Agenda Document Pack - Audit and Scrutiny Committee - 15/06/2026
North Ayrshire Council · 15 June 2026
Back to Audit and Scrutiny Committee — 15 June 2026 and its agenda
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE Audit and Scrutiny Committee A Special Meeting of the Audit and Scrutiny Committee of North Ayrshire Council will be held in the Council Chambers, Ground Floor, Cunninghame House, Irvine, KA12 8EE on Monday, 15 June 2026 at 10:00 to consider the undernoted business. Meeting Arrangements - Hybrid Meetings This meeting will be held on a predominantly physical basis but with provision, by prior notification, for remote attendance by Elected Members in accordance with the provisions of the Local Government (Scotland) Act 2003. Where possible, the meeting will be live-streamed and available to view at https://north-ayrshire.public- i.tv/core/portal/home. 1 Declarations of Interest Members are requested to give notice of any declarations of interest in respect of items of business on the Agenda. 2 Call In: Revenue Budget 2025/26: Financial Performance to 31 March 2026 Submit report by the Head of Democratic Services to consider a call-in request in respect of the decision taken by Cabinet at its meeting on Tuesday 2 June 2026 advising of the financial performance for the Council for 2025/26 (copy enclosed). 3 Call In: North Ayrshire Housing Acquisition Strategy Submit report by the Head of Democratic Services to consider a call-in request in respect of the decision taken by Cabinet at its meeting on Tuesday 2 June 2026 on the proposed Housing Acquisition Strategy 2026-2031 (copy enclosed). 1
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 4 Call In: Ardrossan Campus Project Update Submit report by the Head of Democratic Services to consider a call-in request in respect of the decision taken by Cabinet at its meeting on Tuesday 2 June 2026 to note the current progress of the Ardrossan Campus project, including current projections in relation to costs and programme (copy enclosed). Webcasting Please note: this meeting may be filmed/recorded/live-streamed to the Council's internet site and available to view at https://north-ayrshire.public- i.tv/core/portal/home,where it will be capable of repeated viewing. At the start of the meeting, the Provost/Chair will confirm if all or part of the meeting is being filmed/recorded/live-streamed. You should be aware that the Council is a Data Controller under the Data Protection Act 2018. Data collected during the webcast will be retained in accordance with the Council’s published policy, including, but not limited to, for the purpose of keeping historical records and making those records available via the Council’s internet site. Generally, the press and public will not be filmed. However, by entering the Council Chambers and using the press or public seating area, you acknowledge that you may be filmed and that any information pertaining to you contained in the video and oral recording of the meeting will be used for webcasting or training purposes and for the purpose of keeping historical records and making those records available to the public. In making this use of your information the Council is processing data which is necessary for the performance of a task carried out in the public interest. If you have any queries regarding this and, in particular, if you believe that use and/or storage of any particular information would cause, or be likely to cause, substantial damage or distress to any individual, please contact dataprotectionofficer@north-ayrshire.gov.uk 2
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE Audit and Scrutiny Committee Sederunt John Bell (Chair) Donald Reid (Vice Chair) Cameron Inglis Shaun Macaulay Tom Marshall Matthew McLean Davina McTiernan Donald L. Reid John Sweeney Chair: Apologies: Attending: 3
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NORTH AYRSHIRE COUNCIL 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 Agenda Item 2 5
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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. 6
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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. 7
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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 8
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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 9
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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) 10
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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) 11
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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 12
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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 : 13
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• 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. 14
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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. 15
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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) 16
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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. 17
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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 18
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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% 19
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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% 20
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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) 21
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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) 22
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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% - - - 23
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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. 24
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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. 25
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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 26
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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%) 27
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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) 28
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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. 29
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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 30
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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) 31
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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%) 32
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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) 33
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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) 34
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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%) 35
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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 36
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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. 37
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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) 38
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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. 39
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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 40
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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 41
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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. 42
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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. 43
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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: 44
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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. 45
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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. 46
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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. 47
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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 48
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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 49
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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. 50
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NORTH AYRSHIRE COUNCIL 15 June 2026 Audit and Scrutiny Committee Title: Call In: North Ayrshire Housing Acquisition Strategy 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 on the proposed Housing Acquisition Strategy 2026- 2031. 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 proposed Housing Acquisition Strategy 2026-2031. 2. Background 2.1 The Cabinet, at its meeting on 2 June 2026, considered a report on the proposed Housing Acquisition Strategy 2026-2031. 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 “It is wrong to suggest this policy will have no impact on the Council’s Community Wealth Building (CWB) strategy. A key component of the strategy is to increase procurement spend with North Ayrshire, and Ayrshire, businesses creating economic and socio benefits from investing in the local economy. The fact that Ayrshire based companies have won our council house building contracts has made a significant contribution to us achieving the initial procurement targets set Agenda Item 3 51
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out in the first CWB strategy published in 2020. This policy is the opposite of this approach. It will see a significant proportion of our investment in Council housing, the majority of which comes from the Council with the rest from Holyrood, be transferred to private housing developers, many of which are large national developers. It will see that investment extracted from the Ayrshire economy. We remain as committed to Community Wealth Building as were in 2020. We therefore reject this policy.” Desired Outcome “That the Council reaffirms its commitment to Community Wealth Building by rejecting this policy and redoubling our efforts to ensure that Ayrshire based companies can bid for, and win, the contracts to build the next generation of Council houses in North Ayrshire.” 2.4 A copy of the original report presented to Cabinet on 2 June 2026 is attached as Appendix 1 to this report. A briefing note has been provided by the Executive Director (Communities and Housing) 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. 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. 52
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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 North Ayrshire Housing Acquisition Strategy report attached at Appendix 1. Human Resources 4.2 The human resource implications are outlined in the North Ayrshire Housing Acquisition Strategy report attached at Appendix 1. Legal 4.3 The legal implications are outlined in the North Ayrshire Housing Acquisition Strategy report attached at Appendix 1. Equality/Socio-economic 4.4 The equality/social-economic implications are outlined in the North Ayrshire Housing Acquisition Strategy report attached at Appendix 1. Climate Change and Carbon 4.5 The climate change and carbon implications are outlined in the North Ayrshire Housing Acquisition Strategy report attached at Appendix 1. Key Priorities 4.6 The key priorities are outlined in the North Ayrshire Housing Acquisition Strategy report attached at Appendix 1. Community Wealth Building 4.7 This is the subject of the call-in. Islands Communities Impact Assessment (ICIA) 4.8 Any ICIA implications are outlined in the North Ayrshire Housing Acquisition Strategy report attached at Appendix 1. 53
