Agenda Document Pack - Cabinet - 02/06/2026
North Ayrshire Council · 2 June 2026
Back to Cabinet — 2 June 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE Cabinet A Meeting of the Cabinet of North Ayrshire Council will be held in the Council Chambers, Ground Floor, Cunninghame House, Irvine, KA12 8EE on Tuesday, 02 June 2026 at 14:30 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 Minutes The accuracy of the minutes of meeting of the Cabinet held on 28 April 2026 will be confirmed and the Minutes signed in accordance with Paragraph 7 (1) of Schedule 7 of the Local Government (Scotland) Act 1973 (copy enclosed). EDUCATION ITEMS FOR DECISION Reports by the Executive Director (Education) 3 Planned temporary closure of educational provisions Submit 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 (copy enclosed). 1
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 4 Review of ELC Sustainable Rates for Funded Providers Submit 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 (copy enclosed). 5 School Leavers’ Attainment and Achievement 2025 Submit a report by the Executive Director (Education) on the overall performance of the 2024-25 cohort of North Ayrshire Council school leavers (copy enclosed). 6 Care Experienced School Leavers’ Attainment and Achievement 2024-25 Submit a report by the Executive Director (Education) on the overall performance of the 2024-25 cohort of care experienced school leavers in North Ayrshire (copy enclosed). 7 School Holiday Calendar – Academic Session 2027-28 Submit a report by the Executive Director (Education) informing Cabinet of changes to the school holiday calendar from academic session 2027-28 (copy enclosed). GENERAL BUSINESS FOR DECISION Report by the Executive Director (Education) 8 Child Poverty Action Plan Progress Report 2025-26 Submit a report by the Executive Director (Education) requesting approval of the Child Poverty Action Plan Progress Report 2025-26 (copy enclosed). Report by the Director (Health and Social Care Partnership) 9 Children’s Services Performance Report 2025/26 Submit a report by the Director (HSCP) seeking approval for the North Ayrshire Children’s Services Plan Performance Report 2025/26 (copy enclosed). Reports by the Chief Executive 10 Revenue Budget 2025/26: Financial Performance to 31 March 2026 Submit a report by the Head of Finance advising Cabinet of the financial performance for the Council for 2025/26 (copyenclosed). 11 Capital Programme Performance to 31 March 2026 Submit a report by the Head of Finance advising Cabinet of progress in delivering the Capital Investment Programme 2025/26 (copy enclosed). Reports by the Executive Director (Communities and Housing) 2
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 12 Community Asset Transfer – Blacklands Hall, Kilwinning Submit 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 (copy enclosed). 13 Community Asset Transfer – Auld Dirrans Resource Centre, Kilwinning Submit 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 (copy enclosed). 14 Proposals for Community Investment Fund (CIF) Expenditure Submit a report by the Executive Director (Communities and Housing) to determine applications by Locality Partnerships to allocate CIF funding to proposed projects (copy enclosed). 15 Use of Animals at Public Events Submit 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 (copy enclosed). 16 North Ayrshire Housing Acquisition Strategy Submit a report by the Executive Director (Communities and Housing) seeking Cabinet approval of the proposed Housing Acquisition Strategy 2026-2031 (copy enclosed). Reports by the Executive Director (Place) 17 Ardrossan Campus - Project Update Submit 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 (copy enclosed). 18 Ayrshire Growth Deal: International Marine Science and Environment Progress (IMSE) Update Submit 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 (copy enclosed). 3
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 19 Flexible Advanced Manufacturing Space, i3 Irvine: Phase 2, Full Business Case Submit 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 (copy enclosed). 20 National Islands Plan and North Ayrshire Islands Programme Update Submit a report by the Executive Director (Place) on the North Ayrshire Islands Programme and the new National Islands Plan and outlining proposed next steps (copy enclosed). 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(copy enclosed). 22 Fleet Decarbonisation Submit 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 (copy enclosed). 23 Urgent Items Any other items which the Chair considers to be urgent. 4
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE Webcasting Please note: this meeting may be filmed/recorded/live-streamed to the Council's internet site and available to view at https://north-ayrshire.public- i.tv/core/portal/home,where it will be capable of repeated viewing. At the start of the meeting, the Provost/Chair will confirm if all or part of the meeting is being filmed/recorded/live-streamed. You should be aware that the Council is a Data Controller under the Data Protection Act 2018. Data collected during the webcast will be retained in accordance with the Council’s published policy, including, but not limited to, for the purpose of keeping historical records and making those records available via the Council’s internet site. Generally, the press and public will not be filmed. However, by entering the Council Chambers and using the press or public seating area, you acknowledge that you may be filmed and that any information pertaining to you contained in the video and oral recording of the meeting will be used for webcasting or training purposes and for the purpose of keeping historical records and making those records available to the public. In making this use of your information the Council is processing data which is necessary for the performance of a task carried out in the public interest. If you have any queries regarding this and, in particular, if you believe that use and/or storage of any particular information would cause, or be likely to cause, substantial damage or distress to any individual, please contact dataprotectionofficer@north-ayrshire.gov.uk 5
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North Ayrshire Council, Cunninghame House, Irvine KA12 8EE Cabinet Sederunt Elected Members Tony Gurney (Chair) Christina Larsen (Vice-Chair) Eleanor Collier Alan Hill Margaret Johnson Chloe Robertson Church Representatives Rev Dr David Hume Ms Elizabeth Turbet Vacancy Teaching Representative Ms Jacqui MacKenzie Youth Council Representatives Chair: Apologies: Attending: 6
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OFFICIAL INFORMATION OFFICIAL INFORMATION Cabinet 28 April 2026 IRVINE, 28 April 2026 - At a Meeting of the Cabinet of North Ayrshire Council at 2.30 p.m. Present (Physical Participation) Tony Gurney, Christina Larsen, Eleanor Collier, Alan Hill, Margaret Johnson and Chloé Roblertson. In Attendance C. Hatton, Chief Executive; R. McCutcheon, Executive Director, T. Reaney, Head of Service (Neighbourhood Services) and L. Cree, Head of Service (Sustainability, Transport and Corporate Property) (Place); D. Hammond, Executive Director, R. Leith, Head of Service (Connected Communities) and A. Finlayson, Senior Manager (Planning) (Communities and Housing); C. Cameron, Director (Health and Social Care Partnership); S. Anson, Executive Director, Donna Martin, Strategy and Programme Manager (Child Poverty) and S. Robbie. Business Manager (Education); M. Boyd, Head of Service (Finance); F. Walker, Head of Service (People & ICT); A. Craig, Head of Democratic Services, L. Jolly, 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 17 March 2026 were confirmed and the Minutes signed in accordance with Paragraph 7 (1) of Schedule 7 of the Local Government (Scotland) Act 1973. 3. Additional Bank Holiday – 15 June 2026 Submitted a report by the Head of Democratic Services informing Cabinet of the decision and recommendation of the Audit & Scrutiny Committee following a call-in of the Cabinet decision of 17 March 2026 to approve the additional bank holiday for all employees on Monday 15 June 2026. Following consideration, the Cabinet agreed to accept the recommendation of the Audit & Scrutiny Committee and altered its original decision to the effect that the additional bank holiday on 15th June 2026 should not be approved for Council staff. Agenda Item 2 7
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OFFICIAL INFORMATION OFFICIAL INFORMATION 4. Child Poverty & Early Intervention Fund (CPEIF): Proposed Budget Allocation of £276,000 for Child Poverty and Strengthened Governance Arrangements Submitted a report by the Executive Director (Education) seeking approval for the proposed allocation of the £276,000 child poverty budget into CPEIF and outlining strengthened governance and monitoring arrangements for future applications and approvals for use of the Fund. Officers responded to Members’ questions and the Cabinet agreed to approve the proposals to allocate the £276,000 child poverty budget to CPEIF, enabling continuity of the fund over 2026-27. 5. Progress Update on Children’s Rights and Approval of North Ayrshire’s Statutory UNCRC Progress Report (2024-2026) Submitted a report by the Executive Director (Education) providing an update on action the Council is taking to progress children’s rights and seeking approval to publish the first statutory Children’s Rights Progress Report (covering the period 2024–2026.), attached at Appendix 1 to the report. Officers responded to Members’ questions and the Cabinet agreed to (a) note (i) the good progress being made across Council services and partners to strengthen the implementation of children’s rights and (ii) that future reporting would be aligned within the new joint Children and Families Plan 2026-2029, covering Children’s Services, Child Poverty and Children’s rights; and (b) approve the statutory Children’s Rights Progress Report for 2024–2026 for publication. 6. Proposals for Community Investment Fund (CIF) Expenditure Submitted a report by the Executive Director (Communities and Housing) on applications by Locality Partnerships for the allocation of CIF funding to proposed projects. Applications from the Micah Project and North Ayrshire Table Tennis Club were attached at Appendices 1 to 2, respectively, to the report. Officers responded to Members’ questions and the Cabinet (a) reviewed the applications from the Irvine Locality Partnership and Three Towns Locality Partnership in line with CIF criteria; and (b) agreed to approve (i) the CIF application in relation to the Micah Project (Appendix 1 to the report) and (ii) the CIF application in relation to North Ayrshire Table Tennis Club (Appendix 2 to the report). 7. Consultation Response: Accelerating Home Building Submitted a report by the Executive Director (Communities and Housing) seeking Cabinet approval of the proposed response to the Scottish Government consultation on accelerating home building. The proposed consultation response was attached at Appendix 1 to the report. The Cabinet agreed to approve the proposed consultation response at Appendix 1 to the report. 8
