.5; and (d) approve the virements detailed in Appendix 8. 4. Implications/Socio-economic Duty Financial 4.1 General Services The final outturn position for the year is a net underspend of (£2.014m) after transfers to and from earmarked reserves. Housing Revenue Account The final outturn position for the year is a net underspend of (£3.942m). Human Resources 4.2 None. Legal 4.3 None. Equality/Socio-economic 4.4 None.
Page 14
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. 5. Consultation 5.1 Progress as outlined in this report has been approved by Executive Directors. Mark Boyd Head of Service (Finance) For further information please contact Mark Boyd, Head of Service (Finance), on 01294 324560. Background Papers Revenue Budget 2025/26: Financial Performance to 31 January 2026 – Cabinet 17 March 2026
Page 15
Appendix 1 CORPORATE SERVICES BUDGETARY CONTROL 2025/26 REPORT FOR THE TWELVE MONTHS TO 31 MARCH 2026 Objective Summary Annual Budget Year End Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Chief Executive's Office Chief Executive's Office 197 214 17 9% Total for Chief Executive's Office 197 214 17 Financial Services Change Programme 283 283 0 0% Audit, Fraud, Safety & Insurance 701 688 (13) -2% Corporate Procurement 815 566 (249) -31% 1 Financial Services 1,749 1,634 (115) -7% 2 Revenues (459) (546) (87) 19% 3 Transformation 795 817 22 3% Total for Financial Services 3,884 3,442 (442) People & ICT Employee Services 946 865 (81) -9% 4 HR & Organisational Development 1,229 1,193 (36) -3% 5 ICT 5,605 5,431 (174) -3% 6 Business Support 1,594 1,554 (40) -3% 7 Customer Services 4,759 4,700 (59) -1% 8 Total for People & ICT 14,133 13,743 (390) Democratic Services Legal & Licensing 791 823 32 4% Policy, Performance & Democracy 539 516 (23) -4% Communications 503 507 4 1% Civil Contingencies 60 59 (1) -2% Committee Services 443 372 (71) -16% 9 Member Services 1,560 1,528 (32) -2% Information Governance 577 524 (53) -9% 10 Ayrshire Area Support Team 61 39 (22) -36% Total for Democratic Services 4,534 4,368 (166) Net Totals 22,748 21,767 (981) -4% Transfer to/ (from) Earmarked Reserves 97 283 186 Net Total 22,845 22,050 (795) -3%
Page 16
Appendix 1 Subjective Summary Annual Budget Year End Outturn Annual Variance Adverse or (Favourable) % Variance £000 £000 £000 Employee Costs 18,290 17,858 (432) -2% Property Costs 85 118 33 39% Supplies and Services 3,462 3,174 (288) -8% Transport and Plant Costs 23 13 (10) -43% Administration Costs 1,653 1,569 (84) -5% Other Agencies & Bodies 2,274 2,209 (65) -3% Transfer Payments 867 866 (1) 0% Other Expenditure - - - - Capital Financing - - - - Gross Expenditure 26,654 25,807 (847) -3% Income (3,906) (4,040) (134) 3% Net Expenditure 22,748 21,767 (981) -4%
Page 17
Appendix 1a CORPORATE SERVICES BUDGETARY CONTROL 2025/26 REPORT FOR THE TWELVE MONTHS TO 31 MARCH 2026 Budget £000 Projected Variance £000 Variance as % of budget Section Note 1 Finance - Corporate Procurement Movement: There has been a favourable movement of (£0.091m) since P10 mainly due to continued forecasted underspends in employee costs and overrecovery of income. 815 (167) -20% Employee costs: There is an underspend of £0.167m due to vacancy management. (100) (60) -7% Income: £0.060m overrecovery of income from Procurement cards and rebates from Scotland Excel contracts. (22) -3% Other minor movements. (249) Note 2 Finance - Financial Services Movement: There has been a favourable movement of (£0.066m) since P10 mainly due to an over recovery of £0.052m in staff recharges. 1,456 (45) -3% Employee Costs: Underspend of £0.045m mainly due to vacancy management. (108) (53) Income: £0.053m over recovery of staff recharges. (17) Other minor movements. (115) Note 3 Finance - Revenues Movement: There has been a favourable movement of (£0.070m) since P10 largely due to revisions to statutory additions. (1,385) (48) 3% Income: There is an overall increase in statutory additions of £0.048m. (39) Other minor movements. (87) Note 4 People & ICT - Employee Services Movement: There has been a favourable movement of (£0.010m) since P10 due to vacancy management. 900 (78) -9% Employee Costs: There is an underspend of £0.078m due to vacancy management. (3) Other minor movements. (81) Note 5 People & ICT - HR & Organisational Development Movement: There has been no significant movement from P10. 413 (35) -8% Third Party Payments: There is an underspend of £0.035m due to Occupational Health charges. (1) Other minor movements. (36) Note 6 People & ICT - ICT Movement: There has been a favourable movement of (0.067m) since P10 due to contract costs being less, Co- Pilot trial being funded from change fund and Wi-Fi support not being completed. 5,605 (179) -3% Supplies and Services: There is an underspend of £0.205m due to contract costs being less than expected, Wi-Fi support not completed in September due to negotiations of new product offset with a £0.010m overspend in WAN cicuits due to increase in contract prices and £0.016m overspend in other supplies in services due to no computer disposals. 5 Other minor movements. It is requested to earmark £0.138m underspend in software licenses and support. This funding would be used to offset the unforeseen and significant increase in charges under the current WAN contract, estimated at £0.138m. Earmarking these underspends will allow the service to manage this in-year budget pressure within existing ICT resources, while progressing the planned procurement of a replacement WAN contract (174)
Page 18
Appendix 1a Budget £000 Projected Variance £000 Variance as % of budget Section Note 7 People & ICT - Business Support Movement: There has been no significant movement from P10. 1,583 (36) -2% Employee Costs: There is an underspend of £0.036m due to vacancy management. (4) Other minor movements. (40) Note 8 People & ICT - Customer Services Movement: There has been no significant movement from P10. 3,069 (78) -3% Employee Costs: There is an underspend of £0.078m due to vacancy management. 19 Other minor movements. It is requested to earmark £0.060m for service review costs in 2026/27. (59) Note 9 Democratic Services - Committee Services Movement: There has been a favourable movement of (£0.081m) since P10 mainly due to underspend in Election Costs. 443 (85) -19% Election Costs: There is an underspend of £0.085m in relation to Election Costs for 2025/26. 14 3% Other minor movements. It is requested to earmark £0.085m for future Election commitments. (71) Note 10 Democratic Services - Information Governance Movement: There has been a small favourable movement of (£0.007m) from P10. 571 (60) -11% Employee Costs: Underspend of £0.060m due to vacancy management. 7 Other minor movements. (53)
Page 19
