Financial Monitoring
North Ayrshire Council · 5 December 2025
Back to Ayrshire Shared Services Committee — 5 December 2025 and its agenda
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Official THE AYRSHIRE SHARED SERVICES JOINT COMMITTEE - 5 DECEMBER 2025 Report by Chief Financial Officer & Head of Finance & ICT AYRSHIRE ROADS ALLIANCE REVENUE FINANCIAL MONITORING REPORT Purpose of report 1. The purpose of this Report is to update the Joint Committee on the revenue budget monitoring position as at 30 September 2025, for the Ayrshire Roads Alliance. Recommendations 2. It is recommended that the Joint Committee (i) Note the financial management position of the Ayrshire Roads Alliance for 2025-26. (ii) Note the interventions that are being taken to address the adverse financial position (iii) Requests a further financial update at the next meeting of the Joint Committee. (iv) Otherwise, notes the content of this report Background 3. The Joint Committee approved a Report on 23 May 2014 describing the budget monitoring arrangements for the Ayrshire Roads Alliance. 4. As part of the Detailed Business Case the service budget is split between strategic service delivery and local service delivery. This separates out the core/recurring costs of service delivery from the local service costs at a single Council level. This ensures that decisions on the level of local spend remain with local Members, and ensures that the local Members retain control of their local roads budgets. Appendix 1 provides a breakdown of this split. 5. At its meeting of 19th February 2016, Committee agreed a change to how Strategic Service Delivery would be allocated between the two Councils. A smaller group of core Strategic Delivery staff have been identified and their costs continue to be split equally. The remaining Strategic Delivery costs would be apportioned in line with Local Delivery budget inputs plus actual capital expenditure in-year.
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Official Budget Monitoring Position 6. The overall outturn for 2025-26 is anticipated to be £0.402m greater than budget. 7. Strategic Delivery out-turn is anticipated to be £0.214m less than budget. Strategic Service Delivery Combined (£m) Initial Budget 3.688 Probable Outturn 3.474 Probable Variance (0.214) 8. East Ayrshire Local Delivery anticipated out-turn is £0.800m greater than budget and South Ayrshire Local Delivery £0.184m less than budget. 9. Summary information is provided in the table below. A full budget monitoring statement, including reasons for major variances is attached at Appendix 2. Actual Expenditure as at P6 £m Actual Expenditure as % of Ann. Est. £m Service Division Annual Estimate 2025/26 £m Projection to 31/3/26 £m Variance (Favourable) / Adverse £m 1.481 40.2% STRATEGIC DELIVERY 3.688 3.474 (0.214) 2.248 55.1% LOCAL DELIVERY - EAST AYRSHIRE 4.078 4.878 0.800 2.294 44.2% LOCAL DELIVERY - SOUTH AYRSHIRE 5.191 5.007 (0.184) 6.023 46.5% TOTAL 12.957 13.359 0.402 10. The position for each Council is shown below: EAC (£m) SAC (£m) TOTAL (£m) Strategic Delivery (0.397) 0.183 (0.214) Local Delivery 0.800 (0.184) 0.616 2025-26 Variance 0.403 (0.001) 0.402 11. To address the financial position, interventions have been put in place across ARA to apply financial restraint. These interventions will be challenging and will require an increased level of financial control and monitoring to ensure that their implementation has the desired impact. It is proposed that going forward and until further notice: • A freeze is placed on the filling of all non-essential vacancies;
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Official • An increased level of authorisation by Head of ARA is put in place for all orders and expenditure above a specific level; • Head of ARA is required to undertake detailed monthly monitoring of expenditure to ensure robust review of essential spend. • All contracts currently being tendered or appraised are to be reconsidered by Head of ARA regarding continued need and availability of resources. Progress will be reported to future meetings of Joint Committee. Implications 12. Implications Yes No Paragraph number in the report 1. Policy/Strategic Planning Yes 13 2. Governance Yes 14 3. Human Resources Yes 15 4. Equality and Fairer Scotland Duty No 5. Financial Yes 16 6. Risk Yes 17 7. Community Wealth Building No 8. Net Zero No Policy/strategic planning implications 13. The work undertaken by the Ayrshire Roads Alliance aligns with the Community Plan for East Ayrshire Council; and the Council Plan for South Ayrshire Council. Governance implications 14. The work of the Ayrshire Roads Alliance is undertaken in accordance with relevant legislation. Human resources implications 15. The establishment of the Ayrshire Roads Alliance is dependent on the available budget. Available budget and human resource requirements will be reviewed as part of budget monitoring. Financial implications 16. The available revenue budget for the Ayrshire Roads Alliance for 2025-26 is £12.957m. The budget will continue to be monitored and reported to the Joint Committee.