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OFFICIAL INFORMATION OFFICIAL INFORMATION 8. Roads Structures & Streetlighting Maintenance Programme 2026/27 Submitted a report by the Executive Director (Place) seeking Cabinet approval of the proposed Roads, Structures and Street Lighting Maintenance Programme for 2026/27, attached at Appendix 1 to the report. Officers responded to Members’ questions and the Cabinet agreed to (a) note (i) the approach taken to determining the asset maintenance programme for roads, structures and street lighting and (ii) that the programme would be issued to the Locality Planning Partnerships for information; and (b) approve the maintenance programme for 2026/27, as shown at Appendix 1 to the report. 9. Urgent Items There were no urgent items. 10. Exclusion of the Press and the Public Cabinet resolved in terms of Section 50(A)4 of the Local Government (Scotland) Act 1973, to exclude from the Meeting the press and the public for the following items of business on the grounds indicated in terms of Paragraph 9 of Part 1 of Schedule 7A of the Act. 11. Exempt Report: Lease Amendment – Lower Ground Floor, Lochshore Hub, Glengarnock Submitted a report by the Executive Director (Place) on the above. The Cabinet agreed to approve the recommendation as detailed in the report. 12. Exempt Report: Lease to a Nominated Party: Leading Light Navigation Tower Site, Ardrossan Submitted a report by the Executive Director (Place) on the above. The Cabinet agreed to approve the recommendation as detailed in the report. 13. Exempt Report: Disposal to a Nominated Party: Land at 23 Ayr Road, Irvine Submitted a report by the Executive Director (Place) on the above. The Cabinet agreed to approve the recommendation as detailed in the report. 14. Exempt Report: Sale Disposal – Abbey Park Football Ground, Bankhead Road, Kilwinning and 26 Dovecot Lane, Kilwinning Submitted a report by the Executive Director (Place) on the above. 9
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OFFICIAL INFORMATION OFFICIAL INFORMATION The Cabinet agreed to approve the recommendation as detailed in the report. The meeting ended at 3.15 p.m. 10
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NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet (Education) Title: Planned temporary closure of educational provisions Purpose: To outline a standardised procedure in connection with the planned temporary closure of educational provisions, compliant with updated Scottish Government Guidance Recommendation: That Cabinet: a) Notes the decisions taken, which resulted in the temporary closure of two early years’ classes for session 2026-27; b) Approves the adoption of the proposed policy for future temporary closures, in line with updated Scottish Government Guidance and; c) Agrees to the submission of an annual report to Cabinet summarising any proposed temporary closures for future sessions. 1. Executive Summary 1.1 This report outlines a new proposed policy for managing temporary closures of educational provisions, following the publication of updated guidance from Scottish Government. The proposed policy for North Ayrshire Council is submitted for approval for implementation from 2027. 1.2 This report also advises on two remote rural early years’ classes that have been subject to planned temporary closure in session 2025-26 and will remain temporarily closed in 2026-27 for lack of registered children for that academic session. 2. Background 2.1 On 19 December 2025, the Scottish Government wrote to Directors of Education with information on an update to the sections of the Schools (Consultation) (Scotland) Act 2010 Guidance that cover planned Temporary Closures (previously referred to as “mothballing”). This work was the culmination of a collaborative process involving Scottish Government and a number of Local Authorities throughout 2025. 2.2 A temporary closure is a time-limited cessation of operation of a school, early years class or stage of education where a local authority has evidence that the provision could reasonably re-open in the future. Agenda Item 3 11
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2.3 Whilst there are no primary or secondary establishments in North Ayrshire which have been temporarily closed under the new guidance, at early years registration for 2025, there were no families requiring a place at Corrie PS Early Years Class. There was one approach in May 2025 in respect of Pirnmill PS Early Years Class, however, the family decided to register elsewhere due to there being no other children registered. Both provisions were, therefore, temporarily closed for session 2025-26 due to there being no children registered. 2.4 Registration for early years places for the forthcoming academic session (2026-27) opened from 4 February to 1 March 2026. Again, no parent/carers registered their child for either Corrie or Pirnmill Early Years’ classes, despite these choices being available for selection on the online form. A decision was therefore taken to extend the temporary closure of both of these provisions for session 2026-27, pending further review at the same time next year. 2.5 In order to implement the new guidance systematically going forward, a new policy is proposed for implementation from 2027 and is attached at Appendix 1. The main aim of the policy is to ensure lawful, transparent, proportionate decisions are made that do not undermine statutory requirements for permanent school closures under the Schools (Consultation) (Scotland) Act 2010. 2.5 The policy provides guidance on the processes to be followed by officers when considering or implementing temporary closures of educational provision. It applies to all North Ayrshire early years’ provisions, primary and secondary schools, covering all individual stages of education, including Gaelic provision. 2.6 The policy aims to ensure that: • The educational benefit of children and young people is central to decision making • Decisions are evidence-based, transparent and accountable • Communities and parent/carers are engaged fairly and openly • Temporary closure is not used to undermine the intent of the Schools (Consultation) (Scotland) Act 2010 2.7 Temporary closures are exceptional measures and must only be used where there is a realistic prospect of reopening. The policy outlines the circumstances in which a temporary closure may be considered. 2.8 Before a decision to temporarily close a provision is considered, an analysis of the educational merits of such a decision must be carried out. 2.9 A proposed timeline for the annual consideration and review of temporary closures from 2027 onwards is included within the policy. 2.10 Under the policy, an annual report outlining any proposed temporary closures will be prepared for consideration by Cabinet. 3. Proposals 3.1 It is proposed that Cabinet: 12
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a) Notes the decisions taken, which resulted in the temporary closure of two Early Years classes for session 2026-27; b) Approves the adoption of the proposed policy for future temporary closures, in line with updated Scottish Government Guidance; c) Agrees to the submission of an annual report to Cabinet summarising any proposed temporary closures for future years. 4. Implications/Socio-economic Duty Financial 4.1 None. Human Resources 4.2 In circumstances where planned closure is expected to be temporary, staff are likely to be redeployed elsewhere within the education service. Legal 4.3 The proposed policy is informed by the Schools (Consultation) (Scotland) Act 2010 and its supporting Scottish Government guidance. Schedule 1 of the Schools (Consultation) (Scotland) Act 2010 provides that any arrangement likely to result in the permanent discontinuation of a school, early years’ provision or stage of education constitutes a closure proposal and must follow the statutory consultation process. Equality/Socio-economic 4.4 Equality and Children’s Rights Impact Assessments would be required in certain future circumstances e.g. where there is still demand, but numbers are very low. Climate Change and Carbon 4.5 None. Key Priorities 4.6 Improving outcomes for children, young people and families Ensuring fair access to education and services Efficient and sustainable service delivery Community Wealth Building 4.7 None. 13
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Islands Communities Impact Assessment (ICIA) 4.8 The revised guidance clearly recognises that the impact of temporary closures can be more pronounced in island locations. As such, where a temporary closure is proposed but registrations/pupil numbers are very low, a full impact assessment, including Equality Impact Assessment and Children’s Rights Impact Assessment would be undertaken as per the guidance, with particular consideration given to island matters.. United Nations Rights of the Child (UNCRC) 4.9 The following Rights are positively impacted by the proposals: • Education/ Goals of Education (Articles 28/29) • Best Interests of the Child (Article 3) • Non-Discrimination and Equality (Article 2) Consumer Duty 4.10 None. 5. Consultation 5.1 Consultation has taken place with the Head Teacher of the 2 affected Early Years classes and with Legal Services. Andrew McClelland Chief Education Officer, Head of Service (Education) For further information please contact Robin Knox, Education Infrastructure Manager , on 01294 324487. Background Papers None 14
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Education Service Policy Planned Temporary Closure of Educational Provisions Date: May 2026 APPENDIX 1 15
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1 Contents 1. Introduction ............................................................................................................... 2 2. Considerations .......................................................................................................... 2 3. Process ...................................................................................................................... 3 4. Review and Monitoring ............................................................................................. 3 5. Legislation ................................................................................................................. 4 16