Appendix 2 EDUCATION BUDGETARY CONTROL 2025/26 REPORT FOR THE TWELVE MONTHS TO 31 MARCH 2026 Objective Summary Annual Budget Final Year End Outturn Annual Variance Adverse or (Favourable) % variance Note No £000 £000 £000 Early Years Education 21,528 20,868 (660) -3% 1 Primary Education 55,635 56,447 812 1% 2 Secondary Education 67,948 69,278 1,330 2% 3 Additional Support Needs 17,754 18,725 971 5% 4 Central Education 4,980 4,581 (399) -8% 5 Scottish Equity Fund 152 152 - 0% Pupil Equity Fund 4,074 4,074 - 0% Facilities Management 19,909 17,925 (1,984) -10% 6 191,980 192,050 70 Transfer to/(from) Earmarked Reserves 203 10 (193) Net Total 192,183 192,060 (123) Subjective Summary Annual Budget Final Year End Outturn Annual Variance Adverse or (Favourable) % variance £000 £000 £000 Employee Costs - Teachers 108,021 109,763 1,742 2% Employee Costs - Non Teachers 53,190 51,976 (1,214) -2% Property Costs 1,921 1,803 (118) -6% Supplies and Services 25,328 24,797 (531) -2% Transport and Plant Costs 160 187 27 17% Administration Costs 827 845 18 2% Other Agencies & Bodies 10,017 11,059 1,042 10% Transfer Payments 580 426 (154) -27% Other Expenditure 1 1 - 0% Capital Financing 71 84 13 18% Gross Expenditure 200,116 200,941 825 0% Income (8,136) (8,891) (755) 9% Net Expenditure 191,980 192,050 70 0% - - -
Page 20
Appendix 2a EDUCATION BUDGETARY CONTROL 2025/26 REPORT FOR THE TWELVE MONTHS TO 31 MARCH 2026 Budget £000 Projected Variance £000 Variance as % of budget Section Note 1 Early Years Education Movement : There has been an unfavourable movement of £0.041m since P10 mainly due to an increase of £0.058m in employee costs. 15,895 (485) -3% Employee Costs: Overall an underspend of (£0.544m). - Teachers:- underspend of (£0.055m.) - Non Teachers:- underspend of (£0.430m) as a result of vacancy management after accounting for budgeted turnover. 5,341 (151) -3% Third Party Payments: There are underspends of (£0.165m) in payments to funded providers due to a lower than forecasted uptake of hours and a change in the charging model for cross boundary costs, partially offset by an overspend of £0.024m in Speech Therapy costs. (24) Other minor movements (660) Note 2 Primary Education Movement : There has been an unfavourable movement of £0.162m since P10 mainly due to increased teacher costs 53,155 784 1% Employee Costs : Overall an overspend of £0.784m - Teachers:- overspend of £0.758m Pressures on this line include teacher absence cover, budgeted turnover and teacher salary pay levels - Non Teachers:- underspend of (£0.027m) after accounting for budgeted turnover. 28 Other minor movements. 812 Note 3 Secondary Education Movement : There has been a unfavourable movement of £0.219m since P10 mainly due to increased teacher costs 51,940 1,412 3% Employee Costs : Overall an overspend of £1.412m - Teachers:- overspend of £1.289m. Pressures on this line include teacher absence cover, budgeted turnover and teacher salary pay levels - Non Teachers:- overspend of £0.123m after accounting for budgeted turnover. 15,834 (109) -1% Supplies and Services: forecasted underspend in PPP unitary charge mostly due to a reduction in energy costs 27 Other minor movements. 1,330 Note 4 ASN Movement: There has been a favourable movement of (£0.402m) since P10. (£0.207m) of this favourable movement is in Day Placements as a result of the level of assessed needs varying for some young people, transport costs were less than projected and rates for one provider were lower than projected. There has been a (£0.117m) favourable movement in Residential Placements as there are less children in Residential Placements compared to P10, and there has been a decrease in rates from P10 projection. There has also been a favourable movement of (£0.067m) in Employee Costs. 16,034 (321) -2% Employee Costs : Overall underspend of (£0.321m) - Teachers:- underspend of (£0.246m). Pressures on this line include teacher absence cover, budgeted turnover and teacher salary pay levels - Non Teachers:- underspend of (£0.075m) reflecting the level of turnover within the service. 268 (32) -12% There is an underspend of (£0.032m) on payments to Other Local Authorities due to a reduction in the number of NAC children accessing placements in their establishments. 1,310 (83) -6% Underspend of (£0.083m) on external day placements. Currently there are 31 children in day placement provision. This service will continue to be monitored as options for alternative service provision are developed.
Page 21
Appendix 2a Budget £000 Projected Variance £000 Variance as % of budget Section 499 1,414 283% There is an overspend of £1.414m on external specialist residential placements. Currently there are 9 children in accommodation. Increased pressures on internal care settings, as well as changing needs of children and young people, have resulted in an increase in the need for external residential settings. Joint working is ongoing with HSCP on the Brighter Pathways Programme to ensure that all options are fully explored to retain young people within their local community where possible. Where this is not possible, a forum has been set up to further discuss those young people who will require care and education provision to support them appropriately. (7) Other minor movements. It is requested to earmark £0.010m to purchase furniture and updated equipment for the Visual Impairment team. 971 Note 5 Central Education Movement: There has been a favourable movement of (£0.075m) since P10. 4,015 40 1% Employee Costs: There is an overspend of £0.040m mainly due to unachieved turnover. (1,407) (431) 31% Income: There is an over-recovery of PPP insurance rebate of (£0.285m) and PPP deductions of (£0.156m) in excess of budget. (8) Other minor movements (399) Note 6 Facilities Management Movement: There has been a favourable movement of (£0.679m) since P10. This is mainly due to further employee cost underspends and further underspends across supplies and services lines 15,642 (901) -6% Employee Costs: There is an underspend of (£1.232m) primarily due to previous vacancy management, offset by a budgeted turnover target of £0.331m resulting in a net underspend of (£0.901m) 1,612 (58) -4% Property Costs: There is an underspend of (£0.058m) across cleaning materials budget lines 5,434 (445) -8% Supplies and services: There is an underspend of (£0.445m). This comprises of underspends in kitchen equipment of (£0.376m) and other supplies and services of (£0.160m) which is offset slightly by an overspend on food costs of £0.138m. 2,892 (625) -22% Income: There is an over recovery in Commercial Catering of (£0.191m). A targeted approach over the last few years has seen this outturn position change from a significant under recovery in income to the favourable position shown this year. Over recovery in Cleaning/janitorial income of (£0.218m) and school meals income of (£0.215m) linked to an uptake in paid meals within secondary schools 45 Other minor movements (1,984) Note 7 General Teacher absence levels are subject to regular review across the service and appropriate actions are being taken to maximise attendance. Average days lost per FTE is 8.82 for the period April-March. Average days lost per FTE for same period last year was 9.33. This reflects an improved position for the year.