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Official Risk implications 17. Appropriate financial monitoring arrangements are in place to mitigate risk. This is included in the Ayrshire Roads Alliance Risk Register. Regular meetings are held between relevant finance staff and the Ayrshire Roads Alliance. Appendices (if applicable) Appendix One - Split between Strategic and Local Service Delivery Appendix Two - Financial Monitoring Report Background papers None Person to contact Jane Corrie, Head of Roads - Ayrshire Roads Alliance Tel No: 01563 503164 E-mail: jane.corrie@ayrshireroadsalliance.org Implementation Officer Jane Corrie, Head of Roads - Ayrshire Roads Alliance Tel No: 01563 503164 E-mail: jane.corrie@ayrshireroadsalliance.org
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CLASSIFICATION: PUBLIC Official Appendix 1 – Split Between Strategic and Local Service Delivery Strategic Service Delivery Local Service Delivery Transportation, Development Control and Road Safety Local Transport Strategy; Transportation Policy; Road Safety Plan; Travel Planning, Cycling Strategy; Planning Applications; Road Construction Consents; Development Planning; Council/Partner Liaison; Section 75 Agreements; Road Safety Schemes; Road Safety Audits; School Travel Plans; School Crossing Patrol; Road Safety Education. Transportation, Development Control and Road Safety Maintenance of Bus Shelters; Split Cycle Offset Optimisation Technique (SCOOT) systems (an adaptive control system for controlled road crossings); Development Control; Bus Shelter Advertising; Shopmobility; Construction of Road Safety Schemes. Asset, Traffic and Parking Asset Management Plan; Roads Improvement Plan; Infrastructure Surveys; Inventory Management; Scottish Roadworks Register; Issue of Permits; Performance Monitoring; Accident Investigation and Prevention; Traffic Orders; Traffic Counts; and Parking Strategy. Asset, Traffic and Parking Maintenance of Traffic Signals, Traffic Signs; Car Park Maintenance and Parking Enforcement. Design and Environment Flood Risk Management Strategy; Flood Risk Management Plans; Watercourses; Flood Mitigation; Coastal Protection; Inspection of Piers & Harbours; Bridge Inspections and Maintenance; Structural Assessments; Technical Approval; Abnormal Load Routing; and Design of Major and Minor Road Schemes and Improvements. Design and Environment Maintenance of Watercourses, Bridges, Retaining Walls, Piers and Harbours. Operations Carriageway Inspections; Winter Service Planning; Programming of Proactive, Reactive and Cyclic Maintenance; Street Lighting Design and Management; and Festive Lighting. Operations Proactive, Reactive, Cyclic Maintenance of Roads and Footways; Winter and Weather Emergency Service; Proactive and Reactive Maintenance of Streetlights; Electricity costs for streetlights. Support Services HR, Finance, ICT, and Administrative Support.