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2 1. Introduction 1.1 A temporary closure is a time-limited cessation of operation of a school, early years’ provision or stage of education where the Council has evidence that the provision could reasonably reopen in the future. Temporary closure must not: be used to avoid statutory consultation have the effect, or likely effect, of permanent closure 1.2 This policy sets out the agreed North Ayrshire Council procedure and operational requirements for the planned temporary closure of schools, stages of education and early years provisions. It ensures that decisions are lawful, transparent, proportionate and do not undermine statutory requirements for permanent closures under the Schools (Consultation) (Scotland) Act 2010. Temporary closures (formerly referred to as ‘mothballing’) are exceptional measures and must only be used where there is a realistic prospect of reopening. 1.3 This policy provides guidance on the processes that must be followed by officers when considering or implementing temporary closures. It applies to all: North Ayrshire Council primary and secondary schools Stages of education within schools (including Gaelic or English medium provision) Early years’ settings including classes attached to schools 2. Considerations 2.1 Temporary closure may only be considered in very restricted circumstances, including: A zero-roll position, where no children are attending or registered, and there is a realistic prospect of families returning, particularly in remote or island communities Very low pupil numbers, where wider factors have been assessed alongside educational benefits Where the parent council formally requests consideration of a temporary closure Where a school and its attached nursery are both affected and it is appropriate to temporarily close the whole setting together 2.2 Temporary closure must only proceed where analysis demonstrates that there is a potential for short/medium term reopening, supported by future roll projections or early learning and childcare demand evidence. 2.3 In non-remote areas, temporary closures should not normally exceed 3 years. 2.4 For rural schools, officers must explicitly consider whether temporary closure represents a reasonable alternative under section 12A of the Schools (Consultation) (Scotland) Act 2010. 2.5 Educational benefit must always be the central focus. Additional core factors to assess include: 17
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3 Sustained decline in rolls or attendance patterns. Sustainability of staffing, resources, and running costs. Risk of building deterioration during closure and mitigation required. Distance, transport implications and impacts on attendance. Effect on community use of facilities and wider community resilience. Impact on learners, particularly those undertaking qualifications. Statutory early learning and childcare requirements under the Children and Young People (Scotland) Act 2014 3. Process 3.1 The timeline at Appendix 1 to this document provides the dates to be followed under this process. This aligns the process by which parent/carers are informed about both their early years’ placement and the outcome of any placing request application for school aged children and young people. 3.2 Meaningful engagement with the following groups is expected before any formal decision is made: Parents/carers and children/young people. Relevant staff groups. Local elected members and parliamentary representatives where appropriate. 3.3 Engagement should begin as early as possible when viability concerns emerge (typically within the next academic year). 3.4 The Education Service will provide a clear rationale and indicative timelines for any potential temporary closure. 3.5 Prior to making a recommendation to Cabinet to temporary close an educational provision, officers must: (i) Prepare an options appraisal identifying reasonable alternatives (ii) Assess whether the proposal could reasonably be regarded as a permanent closure (iii) Consider educational benefits, community impact and future viability (iv) Confirm compliance with legislation (noted at section 4 below) 3.6 Temporary closure must not be used to avoid statutory consultation. Where the majority of parent/carers oppose temporary closure, the Council should move to a statutory consultation on permanent closure as soon as practicable. Where a statutory consultation is ongoing, and where feasible, the provision should remain operational for any remaining children. 4. Review and Monitoring 4.1 All temporarily closed provisions must be formally reviewed annually. Reviews must consider updated roll projections, community circumstances and viability of reopening. 4.2 Review outcomes must be recorded and reported to Cabinet each year. 18
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4 5. Legislation 5.1 The proposed policy is informed by the Schools (Consultation) (Scotland) Act 2010 and its supporting Scottish Government guidance. Schedule 1 of the Schools (Consultation) (Scotland) Act 2010 provides that any arrangement likely to result in the permanent discontinuation of a school, early years’ provision or stage of education constitutes a closure proposal and must follow the statutory consultation process. 19
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5 Appendix 1 – Annual Timeline Dates Action/Method Second week in November P1 Registration for parent/carers for the following school session January each year Early years’ registration opens for parent/carers of children turning aged 3 on or after 1 March End of January Early years’ registration closes and allocation of places begins February each year At this point, any early years’ provision with one or fewer children registered will be known, however, late registrations can be expected up to May each year. Prepare Cabinet report with recommendations on those provisions to become/remain temporarily closed. 15 March each year Placing request application deadline, legislated within Section 28A of the Education (Scotland) Act 1980. By 30 April each year Education to inform parent/carers of early years’ place and outcome of placing request application at the same time. 20
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NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet (Education) Title: Review of ELC Sustainable Rates for Funded Providers Purpose: To seek 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. Recommendation: It is recommended that Cabinet: a) Agrees an increase of 6.2% in the current hourly rate paid by the Council to funded providers, backdated to 1 April 2026. b) Agrees 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. c) Agrees to receive a further report at the time of the next annual review of the sustainable rate for funded providers. 1. Executive Summary 1.1 Cabinet approved in June 2025 an increase in the hourly rate paid to funded providers in the financial year 2025-26. This increased the rate from £6.51 for eligible 3–5-year- olds and £6.81 for eligible 2-year-olds to £6.77 and £7.08 respectively and included a commitment to enable funded providers to pay at least the Real Living Wage of £12.60 per hour in 2025-26. 1.2 The Real Living Wage for 2026 has been set at £13.45. National Guidance requires local authorities to uplift sustainable rates by a minimum of 5.2%. It is proposed that North Ayrshire Council applies a slightly greater uplift of 6.2% to the sustainable rate, in recognition of the above and the variations in cost circumstances across our partner funded providers. This will lead to rates of £7.19 per hour for 3-5-year-olds and £7.52 for eligible 2-year-olds. 1.3 North Ayrshire Council will receive an additional £317k from Scottish Government to fund this uplift. 1.4 In addition to the hourly rate, it is proposed that the payments for meal costs are also increased. Taking account of food inflation and to consolidate payments for meals into a single figure across all providers in North Ayrshire, it is proposed that payments per meal should increase by 4.2% from £3.09 to £3.22 and that this rate should apply to all funded providers, including childminders. 1.5 It is proposed that all rate increases be backdated to 1 April 2026. Agenda Item 4 21
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2. Background 2.1 Since August 2021, all 3 and 4-year-old children and eligible 2-year-old children have been entitled to 1140 hours of funded early learning and childcare per annum. To deliver this across Scotland, Councils work with both Council-run services and local partner providers in the private and not-for-profit sectors, including childminders, to ensure there is sufficient capacity to deliver 1140 hours to all eligible families in their local areas. In addition to the 44 council establishments, North Ayrshire Council currently contracts with 16 funded provider nurseries and 51 childminders to deliver ELC entitlement to families across the authority. Funded providers enter a contract with North Ayrshire Council which requires them to meet the National Standard for Early Learning and Childcare Providers and in return NAC pay an hourly sustainable rate for up to a maximum of 1140 hours per annum for each child in their care. 2.2 In February 2026, Scottish Government published updated Funded early learning and childcare 2026-2027: guidance for setting sustainable rates which outlines key principles for setting sustainable rates. In addition to the key principles, the document sets out the characteristics of a sustainable rate, which include: • The rate will support delivery of a high quality ELC experience for all children. • It will be a rate that reflects the cost of delivery, including the delivery of national policy objectives. • The rate will allow for investment in the setting – staff, resources and physical environment; and • It will enable payment of the real Living Wage for those childcare workers delivering the funded entitlement. 2.3 The guidance also highlights that, from a local authority perspective, the following points should also be considered: • The rate should not have a detrimental effect on the local authority’s ability to continue to pay for the service in the long-term. • The wider package of ‘in-kind benefits,’ which are separate to the sustainable rate, available to the funded provider as part of their contract with the local authority; and • The rate does not need to be cross subsidised by parents and carers through charges for non-funded hours. 2.4 Cabinet approved an increase in the sustainable rate in June 2025. An increase was agreed for the financial year 2025-26 from £6.51 per hour to £6.77 per hour for all eligible 3–5-year-olds. Similarly, the rate for eligible 2-year-olds was increased from £6.81 per hour to £7.08 per hour. The increased rates in North Ayrshire represented an overall uplift in 2025-26 of 4% for 3-5-year-olds and 4% for eligible 2-year-olds compared to the 2024-25 rate. On a national level, the average reported rate across local authorities for 3-5 year olds was £6.87 per hour and for eligible 2 year olds the average rate was £7.26 per hour. 2.5 National guidance for the setting of sustainable rates in 2025-26 contains a commitment that will enable funded providers to pay at least the new Real Living Wage rate of £13.45 per hour from April 2026. Local authorities are asked to apply a minimum uplift of 5.2% to 2025-26 sustainable rates to enable this to be achieved. North Ayrshire Council will receive additional funding of £317k in 2026-27 from Scottish Government to support this. 22