Page 22
Appendix 3 PLACE BUDGETARY CONTROL 2025/26 REPORT FOR THE TWELVE MONTHS ENDED 31 MARCH 2026 Objective Summary Annual Budget Year End Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Directorate and Support 995 836 (159) (16%) 1 Neighbourhood Services Roads 8,109 8,034 (75) (1%) 2 Streetscene 5,875 5,753 (122) (2%) 3 Waste Resources 8,199 6,545 (1,654) (20%) 4 Municipalisation Advertising (73) (29) 44 (60%) Total for Neighbourhood Services 22,110 20,303 (1,807) Economic Development, Growth & Regeneration Economic Policy 337 261 (76) (23%) 5 Employability and Skills 2,274 2,274 - 0% Regeneration 702 703 1 0% Business 954 556 (398) (42%) 6 Growth & Investment 287 277 (10) (3%) 7 Total for Economic Development, Growth & Regeneration 4,554 4,071 (483) Sustainability, Transport and Corporate Property Property Management & Investment 2,129 2,132 3 0% 8 Housing Assets & Investment 95 - (95) (100%) 9 Property Maintenance 4,709 4,848 139 3% 10 Property Running Costs 6,653 7,287 634 10% 11 Energy and Sustainability 7,679 7,679 - 0% Internal Transport 11,965 11,215 (750) (6%) 12 Total for Sustainability, Transport and Corporate Property 33,230 33,161 (69) Net Total 60,889 58,371 (2,518) (4%) Transfer to Earmarked Reserves 3,363 3,363 Net Total 60,889 61,734 845
Page 23
Appendix 3 Subjective Summary Annual Budget Year End Outturn Annual Variance Adverse or (Favourable) % variance £000 £000 £000 Employee Costs 31,558 32,297 739 2% Property Costs 24,583 24,722 139 1% Supplies and Services 4,548 4,634 86 2% Transport and Plant Costs 10,638 10,997 359 3% Administration Costs 703 933 230 33% Other Agencies & Bodies 21,044 19,834 (1,210) (6%) Transfer Payments - - - 0% Other Expenditure 78 90 12 15% Capital Financing 26 26 - 0% Gross Expenditure 93,178 93,533 355 0% Income (32,289) (35,162) (2,873) 9% Net Expenditure 60,889 58,371 (2,518) (4%)
Page 24
Appendix 3a PLACE BUDGETARY CONTROL 2025/26 REPORT FOR THE TWELVE MONTHS ENDED 31 MARCH 2026 Budget £000 Projected Variance £000 Variance as % of budget Section Note 1 Directorate and Support Movement: There has been a favourable movement of (£0.104m) since P10. This relates to Largs Car Park, with increased income and a decrease in operating costs. 981 (56) (6%) Employee Costs: There is an underspend due to vacancy management. (212) (85) 40% Income: £0.085m over recovery of income in Largs Car Park, as a new pricing structure was introduced in 2025/26. (18) Other minor movements. There is an underspend of £0.104m in Largs Car Park and this will be retained for the Largs Car Park fund, to be used in future years. (159) Note 2 Roads Movement: There has been a favourable movement of (£0.075m) since P10 primarily due to a reduction in forecasted winter and energy costs within supplies and services of £0.108m and additional over recovery of income of £0.181m. This is partially offset by an adverse movement of £0.138m in third party costs due to reactive emergency unplanned maintenance costs and £0.093m in employee costs. 4,877 58 1% Employee Costs: £0.058m overspend due to additional overtime. 31 91 294% Transport Costs: £0.090m overspend mainly due to hire charges in particular of a gully unit. 2,828 (115) (4%) Supplies & Services: Underspends of £0.100m in winter salt/grit costs and £0.052m in electrical power, partially offest by overspends of £0.026m in materials and £0.017m in software licence costs. 1,070 144 13% Third Party Payments: overspend of £0.091m within Engineering Services due to reactive emergency unplanned costs together with £0.040m Winter overspend due to weighbridge replacement costs and Millport gritting contract. (1,631) (226) 14% Income: £0.163m over recovery of design fees income mainly due to project management fees for Road Safety Improvement Funds and 20mph projects and £0.076m over recovery in Decriminalised Parking Enforcement income. (27) Other minor movements. It is requested to earmark £0.076m, the DPE net income, which will be reinvested in the car parking infrastructure. (75) Note 3 Streetscene Movement: There has been a favourable movement of (£0.196m) since P10. Vacant posts and a reduction in overtime and casual staff costs have contributed to a favourable movement of £0.130m in Employee Costs. Income has seen a favourable movement of £0.052m, with increased income from other departments, interment and memorial permit income. There has also been a favourable movement of £0.012m in Supplies and Services. 7,712 (285) (4%) Employee Costs: £0.285m underspend due to vacancy management. Management are currently recruiting to fill vacant posts in 2026/27. 455 66 15% Supplies and Services: £0.066m overspend includes £0.041m for storm rectification works, £0.011m overspend on tools and machinery and £0.014m overspend on PPE. (2,886) 77 (3%) Income: £0.077m under recovery of income, which includes £0.050m under recovery of interment income and £0.022m under recovery of memorial permit income. 20 Other minor movements. (122)
Page 25
Appendix 3a Budget £000 Projected Variance £000 Variance as % of budget Section Note 4 Waste Services Movement: There has been a favourable movement of (£0.951m) since P10 due to £1.087m of funds received from the Extended Producer Responsibility payment, partially offset by additional costs within supplies & services of £0.127m which includes £0.082m of trade effluent costs. 5,616 799 14% Employee costs: Current sickness absence rates for April 2025 to March 2026 are 20.26 days per employee, a reduction of 10.15 days per employee when compared to the same period last year. A robust absence monitoring process is in place and a dedicated resource has been recruited to monitor and review the absence management process in Waste, through assisting supervisors with absence management meetings, referrals to occupational health etc and to support employees return to work. The statutory nature of the service requires additional resources and/or overtime to cover unforeseen absences resulting in additional costs. To help mitigate against this, 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. The absence rates reflect an improving position, however they are still above target rates. 245 368 150% Transport Costs: Additional vehicles are currently in place to deal with ongoing pressures and demands. Transport needs are continuously under review and flexed depending on the operational needs of the service. 671 10 1% Supplies & Services: Overspends in trade effluent of £0.082m, software and computer equipment costs of £0.018m, and materials/tools and implements of £0.011m have been partially offset by underspends in refuse containers of £0.055m and leachate of £0.052m. 6,896 (125) (2%) Third Party Payments: Underspends mainly from diverted waste of £0.114m due to a reduction in tonnages as a result of the implementation of the HWRC booking system, the recyclables contract of £0.046m, the organics contract of £0.048m, and the Clyde Valley Contract of £0.025m, this is partially offset by an overspend in Special Uplift processing costs of £0.093m due to increased costs for POPs waste. (5,413) (2,679) 49% Income: Income from the Extended Producer Responsibility (£4.350m) for packaging funds currently exceeds the amount included in the Budget by £2.843m. These funds were received in 3 tranches from November 2025 and have been allocated to cover chargeable disposal costs. In 2025/26 these funds helped address the pressures faced by the service and supported further investment to meet operational needs and deliver service improvements. These funds together with an over recovery in special uplifts income of £0.077m, sale of scrap of £0.023m, and the sale of vouchers of £0.019m, is partially offset by an under-recovery in purple bin contract income of £0.175m due to reductions in recyclate market prices, commercial refuse charges of £0.074m and sale of bins of £0.035m. (27) Other minor movements. A further request to earmark funds of £0.950m is made to the P10 request of £0.703m (total £1.653m), these funds will be utilised to support waste pressures and investments in accordance with EPR funding requirements.