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APPENDIX 2 AYRSHIRE SHARED SERVICES JOINT COMMITTEE 2025 2025/26 GENERAL SERVICES REVENUE BUDGET AS AT 30 SEPTEMBER 2025 – PERIOD 6 AYRSHIRE ROADS ALLIANCE FINANCIAL PERFORMANCE SUMMARY CLASSIFICATION: OFFICIAL-PROTECT SERVICE SUMMARY - OVERVIEW POSITION It is anticipated that Ayrshire Roads Alliance will outturn £0.402m greater than budget at 31st March 2026 Actual Expenditure as at P6 £m Actual Expenditure as % of Ann. Est. £m Service Division Annual Estimate 2025/26 £m Projection to 31/3/26 £m Variance (Favourable) / Adverse £m 1.481 40.2% STRATEGIC DELIVERY 3.688 3.474 (0.214) 2.248 55.1% LOCAL DELIVERY - EAST AYRSHIRE 4.078 4.878 0.800 2.294 44.2% LOCAL DELIVERY - SOUTH AYRSHIRE 5.191 5.007 (0.184) 6.023 46.5% TOTAL 12.957 13.359 0.402 STRATEGIC DELIVERY This variance reflects a number of employee vacancies and turnover within the service (£0.199m) and a budget for unfunded superannuation costs within ARA – South which will not be required (£0.100m). This is mainly offset by a shortfall in income (£0.059m) and transport costs (£0.032m). LOCAL DELIVERY – EAST AYRSHIRE This variance mainly reflects shortfalls in income particularly in roads maintenance (£0.368m) and parking charges (£0.248m) along with winter maintenance materials (£0.113m), sub-contractors within Roads Maintenance (£0.494m), maintenance of parking / EV charging machines (£0.098m) and roads maintenance and street lighting materials (£0.055m). This is offset by vacancies and turnover (£0.682m) and a saving on fuel (£0.050m), particularly within Roads Maintenance. LOCAL DELIVERY – SOUTH AYRSHIRE This variance mainly reflects vacancies and turnover, particularly within Roads Maintenance (£0.191m), along with additional income in relation to parking charges (£0.163m), Street Lighting (£0.093m) and design fees (£0.071m). Reduced expenditure is anticipated on maintenance materials (£0.225m), and fuel (£0.052m). This is partly offset by additional expenditure on sub-contractors (£0.234m), employee recharges in respect of cross boundary working (£0.081m), property costs (£0.065m), street lighting electricity (£0.062m), winter materials (£0.040m), computing (£0.035m) and the maintenance of parking / EV charging machines (£0.048m) .
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APPENDIX 2 AYRSHIRE SHARED SERVICES JOINT COMMITTEE 2025 2025/26 GENERAL SERVICES REVENUE BUDGET AS AT 30 SEPTEMBER 2025 – PERIOD 6 AYRSHIRE ROADS ALLIANCE FINANCIAL PERFORMANCE SUMMARY CLASSIFICATION: OFFICIAL-PROTECT STRATEGIC DELIVERY Actual Expenditure as at P6 £m Actual Expenditure as % of Ann. Est. £m Service Division Annual Estimate 2025/26 £m Projection to 31/3/26 £m Variance (Favourable) / Adverse £m 1.718 46.1% EMPLOYEE COSTS 3.730 3.432 (0.298) 0.026 86.7% PREMISES COSTS 0.030 0.030 0.000 0.040 108.1% TRANSPORT COSTS 0.037 0.069 0.032 0.119 15.3% SUPPLIES & SERVICES 0.776 0.768 (0.008) 0.000 0.0% THIRD PARTY PAYMENTS 0.000 0.000 0.000 0.005 0.0% DEBT CHARGES 0.004 0.005 0.001 1.908 41.7% TOTAL EXPENDITURE 4.577 4.304 (0.273) (0.427) 48.0% INCOME (0.889) (0.830) 0.059 1.481 40.2% NET EXPENDITURE 3.688 3.474 (0.214) EARMARKED FUNDS TO BE CARRIED FORWARD 1.481 40.2% TOTAL INCLUDING EARMARKED FUNDS 3.688 3.474 (0.214)