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2.6 In line with national guidance, North Ayrshire Council has applied an assumption that staff costs account for, on average, 77% of total costs. The change in the Real Living Wage in 2026 from £12.60 to £13.45 represents a 6.7% increase. Uprating the total staff cost element (77%) of the sustainable rate by 6.7% would result in an increase in the overall rate of 5.52%. 2.6 Following review, it is proposed that an uplift of 6.2% be applied to the sustainable rate in North Ayrshire for financial year 2026-27, going beyond the minimum required increase. This recognises individual variations in cost circumstances across our local partners and continues our commitment to ensuring that funded providers are able to pay a minimum of the Real Living Wage to their employees. Based on our current projections, the funding received from Scottish Government will be sufficient to cover this increase. The proposed rates for 2026-27 are set out in the table below: 2025-26 (until March 2026) 2026-27 (from April 2026) Uplift rate (%) 3-5-year-olds £6.81 £7.19 6.2% Eligible 2-year-olds £7.08 £7.52 6.2% 2.7 In addition to the hourly rate paid to providers, funded providers receive an additional payment per meal (or the provision of a meal through the North Ayrshire Council School Meals Service). In 2025-26, funded providers and childminders received £3.09 per meal. In addition to this, all registered childcare providers have access to funding through the Scottish Milk and Healthy Snack Scheme to provide milk and a portion of fruit or vegetables for every child each day at the current national rate of 58.2p per day. 2.8 Taking account of food inflation, it is proposed that payments per meal should increase by 4.2% from £3.09 to £3.22 from 1 April 2026 onwards. The existing option to have meals provided by North Ayrshire Council Facilities Management Team will continue to apply as at present to funded providers (excluding childminders). The proposed rates are set out in the table below: Payments per meal 2025-26 (until March 2026) 2026-27 (from April 2026) Uplift rate (%) Funded providers (nursery settings) £3.09 £3.22 4.2% Childminders £3.09 £3.22 4.2% 2.9 In addition to the sustainable rate, North Ayrshire Council provides a range of non- financial benefits and supports to funded providers, including professional learning/training, targeted support, quality improvement support visits, advice from our Early Years team, pre- and post-inspection support and workforce support. 2.10 North Ayrshire Council has recently reviewed, refreshed and confirmed all contracts for funded providers and childminders. These reviews have included consideration of funding requirements. Delivery on the commitment for funded providers to pay at least the Real Living Wage is included as part of North Ayrshire Council’s ongoing engagement and contract monitoring processes with funded providers. 2.11 It is proposed that the proposed increase in rates be backdated to 1 April 2026. 23
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3. Proposals 3.1 It is recommended Cabinet: a) Agrees an increase of 6.2% in the current hourly rate paid by the Council to funded providers from 1 April 2026. b) Agrees 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. c) Agrees to receive a further report at the time of the next annual review of the sustainable rate for funded providers. 4. Implications/Socio-economic Duty Financial 4.1 North Ayrshire Council will receive £317k as part of the £11m allocated by Scottish Government to add a minimum of 5.2% uplift to 2025-26 sustainable rates. Human Resources 4.2 None. Legal 4.3 None. Equality/Socio-economic 4.4 In supporting a sustainable ELC provision within the private, not for profit and childminding sectors, we aim to reduce any inequalities of provision and quality of ELC services. We aim to ensure all children experience the best start in life, and families are supported into work, thus reducing poverty. Climate Change and Carbon 4.5 Ensuring sustainable access to ELC provision within the private, voluntary and independent sector ensures that parents / carers are able to access a range of ELC services within their local community. Consequently, this encourages the use of active travel to access provision and will encourage reduction in greenhouse gas emissions in North Ayrshire. Key Priorities 4.6 Proposals outlined in this report support the Council Plan 2023-28 strategic aim to “transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people” and more specifically “improving educational attainment and achievement and closing the attainment gap” activities. 24
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Community Wealth Building 4.7 The proposals support the following pillars of community wealth building: • Advancing community enterprises • Supporting local business activities and increasing the variety of ownership models. 5. Consultation 5.1 North Ayrshire Council’s ELC leadership team meet regularly with funded providers, including private and partner nurseries as well as childminders, and have considered views expressed in relation to the need for enhanced rates in light of the current financial challenges faced by funded providers associated with the cost of living. Andrew McClelland Chief Education Officer, Head of Service (Education) For further information please contact Andrew McClelland, Head of Service (Education), on (01294) 324413. Background Papers None 25
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NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet (Education) Title: School Leavers’ Attainment and Achievement 2025 Purpose: To update Cabinet on the overall performance of the 2024-25 cohort of North Ayrshire Council school leavers. Recommendation: It is recommended that Cabinet: a) Notes the content of the report, including the achievements of school leavers in qualifications in 2025; and b) Notes the measures being taken to make further improvements to attainment and achievement levels across NAC Secondary schools. 1. Executive Summary 1.1 In 2025, NAC had a strong overall performance in literacy and numeracy attainment, with 92% of school leavers achieving Level 4 in both measures. Performance in literacy at Level 5 remains a strength, while Level 5 numeracy has dipped slightly in the most recent year, leading to focused improvement work across schools. 1.2 The average total tariff score rose to 864, showing renewed improvement in overall attainment. North Ayrshire school leavers are outperforming the national figures across a range of SIMD deciles. Outcomes for leavers in the most deprived communities remain a relative strength, with strong performance across several deprivation measures. The priority is to sustain this progress while improving attainment across all deciles. 1.3 Across a range of measures of breadth and depth, North Ayrshire leavers continue to perform well when benchmarked against the virtual comparator, Quad partner authorities and the national cohort. Particular highlights include the percentage of learners who left with at least five qualifications at level 3 or better, and the percentage who left with at least five level 6 qualifications or better. 1.4 Positive destinations remain very strong at 95.7%, above the virtual comparator and in line with national performance. Maintaining this strength, especially for the most deprived learners, remains an important priority for the service and one which will be supported by the integration of the Employability Service into the Education Directorate. 1.5 Targeted and universal improvement actions in 2024-25 focused on high-quality pedagogy, data led improvement, equity, and partnership working. For 2025-26 and beyond, priorities include stronger use of data, improved tracking and monitoring, enhanced curriculum pathways using the SCQF, and a sharper focus on breadth, depth, Agenda Item 5 27
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and consistency of attainment, underpinned by the Education Service’s updated three- year Improvement Plan. 2. Background 2.1 The performance information in this paper is collated from three key sources: • The Local Government Benchmarking Framework (LGBF) which lists a range of performance indicators for all 32 local authorities across Scotland, allowing performance to be considered relative to others. • The ScotXed INSIGHT Benchmarking Tool, which is produced for schools and education authorities to enable analysis and improvement planning across all key national measures of attainment. • The Scottish Government annual publication: Summary Statistics for Attainment and Initial Leaver Destinations, No.8: 2026 edition 2.2 Schools in North Ayrshire focus on the attainment for each learner by the end of the Senior Phase (exit qualifications), rather than solely on the individual year on year attainment pattern. The attainment of each learner across their Senior Phase is more important than what they achieve in a single year (except for S4 leavers). 2.3 The attainment data in this paper relates to the attainment of school leavers who left school in session 2024-25, which includes leavers up to Christmas 2025. This is the most up to date school leaver attainment and reflects what was published in February/March 2026 in the sources named above. 2.4 The number of school leavers in academic session 2024-25 was 1396. This is the second lowest number of school leavers in the last 5 years. The percentage of S4 leavers has decreased from 2024 whilst the percentage of S5 and S6 leavers are broadly in line with the last 3 years. Leavers by stage Year S4 S5 S6 All leavers 2020-21 128 (9.3%) 383 (27.9%) 862 (62.8%) 1373 2021-22 172 (11.3%) 469 (30.9%) 879 (57.8%) 1520 2022-23 216 (14.7%) 438 (29.8%) 814 (55.4%) 1468 2023-24 212 (13.6%) 488 (31.3%) 859 (55.1%) 1559 2024-25 182 (13.0%) 435 (31.2%) 779 (55.8%) 1396 2.5 This paper will consider the performance of North Ayrshire schools as a group, identifying trends and key highlights or areas for improvement in the following measures of attainment: • School leaver attainment in literacy and numeracy • The average total tariff scores of school leavers • School leaver attainment levels in the context of deprivation • The breadth and depth of qualifications attained by school leavers • School leaver initial positive destinations 2.6 Throughout this report, the attainment of North Ayrshire school leavers is benchmarked against the following comparators: • Previous NAC performance • Performance of the virtual comparator • Performance of other local authorities 28