Page 26
Appendix 3a Budget £000 Projected Variance £000 Variance as % of budget Section (1,654) Note 5 Economic Policy Movement: There has been a favourable movement of (£0.021m) since P10. 347 (84) (24%) Employee Costs: Underspend of £0.084m due to vacancy management and maximising available external funding. 8 Other minor movements. (76) Note 6 Business Movement: There has been an unfavourable movement of £0.012m since P10. 975 (400) (41%) Income: £0.400m received from Business Loans Scotland for contributions to the West Of Scotland Loans Fund. 2 0% Other minor movements. (398) Note 7 Growth & Investment Movement: There has been a favourable movement of (£0.010m) since P10. 193 (10) (5%) Third Party Payments: Underspend of £0.010m in budget for Events. It is requested to earmark £0.035m to support the Making Waves festival 2027 to support an event of sufficient scale and quality to promote the Great Harbour programme. (10) Note 8 Property Management and Investment Movement: There has been adverse movement of £0.120m since largely due to an under recovery in project income (£0.171m), partially offset by an increase in the employee costs underspend (£0.081m) due to vacancy management. 2,733 (253) (9%) Employee Costs: There is an underspend of £0.253m primarily due to vacancy management. (1,263) 211 (17%) Income: There is an under-recovery of fee income of £0.211m which is primarily related to projects. 45 Other minor movements. 3 Note 9 Housing Assets and Investments Movement: There has been a favourable movement of (£0.095m) since P10 mainly due to increased income offset by increased employee costs. This is now reported as on budget. (2,204) (86) 4% Income: Increased income from HRA. (9) Other minor movements (95) Note 10 Property Maintenance Movement: There has been an adverse movement of £0.139m since P10 mainly due to insurance works (£0.272m), partially offset by a reduction in spend in relation to security costs and Rationalisation. 0 272 Administration Costs: An overspend of £0.272m in relation to insurance works. 8,071 (92) (1%) Property Costs: An underspend of £0.092m largely relating to lower than anticipated security costs and reduced expenditure within the rationalisation budget. (41) Other minor movements. It is requested to earmark £0.500m to undertake programmes of Fire and Water Quality Risk Assessments and essential works which arise from these assessments. 139
Page 27
Appendix 3a Budget £000 Projected Variance £000 Variance as % of budget Section Note 11 Property Running Costs Movement: There has been a minor favourable movement of (£0.019m) since P10 due to a reduction in under-recovery of income £0.101m, partially offset by increased overspends within property costs in relation to service charges and condition surveys. 7,975 253 3% Property Costs: Overspend of £0.100m due to Non Domestic Rates costs relating to the following properties: Moorpark Primary which is scheduled for demolition, and Annickbank Innovation Campus which now has a lease agreed. The NDR liability for Annickbank relates to the period it is unoccupied. There are also £0.058m of additional costs due to condition surveys for the commercial estate and higher service charges of £0.072m. (1,907) 376 (20%) Income: Under-recovery of income £0.375m largely related to rental property income linked to market pressures, the commercial property review is ongoing and we anticipate improvement in this position through recently agreed leases which will fully come into effect in 2026/27 along with anticipated future pipeline of income from the capital investment programme. 5 Other minor movements. 634 Note 12 Internal Transport Movement: There has been a favourable movement of (£0.310m) since P10, this is mainly due to an increased underspend in Fuel of £0.076m, lower than projected costs for Software Licences of £0.026m, lower than projected Hires costs of £0.019m, lower than projected overspend in Repairs and maintenance of £0.053m, an increase in Internal Pool Vehicle Income of £0.042m and an increase in projected Bus Income of £0.060m. 1,714 (274) (16%) Fuel: There is an underspend in fuel of £0.274m due to the current mix in fleet; HVO roll out, Electric Vehicles being operated and fuel price volatility 5,513 (302) (5%) Pupil Transport: There is an underspend of £0.302m this was mainly due to changes from SPT as a result of expired contracts with no renewal and savings on renewed contracts, linked to reduced levels of inflation, as well as in-house operational efficiencies. 630 (61) (10%) External Hires: There is a projected underspend in Roads Plant Hire of £0.103m due to works being allocated to capital. This is partially offset by an overspend of £0.061m mainly within Care at Home due to replacement vehicles to cover extensive Vehicle Off Road time due to age of the current fleet and not having suitable zero emission alternatives readily available. 1,363 172 13% Repairs & Maintenance: There is an overspend of £0.172m due to additional repairs being outsourced as a result of difficulties recruiting Motor Mechanics (now resolved) during the first two quarters of the year along with maximising the life of assets due to the availability of suitable replacements. Automotive parts and third party labour cost continues to increase. (170) (241) 142% Income: There is an over-recovery of £0.144m in bus transport income and an over-recovery of £0.121m in hire of pool vehicle income which will support overspends in repairs and maintenance as end of life vehicles in pool are being retained for longer, offset with a previously reported under recovery in Enterprise Cars Income. (44) Other minor movements. It is requested to earmark £0.274m in view of current global events to help address fuel cost pressures in 2026/27. (750)
Page 28
Appendix 4 COMMUNITIES AND HOUSING BUDGETARY CONTROL 2025/26 REPORT FOR THE TWELVE MONTHS ENDED 31 MARCH 2026 Objective Summary Annual Budget Projected Year End Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Directorate and Support 262 249 (13) (5%) Housing and Public Protection Building Services (2,565) (2,622) (57) 2% 1 Works Scoping and Quality Assurance - - - 0% Property Governance - - - 0% Planning Services 257 112 (145) (56%) 2 Protective Services 2,167 2,008 (159) (7%) 3 Other Housing 2,790 2,501 (289) (10%) 4 Total for Housing and Public Protection 2,649 1,999 (650) Connected Communities 14,205 14,096 (109) (1%) 5 Net Total 17,116 16,344 (772) (0) Transfer to/ (from) Earmarked Reserves 230 463 233 Net Total 17,346 16,807 (539) Subjective Summary Annual Budget Year End Outturn Annual Variance Adverse or (Favourable) % variance £000 £000 £000 Employee Costs 26,854 28,360 1,506 6% Property Costs 4,603 5,129 526 11% Supplies and Services 7,051 6,335 (716) (10%) Transport and Plant Costs 969 1,070 101 10% Administration Costs 332 278 (54) (16%) Other Agencies & Bodies 12,527 12,531 4 0% Transfer Payments - - - 0% Other Expenditure 286 67 (219) (77%) Capital Financing - - - 0% Gross Expenditure 52,622 53,770 1,148 2% Income (35,506) (37,426) (1,920) 5% Net Expenditure 17,116 16,344 (772) (5%)
Page 29
Appendix 4a COMMUNITIES AND HOUSING FINANCIAL PERFORMANCE 2025/26 REPORT FOR THE TWELVE MONTHS ENDED 31 MARCH 2026 Budget £000 Projected Variance £000 Variance as % of budget Section Note 1 Building Services Movement: There has been a favourable movement of £0.057m since Period 10. 10,792 (329) (3%) Employees: an underspend in employee costs of £0.379m. This is due to vacancy management. 4,584 (570) (12%) Supplies & Services: an underspend in supplies and services of £0.570m. This is primarily as a result of an underspend in materials due to changes in the income profile detailed below. 884 80 9% Transport: an overspend of £0.080m in transport costs primarily due to scaffolding costs linked to increased number of factoring jobs received and some additional transport related costs. 