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United Nations Rights of the Child (UNCRC) 4.9 Any UNCRC implications are outlined in the North Ayrshire Housing Acquisition Strategy report attached at Appendix 1. Consumer Duty 4.10 Any consumer duty implications are outlined in the North Ayrshire Housing Acquisition Strategy 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 54
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NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet Title: North Ayrshire Housing Acquisition Strategy Purpose: To seek Cabinet’s approval of the proposed Housing Acquisition Strategy 2026-2031. Recommendation: It is proposed that Cabinet approves the proposed North Ayrshire Housing Acquisition Strategy at Appendix 1. 1. Executive Summary 1.1 Housing to 2040 continues to be the Scottish Government’s overarching strategy that sets out their vision and roadmap for ensuring everyone has a safe, good quality and affordable home that meets their needs, in the place they want to be, by 2040. 1.2 The Scottish Government declared a national housing emergency in May 2024. In September 2025, the Scottish Government released their Housing Emergency Action Plan which comprises new, enhanced, and accelerated actions, reflecting their determination to go further and faster in their commitment to tackling the housing emergency during the remainder of this Parliament and beyond. 1.3 The proposed North Ayrshire Housing Acquisition Strategy will support the Scottish Government’s objective of expanding the scale of acquisitions to increase overall housing supply. 1.4 The Strategic Housing Investment Plan (SHIP) 2026-2031 sets out the priorities and locations for affordable housing investment by the Council and registered social landlords in North Ayrshire over the five-year period, to support the outcomes in the Local Housing Strategy. 1.5 The Strategic Housing Investment Plan 2026–2031 aims to secure investment for the delivery of a total of 1,038 properties – 741 by the Council and 297 by its RSL partners - providing sustainable, affordable, accessible, and high-quality homes which will contribute to the wider regeneration aims for the area. 1.6 The North Ayrshire Local Housing Strategy 2023-2028 was approved by Cabinet on 13 June 2023 and sets out the strategic ambition for Housing in North Ayrshire: “we want all our people to live in the right homes, in great places, with access to any support services they need”. Four overarching outcomes were developed to achieve this ambition, which align to our Council Appendix 1 55
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Plan and the four key strategies in the Scottish Government’s ‘Housing to 2040’ vision. 1.7 The proposed North Ayrshire Housing Acquisition Strategy will support the following LHS actions: • Deliver 1,666 new units of social housing • Consider opportunities to provide homes in and around our town centres • Support the Scottish Government's target to deliver 110,000 new affordable homes by 2032 by delivering the projects set out within the Strategic Housing Investment Plan • Increase the social housing supply by buying back former social housing • Bring empty homes back into use through the buyback scheme • Ensure that the Strategic Housing Investment Plan addresses current and future demographic needs. 1.8 The Housing Acquisition Strategy will contribute to the SHIP, helping to achieve the Council Plan priorities and strategic aims by: • Through our housebuilding programme and wider housing investment, providing homes for life that meet the needs of our residents • Increasing the number of homes in the area through a mix of private and social developments and bringing empty buildings back into use • Ensuring our places and spaces where we live, work and visit are well maintained and accessible • Reducing the carbon footprint of our estate through rationalisation utilising a locality-based approach and taking a fabric first and low carbon energy generation approach to homes and buildings 2. Background 2.1 It is recognised that purchasing ex-local authority stock is an effective way to increase social housing stock and provide value for money for the investment made, and the SHIP 2025-2030 increased the Council’s buyback scheme to 60 properties by 31 March 2030. The Council’s developing Registered Social Landlord partners have also included buyback programmes within the SHIP, aiming to acquire a further 29 new homes. 2.2 Five former social housing properties were purchased by the Council in 2023/24 to increase the affordable housing supply through the SHIP 2024-2029 buyback scheme, achieving our target of purchasing five properties during that year. 33 properties were also acquired for Ukrainian Displaced Persons in the last quarter of 2023/24, which were fully funded by the Scottish Government. The Council and its partners acquired three buybacks utilising SHIP funding during 2024/25; the Council purchased two homes for the Council’s buyback programme and Cairn, in partnership with ANCHO, bought back one home. Trust Housing Association also acquired two homes on Arran in 2024/25 and three in 2025/26 utilising the Scottish Government’s Rural Affordable Homes for 56
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Key Workers Fund, and they are actively pursuing another six on the island at the start of 2026/27. 2.3 The revised North Ayrshire’s Resource Planning Assumption for 2025/26 was £16.125m. During March 2026, the Scottish Government provided Resource Planning Assumption figures for the next four years to 2029-2030 as follows: • £16.889m for 2026/27 • £17.396m for 2027/28 • £17.918m for 2028/29 • £18.455m for 2029/30 £2.647m of the total RPA has been allocated for second hand and empty home acquisitions over the five years to 2031. 2.4 The Affordable Housing Supply Programme can support the following types of purchase where there is a strategic housing need, as identified and agreed by the local authority: • Open market purchases with vacant possession • Off-market purchases with vacant possession • Purchases where an owner occupier cannot afford the required maintenance or refurbishment of their home and wishes to sell and remain in the home as a tenant in the social rented sector • ‘Off the shelf’ purchases from developers • Properties from landlords leaving the private rented sector with a tenant in situ, where this meets a clear strategic purpose and where the tenant is at risk of homelessness 2.5 Private housing (owned by individuals or private landlords) forms 73% of all homes in the area, with the remaining 27% being owned and rented by North Ayrshire Council and local Registered Social Landlords (RSLs). The cost of buying a home in North Ayrshire is significantly lower than the national average. 2.6 As at April 2026, there were currently 6,155 applicants on the North Ayrshire Housing Register, with 3,401 assessed as having a housing need. 2.7 The current pace of the second-hand property market means that it has proven difficult to acquire homes from the private market to meet our buyback scheme as set out in the SHIP. To address this challenge, we identified the need to develop an acquisition strategy and review our internal procedures. 2.8 The Scottish Government supports acquisitions to bring existing homes into use more quickly, increase affordable supply, and make efficient use of public investment. 2.9 The North Ayrshire Acquisition Strategy has been developed to ensure that the Council continues to meet affordable housing need and demand across North Ayrshire by increasing the availability of permanent social rented homes, and to 57
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ensure funding is maximised and value for money is demonstrated across various funding streams. The new strategy has identified the opportunity to consider “Off the-shelf” acquisitions which can be a strategic tool to rapidly increase the supply of social homes and meet urgent local housing needs, including reducing the use of costly temporary accommodation, and can offer value for money compared to other housing delivery options. 2.10 To be considered for acquisition, properties must support one or more of the objectives of the strategy and must meet one or more of the criteria of the strategy. 2.11 Objectives • Help achieve the strategic outcomes set out in the Local Housing Strategy: • More homes at the heart of great places • Affordability & choice • Affordable warmth & zero emissions • Improving the quality of our homes • Meet demand in the highest need areas, as identified through the Housing Needs and Demand Assessment (HNDA) and ongoing demand analysis. • Assist in delivering the Strategic Housing Investment Plan, which sets out the affordable housing investment priorities within North Ayrshire • Utilise opportunities to acquire properties on the open market or through speculative approaches from owners, where this supports strategic housing need • Increase the number of long-term empty properties brought back into use, through effective collaboration with the Council’s Private Sector Housing Advice Team. • Continue to assess any opportunities for acquisition that arise in suitable housing supply influenced through the impact of the application of the 100% premium in Council tax for second homes, across the mainland and both island communities. • Enhance block sustainability and support future maintenance by increasing Council ownership in partially factored blocks through proactive engagement with private owners. • Support the reduction of homelessness by ensuring, where appropriate, that acquired properties contribute to meeting the housing needs of households in temporary accommodation. 2.12 Criteria A property must meet specific requirements to demonstrate best value for money and alignment to the need and demand in North Ayrshire. Therefore, to be considered by North Ayrshire Council for acquisition, properties will form part of the overall social rented stock once purchased and must - in addition to being of a property type or size with an evidenced need or demand - meet one or more of the criteria below, in addition to any other criteria specified: 58