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• Performance at national level 2.7 To support understanding of technical terminology, a glossary of key terms used throughout this report is included at Appendix 1. 2.8 Improving attainment in Literacy and Numeracy All Leavers Achieving Literacy North Ayrshire leavers continue to perform well in literacy. At both level 4 and level 5 literacy, the NAC performance has been consistently above the virtual comparator and above or broadly aligned to the national performance since 2019. In 2025, 92% of leavers achieved at least level 4 literacy, and 81% achieved at least level 5 literacy. Targets have been set to increase both of these figures for next session. All Leavers Achieving Numeracy In six out of the last seven years, North Ayrshire leavers have outperformed the virtual comparator in level 4 numeracy. With the exception of 2021, NAC performance has been broadly the same as the national figure over the same period. Indeed, in 2025 the NAC performance (92%) was higher than both the national and virtual comparators. The performance of North Ayrshire’s leavers in level 5 numeracy has historically tracked above the virtual comparator and in line with national figures. However, there has been a slight decline in attainment in 2025 for this measure to 69%. Targets have been set to improve this performance for next session. 29
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2.9 Improving attainment for all This measure focuses on the average total tariff score of the candidate’s latest and best qualifications, and is one of our Council Plan Performance Indicators. Tariff points are assigned to each unit or course achieved by learners – in all SCQF-graded awards, not just those provided by SQA (now Qualifications Scotland). This acknowledges to a greater extent the drive towards wider achievement qualifications and encourages schools to offer curricular choices and learner pathways tailored to a variety of abilities and aspirations. The data source for this measure is the ScotXed Insight benchmarking tool. Various alternative certification models (ACMs) were in place for 2020 until 2023. The “hump” in performance was anticipated. Exam arrangements returned to “normal” for 2024, which is the first year which can be reliably compared with the pre-pandemic 781 856 908 899 847 841 864 750 800 850 900 950 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 Average Total Tariff Score -ALL LEAVERS NAC Average Total Tariff Score - ALL LEAVERS 30
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performance in 2019, the last time when “normal” exam arrangements were in place. In 2025, the overall average total tariff score for all leavers has begun to rise again, up to 864 (the highest level over this period outside of the ACMs). Average Total Tariff Score of leavers according to attainment group It is common practice to look below the headline average total tariff figure to see the performance of three groups of school leavers: the lowest attaining 20%, the middle attaining 60% and the highest attaining 20%. The table below shows the performance of these groups over the last 5 years for which data is available. School Leavers Average total tariff points in North Ayrshire (compared to Virtual Comparator and Scotland / data source = ScotXed Insight): 2010-21 2021-22 2022-23 2023-24 2024-25 NAC VC Scot NAC VC Scot NAC VC Scot NAC VC Scot NAC VC Scot Lowest 20% 160 157 164 155 140 154 133 127 141 123 100 129 115 108 132 Middle 60% 840 873 939 812 804 871 744 766 832 738 749 841 779 800 874 Highest 20% 1860 1910 1982 1907 1876 1950 1869 1866 1931 1865 1840 1928 1866 1892 1965 In 2025, the average total tariff score for the lowest attaining 20% of learners is above the Virtual Comparator and slightly below the national figure. The average total tariff score of the middle attaining 60% of leavers is slightly lower than the virtual comparator and the national figure, but 41 points higher than the previous year. The average total tariff score of the highest attaining 20% of leavers is also below both the virtual comparator and the national figure, and very slightly (one point) higher than the previous year. 2.10 Attainment versus Deprivation: average total tariff score of leavers according to SIMD decile There is a strong focus both nationally and locally on trying to reduce the poverty-related attainment gap. The graph below displays the average total tariff score of leavers in 2025, depending on the SIMD decile of their postcode. The larger the circle, the larger the size of the group of leavers. The North Ayrshire leavers cohort is in green and the national cohort is in blue. While the distribution of leavers across all ten SIMD deciles is relatively even across Scotland, the size of the leavers groups in North Ayrshire is much larger at the lower end of the SIMD graph. Indeed, 43% (560) of our school leavers in 2025 lived in SIMD deciles 1 and 2. In contrast, only 11% of North Ayrshire’s leavers in 2025 lived in SIMD deciles 9 and 10 (this equates to 153 learners). North Ayrshire school leavers are outperforming the national figures across a range of SIMD deciles. Across deciles 1-6, the average total tariff score in North Ayrshire was almost entirely in line with or above the national figure, in some cases by a statistically significant margin (e.g. SIMD decile 6). In contrast, at SIMD decile 10, the North Ayrshire performance was well below the national figure. It should be noted that the NAC figure is based on only 14 individuals and represents 1% of the leavers cohort, compared to 9% nationally. Improving attainment across all deciles remains a priority 31
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for the service, alongside the other priorities in the new Education Service Improvement Plan. 2.11 Breadth and Depth of qualifications attained Breadth and depth measures show the percentage of leavers who left with a minimum number of qualifications at a particular level. To aid further comparative analysis, we have included figures from our Quad partners (Dundee City, Glasgow City and North Lanarkshire). Quads are an ADES construct intended to improve performance across all local authorities, and are formed by creating partnerships based upon shared characteristics. The figures in the tables below show the collated attainment levels of the Quad members except North Ayrshire. 5 or more at Level 3 2021 2022 2023 2024 2025 National 91% 90% 89% 88% 89% North Ayrshire 91% 91% 89% 90% 89% Virtual Comparator 91% 89% 88% 86% 87% Quad Partners 89% 88% 87% 87% 87% Over the last five years, the proportion of North Ayrshire school leavers who left with five or more qualifications at level 3 or better has been in line with or higher than the national figure every year. Similarly, North Ayrshire leavers performed better than the virtual comparator and leavers from our three other Quad partner authorities at this level. 32
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5 or more at Level 4 2021 2022 2023 2024 2025 National 87% 87% 85% 84% 84% North Ayrshire 86% 87% 83% 83% 81% Virtual Comparator 87% 85% 84% 81% 82% Quad Partners 85% 84% 83% 82% 83% Performance at Level 4 is more mixed. While the percentage of learners leaving with at least five level 4 qualifications has declined slightly both nationally and locally, the North Ayrshire performance has dipped below the virtual comparator and our Quad partner authorities in 2025. This is a clear area for improvement which will be addressed through the service improvement plan programme of targeted work on raising attainment. 1 or more at Level 5 2021 2022 2023 2024 2025 National 89% 89% 88% 87% 88% North Ayrshire 90% 89% 88% 87% 87% Virtual Comparator 89% 88% 88% 84% 86% Quad Partners 87% 86% 86% 85% 86% The percentage of school leavers who achieve at least one level 5 qualification (e.g. National 5 level) is a key national performance indicator. North Ayrshire has performed well in this measure over the last five years, remaining broadly in line with the national performance, and above the virtual comparator and Quad partner authorities. 5 or more at Level 5 2021 2022 2023 2024 2025 National 71% 68% 66% 67% 69% North Ayrshire 70% 67% 63% 65% 64% Virtual Comparator 69% 65% 63% 62% 66% Quad Partners 64% 62% 61% 61% 65% This measure is included in the Local Government Benchmarking Framework (LGBF). At 64% of leavers attaining at least five level 5 qualifications in 2025, North Ayrshire is in 20th position out of all 32 local authorities, which is an increase on our long-term average relative position of 22. The percentage of learners leaving school with at leave five level 5 qualifications (e.g. National 5s) has fluctuated somewhat over the last five years, both locally and nationally. As a result, a specific focus will be maintained on this measure. Schools will be required to set specific targets to increase the proportion of learners leaving with at least five National 5 qualifications. When filtered for deprivation (not displayed in table), 54% of North Ayrshire’s leavers from the 20% most deprived areas by SIMD achieve at least five level 5 qualifications. This is above the national figure of 53% and puts North Ayrshire in 11th position overall relative to all local authorities in Scotland. 33
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1 or more at Level 6 2021 2022 2023 2024 2025 National 70% 67% 66% 66% 68% North Ayrshire 71% 68% 66% 68% 69% Virtual Comparator 69% 65% 66% 64% 66% Quad Partners* 67% 63% 63% 63% 65% The percentage of school leavers who achieve at least one level 6 qualification (e.g. Higher level) is a key national performance indicator. North Ayrshire has performed well in this measure over the last five years, remaining in line with or above the national performance, and above the virtual comparator and Quad partner authorities. 5 or more at Level 6 2021 2022 2023 2024 National 42% 39% 38% 39% 41% North Ayrshire 38% 36% 35% 36% 40% Virtual Comparator 38% 35% 35% 34% 37% Quad Partners* 37% 34% 34% 35% 37% This measure is included in the LGBF. At 40% of leavers attaining at least five level 6 qualifications in 2025, North Ayrshire is in 12th position out of all 32 local authorities, against a long-term average relative position of 23. There has been a notable improvement in North Ayrshire’s performance at level 6 (equivalent to Higher) in 2025. Indeed, over the last five years, North Ayrshire leavers have performed better than the virtual comparator and Quad partner authorities. When filtered for deprivation (not displayed in table), 29% of North Ayrshire’s leavers from the 20% most deprived areas by SIMD achieve at least five level 6 qualifications. This is significantly above the national figure of 24% and puts North Ayrshire in 4th position relative to all local authorities in Scotland. 1 or more at Level 7 2021 2022 2023 2024 2025 National 28% 26% 25% 25% 26% North Ayrshire 24% 25% 20% 22% 22% Virtual Comparator 25% 23% 20% 21% 24% Quad Partners 23% 21% 22% 22% 25% In 2025, 22% of learners in North Ayrshire left school with at least one level 7 qualification (equivalent to Advanced Higher). This is consistent with the previous year, but a change from the previous comparative position, which had been generally in line with or above the virtual comparator and Quad partner authorities. At 22%, North Ayrshire’s performance in this measure is still significantly higher than the pre-pandemic years, where the figure tended to be between 18-19% on average in the five years to 2019. Nevertheless, a specific focus will be maintained on this measure. Schools will be required to set specific targets to increase the proportion of learners leaving with at least one level 7 qualification. 34