3,287 184 6% Third party payments: an overspend in third party payments of £0.184m. This is due to an overspend in payment to contractors of £0.220m as a result of a carry forward of storm damage works from the previous financial year. This is partially offset by an underspend of £0.036m in Agency costs. (23,265) 614 -3% Income: an under recovery in income of £0.614m. This is due to a reduction of £0.425m in voids works and £0.599m in Projects, mainly due to a reduction in demand for replacement bathrooms and wetrooms at void stage as well as a reduction in buybacks and the separation of communal windows from the window programme. There is also a reduction of £0.276m in Aids & Adaptations. This is partially offset by an increase in Responsive Repairs income of £0.240m as a result of an increase in storm damage works carried forward from last financial year partially offset by a reduction in other responsive repairs and a 5% productivity efficiency. There is also an increase of £0.358m in Planned repairs due to increased timber and damp works and an additional £0.096m in income mainly due to additional Estates Based Regeneration Programme fencing works. (36) Other minor movements (57) Note 2 Planning Services Movement: There has been a favourable movement of (£0.031m) since Period 10, this is mainly due to underspend in Other Supplies and Services of £0.043m. 100 (42) Supplies & Services: There is an underspend in Supplies & Services of £0.042m, mainly due to reprofiling of the Local Development Plan into 2026-27. (684) (83) 12% Income: There is an over-recovery of £0.083m for additional planning fee application income. (20) Other minor movements It is requested to Earmark £0.043m of underspends which relate to the Local Development Plan (145) Note 3 Protective Services Movement: There has been a favourable movement of (£0.043m) since P10, this is mainly due to a reduction in projected emp costs of £0.094m due to ongoing service redesign, an increase in the over-recovery of Building Warrant income of £0.155m and an over-recovery of income from HRA of £0.100m, offset with an overspend in Property costs of £0.314m due to Forum fire 2,731 (189) (7%) Employee Costs: There is an underspend of £0.180m, this is primarily due to a delayed implementation in the Scheme of Delegation. 247 315 128% Property Costs: There is an overspend of £0.314m, this is due to costs associated with making site safe following the Forum fire of £0.300m and other minor variances (1,233) (337) 27% Income: There is an over-recovery of £0.195m for additional Building Warrant income, an over-recovery of £0.100m in income from HRA and other minor variances 52 Other minor movements It is requested to Earmark £0.400m for further costs in relation to the demolition of the Forum Centre following the major fire damage. (159)
Page 30
Appendix 4a Budget £000 Projected Variance £000 Variance as % of budget Section Note 4 Other Housing Movement: There has been a favourable movement of (£0.197m) since P10. This is mainly due to due to lower than anticipated bad debt provision and write off costs. 3,524 (169) (5%) Employee Costs: There is an underspend of £0.169m due to vacancy management. 3,350 111 3% Property Costs: An overspend of £0.166m mainly due to additional maintenance costs to be addressed at the void stage in relation to homeless furnished units, partially offset by undersend in property repair costs of £0.027m and small variances across other property costs. 55 (40) (73%) Administration Costs: Underspend due to lower staff training costs of £0.018m and legal expenses of £0.018m. 286 (220) (77%) Other Expenditure: underspend of £0.220m due to lower than anticipated bad debt provision and write off costs. (7,016) 61 (1%) Income: There is an under-recovery mainly due to temporary furnished accomodation and hostel rents. (32) Other minor movements (289) Note 5 Connected Communities Movement: There has been favourable movement of (£0.261m) since P10. This is due to a favourable movement of £0.119m in property costs following less than anticipated costs in relation to Storm Eowyn and service management of budget lines to offset the impact of revised programming of implementation of the libraries 20% reduction efficiencies target. 7,508 (5) (0%) Employee Costs: There is a projected overspend of £0.098m related to the revised programming of implementation of the approved saving for the libraries 20% reduction efficiencies target with work ongoing as part of the Land and Property review. This is offset by management of other lines to reduce the impact, including an underspend of £0.103m across the service primarily due to vacancy management. 767 66 9% Property Costs: An overspend of £0.106m due to storm damage repairs at Eglinton Country Park offset against an underspend of £0.045m in library fixtures and fittings. 890 (70) (8%) Supplies and Services: There was an underspend of £0.070m primarily due to reduced spend within libraries. (2,205) (95) 4% Income: There was an over recovery of Harbour Arts Centre income of £0.049m and Arran Outdoor income of £0.044m. (5) Other minor movements. It is requested that we earmark the Holiday Playschemes and Activites budget of £0.020m as part of delivery of a programme of activities in summer 2026. (109)
Page 31
Appendix 5 OTHER CORPORATE ITEMS BUDGETARY CONTROL 2025/26 REPORT FOR THE 12 MONTHS TO 31 MARCH 2026 Objective Summary Annual Budget Final Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Strathclyde Passenger Transport 2,261 2,254 (7) 0% SPT Concessionary Fares 291 291 - 0% Ayrshire Joint Valuation Board 1,002 1,002 - 0% 3,554 3,547 (7) 0% 1 Other Corporate Costs Pension Costs 2,157 2,157 - 0% Central Telephones 133 133 - 0% Other Corporate Items (incl Transformation Costs, Bad Debt Provision, External Audit fees and other centrally held funding.) 7,509 1,024 (6,485) -86% 2 Insurance Account -1033 73 1,106 -107% 3 Housing Benefit 3,651 3,847 196 5% 4 - Net Total 15,971 10,781 (5,190) (32%) Transfer to/ (from) Earmarked Reserves 139 3,496 3,357 Net Total 16,110 14,277 (1,833) (11%)
Page 32
Appendix 5a OTHER CORPORATE ITEMS BUDGETARY CONTROL 2025/26 REPORT FOR THE 12 MONTHS TO 31 MARCH 2026 Budget £000 Outturn Variance £000 Variance as % of budget Section Note 1 Joint Boards No signficant movements since P10 3,554 (7) 0% Projected underspend of (£0.008m) due tp confirmation of annual requisitions and applicable refunds. (7) Note 2 Other Corporate Items There has been an favourable movement of £6.485m since P10 primarily related to centrally held inflationary and othe budget pressures not required in year. 7,268 (6,244) (86%) An underspend of £6.485m in relation to centrally held inflationary and other budget pressures not required to be drawndown in year. (6,244) Note 3 Insurance There has been an adverse movement of £1.106m since P10 as a result of year end allocations of Insurance premiums and Excesses (1,033) 1,106 -107% An overspend on insurance reflecting high level of excesses largely relating to recent storm damages. 1,106 Note 4 Housing benefit There has been a favourable movement of (£0.094m) since Period 10 in relation to the year end Housing Benefit submission to the DWP. 3,651 196 5% Overspend of £0.040m due to the provision of Housing Benefits, reduced Bad Debt Provisions and additional overpayment recovery 196
Page 33
Appendix 6 MISCELLANEOUS ITEMS BUDGETARY CONTROL 2025/26 REPORT FOR THE TWELVE MONTHS TO 31 MARCH 2026 Objective Summary Annual Budget Projected Outturn Annual Variance Adverse or (Favourable) % variance Note No £000 £000 £000 Financing Charges 13,751 13,751 - - Contribution to Loans Fund Reserve 10,187 10,187 - - Scottish Government Funding (394,613) (394,637) (24) 0% Council Tax (71,939) (72,984) (1,045) 1% 1 Use of Earmarked Funds (8,766) (8,766) - - Net Total (451,380) (452,449) (1,069) 0% Transfer toEarmarked Reserves 1,500 1,500 2 Net Total (451,380) (450,949) 431 (0%) Note 2 Transfer to Earmarked Reserves In view of the current conflict in the middle east and the anticipated inflationary impacts, the Bank of England forecast for interest rates now reflects an increase from the current base rate of 3.75% up to potentially 5.25% during 2026/27. In order to address the impact this will have on borrowing costs through 2026/27, it is requested that £1.500m is earmarked and transferred to the Loans Fund reserve. The projected over recovery reflects growth in the Council Tax base from additional new builds, properties previously registered as self-catering holiday units for NDR purposes that have come onto the Council tax register, and the impact of the application of 100% premium on Council tax for second homes which has exceeded original financial planning assumptions. Note 1 Council Tax There has been a favourable movement of £1.045m since P10 due to updated Council tax projections.