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• Ex-local authority stock, within North Ayrshire Council estates, which will facilitate effective and efficient housing management • Located in an area identified as having an affordable housing shortfall • Long term empty properties, where the purchase would allow for greater local amenity and contribute to the Council’s statutory duties and strategic objectives • ‘Off the shelf’ purchases from developers • Purchase will be less than the development costs of building a comparable property. Properties which cost more than this will be considered on a case-by-case basis, e.g., if the property is highly adapted and meets the requirements of an applicant with an accessible housing need • The purchase price is equal to, or a reduction of, the actual market value as assessed by the Council’s valuation report/ home report valuation. Properties which cost more than this will be considered on a case-by-case basis, e.g., projects in regeneration areas; remote, rural or island areas; or involving housing for people with particular/ specialist needs • The property will be able to achieve and be maintained to a standard acceptable to the Council, e.g. to the SHQS and EESSH2/ SHNZS • Of standard construction only (due to the legal and cost implications they could incur if otherwise). 2.13 Any decision to acquire a property is at the discretion of North Ayrshire Council and is subject to the availability of relevant funding. If purchased, properties will be improved to meet the Scottish Housing Quality Standard (SHQS) and the Energy Efficiency Standard for Social Housing (EESSH2)/ Social Housing Net Zero Standard (SHNZS). 2.14 Four acquisition workstreams are currently being utilised in North Ayrshire: • Strategic Housing Investment Plan (SHIP) • Affordable Housing Initiative for Key Workers • Estate Based Regeneration Programme • Void and Acquisition Fund 2.15 SHIP: The SHIP 2026 to 2031 makes provision for empty and second home buy backs, with the Council’s Private Sector Advice Team providing advice and assistance on empty homes. As at 1 April 2026, there are 582 empty homes subject to the Council Tax levy in North Ayrshire. Additionally, there are approximately 1,500 second homes in North Ayrshire, the majority of which are located on the islands of Arran and Cumbrae. 2.16 Bringing former social housing stock into ownership can assist with housing management, maintenance issues, and increase housing available through the North Ayrshire Housing Register. Over the past four financial years the Council has acquired four empty homes, using funding from the Affordable Housing Supply Programme, which have been brought back into use as Council stock. 59
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2.17 North Ayrshire Council may purchase properties for the use of specific applicant needs where no suitable Council or RSL property exists and where the cost of purchasing the property would be more cost effective than making adaptations and alterations to existing stock. Properties should be purchased with vacant possession however North Ayrshire Council may consider purchasing private rented or owner-occupied properties where the tenancy or ownership is at risk, and the property has been substantially adapted in a major, permanent way to meet the needs of the tenant or household. The tenant or owner should have a live North Ayrshire Housing Register application and there should be no suitable Council or RSL property which meets the needs of the applicant (including consideration of the costs of adapting existing stock). 2.18 ‘Off-the-shelf’ property acquisitions have been included in the Acquisition Strategy to allow consideration, should suitable developments come forward that provide good value for money compared to the average costs of developing our own new build properties from scratch. This strategic approach can rapidly increase the supply of social homes and meet urgent local housing needs, including reducing the use of costly temporary accommodation. Key considerations for OTS property acquisitions include development availability and timing, location compared to where our need and demand assessments have identified, house type and layout compared to our needs within that location, specification the developer will build to, cost per unit, and future maintenance and estate management requirements. This is a new area under active consideration by officers to identify any viable opportunities within North Ayrshire. Should a viable opportunity be identified, this will be presented to Cabinet for approval. 2.19 The Rural Affordable Homes for Key Workers Fund, previously known as the Rural Key Workers Housing Fund, provides up to £25 million nationally through to March 2028 to help local authorities identify affordable homes for key workers in rural communities. This funding is made available from the Affordable Housing Supply Programme and therefore is only accessible to local authorities and RSLs. Key workers can include public sector and emergency service workers; however, the definition of a key worker is determined on an individual basis by local authorities according to their local priorities. In North Ayrshire, the Arran Local Lettings Initiative provides an example of a definition of key workers, taking a tiered approach. 2.20 Guidance provided by the Scottish Government on the Rural and Key Workers Housing Fund outlines that local authorities and RSLs can use the fund to purchase existing suitable properties in rural areas, which can be rented directly or leased to employers to provide affordable homes for key workers. This can include: • Bringing empty properties back into use, or • Acquiring properties on the open market to increase the available supply of affordable homes for key workers. 2.21 Void and Acquisition Fund: The Scottish Government agreed to invest at least £60 million through the Affordable Housing Supply Programme (AHSP) in 2023 60
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to 2024 to support a National Acquisition Programme. Building on the National Acquisition Programme, the Scottish Government announced in April 2024 that £80 million would be added to the Affordable Housing Supply Programme over 2024 to 2025 (£40 million) and 2025 to 2026 (£40 million). Resultantly, in September 2024, the Scottish Government increased North Ayrshire Council’s Resource Planning Assumption. This uplift was to be directed towards: • Acquisitions to help address temporary accommodation pressures, or • To bring long term voids back into use. 2.22 In 2024/25, one property was bought using this fund and in 2025/26, five properties were bought using this fund. There is no separate funding for acquisitions for 2026/27 and beyond; this reflects the Scottish Government’s aim of giving flexibility to local authorities to determine their appropriate priorities between new builds and second-hand acquisitions. If any such fund becomes available, North Ayrshire Council will engage with the Scottish Government and stakeholders to make the most effective use of any funding that may become available for North Ayrshire. 2.23 Estate Based Regeneration Programme (EBRP): In January 2019, the Council’s 10-year, £10 million EBRP was approved. The aim of the EBRP is to improve Council-owned housing estates across North Ayrshire by addressing low demand stock, antisocial behaviour, external appearance, parking provision, road and footpath condition, fencing, landscaping, and general grounds maintenance issues. The Housing Regeneration Team will acquire properties identified in the EBRP for the purposes of: • Demolition • Refurbishment • Purchasing four-in-a-block flats where this would result in the Council’s majority ownership in the block 2.24 The SHIP 2026 to 2031 includes for the provision of funding for 249 units to assist the delivery of Housing’s Estate Based Regeneration Programme. This investment programme aims to provide new homes to replace any stock which requires to be demolished or reconfigured as part of the EBRP. 2.25 The proposed approach allows North Ayrshire Council to ensure they are maximising the funding streams available whilst targeting properties that meet the strategic needs for the areas through a range of acquisition opportunities. Acquisitions will sit within the Housing Strategy Team to ensure that our housing acquisitions meet the strategic needs identified through the Local Housing Strategy, Housing Need and Demand Assessment, Strategic Housing Investment Plan, Local Housing Plans, Scheme of Assistance, and the Homeless Prevention Strategy. 2.26 The ECRIA screening has been conducted, and it has determined that a full assessment is not required for this strategy. A full ECRIA has been completed for the Local Housing Strategy, which includes acquisitions. 61
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3. Proposals 3.1 That Cabinet approves the North Ayrshire Housing Acquisition Strategy 2026 - 2031 at Appendix 1. 4. Implications/Socio-economic Duty Financial 4.1 The financial implications arising from targeted housing acquisitions are accounted for within existing 2026-2031 HRA budgets. Business cases will be developed to support any new initiatives, as required. Human Resources 4.2 None. Legal 4.3 Housing Services will continue to liaise with Legal Services, where required, to facilitate housing acquisitions. Equality/Socio-economic 4.4 The Housing Acquisition Strategy will have a positive impact by aiming to increase the availability of permanent homes to meet the affordable housing need and demand in North Ayrshire. An ECRIA screening has been conducted for the Housing Acquisition Strategy, and it has determined that a full assessment is not required. A full ECRIA was completed for the Local Housing Strategy 2023-2028, which includes acquisitions. Climate Change and Carbon 4.5 The Housing Acquisition Strategy will support the Sustainable North Ayrshire Strategy 2024 - 2027, which aims to eradicate fuel poverty and achieve net- zero carbon status by 2030, by ensuring that homes acquired by the Council are brought up to appropriate sustainability standards. Key Priorities 4.6 The Housing Acquisition Strategy will support the Council Plan strategic priorities: ‘Wellbeing;’ ‘Climate Change;’ ‘A Sustainable Council;’ and ‘Communities and Local Democracy.’ by increasing the number of affordable homes in North Ayrshire that meet residents’ needs. Community Wealth Building 4.7 None 62
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Islands Communities Impact Assessment (ICIA) 4.8 The Housing Acquisition Strategy does not identify unique impacts faced specifically by our islands. Whilst the strategy covers the whole of North Ayrshire, it is fully recognised that delivering homes on islands can be more complex and expensive than on the mainland. Under existing arrangements, NAC Housing services work closely with the Registered Social Landlords (RSLs) on our islands and provide support where required. This can include supporting applications to the Scottish Government for additional funding to help the RSL make a housing acquisition where property prices are higher than they would be on the mainland. United Nations Rights of the Child (UNCRC) 4.9 It is anticipated that the Housing Acquisition Strategy will lead to positive impacts on children and young people, as more children will have access to safe and well-maintained housing through an increase in the availability of permanent homes to meet the affordable housing need and demand in North Ayrshire. Consumer Duty 4.10 Acquiring housing and improving it to the standards required helps to improve overall housing condition, increases social/affordable housing stock, and helps to bridge some of the gap between supply and demand in relation to new build programmes. The acquisition of housing can further assist our island and rural communities through additional provision of affordable housing for e.g., key workers in areas where there is identified need. Housing acquisitions are also usually quicker to complete sales on and for a lower cost than that of new build housing. This in turn means that, through property acquisitions, our consumers e.g., those on the Common Housing Register, will be positively impacted through increased stock, in turn improving their chances of getting a new affordable home. 5. Consultation 5.1 Prior to development of the strategy, cross-service meetings were held to determine key objectives and criteria, with attendees from Building Services, the Private Sector Housing Team, Homeless & Community Safety, Housing Strategy, Business Improvement, Business Planning, Affordable Housing & Regeneration, and Governance. David W. Hammond Executive Director (Communities & Housing) For further information please contact Fiona Ellis, Senior Manager (Housing Strategy & Development), on 01294 324031. Background Papers 63