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2.12 Increasing post-school participation In North Ayrshire in 2024-25, the percentage of all school leavers in a positive destination is 95.7% which is very slightly above last year’s figure, continues to be above the virtual comparator, and is in line with the national level. When filtered to the most deprived 20% of young people, NAC performance has tracked above the VC and national figures for the last 5 years. This is also one of our Council Plan Performance Indicators, and we see the integration of the Employability Service into the Education Directorate as a real opportunity to maintain and build on this strong performance. 2.13 IMPROVEMENT ACTIONS 2024-25 Across the Education Service and the 9 Secondary schools, a range of universal and targeted approaches were put in place to support raising attainment for young people in North Ayrshire. The focus on high quality pedagogical approaches leading to improved attainment, as well as the use of data for improvement, were strategic priorities across all schools. 2.14 IMPROVEMENT ACTIONS 2025-26 For those school pupils leaving in June 2026, Secondary schools and the Education Service have focused on a range of activities and approaches. There has been an increased focus this academic session on the use of data for improving outcomes for all learners, the use of the Scottish Credit and Qualifications Framework (SCQF) to support learners’ pathways and curriculum choices, quality improvement of Secondary Support Resources and an authority-wide launch of improving pupil attendance. The Education Service Improvement Plan for 2025-26 outlines the activity undertaken across this academic session to support raising attainment in our Secondary schools. 35
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2.15 IMPROVEMENT ACTIONS 2026-27 The Education Service 3-year Improvement Plan draft priorities have been created collaboratively with Head Teachers of all schools to ensure there is a strategic focus on improving attainment and achievement for all learners and ensuring that learners receive equitable support. For Secondary schools, there will an increased focus on target-setting for breadth and depth and qualifications, the creation of more collaborative and consistent approaches to tracking and monitoring, improving pedagogical approaches and strengthening learner pathways and curriculum offers. Improved monitoring of attainment and achievement at school and authority levels will be a key feature in evaluating improvement priorities and will help to direct targeted resource where required. 3. Proposals 3.1 It is recommended that Cabinet notes: (a) Notes the content of the report, including the achievements of school leavers in qualifications in 2025; and (b) Notes the measures being taken to make further improvements to attainment and achievement levels across NAC Secondary schools. 4. Implications/Socio-economic Duty Financial 4.1 None. Human Resources 4.2 None. Legal 4.3 None. Equality/Socio-economic 4.4 None. Climate Change and Carbon 4.5 None. Key Priorities 4.6 Council priorities: The focus of the Education Service is to align with the Council Plan 2023-28 strategic aim to ‘transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people’ and more specifically ‘improving educational attainment and achievement and closing the attainment gap’ activities. 36
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Community Wealth Building 4.7 None. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 The focus on improving attainment outcomes for all young people demonstrates our commitment to Children’s Rights and our continued work to ensure children’s rights are being met. Consumer Duty 4.10 None. 5. Consultation 5.1 The Education Quality Improvement Team has worked closely with Head Teachers to analyse, interpret and agree next steps towards further improvements in attainment and achievement. That work has formed the basis of this paper. Andrew McClelland Chief Education Officer, Head of Service (Education) For further information please contact Kathleen McCormick, Executive Manager (Education), on 01294 324418. Background Papers 0 37
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APPENDIX 1 GLOSSARY OF KEY TERMS USED IN THIS REPORT Virtual Comparator: Virtual comparator (VC) data is constructed from the performance of individual pupils with similar characteristics from schools in other local authorities. For every pupil in a North Ayrshire school, 10 similar pupils are identified from across all schools in other local authorities to be part of the virtual comparator’s data. This allows a comparison based on some key pupil characteristics (gender, deprivation (SIMD decile), additional support needs and stage of leaving) that are linked to educational outcomes. Average Total Tariff Score: Each qualification carries a number of tariff points, depending on the level and complexity of award. The system counts the best tariff score the candidate achieves in each qualification (the points are not counted for the same subject twice, so for example, if a candidate achieves National 5 English one year and goes on to achieve Higher English in a subsequent year, only the points for the Higher are counted). The average total tariff score is arrived at by adding the tariff scores of all school leavers and dividing by the number of leavers that year. SIMD decile: Each datazone (made up of a broadly equal number of households, by postcode) across Scotland has been allocated a rank position through the Scottish Index of Multiple Deprivation. The ranks are determined by a range of factors including income, employment, health, education, housing, access to services etc. SIMD is the most commonly used proxy for deprivation across Scotland. The datazones are divided into ten groups by rank. These ten groups are called SIMD deciles. Decile 1 is the most deprived and decile 10 is the least deprived. SCQF levels: The Scottish Credit and Qualifications Framework (SCQF) is the national framework for categorising all qualifications. The SCQF ranges from Level 1 to Level 12 based on the level of difficulty and complexity of the learning. Levels 1-3 are the most basic levels. Levels 4 and 5 are the equivalent of National 4 and National 5 qualifications. Level 6 is the equivalent to Higher and Level 7 is the equivalent to Advanced Higher. The remaining levels are for further and higher education qualifications, with Level 12 being doctorate level. 38
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NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet (Education) Title: Care Experienced School Leavers’ Attainment and Achievement 2024-25 Purpose: To update Cabinet on the overall performance of the 2024-25 cohort of care experienced school leavers in North Ayrshire. Recommendation: That Cabinet: a) Notes the content of the report, including the achievements of care experienced school leavers in qualifications in 2025; and b) Notes the continued focus on improving outcomes for care experienced learners in North Ayrshire. 1. Executive Summary 1.1 In literacy and numeracy at SCQF Levels 4 and 5, North Ayrshire continues to perform strongly in comparison with national figures. In 2025, attainment at Level 4 was above national performance for both literacy (74%) and numeracy (80%). At Level 5, attainment remained broadly positive. 1.2 The average total tariff score for care experienced school leavers rose to 508 in 2025. This is the highest figure in the 7 years of available data for this measure. 1.3 In 2025, 85% of care experienced school leavers achieved at least one qualification at SCQF Level 4 or better, while 65% achieved at least one Level 5 award, representing an increase on the previous year. Notably, 42% attained at least one qualification at Level 6, an increase of eight percentage points from 2024. 1.4 Post-school participation for care experienced leavers remains a key strength with 94% of care-experienced learners entering a positive destination, matching the highest level achieved over the past five years. 1.5 Alongside universal strategies to raise attainment, schools and the Service continue to provide tailored and bespoke support for care experienced learners, ensuring that targeted interventions respond effectively to individual needs and circumstances. 2. Background 2.1 The performance information in this paper is collated from two key sources: • The Local Government Benchmarking Framework (LGBF) which lists a range of performance indicators for all 32 local authorities across Scotland, including a few Agenda Item 6 39
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focused on care experienced learners, allowing performance to be considered relative to others. • The ScotXed INSIGHT Benchmarking Tool, which is produced for schools and education authorities to enable analysis and improvement planning across all key national measures of attainment, filtered by those who have experienced care. 2.2 Schools in North Ayrshire focus on the attainment for each care experienced learner by the end of the Senior Phase (exit qualifications), rather than solely on the individual year on year attainment pattern. The attainment of each learner across their Senior Phase is more important than what they achieve in a single year (except for S4 leavers). 2.3 The attainment data in this paper relates to the attainment of care experienced school leavers who left school in session 2024-25, which includes leavers up to Christmas 2025. This is the most up to date school leaver attainment and reflects what was published in February/March 2026 in the sources named above. 2.4 In session 2024-25 there were 92 care-experienced leavers. This represents 6.6% of all school leavers in session 2024-25. The average percentage of school leavers who were care-experienced in the last 5 years is 6.9%. Care-experienced leavers by stage Year S4 S5 S6 Total Percentage of all leavers 2020-21 27 (26.5%) 44 (43.1%) 31 (30.4%) 102 7.4% 2021-22 21 (22.1%) 35 (36.8%) 39 (41.1%) 95 6.3% 2022-23 35 (34.7%) 29 (28.7%) 37 (36.6%) 101 6.8% 2023-24 35 (30.7%) 45 (39.5%) 34 (29.8%) 114 7.3% 2024-25 24 (26.1%) 31 (33.7%) 37 (40.2%) 92 6.6% 2.5 In comparing the leaving patterns of care experienced learners to those of the overall cohort (see parallel Cabinet paper “School Leavers’ Attainment and Achievement 2025”, 2 June 2026 for details), around double the proportion of care experienced learners choose to leave school at the end of S4 compared to other S4 learners. A key driver of future improvement will be ensuring that the needs of the care experienced group of learners are met in terms of curriculum offer beyond S4. Getting this right should help to reduce the proportion of care experienced learners leaving at the end of S4 and enable schools to raise attainment for this key group. 2.6 This paper will consider the performance of North Ayrshire schools as a group, identifying trends and key highlights or areas for improvement in the following measures of attainment: • Care-experienced school leaver attainment in literacy and numeracy • The average total tariff scores of care-experienced school leavers • The breadth and depth of qualifications attained by care-experienced school leavers • Care-experienced school leaver initial positive destinations 2.7 Throughout this report, the attainment of North Ayrshire’s care-experienced leavers will mainly be benchmarked against previous NAC performance, as well as the performance of the virtual comparator. Where available, comparisons will be drawn with equivalent other local authority or national figures. 40