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APPENDIX 2 AYRSHIRE SHARED SERVICES JOINT COMMITTEE 2025 2025/26 GENERAL SERVICES REVENUE BUDGET AS AT 31 JULY 2025 – PERIOD 4 AYRSHIRE ROADS ALLIANCE FINANCIAL PERFORMANCE SUMMARY CLASSIFICATION: OFFICIAL-PROTECT Projected Variance at 31 March 2026 (£m) Strategic Delivery (0.298) 0.032 (0.008) 0.059 0.001 Employee Costs This variance reflects a number of vacant posts and turnover (£0.199m), a budget for severance costs which will not be required (£0.100m) and reduced expenditure on training (£0.015m). This partly offset by employee recharges (£0.016m) Transport Costs This variance reflects additional vehicle maintenance charges (£0.013m), fuel and EV charging (£0.010m) costs, along with a number of smaller variances (£0.009m). Supplies & Services This variance mainly reflects savings on EV electricity (£0.018m) and road safety materials (£0.009m), partly offset by additional computer related expenditure (£0.011m) and insurance premiums (£0.006m) Income This variance mainly reflects a shortfall in ad-hoc income, particularly in relation to Temporary Traffic Regulation Orders and inspection fees. Other Variances This represents other non-material variances within Strategic Delivery (0.214) Total reported variance
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APPENDIX 2 AYRSHIRE SHARED SERVICES JOINT COMMITTEE 2025 2025/26 GENERAL SERVICES REVENUE BUDGET AS AT 31 JULY 2025 – PERIOD 4 AYRSHIRE ROADS ALLIANCE FINANCIAL PERFORMANCE SUMMARY CLASSIFICATION: OFFICIAL-PROTECT LOCAL DELIVERY – EAST AYRSHIRE Actual Expenditure as at P6 £m Actual Expenditure as % of Ann. Est. £m Detail Annual Estimate 2025/26 £m Actual to 31/3/26 £m Variance (Favourable) / Adverse £m 1.257 36.2% EMPLOYEE COSTS 3.468 2.692 (0.776) 0.235 73.7% PREMISES COSTS 0.319 0.321 0.002 0.325 39.2% TRANSPORT COSTS 0.829 0.781 (0.048) 0.899 36.6% SUPPLIES & SERVICES 2.457 2.950 0.493 0.537 47.6% THIRD PARTY PAYMENTS 1.129 1.686 0.557 0.362 99.2% DEBT CHARGES 0.365 0.363 (0.002) 3.615 42.2% TOTAL EXPENDITURE 8.567 8.793 0.226 (1.367) 30.5% INCOME (4.489) (3.915) 0.574 2.248 55.1% NET EXPENDITURE 4.078 4.878 0.800 EARMARKED FUNDS TO BE CARRIED FORWARD 2.248 55.1% TOTAL INCLUDING EARMARKED FUNDS 4.078 4.878 0.800
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APPENDIX 2 AYRSHIRE SHARED SERVICES JOINT COMMITTEE 2025 2025/26 GENERAL SERVICES REVENUE BUDGET AS AT 31 JULY 2025 – PERIOD 4 AYRSHIRE ROADS ALLIANCE FINANCIAL PERFORMANCE SUMMARY CLASSIFICATION: OFFICIAL-PROTECT Projected Variance at 31 March 2026 (£m) Local Delivery - East Ayrshire (0.776) (0.048) 0.493 0.557 0.574 Employee Costs This variance represents vacant posts and turnover (£0.682m), particularly within Roads Maintenance Unit, and employee recharges in respect of cross boundary working (£0.107m). Transport Costs This variance mainly reflects savings on fuel (£0.050m) and external hires (£0.006m), partly offset by EV charging (£0.005m) other smaller variances (£0.003m). Supplies & Services This variance mainly reflects winter maintenance materials (£0.113m) and EV Charging / Parking Machine maintenance contract (£0.098m), bus station security (£0.145m) of which 50% is rechargeable to Stagecoach, Roads and Street Lighting materials (£0.055m), weather forecasting service (£0.026m), computing (£0.025m) and a number of small variances (£0.025m). Third Party Payments This variance mainly reflects additional use of sub-contractors within maintenance (£0.494m) and street lighting (£0.064m). Income This variance mainly reflects shortfalls in roads maintenance (£0.368m) and parking charges (£0.248m) income. This is partly offset by bus station security recharge to Stagecoach (£0.043m) and street lighting ad- hoc income (£0.005m) Other Variances Small underspends within Debt Charges offsets additional Premises Costs’ expenditure 0.800 Total reported variance