Page 34
Appendix 7 HOUSING REVENUE ACCOUNT BUDGETARY CONTROL 2025/26 REPORT FOR THE TWELVE MONTHS ENDED 31 MARCH 2026 Budget P12 outturn Year End variance % Variance Note No £ £ £ Employee Costs 5,294 5,294 0 0% Property Costs Responsive Repairs 7,406 6,714 (692) (9%) Void Repairs 4,656 4,348 (309) (7%) Planned and Cyclical Maintenance 6,047 6,197 150 2% Aids and Adaptions 1,792 1,342 (450) (25%) Other property costs 5,726 5,935 209 4% Total for Property Costs 25,627 24,536 (1,092) (4%) 1 Supplies & Services 2,145 2,130 (15) (1%) Transport Costs 16 15 (1) (6%) Administration Costs 2,114 1,902 (211) (10%) 2 Third Party Payments 3,832 3,771 (61) (2%) 3 Transfer Payments 177 124 (53) (30%) 4 Other Expenditure 550 948 398 72% 5 Capital Financing Costs 26,270 23,834 (2,437) (9%) 6 Gross Expenditure 66,026 62,555 (3,472) (5%) Income Council House Rents (62,592) (62,740) (147) 0% Other Rents (541) (358) 183 (34%) Recharges (1,212) (1,505) (292) 24% Other Income (959) (1,174) (214) 22% Transfer from HRA Balances (722) (722) 0 0% Total Income (66,026) (66,497) (470) 1% 7 Net Expenditure (0) (3,942) (3,942)
Page 35
Appendix 7a HRA BUDGETARY CONTROL 2025/26 REPORT FOR THE TWELVE MONTHS ENDED 31 MARCH 2026 Budget £000 Variance £000 Variance as % of budget Note 1 25,627 (1,092) -4% (1,092) Note 2 2,114 (211) -10% (211) Note 3 3,832 (61) -2% (61) Note 4 177 (53) -30% (53) Note 5 550 398 72% 398 Note 6 26,270 (2,437) -9% (2,437) Note 7 (66,026) (470) 0.7% (470) An over-recovery in income of £0.469m due to an over-recovery of £0.147m in Council House Rents, £0.292m in Recharges primarily due to insurance recoveries and £0.214m in other income in relation to additional grants. This is partially offset by an under-recovery of £0.184m in Other Rents as result of rent refunds and ex tenant arrears. Income Movement: There has been a favourable movement of £0.306m since Period 10. Capital Financing Costs Movement: there has been a favourable movement of £0.065m since Period 10. An underspend of £2.437m in capital financing costs which reflects a continuing strategy to delay new external borrowing by utilising cash balances, resulting in savings on external interest costs, changes in the profile of the capital programme and projected investment income returns. An underspend of £0.053m in Transfer payments due to a lower volume of disturbance allowances than anticipated when the budget was set. Other Expenditure Movement: there has been an adverse movement of £0.398m since Period 10. An overspend of £0.398m in Other Expenditure due to a review of the level/ methodology for calculation of the bad debt provision. Movement: there has been a favourable movement of £0.122m since Period 10. An underspend of £0.061m in Third party payments due to an underspend in internal recharges. Transfer Payments Movement: there has been a favourable movement of £0.053m since Period 10. Administration costs Movement: there has been a favourable movement of £0.207m since Period 10. An underspend of £0.211m in Administration costs. This is primarily due to lower than anticipated expenditure on external legal fees (£0.103m), central recharges (£0.053m) and insurances (£0.025m). Third Party Payments Section Property Costs Movement: there has been a favourable movement of £1.250m since period 10. This is due to favourable movements of £0.191m in Aids and Adaptations, £0.024m in Responsive Repairs, £0.276m in Void Repairs, £0.466m in Planned and Cyclical Maintenance, and £0.293 in Other Property costs An underspend of £1.092m in Property costs. This is due to an underspend of £0.692m in Responsive Repairs, primarily as a result of an underspend of £0.162m in Emergency Repairs, £0.436m in Planned Repairs and £0.177m in RTR, an underspend in Void Repairs of £0.309m and £0.450m in Aids & Adaptations. An element of the Voids and Aids and Adaptations underspends, in particular, are attributable to the ongoing Housing Transformation Programme. These underspends are partially offset by an overspend of £0.150m in Planned and Cyclical Maintenance and £0.209m in other Property costs due to void rent loss.
Page 36
Appendix 7a HRA BUDGETARY CONTROL 2025/26 REPORT FOR THE TWELVE MONTHS ENDED 31 MARCH 2026 B/fwd from 2024/25 Transfer to / from Reserves Use of Earmarked Sums Earmarking of in year surplus Funding of Capital Projects Reallocation Balance at 31/03/26 £m £m £m £m £m £m 13.213 3.942 (0.227) 16.928 5.000 (0.495) 4.505 2.000 (0.213) 1.787 Unearmarked 1.758 0.170 1.928 0.170 (0.170) - 22.141 - - 3.729 (0.722) - 25.148 Housing Services Transformation Programme Tenant led budget Council House Building Fund Sustainability Fund HRA reserves and balances
Page 37
Appendix 8 Place Employability - Employee Costs T 0.405 Employability - Income T 0.245 Employability - Transport Costs T 0.004 Employability - Third Party Payments T -0.612 Employability - Supplies and Services T -0.022 Employability - Admin Costs T -0.020 Roads - Employee Costs T -0.027 Roads - Supplies & Services T -0.073 Roads - Third Party Payments T 0.376 Roads - Income T -0.276 0.000 Perm (P) / Temp(T) Virement £m Directorate Total £m Budget Management - 31 March 2026 Virement/Budget Adjustment Requests 2025/26
Page 38
OFFICIAL INFORMATION OFFICIAL INFORMATION Cabinet 2 June 2026 At a Meeting of the Cabinet of North Ayrshire Council at 2.30 p.m. involving a combination of participation by remote electronic means and physical attendance within the Council Chambers, Irvine Present (Physical Participation) Tony Gurney, Christina Larsen, Eleanor Collier, Alan Hill, Margaret Johnson, and for consideration of Education Authority Business Elizabeth Turbet and Jacqui MacKenzie. Present (Remote Participation) Chloé Robertson. In Attendance C. Hatton, Chief Executive; S. Anson, Executive Director, A. McClelland, Head of Service and L. Kayes, Policy Officer (Child Poverty); R. McCutcheon, Executive Director, L. Cree, Head of Service (Sustainability, Transport and Corporate Property), L. Kirk, Director (Regional Economy), D. McDowall, Head of Service (Ayrshire Growth Deal) and S. Baird, Senior Officer (Islands) (Place); D. Hammond, Executive Director, Y. Baulk, Head of Service (Housing and Public Protection), F. Ellis, Senior Manager (Housing Strategy & Development), L. Forsyth, Senior Manager (Information and Culture), J. Greenlees, Senior Manager (Connected Communities) and S. McKenzie, Senior Manager (Protective Services) (Communities and Housing); C. Cameron, Director (Health and Social Care Partnership); M. Boyd, Head of Service (Finance); F. Walker, Head of Service (People & ICT); R. Lynch, Senior Manager (Legal Services), J. Hutcheson, Senior Communications Officer (Media and Internal Communications) and C. Stewart, Committee Services Officer (Democratic Services) (Corporate Services). Chair Tony Gurney in the Chair. 1. Declarations of Interest There were no declarations of interest by Members in terms of Standing Order 11 and Section 5 of the Code of Conduct for Councillors. 2. Minutes The Minutes of the Meeting of the Cabinet held on 28 April 2026 were confirmed and the Minutes signed in accordance with Paragraph 7 (1) of Schedule 7 of the Local Government (Scotland) Act 1973. 3. Planned temporary closure of educational provisions Submitted a report by the Executive Director (Education) outlining a standardised procedure in connection with the planned temporary closure of educational provisions, compliant with updated Scottish Government Guidance, attached at Appendix 1 to the report.