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Local Housing Strategy 2023 to 2028 Strategic Housing Investment Plan 2026 to 2031 64
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Appendix 1 NORTH AYRSHIRE Housing Acquisition Strategy 2026 to 2031 65
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1 Contents 1. Introduction ......................................................................................................................................... 2 Background to the Strategy ................................................................................................ 2 Affordable Housing Supply Programme ............................................................................... 2 Aim of the Strategy ............................................................................................................. 2 Objectives of the Strategy ............................................................................................................ 2 Criteria and Value for Money ........................................................................................................ 3 2. Acquisition Programmes ..................................................................................................................... 4 Strategic Housing Investment Plan ...................................................................................... 4 Empty Homes & Second Homes .................................................................................................. 4 Adaptations .................................................................................................................................... 5 Affordable Housing Initiative for Key Workers ............................. Error! Bookmark not defined. Void and Acquisition Fund ......................................................... Error! Bookmark not defined. Estate Based Regeneration Programme .............................................................................. 6 3. Further Information .............................................................................................................................. 7 Budget ............................................................................................................................... 7 Resources .......................................................................................................................... 8 Equal Opportunities ............................................................................................................ 8 Review ............................................................................................................................... 8 66
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2 1. Introduction Background to the Strategy North Ayrshire Council’s Local Housing Strategy 2023 to 2028 commits to increasing the social housing supply by buying back former social housing stock and bringing empty homes back into use through buy backs. However, in line with the aim of the strategy, North Ayrshire Council will explore other viable solutions, particularly where properties in demand have not been built by North Ayrshire Council or other social housing providers. This will include purchasing homes from the open market, developers, and off-the-shelf purchases. To target acquisitions that will have the most effective impact, the Council will take a comprehensive approach by comparing current need and demand to current supply and stock turnover. For more information on the Local Housing Strategy 2023 to 2028, visit the Local Housing Strategy page on the North Ayrshire Council website. Affordable Housing Supply Programme The Affordable Housing Supply Programme comprises a range of funding mechanisms to enable affordable housing providers to deliver homes for social rent, mid-market rent, and low-cost home ownership in communities across Scotland to support local authorities’ Local Housing Strategies. The Affordable Housing Supply Programme can support the following types of purchase where there is a strategic housing need, as identified and agreed by the local authority: • Open market purchases with vacant possession • Off market purchases with vacant possession • Purchases where an owner occupier cannot afford the required maintenance or refurbishment of their home and wishes to sell and remain in the home as a tenant in the social rented sector • “Off the shelf” purchases from developers • Properties from landlords leaving the private rented sector with a tenant in situ, where this meets a clear strategic purpose and where the tenant is at risk of homelessness For more information on the guidance, visit the Acquisition Programme: information page on the Scottish Government website. Aim of the Strategy The aim of this strategy is to increase the availability of permanent homes to meet the affordable housing need and demand in North Ayrshire. To be considered for acquisition, properties must support one or more of the objectives of the strategy and must meet one or more of the criteria of the strategy. Objectives of the Strategy • Meet demand in the highest‑need areas, as identified through the Housing Needs and Demand Assessment (HNDA) and ongoing demand analysis. • Assist in delivering the Strategic Housing Investment Plan, which sets out the affordable housing investment priorities within North Ayrshire • Help achieve the strategic outcomes set out in the Local Housing Strategy: o More homes at the heart of great places 67
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3 o Affordability & Choice o Affordable Warmth & Zero Emissions o Improving the quality of our homes • Identify opportunities to acquire properties on the open market or through speculative approaches from owners where this supports strategic housing need • Increase the number of long‑term empty properties brought back into use through effective collaboration with the Council’s Private Sector Housing Advice Team. • Continue to assess any opportunities for acquisition that arise in suitable housing supply influenced through the impact of the application of the 100% premium in Council tax for second homes, across the mainland and both island communities. • Enhance block sustainability and support future maintenance by increasing Council ownership in partially factored blocks through proactive engagement with private owners. • Support the reduction of homelessness by ensuring, where appropriate, that acquired properties contribute to meeting the housing needs of households in temporary accommodation. Criteria and Value for Money A property must meet specific requirements to demonstrate best value for money. Therefore, to be considered by North Ayrshire Council for acquisition, properties will form part of the overall social rented stock once purchased and must – in addition to being of a property type or size with a recognised need or demand - meet one or more of the criteria below, in addition to any other criteria specified: • Ex-local authority stock, within North Ayrshire Council estates, which will facilitate effective and efficient housing management. • “Off the shelf” purchases from developers • Located in an area identified as having an affordable housing shortfall. • Purchase price will be less than the development costs of building a comparable property. Properties which cost more than this will be considered on a case-by-case basis, e.g., if the property is highly adapted and meets the requirements of an applicant with an accessible housing need. • Long term empty properties, where the purchase would allow for greater local amenity and contribute to the Council’s statutory duties and strategic objectives. • The property will be able to achieve and be maintained to a standard acceptable to the Council, e.g. to the SHQS and EESSH2/ SHNZS. • The purchase price is equal to, or a reduction of, the actual market value as assessed by the Council’s valuation report/ Home report valuation. This will not prevent higher cost projects from proceeding (including projects in regeneration areas, remote, rural and island areas, and those involving housing for people with particular needs). • Of standard construction only (due to the legal and cost implications they could incur if otherwise). Any decision to acquire a property is at the discretion of North Ayrshire Council and is subject to the availability of relevant funding. If purchased, properties will be improved to meet the Scottish Housing Quality Standard (SHQS) and the Energy Efficiency Standard for Social Housing (EESSH2)/ Social Housing Net Zero Standard (SHNZS). 68
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4 2. Acquisition Programmes Four acquisition programmes are currently being utilised in North Ayrshire. Strategic Housing Investment Plan The Strategic Housing Investment Programme 2026 to 2031 (SHIP) includes provision for 65 Council acquisitions between April 2024 and March 2031, as well as 37 acquisitions by developing Registered Social Landlord (RSL) partners, subject to the availability of grant funding. Both North Ayrshire Council’s and RSLs’ acquisition programmes aim to increase affordable housing in the area, as well as contribute to wider regeneration and estate management. For more information, the Council’s Strategic Housing Investment Programme 2026 to 2031 can be accessed online. Empty Homes & Second Homes As at 1 April 2026, there are 582 empty homes subject to the Council Tax levy in North Ayrshire. Additionally, there are approximately 1,300 second homes in North Ayrshire, the majority of which are located on the islands of Arran and Cumbrae. The SHIP 2026 to 2031 makes provision for empty and second home buy backs, with the Council’s Private Sector Advice Team providing advice and assistance on empty homes. Further information on the Council’s Private Sector Advice Team can be found on the Private Sector Advice Service webpage.. Bringing former social housing stock into ownership can assist with housing management, maintenance issues, and increase housing available through the North Ayrshire Housing Register. Over the past five financial years the Council has acquired five empty homes, using funding from the Affordable Housing Supply Programme, which have been brought back into use as Council stock. A compulsory purchase order (CPO) can be made when we need to acquire land for purposes that are in the public interest, where we cannot reach an agreement to acquire the land, or the owner cannot be traced. A CPO may be used to bring empty homes back into use or to regenerate an area. When we make a CPO, we must apply to the Scottish Government for confirmation of the order. Further information on CPOs in North Ayrshire can be found at Compulsory purchase orders webpage. Strategic Housing Investment Plan Rural Affordable Homes for Key Workers Void and Acquisition Fund Estate Based Regeneration Programme 69