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2.8 To support understanding of technical terminology, a glossary of key terms used throughout this report is included at Appendix 1. 2.9 It should be noted that the cohort size for care experienced school leavers varies from year to year and is generally around 90-100 young people. Therefore, care must be taken when analysing variations in performance for this group and, while there are reasons to be positive about these results, we would also urge some caution on that basis. For example, one care experienced learner attaining/not attaining a specific qualification may account for more than 1 percentage point of a difference in the overall attainment measures for care experienced learners (whereas in the general population, one pupil would make less than 0.07 percentage points of a difference in the same attainment measure). 2.10 Schools have a clear narrative for individual circumstances of the learners in this group, as these circumstances are bespoke to each individual learner. 2.11 Secondary attainment meetings provide the opportunity for the Service and senior school leaders to analyse attainment data to inform improvement priorities and individualised support and allow for quality assurance of raising attainment activities and approaches for care-experienced learners. 2.12 Attainment in Literacy and Numeracy Year Level 3 Literacy or better Level 4 Literacy or better Level 5 Literacy or better 2020-21 91% 81% 53% 2021-22 97% 87% 59% 2022-23 94% 81% 50% 2023-24 90% 78% 45% 2024-25 95% 74% 50% Average 21-25 93% 80% 51% In 2024-25, 74% of care-experienced school leavers achieved level 4 literacy or better, which is lower than the average performance of this group over the last five years. Literacy achievement at level 3 and level 5 are broadly in line with the average performance over time. Year Level 3 Numeracy or better Level 4 Numeracy or better Level 5 Numeracy or better 2020-21 89% 63% 38% 2021-22 92% 80% 43% 2022-23 95% 77% 36% 2023-24 96% 75% 32% 2024-25 97% 80% 41% Average 21-25 94% 75% 38% In 2024-25, numeracy achievement at levels 3 and 4 were the best performances in the last five years at those levels. Attainment in numeracy at all levels in 2024-25 exceeded the five-year average performance. 41
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Despite some improvements in literacy and numeracy attainment for the care- experienced cohort, we recognise that there is still significant scope for improvement to reduce the gap between care-experienced and all other learners, as displayed in the charts below. 2.13 Improving attainment for all This measure focuses on the average total tariff score of the care-experienced candidate’s latest and best qualifications, and is one of our Council Plan Performance Indicators. Tariff points are assigned to each unit or course achieved by learners – in all SCQF-graded awards, not just those provided by SQA (now Qualifications Scotland). The data source for this measure is the ScotXed Insight benchmarking tool. 42
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Various alternative certification models (ACMs) were in place for 2020 until 2023. The “hump” in performance was anticipated. Exam arrangements returned to “normal” for 2024, which is the first year which can be reliably compared with the pre-pandemic performance in 2019, the last time when “normal” exam arrangements were in place. In 2025, the overall average total tariff score for care-experienced leavers has begun to rise again, up to 508 (the highest level over this period). 2.14 Breadth and depth of qualifications attained Year 1 or more at Level 3 1 or more at Level 4 1 or more at Level 5 1 or more at Level 6 1 or more at Level 7 2020-21 94% 85% 62% 40% 6% 2021-22 98% 91% 67% 35% 6% 2022-23 98% 87% 61% 33% 6% 2023-24 95% 85% 63% 34% 4% 2024-25 97% 85% 65% 42% 10% In 2025, 97% of care experienced school leavers attained at least one qualification at Level 3, representing an increase of 2 percentage points from 2024. 85% of North Ayrshire’s care experienced leavers attained at least 1 qualification at Level 4 or better, the same as the figure for 2024. For Level 5, 65% of care experienced leavers achieved at least 1 qualification at this level, which is 2 percentage points higher than the previous year. The proportion of care experienced school leavers achieving at least 1 Level 6 award was 42%, 8 % points above the 2024 figure of 34%. For Level 7, 10% of care- experienced school leavers achieved at least one award at this level which is 6 percentage points higher than 2024. Overall, there has been a strong performance in terms of the care experienced leavers cohort in 2025 achieving a breadth and depth of qualifications, comparing favourably to previous performances across a number of levels. 2.15 Post-school participation of care experienced school leavers The overall percentage of North Ayrshire care experienced school leavers entering a positive destination has increased in 2025 to 93% which is broadly in line with the highest figures over the last 5 years. 43
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2.16 IMPROVEMENT ACTIONS 2026-27 The Education Service 3-year Improvement Plan draft priorities have been created collaboratively with Head Teachers of all schools to ensure there is a strategic focus on improving attainment and achievement for all learners and ensuring that learners receive equitable support. There is a specific section devoted to improving learning outcomes for specific groups, including the care-experienced. For Secondary schools, there will an increased focus on target-setting for care-experienced learner outcomes, the creation of more collaborative and consistent approaches to tracking and monitoring, improving pedagogical approaches and strengthening learner pathways and curriculum offers. A virtual Head Teacher will support schools across the service to ensure that attainment outcomes of care-experienced learners continue to be maximised. Stretch aims for care experienced learners will be refreshed and extended to maximise learner outcomes and build on previous successes. Improved monitoring of attainment and achievement at school and authority levels will be a key feature in evaluating improvement priorities and will help to direct targeted resource where required. 3. Proposals 3.1 It is proposed that Cabinet: a) Notes the content of the report, including the achievements of care experienced school leavers in qualifications in 2025; and b) Notes the continued focus on improving outcomes for care experienced learners in North Ayrshire. 4. Implications/Socio-economic Duty Financial 4.1 None. Human Resources 4.2 None. Legal 4.3 None. Equality/Socio-economic 4.4 Tackling inequality is a key aspect of this report. The Council is committed to a continued focussed approach to improve outcomes for care experienced leavers. 44
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Climate Change and Carbon 4.5 None. Key Priorities 4.6 Council priorities: The focus of the Education Service is to align with the Council Plan 2023-28 strategic aim to ‘transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people’ and more specifically ‘improving educational attainment and achievement and closing the attainment gap’ activities. Community Wealth Building 4.7 The Council will continue to consider the pillars of community wealth building in any future developments in this area. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 The focus on improving attainment outcomes for all young people demonstrates our commitment to Children’s Rights and our continued work to ensure children’s rights are being met. Consumer Duty 4.10 None. 5. Consultation 5.1 The Education Quality Improvement Team has worked closely with Head Teachers to analyse, interpret and agree next steps towards further improvements in attainment and achievement. That work has formed the basis of this paper. Andrew McClelland Chief Education Officer, Head of Service (Education) For further information please contact Kathleen McCormick, Executive Manager (Education), on 01294 324418. Background Papers None. 45
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Appendix 1 GLOSSARY OF KEY TERMS USED IN THIS REPORT Care Experienced: This term is used to describe anyone who has been looked after at any point in their life, either through being subject to compulsory measures or through informal arrangements. This term can be used to describe them, even after leaving care. Looked after: This term is sometimes used to describe any child or young person who is currently in the care system, either through being subject to compulsory measures or through informal arrangements. Children can be “looked after at home” (by family members) or “looked after away from home” (e.g. by foster carers or in a children’s house). Virtual Comparator: Virtual comparator (VC) data is constructed from the performance of individual pupils with similar characteristics from schools in other local authorities. For every pupil in a North Ayrshire school, 10 similar pupils are identified from across all schools in other local authorities to be part of the virtual comparator’s data. This allows a comparison based on some key pupil characteristics (gender, deprivation (SIMD decile), additional support needs and stage of leaving) that are linked to educational outcomes. Average Total Tariff Score: Each qualification carries a number of tariff points, depending on the level and complexity of award. The system counts the best tariff score the candidate achieves in each qualification (the points are not counted for the same subject twice, so for example, if a candidate achieves National 5 English one year and goes on to achieve Higher English in a subsequent year, only the points for the Higher are counted). The average total tariff score is arrived at by adding the tariff scores of all school leavers and dividing by the number of leavers that year. SCQF levels: The Scottish Credit and Qualifications Framework (SCQF) is the national framework for categorising all qualifications. The SCQF ranges from Level 1 to Level 12 based on the level of difficulty and complexity of the learning. Levels 1-3 are the most basic levels. Levels 4 and 5 are the equivalent of National 4 and National 5 qualifications. Level 6 is the equivalent to Higher and Level 7 is the equivalent to Advanced Higher. The remaining levels are for further and higher education qualifications, with Level 12 being doctorate level. 46