Page 39
OFFICIAL INFORMATION OFFICIAL INFORMATION Officers responded to Members’ questions and the Cabinet agreed (a) to note the decisions taken, which resulted in the temporary closure of two early years’ classes for session 2026-27; (b) to approve the adoption of the proposed policy for future temporary closures, in line with updated Scottish Government Guidance subject to the addition of “trade unions” in Section 3.2 of the policy and (c) to the submission of an annual report to Cabinet summarising any proposed temporary closures for future sessions. 4. Review of ELC Sustainable Rates for Funded Providers Submitted a report by the Executive Director (Education) seeking approval from Cabinet to increase the sustainable rate of payment to funded providers of early learning and childcare (ELC) in North Ayrshire who are contracted by the Council to deliver funded ELC to eligible 2-5-year-olds. Officers responded to Members’ questions and the Cabinet agreed (a) an increase of 6.2% in the current hourly rate paid by the Council to funded providers, backdated to 1 April 2026; (b) to an increase to all funded providers (including childminders) in the amount paid per meal to £3.22, and for this to be backdated to 1 April 2026; and (c) to receive a further report at the time of the next annual review of the sustainable rate for funded providers. 5. School Leavers’ Attainment and Achievement 2025 Submitted a report by the Executive Director (Education) on the overall performance of the 2024-25 cohort of North Ayrshire Council school leavers. The glossary of key terms used in the report was attached at Appendix 1. Officers responded to Members’ questions and the Cabinet agreed to (a) note the content of the report, including the achievements of school leavers in qualifications in 2025; and (b) note the measures being taken to make further improvements to attainment and achievement levels across NAC Secondary schools. 6. Care Experienced School Leavers’ Attainment and Achievement2024-25 Submitted a report by the Executive Director (Education) on the overall performance of the 2024-25 cohort of care experienced school leavers in North Ayrshire. The glossary of key terms used in the report was attached at Appendix 1. Officers responded to Members’ questions and the Cabinet agreed (a) to note the content of the report, including the achievements of care experienced school leavers in qualifications in 2025; and (b) to note the continued focus on improving outcomes for care experienced learners in North Ayrshire. 7. School Holiday Calendar – Academic Session 2027-28 Submitted a report by the Executive Director (Education) informing Cabinet of changes to the school holiday calendar from academic session 2027-28, attached at Appendix 1 to the report. It was noted that there had been a correction, in the version of the calendar that had been issued, and the revised calendar had been uploaded to the Council’s website.
Page 40
OFFICIAL INFORMATION OFFICIAL INFORMATION The Cabinet agreed (a) to note the significant level of engagement and consultation with key stakeholders; and (b) to note the resultant agreed changes to the school holiday calendar, to be implemented from session 2027-28 onwards. 8. Child Poverty Action Plan Progress Report 2025-26 Submitted a report by the Executive Director (Education) requesting approval of the Child Poverty Action Plan Progress Report 2025-26, attached at Appendix 1 to the report. Officers responded to Members’ questions and the Cabinet agreed to publication of the Child Poverty Action Plan Progress Report 2025-26 provided at Appendix 1 to the report and its submission to the Scottish Government. 9. Children’s Services Performance Report 2025/26 Submitted a report by the Director (HSCP) seeking approval for the North Ayrshire Children’s Services Plan Performance Report 2025/26. The Children’s Services Plan Action Update 2025-26 and the Children’s Services Plan Performance Indicators 2025- 26 were attached at Appendices 1 and 2, respectively, to the report. The Cabinet agreed (a) to approve the North Ayrshire Children’s Services Plan Performance Report 2024/26; and (b) to note the update in relation to the new Children and Families Plan 2026-2029. The following item is subject to the call-in procedure per the Council's Scheme of Administration and will be considered at a Special meeting of Audit & Scrutiny Committee. 10. Revenue Budget 2025/26: Financial Performance to 31 March 2026 Submitted a report by the Head of Finance advising Cabinet of the financial performance for the Council for 2025/26. Officers responded to Members’ questions and Councillor Larsen, seconded by Councillor Gurney, moved as follows: “That the Cabinet supports the recommendations set out in the report, subject to the amendment below: Approve subject to the movement of £1.496m of underspend to the 26/27 revenue budget. These funds to be used to create an Our Places, Our Communities fund designed to benefit all North Ayrshire communities. The administration will bring details of this fund to council on the 24th of June for debate and approval.” There being no amendment, the motion was declared carried. Accordingly, the Cabinet agreed as follows:
Page 41
OFFICIAL INFORMATION OFFICIAL INFORMATION To (a) note (i) the information and financial outturn position outlined in the report; (ii) the financial performance for the Health and Social Care Partnership highlighted at 2.5 of the report; and (b) approve (i) the earmarking of £7.691m identified at 2.4 of the report to meet future year commitments in accordance with funding requirements; and (ii) the virements detailed in Appendix 8 to the report. Approve subject to the movement of £1.496m of underspend to the 26/27 revenue budget. These funds to be used to create an Our Places, Our Communities fund designed to benefit all North Ayrshire communities. The administration will bring details of this fund to council on the 24th of June for debate and approval. 11. Capital Programme Performance to 31 March 2026 Submitted a report by the Head of Finance advising Cabinet of progress in delivering the Capital Investment Programme 2025/26. Officers responded to Members’ questions and the Cabinet agreed (a) to approve the virement proposal noted within the HRA programme detailed in Appendix 2 to the report; (b) note (i) the revisions to budgets outlined in the report; (ii) the General Services and HRA revised budgets at 31 March 2026; and (iii) the net expenditure to 31 March 2026. 12. Community Asset Transfer – Blacklands Hall, Kilwinning Submitted a report by the Executive Director (Communities and Housing) seeking approval for the transfer of ownership of Blacklands Hall (and adjacent land), Abbots Avenue, Kilwinning to the Kilwinning Community Shed. The location plan was attached at Appendix 1 to the report. Officers responded to Members’ questions and Cabinet agreed (a) to the asset transfer of Blacklands Hall and the adjacent land from North Ayrshire Council to the Kilwinning Community Shed; (b) to approve the recommended terms of transfer on this occasion at 5% of the property valuation of £85,000 (totalling £4,250); and (c) to authorise officers to conclude the associated legal and community asset transfer processes for Blacklands Hall and adjacent land. 13. Community Asset Transfer – Auld Dirrans Resource Centre, Kilwinning Submitted a report by the Executive Director (Communities and Housing) seeking approval for the transfer of ownership of Auld Dirrans Resource Centre, 70 Dirrans Terrace, Kilwinning to Irvine Elite Boxing Club. It was noted that a revised copy of the location plan, attached at Appendix 1 to the report, had been uploaded to the Council’s website showing the correct location. Officers responded to Members’ questions and Cabinet agreed (a) to the asset transfer of Auld Dirrans Resource Centre from North Ayrshire Council to Irvine Elite Boxing Club; (b) to approve the recommended terms of transfer on this occasion at 5% of the property valuation of £85,000 (totalling £4,250); and (c) to authorise officers to conclude the associated legal and community asset transfer processes for Auld Dirrans Resource Centre.