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5 Adaptations North Ayrshire Council may purchase properties for the use of specific applicant needs where no suitable Council or RSL property exists and where the cost of purchasing the property would be more cost effective than making adaptations and alterations to existing stock. Properties should be purchased with vacant possession. North Ayrshire Council may consider purchasing private rented or owner-occupied properties where the tenancy or ownership is at risk, and the property has been substantially adapted in a major, permanent way to meet the needs of the tenant or household. The tenant or owner should have a live North Ayrshire Housing Register application and there should be no suitable Council or RSL property which meets the needs of the applicant (including consideration of the costs of adapting existing stock). “Off-the-shelf" "Off-the-shelf" (OTS) property acquisitions in social housing refer to the purchase of already completed new build/ or proposed, or newly refurbished properties from a developer or private owner, ready for immediate occupation by social housing tenants. This approach is a strategic tool used by councils and housing associations, and, in the right circumstances, can: • Rapidly increase the supply of social homes and meet urgent local housing needs, including reducing the use of costly temporary accommodation. • Offer value for money compared to other housing delivery options. Key considerations for OTS property acquisitions include development availability and timing, location compared to where our need and demand assessments have identified, house type and layout compared to our needs within that location, specification the developer will build to, cost per unit, and future maintenance and estate management requirements. This is a new area under active consideration by officers to identify any viable opportunities within North Ayrshire. Property Identification There are a number of ways the Council identifies a pipeline of opportunities. This includes but is not limited to: • Officers regularly review properties that are for sale on the open market and have established relationships with local estate agents who identify potential opportunities. • Direct contact has been made by owners interested in selling their properties to the Council. Through the implementation of this strategy, a new process will be developed to make it easier for owners to provide their property information. • The Private Sector Advice Team identify empty homes that meet the Council’s criteria for acquisition and will actively contact owners to discuss their interest in bringing their property back into use via the Council or and RSL purchasing the property. • Properties are identified by the Factoring Team where a block can be brought back into full Council ownership. Rural Affordable Homes for Key Workers The Rural Affordable Homes for Key Workers Fund provides up to £25 million nationally through to 2028 to help local authorities identify affordable homes for key workers in rural communities. This funding is made available from the Affordable Housing Supply Programme and therefore is 70
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6 only accessible to local authorities and RSLs. The fund focuses on making available underused or empty properties for key workers and others in need. Much of North Ayrshire is classified as Accessible-Rural under the Scottish Government’s Urban Rural 6-fold Classification, with the islands of Arran and Cumbrae classified as Remote Rural. Key workers can include public sector and emergency service workers; however, the definition of a key worker will be determined on an individual basis by local authorities according to their local priorities. In North Ayrshire, the Arran Local Lettings Initiative provides an example of a definition of key workers, taking a tiered approach. For more information, please see the Housing Allocation Policy. Guidance provided by the Scottish Government on the Rural Affordable Homes for Key Workers Fund outlines that local authorities and RSLs can use the fund to purchase existing suitable properties in rural areas, which can be rented directly or leased to employers to provide affordable homes for key workers. This can include: • Bringing empty properties back into use, or • Acquiring properties on the open market to increase the available supply of affordable homes for key workers. In line with the Scottish Government’s guidance, North Ayrshire Council will engage with a range of organisations to develop proposals for use of the fund for consideration by the More Homes Division, including: • Public sector employers • Key agencies, including Highlands and Islands Enterprise • Local businesses, and • Registered Social Landlords For more information, the guidance on the approach to the Rural Affordable Homes for Key Workers can be found on the Scottish Government website. Properties acquired using the Rural Affordable Homes for Key Workers Fund are acquired in addition to the properties outlined for acquisition in the SHIP 2026 to 2031. From 2023/24, seven properties were acquired on Arran by Trust Housing Association using this funding stream. The SHIP 2026 to 2031 highlights that there are no current projects being considered for the Rural Affordable Homes for Key Workers in North Ayrshire beyond acquisitions being progressed by Trust Housing Association. The Arran Housing Task Force will continue to work collaboratively to identify and discuss potential opportunities to further use the fund to provide affordable housing for key workers in rural areas, where appropriate. Estate Based Regeneration Programme In January 2019, the Council’s 10-year, £10 million Estate Based Regeneration Programme (EBRP) was approved. The aim of the EBRP is to improve Council-owned housing estates across North Ayrshire by addressing low demand stock, antisocial behaviour, external appearance, parking provision, road and footpath condition, fencing, landscaping, and general grounds maintenance issues. The Regeneration Team will acquire properties identified in the EBRP for the purposes of: • Demolition • Refurbishment 71
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7 • Purchasing four-in-a-block flats where this would result in the Council’s majority ownership in the block The SHIP 2026 to 2031 includes for the provision of funding for 249 units to assist the delivery of Housing’s Estate Based Regeneration Programme. This investment programme aims to provide new homes to replace any stock which requires to be demolished or reconfigured as part of the EBRP. As of 1 April 2026, a total of 17 properties have been acquired under the EBRP across North Ayrshire in the areas of Ardrossan, Stevenston, Saltcoats, Irvine, and Kilwinning. Void and Acquisition Fund The Homelessness Prevention and Strategy Group, co-chaired by Scottish Ministers and the Convention of Scottish Local Authorities (COSLA), established the Temporary Accommodation Task and Finish Group to advise on the short-term measures needed to address the increasing use of temporary accommodation. Thereafter, the Scottish Government agreed to invest at least £60 million through the Affordable Housing Supply Programme (AHSP) in 2023 to 2024 to support a National Acquisition Programme. Building on the National Acquisition Programme, the Scottish Government announced in April 2024 that £80 million would be added to the Affordable Housing Supply Programme over 2024 to 2025 (£40 million) and 2025 to 2026 (£40 million). Resultantly, in September 2024, the Scottish Government increased North Ayrshire Council’s 2024 to 2025 Resource Planning Assumption. This uplift was to be directed towards: • Acquisitions to help address temporary accommodation pressures, or • To bring long term voids back into use. Acquisitions were to be existing properties or new build properties off the shelf but were required to be a permanent structure and available in perpetuity. In line with the guidance, any homes purchased using this funding were allocated in line with the legal framework for allocations and in accordance with North Ayrshire Council’s Allocation Policy. In September 2025, the Scottish Government published its Housing Emergency Action Plan, which led to funding for the targeted voids and acquisition fund increasing further. In 2024/25, one property was bought using this fund and in 2025/26, four properties were bought using this fund. For more information, further detail can be found on the Scottish Government website. There is no specific funding for acquisitions announced for 2026/27 and beyond; this recognises Scottish Government’s commitment to providing flexibility to local authorities to determine their appropriate priorities between new builds and second-hand acquisitions. If any such fund becomes available, North Ayrshire Council will engage with the Scottish Government and stakeholders to make the most effective use of any funding that may become available for North Ayrshire. 3. Further Information Budget The Senior Manager (Housing Strategy & Development) is responsible for the Housing Revenue Account Capital Budget to finance the purchase of private properties. The Team Manager (Affordable Housing and Regeneration) will maintain a budget monitor for each funding stream. 72
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8 Resources This strategy will be supported and implemented by staff from Housing Services, Building Services, Property Management & Investment, Legal Services, and Finance. Equal Opportunities The provision of new social housing, including through housing acquisitions, will have a positive impact on those who require specialist accommodation, older people, those who are homeless, or at risk of homelessness, and those for whom purchasing a home is not an affordable option. The benefits of new build housing in relation to health, wellbeing, and educational attainment are well documented. New housing will also support our island communities and their economies. A reduction in new build completions will have a negative impact on these groups. Review This strategy will be reviewed on an annual basis in line with the Strategic Housing Investment Plan, or on such a basis as is required to ensure the accuracy of all criteria and funding information. 73
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9 Comments and views about any aspect of this document are welcomed. We also take the opportunity to encourage local people to become involved in the planning and delivery of housing solutions. To get in touch, please contact: Local Housing Strategy North Ayrshire Council Housing & Public Protection FREEPOST SCO2742 Irvine KA12 8BRT: Developmentandstrategy@north-ayrshire.gov.uk This document is available in other formats such as audio tape, CD, Braille, large print, and other languages on request. 74
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Version: 7.0 North Ayrshire Council Equality & Children’s Rights Impact Assessment (Screening Form) Please Note: Before you begin, is this version the most up to date? You can download the most recent version on Connects. Screenings and ECRIAs should be included with relevant Committee Reports and may be published on our website. This screening form encompasses key pieces of legislation which the Council needs to assess its activities against. This form should assist in deciding whether a full impact assessment is required. • The Public Sector Equality Duty requires that we demonstrate that we are making decisions in a fair, transparent and accountable way. The Council must show that it has considered the needs and rights of people with protected characteristics. • Where decisions affect young people, we must consider the ‘Rights of the Child’, under the United Nations Convention on the Rights of the Child (UNCRC). • We must consider the Socio-Economic Impact under the Fairer Scotland Duty. • We need to consider whether any of our Islands may be impacted differently from the mainland under the Island’s Act. • We also need to consider whether ‘consumers’ of our Services will be impacted under the Consumer Duty. The various duties require the Council to assess the ‘impact’ of proposals thoroughly before any decisions are taken. This should be proportionate to the decision that is being made and should be carried out as early as possible in the process. It can then be repeated as the policy/proposal is progressed. Further Guidance on carrying out an impact assessment can be found in our Equalities pages on Connects. 1. Proposal Title: Housing Acquisition Strategy Budget reference number and heading if appropriate (or not applicable): n/a Amount (£) of saving if appropriate (or not applicable): n/a Service: Housing and Communities Lead officer: Fiona Ellis List of participants in the assessment: n/a Date completed: 13/04/2026 75