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APPENDIX 2 AYRSHIRE SHARED SERVICES JOINT COMMITTEE 2025 2025/26 GENERAL SERVICES REVENUE BUDGET AS AT 31 JULY 2025 – PERIOD 4 AYRSHIRE ROADS ALLIANCE FINANCIAL PERFORMANCE SUMMARY CLASSIFICATION: OFFICIAL-PROTECT LOCAL DELIVERY – SOUTH AYRSHIRE Actual Expenditure as at P6 £m Actual Expenditure as % of Ann. Est. £m Service Division Annual Estimate 2025/26 £m Projection to 31/3/26 £m Variance (Favourable) / Adverse £m 1.140 42.8% EMPLOYEE COSTS 2.661 2.580 (0.081) 0.118 51.3% PREMISES COSTS 0.230 0.295 0.065 0.665 43.6% TRANSPORT COSTS 1.526 1.457 (0.069) 0.729 30.9% SUPPLIES & SERVICES 2.360 2.343 (0.017) 0.548 24.0% THIRD PARTY PAYMENTS 2.282 2.516 0.234 0.200 93.9% DEBT CHARGES 0.213 0.208 (0.005) 3.400 42.5% TOTAL EXPENDITURE 9.272 9.399 0.127 (1.106) 27.1% INCOME (4.081) (4.392) (0.311) 2.294 44.2% NET EXPENDITURE 5.191 5.007 (0.184) EARMARKED FUNDS TO BE CARRIED FORWARD 2.294 44.2% TOTAL INCLUDING EARMARKED FUNDS 5.191 5.007 (0.184)
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APPENDIX 2 AYRSHIRE SHARED SERVICES JOINT COMMITTEE 2025 2025/26 GENERAL SERVICES REVENUE BUDGET AS AT 31 JULY 2025 – PERIOD 4 AYRSHIRE ROADS ALLIANCE FINANCIAL PERFORMANCE SUMMARY CLASSIFICATION: OFFICIAL-PROTECT Projected Variance at 31 March 2026 (£m) Local Delivery - South Ayrshire (0.081) 0.065 (0.069) (0.017) 0.234 (0.005) (0.311) Employee Costs This variance mainly reflects staff turnover due to vacancies (£0.191m), partly offset by employee recharges in respect of cross boundary working (£0.081m) Premises Costs This variance reflects depot electricity (£0.040m) and non-domestic rates charges (£0.024m) in relation to bus shelters Transport Costs This variance reflects savings on fuel (£0.052m) and external hires (£0.020m), partly offset by additional EV charging costs (£0.003m) Supplies & Services This variance reflects savings on roads maintenance materials (£0.225m) and lighting (£0.015m) materials This is partly offset by additional expenditure on street lighting electricity (£0.062m), repairs and maintenance of parking meters (£0.048m), equipment (£0.010m), winter maintenance materials (£0.040m), additional expenditure on a new Roads AI system (£0.029m), along with weather forecasting service costs (£0.025m) and several smaller variances (£0.009m). Third Party Payments This variance reflects additional use of sub-contractors in relation to street lighting (£0.110m), design (£0.039m) and winter maintenance due to an additional 2 routes being delivered externally (£0.090m). Debt Charges This variance reflects the timing of vehicle purchases Income This variance mainly reflects additional parking charges (£0.163m), street lighting income (£0.093m) and design ad-hoc income (£0.071). This is partly offset by a shortfall in income relating to Girvan Harbour (£0.020m). (0.184) Total reported variance