Page 42
OFFICIAL INFORMATION OFFICIAL INFORMATION 14. Proposals for Community Investment Fund (CIF) Expenditure Submitted a report by the Executive Director (Communities and Housing) to determine applications by Locality Partnerships to allocate CIF funding to proposed projects. The application from Dalry Community Sports Club was attached at Appendix 1 to the report. Officers responded to Members’ questions and the Cabinet (a) reviewed the application from Garnock Valley Locality Partnership in line with CIF criteria; and (b) agreed to approve the CIF application in relation to Dalry Community Sports Club (Appendix 1 to the report). 15. Use of Animals at Public Events Submitted a report by the Executive Director (Communities and Housing) seeking Cabinet approval of Guidelines and Policy relating to the use of animals at public events, attached at Appendix 1 to the report. The Cabinet agreed to approve the Guidelines and Policy relating to the use of animals at public events detailed in Appendix 1 to the report. The following item is subject to the call-in procedure per the Council's Scheme of Administration and will be considered at a Special meeting of Audit & Scrutiny Committee. 16. North Ayrshire Housing Acquisition Strategy Submitted a report by the Executive Director (Communities and Housing) seeking Cabinet approval of the proposed Housing Acquisition Strategy 2026-2031, attached at Appendix 1 to the report. Officers responded to Members’ questions and Cabinet agreed to approve the proposed North Ayrshire Housing Acquisition Strategy detailed in Appendix 1 to the report. The following item is subject to the call-in procedure per the Council's Scheme of Administration and will be considered at a Special meeting of Audit & Scrutiny Committee. 17. Ardrossan Campus - Project Update Submitted a report by the Executive Director (Place) providing Cabinet with an update on the current progress of the Ardrossan Campus project, including current projections in relation to costs and programme. Officers responded to Members’ questions and Cabinet agreed (a) to note the content of this report, including the current progress of work on site; (b) to note the revised project completion date of 26 May 2028, with anticipated occupation from August 2028; and (c) to note the additional estimated cost of £9.97 million (8.74%) associated with addressing the contamination will be met from approved capital flexibility funding.
Page 43
OFFICIAL INFORMATION OFFICIAL INFORMATION 18. Ayrshire Growth Deal: International Marine Science and Environment Progress (IMSE) Update Submitted a report by the Executive Director (Place) on progress on the International Marine Science and Environment project and seeking approval for the strategic direction and to note the development of a Collaboration Agreement with partners Field Studies Council and Community of Arran Seabed Trust to support the further development of the project. The Cabinet agreed to (a) note the progress to date and approves the strategic direction for the International Marine Science and Environment project; (b) notes the development of a Collaboration Agreement with the Field Studies Council and the Community of Arran Seabed Trust to progress the project and develop the full business case; and (c) notes the progression of the change management requirements and Outline Business Case for the project, informed by feedback from the Scottish and UK Governments. 19. Flexible Advanced Manufacturing Space, i3 Irvine: Phase 2, Full Business Case Submitted a report by the Executive Director (Place) seeking endorsement of the Full Business Case for Phase 2 of the Flexible Advanced Manufacturing Space Project at i3, Irvine, attached at Appendix 1 to the report. The Cabinet agreed (a) to endorse the Full Business Case for Phase 2 of the Flexible Advanced Manufacturing Space project at i3, Irvine, subject to feedback from Scottish and UK Governments and the successful outcome of the tender process; (b) that authority be delegated to the Executive Director (Place) to update the Full Business Case to reflect the feedback and outcome of the tender process; and (c) to approve the submission of the Full Business Case to the Ayrshire Economic Joint Committee. 20. National Islands Plan and North Ayrshire Islands Programme Update Submitted a report by the Executive Director (Place) on the North Ayrshire Islands Programme and the new National Islands Plan and outlining proposed next steps. The North Ayrshire Islands Programme Achievements 2022 to 2025 was attached at Appendix 1 to the report. Officers responded to Members’ questions and Cabinet agreed (a) to note (i) the progress of the North Ayrshire Islands Programme and achievements to date, (ii) the publication of the National Islands Plan 2026 to 2031 and associated investment in 2026/27; (b) to the refresh and refinement of the current Local Island Plans and associated delivery plans and their intended reporting; and (c) to the finalisation and submission of the proposed funding applications to the Scottish Government’s Islands Programme.
Page 44
OFFICIAL INFORMATION OFFICIAL INFORMATION 21. Regeneration Delivery Plan Funding Proposals Update 2026/27 Submit a report by the Executive Director (Place) on progress of the Regeneration Delivery Plan and seeking approval for proposed funding allocations in 2026/27. The Regeneration Funding Proposals and the Project Updates were set out in Appendices 1 and 2, respectively, to the report. The Cabinet agreed (a) to approve (i) the Regeneration funding proposals as detailed at Appendix 1 to the report; and (ii) the proposed delegated authority changes following service restructure; (b) to note (i) the progress made on the implementation of the Regeneration Delivery Plan; and (ii) the update on previously secured or applied for funds provided at Appendix 2 to the report; and (c) that delegated authority be granted to the Executive Director (Housing and Communities) to agree changes to the funding allocations in Appendices 1 and 2 in the report, in consultation with the Portfolio Lead as required. 22. Fleet Decarbonisation Submitted a report by the Executive Director (Place) on progress made to date with decarbonisation of the Council Fleet and providing details of the further proposed decarbonisation-first approach work going forward. Officers responded to Members’ questions and Cabinet agreed (a) the decarbonisation- first approach for fleet replacement outlined at paragraph 2.17 of the report; (b) note (i) the progress made to date in decarbonising the fleet, and against the actions set out in the May 2023 Cabinet paper, and (ii) that the Council’s current fleet decarbonisation actions would continue to evolve to reflect the Scottish Government’s refreshed Climate Change Plan 2026-2040 and the awaited public sector fleet decarbonisation action plan. 23. Urgent Items There were no urgent items. The meeting ended at 4.45 p.m. The full meeting proceedings can be viewed at https://north-ayrshire.public-i.tv/core/portal/home
Page 45
Revenue Budget 2025/26: Financial Performance to 31 March 2026 Briefing Note:- Mark Boyd (Head of Service – Finance) The Revenue Budget report to the 31 March 2026 was presented at Cabinet on 2 June 2026 and outlined the final reported position for the 2025/26 financial year. This position will be reflected in the Council’s Unaudited accounts due for presentation at Council on the 24 June 2026. The General Fund reported a net in-year underspend of £2.014m for the year. This is the net position after transferring resources to and from earmarked reserves. This is an improvement of £0.334m from that reported at period 10. This underspend will be added to the General Fund Unearmarked reserves which would increase the available balance to 2.3% of the General Services Revenue Budget which is within the recommended range of 2% to 4%. The level of General Fund Unearmarked Reserves at 31 March 2026 is £11.195m. This is £1.496m above the 2% lowest Reserves threshold of £9.699m. Whilst the current level of Unearmarked Reserves remains at the lower end of good practice, this still reflects a prudent position to help address areas of significant risk to the Council through 2026/27, most notably through the financial performance of the HSCP, this being set within the context of the savings the HSCP require to deliver to remain within available resources during 2026/27. The report also references the improved position of the Health and Social Care Partnership (HSCP) for the year 2025/26 i.e. the final outturn for the Council Services element of the HSCP is a net underspend of £0.459m after earmarking resources. This is an improvement of £1.941m from that reported at period 10. The £0.459m will be added to the HSCP’s Unearmarked Reserves. This will help address pressures through 2026/27, however, as referenced above the HSCP requires to make significant savings through 2026/27. An Amendment was made to this report as follows:- That the Cabinet supports the recommendations set out in the report, subject to the amendment below:- “Approve subject to the movement of £1.496m of underspend to the 26/27 revenue budget. These funds to be used to create an Our Places, Our Communities fund designed to benefit all North Ayrshire communities. The administration will bring details of this fund to council on the 24th of June for debate and approval.” The financial effect of this Amendment is to utilise, in 2026/27, the level of Unearmarked reserves, being the difference between 2.3% reserves and 2% Unearmarked reserves for the stated purpose. Whilst this is still within the Council’s reserves policy, it is at the lowest end. Further, as the utilisation of reserves relates to Appendix 2
Page 46
2026/27, this does not change the Council’s reported out-turn or reserves position at 31 March 2026, therefore the Council’s unaudited Accounts are unaffected and will be submitted to Council for approval on 24 June 2026 as planned.