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Version: 7.0 2. What are the main aims of the proposal? The aim of this strategy is to increase the availability of permanent homes to meet the affordable housing need and demand in North Ayrshire. The proposed North Ayrshire Housing Acquisition Strategy will support the following Local Housing Strategy (LHS) actions: • Deliver 1,666 new units of social housing • Consider opportunities to provide homes in and around our town centres • Support the Scottish Government's target to deliver 110,000 new affordable homes by 2032 by delivering the projects set out within the Strategic Housing Investment Plan • Increase the social housing supply by buying back former social housing • Bring empty homes back into use through the buyback scheme • Ensure that the Strategic Housing Investment Plan addresses current and future demographic needs. The Housing Acquisition Strategy will contribute to the Strategic Housing Investment Plan (SHIP), helping to achieve the Council Plan priorities and strategic aims by: • Through our housebuilding programme and wider housing investment, providing homes for life that meet the needs of our residents • Increasing the number of homes in the area through a mix of private and social developments and bringing empty buildings back in to use • Ensuring our places and spaces where we live, work and visit are well maintained and accessible • Reducing the carbon footprint of our estate through rationalisation utilising a locality-based approach and taking a fabric first and low carbon energy generation approach to homes and buildings 3. What data, research or other evidence was used for this screening? The function of buy backs/acquisitions has been ongoing for a number of years and included as part of the Local Housing Strategy (LHS). The only change is the creation of a standalone strategy. 4. Screening questions Does the proposal affect service users, employees or the wider community – particularly services that are known to be important to protected groups? Please delete whichever statement is not applicable from the text below: Yes, the proposal does affect service users, employees or the wider community and specifically to services that are known to being important to particular protected groups. 76
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Version: 7.0 Is it a major proposal, significantly affecting how services are delivered or how other organisations operate? Please delete whichever statement is not applicable from the text below: No, it is not a major proposal, significantly affecting how services are delivered or how other organisations operate. Does it relate to an area where there are known inequalities or has significant potential for reducing inequalities or improving outcomes? Please delete whichever statement is not applicable from the text below: Yes, it does relate to an area where there are known inequalities or has significant potential for reducing inequalities or improving outcomes. 77
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Version: 7.0 5. Impact Are there any impacts on the following groups? Age (young/old people); Disability (physical and learning disabilities); Gender Re- assignment; Pregnancy and Maternity; Race and Ethnic Origin; Religion or Belief; Sex; Sexual Orientation; Marriage and Civil Partnership; Care Experienced; Fairer Scotland Duty; Human Rights; Other (Homelessness, rural, carers, part-time workers, etc) Yes – The provision of new social housing, has a positive impact on those who require specialist accommodation, older people, those who are homeless, or at risk of homelessness, and those for whom purchasing a home is not an affordable option. The benefits of new build housing in relation to health, wellbeing, and educational attainment are well documented. New housing also supports our island communities and their economies. If yes or unsure, you should consider carrying out a full impact assessment. Click or tap here to enter text. 6. The Fairer Scotland Duty – (reducing the socio-economic impact of our policies, strategies and budget decisions) Does the proposal have any negative (or potential) positive impacts that need to be explored in more detail? (Please provide a brief summary) The Housing Acquisition Strategy has a positive impact by aiming to increase the availability of permanent homes to meet the affordable housing need and demand in North Ayrshire. Low income/poverty – the Housing Acquisition Strategy does not include any proposals to assist people who cannot afford to maintain regular payments such as bills, food, and clothing. However, any person that benefited from a tenancy in a home that was purchased under the scheme would have access to assistance / support as a social housing tenant. Low/no wealth - The Housing Acquisition Strategy has the potential to have positive impacts on people who have low incomes and low wealth, e.g., through provision of increased volume of good quality affordable homes. Material deprivation – Through increased social/affordable housing stock, we would be able to help more of our residents affected by material deprivation through an increased number of good quality, affordable homes. 78
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Version: 7.0 7. Children’s Rights (UNCRC) Does the proposal have any impact in relation to the UNCRC articles for Children’s Rights? Yes – the Housing Acquisitions Strategy would have a positive impact on Article 27 whereby more children would have access to safe and well-maintained housing through an increase in the availability of permanent homes to meet the affordable housing need and demand in North Ayrshire. 8. Island Proofing Are there any special considerations for the island communities within North Ayrshire? Whilst the strategy covers the whole of North Ayrshire, it is fully recognised that delivering homes on islands can be more complex and expensive than on the mainland. Whilst the strategy itself doesn’t specify any special considerations for our island communities, there is a focus on them through the working process. NAC Housing services work closely with the Registered Social Landlords (RSLs) on our islands and provide support where required. This can include supporting applications to the Scottish Government for additional funding to help the RSL make a housing acquisition where property prices are higher than they would be on the mainland. 9. Consumer Duty Is your proposal a decision that will impact on consumers? (The definition of consumer is ‘an individual or a small business that purchases, uses or receives goods or services in Scotland, that are supplied either by a business or a public body’. Please see What is the Consumer Duty for more details) Yes - Acquiring housing and bringing it up the standards required helps to improve overall housing condition, increases social/affordable housing stock and helps to bridge some of the gap between supply and demand in relation to new build programmes. The acquisition of housing can further assist our island and rural communities through additional provision of affordable housing for e.g. key workers in areas where there is identified need. Housing acquisitions are also usually quicker to complete sales on and for a lower cost than that of new build housing. This in turn means that through property acquisitions our consumers e.g. those on the Common Housing Register, will be positively impacted through increased stock/in turn improving chances of getting a new affordable home. 79
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Version: 7.0 10. Have any cross-cutting impacts been identified from other Council Services or Partner Agencies (such as discrimination across multiple groups or accumulated effects of multiple proposals on a single group)? no 11. Has there been any engagement or consultation on the proposal with any groups, services or partner organisations that could help inform the impact assessment? n/a 12. What are the monitoring and review arrangements? This strategy will be reviewed on an annual basis in line with the Strategic Housing Investment Plan, or on such a basis as is required to ensure the accuracy of all criteria and funding information. 13. Considering this Equality Screening in its entirety, what is your recommended next step? (Please explain your decision.) Screening Only no further assessment is required. (Your explanation must include how this decision will be monitored and reviewed as the policy / decision is implemented.) No further assessment required. This strategy will be reviewed on an annual basis in line with the Strategic Housing Investment Plan, or on such a basis as is required to ensure the accuracy of all criteria and funding information. 14. Authorisation Policy Lead/Manager: Click or tap here to enter text. Date: Click or tap to enter a date. Head of Service: Click or tap here to enter text. Date: Click or tap to enter a date. 80
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Briefing Note: Audit & Scrutiny Committee 15th June 2026 Housing Acquisition Strategy Introduction The Housing Acquisition Strategy has been developed to establish the principles of the Council’s long-standing approach to acquiring homes for social housing stock. The acquisition of existing properties is designed to increase the supply of affordable housing available for North Ayrshire Housing Register applicants and complement the Council’s housebuilding programme. Considerations The Strategy sets out a versatile approach to increasing affordable housing supply through a range of means. As the Cabinet report notes at paragraph 2.18, ‘off-the-shelf’ (OTS) property acquisitions are a new area under active consideration by officers. Any viable OTS opportunities identified would be the subject of future Cabinet approval, including appropriate consideration of community wealth building implications. Anticipated Benefits of OTS A selective and strategic approach to OTS property acquisitions would allow the Council to rapidly increase the supply of affordable housing, meet urgent local housing needs, and reduce the use of costly temporary accommodation. Any OTS scheme progressed would primarily be intended to complement the Council’s housebuilding programme. It should be noted that the Council’s housebuilding programme is subject to competitive tender through the procurement process and does not guarantee contract award to a locally-based builder. The Council would be able to negotiate Community Wealth Building clauses as part of any contract for OTS which would be aligned to the Council’s Community Wealth Building strategy and principles. In addition, it is understood that private developers are generally committed to creating local employment and economic growth opportunities both directly and indirectly through sub-contractors and the wider supply chain. Alongside community wealth building considerations, any OTS scheme proposed would be carefully reviewed with reference to: • Development availability (what and where schemes are available) • Delivery timescales (when the completed homes would become available) • Availability of Scottish Government grant funding (either scope within the Strategic Housing Investment Plan to accommodate schemes or slippage funding from other local authority area programmes) • Housing need and demand (demand for housing in the locality proposed) Appendix 2 81
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• House type and layout • Property specifications • Affordability and value for money • Estate management requirements (future maintenance considerations) Over the past ten financial years the Council has been able to claim an additional £7.273m above our annual Resource Planning Assumptions commitments from slippage in other local authority programmes. Progressing with OTS acquisitions may assist the Council in accessing any available programme slippage from other local authority areas and ensure that any slippage experienced from the Council’s or our local Registered Social Landlord partners main development programmes could be mitigated. This provides an opportunity to maximise investment potential within North Ayrshire. As of 1 June 2026, there were a total of 6,160 applications on the North Ayrshire Housing Register (NAHR). Due to the number of people on our housing register, this necessitates a diversified approach and maximisation of opportunities to increasing our housing supply. OTS has the potential to increase our housing supply at pace as it can provide early delivery options that meet the needs of our current and future applicants in North Ayrshire by bringing private assets into public ownership. Increasing housing supply also creates a sustained pipeline of opportunities for apprenticeships and long-term employment within Building and Housing Services. As new homes are built and existing stock expands, there is a corresponding rise in demand for skilled trades and technical specialists needed to ensure properties remain safe, compliant, and energy efficient over their lifecycle. This growth enables investment in apprenticeship programmes, providing entry routes for young people while addressing skills shortages in critical areas. Overall, expanding housing stock not only helps meets housing demand but also acts as a catalyst for workforce development and economic growth within the local community. Practice Elsewhere OTS purchases are being utilised by local authorities across Scotland with support from the Scottish Government, including most recently in Fife and North Lanarkshire Councils. 82
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NORTH AYRSHIRE COUNCIL 15 June 2026 Audit and Scrutiny Committee Title: Call In: Ardrossan Campus Project Update 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 to note the current progress of the Ardrossan Campus project, including current projections in relation to costs and programme. 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 current progress of the Ardrossan Campus project, including current projections in relation to costs and programme. 2. Background 2.1 The Cabinet, at its meeting on 2 June 2026, considered a report on the current progress of the Ardrossan Campus project, including current projections in relation to costs and programme. 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 Stalker, Murdoch and Stephen is in the following terms: - Reason for call-in “This decision is being called in because there are some real concerns about how the Ardrossan Campus project is progressing. The report shows a significant cost increase of around £10 million, along with delays pushing completion back to May Agenda Item 4 83
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2028. There are also questions about how risks have been handled, especially around ground contamination and the challenges of building on a contaminated site. It’s not clear if these issues were fully understood early on, or if more could have been done to avoid the impact they have had. On top of that, using additional capital funding to cover the extra costs raises concerns about what this means for and the overall budget of the campus and what more flexibility funding will be made available in future budgets. Overall, this call-in is about getting reassurance that the project is still under control, that risks are being properly managed, and that it continues to represent good value for the Council and local communities.” Desired Outcome “To provide assurance on and seek greater information on the cost, programme, risk management, governance and wider capital implications of the Ardrossan Campus project, ensuring it remains deliverable, financially sustainable and represents value for money.” 2.4 A copy of the original report, prepared by the Executive Director of Place and presented to Cabinet on 2 June 2026 is attached as Appendix 1 to this report. 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. 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. 84
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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 Ardrossan Campus Project Update report attached at Appendix 1. Human Resources 4.2 The human resource implications are outlined in the Ardrossan Campus Project Update report attached at Appendix 1. Legal 4.3 The legal implications are outlined in the Ardrossan Campus Project Update report attached at Appendix 1. Equality/Socio-economic 4.4 The equality/social-economic implications are outlined in the Ardrossan Campus Project Update report attached at Appendix 1. Climate Change and Carbon 4.5 The climate change and carbon implications are outlined in the Ardrossan Campus Project Update report attached at Appendix 1. Key Priorities 4.6 The key priorities are outlined in the Ardrossan Campus Project Update report attached at Appendix 1. Community Wealth Building 4.7 Any community wealth building implications are outlined in the Ardrossan Campus Project Update report attached at Appendix 1. Islands Communities Impact Assessment (ICIA) 4.8 Any ICIA implications are outlined in the Ardrossan Campus Project Update report attached at Appendix 1. 85
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United Nations Rights of the Child (UNCRC) 4.9 Any UNCRC implications are outlined in the Ardrossan Campus Project Update report attached at Appendix 1. Consumer Duty 4.10 Any consumer duty implications are outlined in the Ardrossan Campus Project Update 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 86
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NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet Title: Ardrossan Campus – Project Update Purpose: To provide Cabinet with an update on the current progress of the Ardrossan Campus project, including current projections in relation to costs and programme. Recommendation: Cabinet is asked to: 1. Note the content of this report, including the current progress of work on site. 2. Note the revised project completion date of 26 May 2028, with anticipated occupation from August 2028. 3. Note the additional estimated cost of £9.97 million (8.74%) associated with addressing the contamination will be met from approved capital flexibility funding. 1. Executive Summary 1.1 The Ardrossan Coastal Quarter programme represents a transformational vision for the area which includes the provision of new housing and commercial uses, providing ambitious transformational regeneration of a vacant and derelict site on land within one of North Ayrshire’s most deprived communities. A key component of this vision is a new educational and community campus. 1.2 The contract to construct the new Ardrossan Campus Project commenced on site in July 2025, with the first stage focusing on the excavation of foundations and the swimming pool tank. In September 2025, asbestos and hydrocarbon contamination was identified during construction. Appropriate Safe Systems of Work were then implemented by the main contractor (Morgan Sindall), with an independent review confirming these measures to be proportionate and compliant. 1.3 The contractual and programme implications were subsequently assessed by our cost consultant, resulting in an additional cost of £9.97 million (8.74%) and an extension of the completion date to 26 May 2028. 1.4 The overall Campus project budget will therefore increase to £124,558,600, with the additional funding to be met from the Council’s capital flexibility fund approved in February 2026. Appendix 1 87
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1.5 An independent external review of the enabling works has been commissioned, with an initial assessment received and currently under consideration. 1.6 The safe systems of work which have been required since encountering the contamination have now ceased. Works are progressing unhindered by these additional measures and the project has now reached a significant milestone on the construction process as steel work is now rapidly being erected on-site. 1.7 Stakeholder engagement will now be undertaken to communicate the revised delivery arrangements and support appropriate mitigation of the impacts arising from the extended programme. 2. Background 2.1 Two separate contracts relating to the delivery of the Ardrossan Coastal Quarter were undertaken commencing in June 2023 and January 2024 respectively. The purpose of these projects was to deliver a new revetment (Sea-Wall) coastal defence, an extension of the coastal path, remediate contamination and to install site-wide infrastructure to enable future development. 2.2 Remediation strategy involved treating contaminated soil on location, removing hydrocarbons, and reusing suitable treated material in the works. The strategy also included installing 600mm stone cap across the site to provide a protective barrier as all contamination would not be removed. The remediation was independently monitored and verified to ensure it met all required standards. 2.3 Subsequent to that, construction work on the new Ardrossan Campus commenced in July 2025, with initial works focusing on the formation of foundations and excavation of the swimming pool. 2.4 As works progressed on site, an in accordance with the agreed methodology for progressing the works, testing of excavated materials continued in order to ensure all health and safety standards were maintained. In September 2025, asbestos and hydrocarbon contamination was identified as a result of that testing. Appropriate Safe Systems of Work were immediately implemented by the main contractor (Morgan Sindall), with an independent review confirming these measures to be proportionate and compliant Programme Development 2.5 The Ardrossan Coastal Quarter site was selected in 2018-2019 as the preferred location for the new Campus, reflecting its capacity, regeneration potential, and alignment with the Council’s Local Development Plan priorities. The wider vision includes residential and commercial development to support regeneration and align with the Local Development Plan. 2.6 The “Ardrossan North Shore Development Framework”, prepared by external consultants (Stallan Brand), was approved in April 2021 and set the strategic context for redevelopment. Subsequently, In June 2021, the Council agreed remediation and 88
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site infrastructure works to achieve economies of scale and improve the site’s attractiveness for future investment. 2.7 In the prevailing market conditions, a single contract for the complete programme of work was not considered the most deliverable option, and the chosen approach provided a practical route to securing progress. Market feedback indicated that including the Campus within those packages would have been less attractive to bidders. This was reaffirmed when the subsequent Campus tender process only attracted two bids. 2.8 Following market engagement on the enabling works tender issued in November 2021, the procurement approach was refined in response to no compliant bids being received through the original process, with the works restructured into two packages and successfully retendered in 2023 and 2024. 2.9 Due to the phasing of the separate projects, the enabling works were more advanced than the Campus design, and the revetment had to be completed first. In the context of a volatile market, maintaining separate elements of delivery helped support programme progress and provided a more manageable basis for pricing. 2.10 It should be noted that the enabling works, as separate contracts with different contractors, were not the first stage of the construction contract to deliver the Campus. These were discrete pieces of work, intended to enable development across the wider Ardrossan Coastal Quarter site. Although the advance enabling and remediation works provided an appropriate and proactive route to delivery, the use of three separate contracts meant that interface risks were recorded and remained an inherent feature of the overall programme. 2.11 The Campus design was successfully finalised while the advance works were progressing, with the projects coordinated to support overall delivery. Although the advance works project was not intended to deliver Campus construction works, this approach helped maintain progress, while market feedback confirmed that separate contractual responsibilities remained the more practical route. 2.12 Recognising the challenges being experienced in delivering the wider programme of works, with a focus on ensuring the Campus could be delivered as soon as possible, a review was conducted with the support of external consultants (Ironside Farrar) in February 2024. This confirmed the inherent risks of brownfield remediation, buried structures, coastal conditions and sequential working, with further contamination assessed at that stage as an amber risk. 2.13 As Morgan Sindall had no control over the enabling works contract, it confirmed prior to Financial Close that it would not accept contamination risk within the Campus contract, the contract therefore acknowledged this risk and relied on the contingency allocation to address any arising issues. 2.14 A report was submitted to Council on 26 June 25, confirming the revised budget and programme for the project. A number of key remaining risks were also highlighted in the report. Included within those was the potential to discover contaminated material 89
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in the deep excavations below the remediated level, and the impact this could have on costs and programme. 2.15 To estimate the potential cost, prior to entering the construction contract the assessment associated with this risk estimated that around 13,280m³ of excavation would extend below the 3.5m remediation depth. Utilising market rates for disposal, a potential worst case disposal exposure of £6.64m was assessed. Because overlap between known contamination and deep excavations appeared limited, an overall £5 million contingency was considered realistic and included within the project budget. 2.16 The Scottish Futures Trust (SFT) have worked in partnership with the Council throughout the development phases of the project, including providing financial support thought the Scottish Government’s Learning Estate Investment Programme. The project allocation was increased to reflect the challenging conditions around the delivery of the project. 2.17 Verification reports in respect of the enabling works contract were received, satisfying the Planning Conditions required to allow works to commence on site. Campus Construction Phase 2.18 In September 2025, asbestos and hydrocarbon contamination was encountered during deep excavations. Elected Members and the local community were proactively informed shortly thereafter. 2.19 As a result of this, and to ensure works could progress in a safe manner, Morgan Sindall introduced Safe Systems of Work, including exclusion zones and specialist controls. 2.20 An external specialist engineering advisor independently reviewed the Safe Systems of Work on the Council’s behalf and found them to be both proportionate and compliant. 2.21 Our cost consultants, Atkins Realis, have assessed the contractual impact of the appropriate treatment of the contaminants via the safe system of work as an additional £9.97 million. The programme impact has also resulted in an extension of time to the contract to 26 May 2028. This has been formally confirmed through the contractual change control process. 2.22 This figure represents a significant betterment than the original proposal by the contractor following robust review and challenge by the Campus project team and external advisors. 2.23 Addressing the contamination issue will result in the Campus project budget rising to £124,558,600. This increase will be addressed through the Council’s capital flexibility fund approved by Council in February 2026. 2.24 A report by independent specialist engineers has been commissioned, with input from the appropriate consultant teams, to ensure the reasons for the current issues are properly understood. An initial assessment has been provided and is being reviewed to determine the next steps. 90
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2.25 Separate delivery of the enabling works and the Campus has also required ongoing management of wider interface risks; however, these matters are being actively managed through cross-service coordination to ensure that appropriate mitigation measures are identified and allocated. 2.26 Under the NEC4 contract, the Council’s exposure to additional cost arising from systemic supply chain issues arising from the current conflict in the Middle East is limited, with broader liability arising mainly where contract terms or future legislative changes require it. 2.27 As the cost and programme implications arising from encountering contamination are now understood, the overall construction programme has been updated, and the Project Team will undertake stakeholder engagement to advise on the new timetable. This engagement will include: elected members; the school community; neighbours and the Ardrossan community; and Scottish Futures Trust. 2.28 The negative impacts of the delay will be most keenly felt by the by the school community being unable to access the new facility when planned and the neighbouring properties experiencing direct disruption caused by construction activities. 2.29 Stakeholder engagement will recognise these negative impacts, and the project team will continue to explore practical mitigations to the issues posed by the extended programme. 2.30 With the safe systems of work around contamination removal now being complete, works are progressing unhindered by these additional measures and the project has now reached a significant milestone on the construction process as steel work is now rapidly being erected on-site and concrete floor slabs are being poured. 3. Proposals 3.1 It is proposed that Cabinet: • Notes the content of this report, including the current progress of works on site. • Notes the revised completion date of 26 May 2028, with anticipated occupation from August 2028. • Notes the additional estimated cost of £9.97 million (8.74%) associated with addressing the contamination will be met from approved capital flexibility and borrowing. 4. Implications/Socio-economic Duty Financial 4.1 An additional £9.97 million (8.74%) has been identified as necessary to address the contamination issues associated with Compensation Events relating to the contamination as outlined in this report. This requirement will be met through the approved capital flexibility budget agreed by Council on 25 February 2026. 91
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It is anticipated that additional contingency funding may be required to address any remaining risks which arise during the remainder of the construction period. In parallel, a further review of the Council’s Capital Investment Programme will be undertaken covering the period 2026/27 to 2033/34, to ensure that the revised programme remains prudent, affordable and sustainable. This review will include long- term projections of borrowing and interest rate assumptions, assessment of expenditure profiles, capital receipt forecasts, anticipated capital grant funding, and the planned use of the loans fund reserve. Scottish Futures Trust has been approached to explore whether any additional support may be available. However, the Scottish Government has confirmed, that in accordance with the agreed LEIP funding principles, the inflationary risk associated with project delays rests with the local authority. Human Resources 4.2 None Legal 4.3 Legal Services will be asked to comment on the report noted at item 2.24. Equality/Socio-economic 4.4 The construction of the new Campus, as a key component of the wider transformational regeneration of the Ardrossan Coastal Quarter will have significant direct and wider socio-economic benefits. Climate Change and Carbon 4.5 Ardrossan Campus has been designed to be highly energy-efficient and to meet the LEIP in-use energy requirements of between 67-83KWh/m²/annum. The contract design shows a predicted attainment of 71KWh/m²/annum. A sustainability responsibility matrix has been developed and incorporated into the contractual agreement to deliver facilities that will contribute to the Council’s climate change priorities. Key Priorities 4.6 The project supports the following Council priorities: Wellbeing • Developing appropriate skills for the local and regional economy • Using our assets to support wellbeing in local communities Improving educational attainment and achievement and closing the attainment gap • Developing the young workforce and ensuring positive destinations for school leavers • Providing lifelong learning opportunities for individuals and organisations including digital literacy 92
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• Improving outcomes for care-experienced young people including implementation of The Promise • Ensure our places and spaces where we live, work and visit are well maintained and accessible. • Support KA Leisure’s leadership of North Ayrshire’s Health and Wellbeing Alliance • Through the Health and Social Care Partnership Strategic Plan we will protect and provide care and support for those in need. Communities and Local Democracy • Developing partnerships with the third and voluntary sector • Placemaking, including creation of locality action plans. • Accessible public services, both digitally and locally. Climate Change • Embedding our net-zero ambition in all democratic decision-making. • Reducing the carbon footprint of our estate and taking a fabric first and low carbon energy generation approach to homes and buildings • Promoting new woodland creation and protecting our green spaces to provide a natural resource for carbon sequestration. Community Wealth Building 4.7 A suite of community benefits has been developed through the design and construction phases of the project. The commitments from Morgan Sindall which are defined in the SCAPE framework agreement have been incorporated into the contractual requirements for the project. Islands Communities Impact Assessment (ICIA) 4.8 None United Nations Rights of the Child (UNCRC) 4.9 The development of the Campus fully supports these rights. Consumer Duty 4.10 The project will deliver on these through the Stakeholder Reference Group and Client Planning workstreams. 5. Consultation 5.1 Consultation has been undertaken with Education, Economic Development Growth & Regeneration, and Finance. RUSSELL McCUTCHEON Executive Director (Place) For further information please contact Laurence Cree, Head of Service Sustainability, Transport & Corporate Property, on 01292 324514. 93
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