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NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet (Education) Title: School Holiday Calendar – Academic Session 2027-28 Purpose: To inform Cabinet of changes to the school holiday calendar from academic session 2027-28. Recommendation: That Cabinet: a) notes the significant level of engagement and consultation with key stakeholders; and b) notes the resultant agreed changes to the school holiday calendar, to be implemented from session 2027-28 onwards. 1. Executive Summary 1.1 The school holiday calendar sets out the days pupils are required to attend school and the working year for teachers and other term-time staff, including the allocation of in- service days, annual leave days and school closure days. 1.2 The Education Service currently operates with two school holiday calendars. One for schools on the mainland and Cumbrae, and another for schools on Arran. 1.3 Consultation has taken place with key stakeholder groups to seek views on whether there should be one school holiday calendar for all North Ayrshire Council schools. 1.4 There was strong support across all stakeholder groups to move to one holiday calendar for all schools from academic session 2027-28. 1.5 There was strong support across all stakeholder groups that the school calendar from academic session 2027-28 should allocate a 2-week break in October and reduce the summer break by one week to facilitate this. 2. Background 2.1 The Schools General (Scotland) Regulations 1975, as amended, set the length of the school year at 190 days for pupils. The distribution of those days across the calendar year is a matter for individual education authorities. Furthermore, the Scottish Negotiating Committee for Teachers (SNCT) sets the length of the school year for teachers at 195 days and notes that annual leave for teachers is a matter to be determined at a local council level, following consultation with teacher trade unions. Agenda Item 7 47
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2.2 Consultation takes place annually within the Local Negotiating Committee for Teachers (LNCT), with the proposed school holiday calendar then shared with the second tier Joint Consultative Committee (JCC) as part of the wider consultation process. The proposed school holiday calendar is subsequently also shared with schools who are asked to feedback the views of their parent councils. 2.3 School holiday calendars for mainland and Cumbrae schools have followed a similar pattern for a number of years, with key school closure periods allocated to October (1 week), Christmas (2 weeks), Easter (2 weeks) and Summer (7 weeks), with a number of long weekends allocated within school terms. 2.4 School holiday calendars for Arran schools have historically followed a slightly different pattern from the rest of the authority, with key school closure periods allocated to October (2 weeks), Christmas (2 weeks), Easter (2 weeks) and Summer (7 weeks). 2.5 The Education Service was keen to seek stakeholder views on moving to one holiday calendar for all schools. An online survey was issued to stakeholder groups on 23 February 2026 and closed on 6 March 2026. Stakeholder groups included: Parents/Carers; Teaching Staff; Early Years Staff; Support Staff; Facilities Management Staff and Pupils. 2.6 A total of 6813 survey responses were received, details of respondents as follows: Stakeholder Group Responses Parent or Carer 4578 Teaching Staff 1073 Early Years Staff 227 Support Staff 492 Facilities Management Staff 178 Pupils 133 Other 132 2.7 Of the responses received, 62% said it would be a good idea to have one set of school holidays for all schools, 31% said this may be a good idea and 7% said this would not be a good idea. 2.8 Of the responses received, 73% said that it would be a good idea to align school holiday calendars by moving to a 2-week holiday period in October for all schools. 9% said that this may be a good idea and 18% said this would not be a good idea. 2.9 Of the response received, 49% said a move to a 2 week holiday period in October for all schools should be achieved by schools coming back one week earlier in the 2026/2027 school holiday year, 16% said the school holidays should start one week later, 20% said they didn’t mind if schools came back from holidays one week earlier or started one week later, and 15% didn’t agree with either option as they didn’t agree with making any changes to school holiday calendars. 48
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2.10 There are a number of potential benefits of the proposed holiday calendar. For example: • Simpler planning and coordination across the education service. A single holiday calendar would support the planning of key activities across the school year and ensure all school term dates, holidays, closure days and in-service days are aligned across all North Ayrshire schools and term-time early years settings. • Better distribution of holiday periods throughout the year. Adding a week to the October holiday could have benefits for mental health and wellbeing, giving all pupils a two-week break between each term. Reducing the extended summer holiday period by one week may also have benefits, as comments are often made by some stakeholders that the current 7-week holiday is too long. • Potential cost savings for some families. Introducing a 2-week break in October may help families to access lower holiday prices outside the summer period. 2.11 The LNCT meeting of 11 March 2026 considered responses to the school holiday engagement survey and agreed that the education service should move to one school holiday calendar for 2027-28 for all schools, which includes a 2-week holiday period in October, facilitated by an earlier return from the summer break in August 2027. This was also endorsed by JCC at their meeting of 12 March 2026. Further consultation with schools/parent schools has also been supportive of this proposal. 2.12 The school holiday calendar for 2027-28 will be published on the Council’s website during June 2026, and existing published calendars for 2026-27 will also be amended at this time 2.13 It should be noted that the neighbouring Ayrshire Councils have also expressed an interest in exploring the option of changing the duration of the October and summer holiday periods. Should any changes to school holiday calendars subsequently be approved in neighbouring Council areas, the Education Service will endeavour to align key school holiday dates with neighbouring Ayrshire Council areas where possible, recognising that some parents/carers with children in North Ayrshire schools work within neighbouring councils. 3. Proposals 3.1 It is proposed that Cabinet: a) notes the significant level of engagement and consultation with key stakeholders; and b) notes the resultant agreed changes to the school holiday calendar, to be implemented from session 2027-28 onwards. 4. Implications/Socio-economic Duty Financial 4.1 None. Human Resources 4.2 None. 49
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Legal 4.3 None. Equality/Socio-economic 4.4 The introduction of a 2-week holiday period in October may enable some families to take advantage of lower holiday prices outwith the summer period. Climate Change and Carbon 4.5 None. Key Priorities 4.6 A single holiday calendar across the education authority will facilitate more efficient simultaneous collaborative working to deliver on the wellbeing priority of the Council Plan. Community Wealth Building 4.7 None. Islands Communities Impact Assessment (ICIA) 4.8 The school holiday calendar survey included engagement with stakeholder groups on the islands of Arran and Cumbrae. United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None. 5. Consultation 5.1 The following groups were consulted on proposed changes to the school holiday through an online survey: • Parents/carers • Teaching staff • Early Years staff • Support staff • Facilities management staff • Pupils 50
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5.2 Consultation on the proposed school holiday calendar for academic session 2027/2028 has taken place with: • LNCT • JCC • Schools / Parent Councils Andrew McClelland Chief Education Officer, Head of Service (Education) For further information please contact Andrew McClelland, Head of Service (Education), on 01294 324413. Background Papers 0 51
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School holidays and in-service dates 2027/28 (Arran & Mainland Schools) 52
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School holidays and in-service dates 2027/28 (all schools) (text alternative) August 2027 • Monday 2nd August to Wednesday 25th August: pupils on holiday • Thursday 26th August and Friday 27th August: staff only in-service day • Monday 30th August to Tuesday 31st August: children in school September 2027 • Wednesday 1st September to Thursday 30th September: children in school October 2027 • Friday 1st October: children in school • Monday 4th October to Friday 15th October: pupils on holiday • Monday 18th October to Friday 29th October: children in school November 2027 • Monday 1st November to Thursday 18th November: children in school • Friday 19th November to Monday 22nd November: pupils on holiday • Tuesday 23rd November: staff only in-service day • Wednesday 24th November to Tuesday 30th November: children in school December 2027 • Wednesday 1st December to Wednesday 22nd December: children in school • Thursday 23rd December to Friday 31st December: pupils on holiday January 2028 • Monday 3rd January to Wednesday 5th January: pupils on holiday • Thursday 6th January to Monday 31st January: children in school February 2028 • Tuesday 1st February to Wednesday 16th February: children in school • Thursday 17th February: staff only in-service day • Friday 18th February to Monday 21st February: pupils on holiday • Tuesday 22nd February to Tuesday 29th February: children in school 53
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March 2028 • Wednesday 1st March to Friday 31st March: children in school April 2028 • Monday 3rd April to Monday 17th April: pupils on holiday • Tuesday 18th April to Friday 28th April: children in school May 2028 • Monday 1st May: pupils on holiday • Tuesday 2nd May to Friday 26th May: children in school • Monday 29th May to Tuesday 30th May: pupils on holiday • Wednesday 31st May: children in school June 2028 • Thursday 1st June to Friday 30th June: children in school July 2028 • Monday 3rd July to Monday 31st July: pupils on holiday 54
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NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet (Education) Title: Child Poverty Action Plan Progress Report 2025-26 Purpose: To consider and approve the Child Poverty Action Plan Progress Report 2025-26 Recommendation: That Cabinet agrees to publication of the Child Poverty Action Plan Progress Report 2025-26 provided at Appendix 1 and its submission to the Scottish Government. 1. Executive Summary 1.1 This report presents the North Ayrshire Child Poverty Action Plan Progress Report 2025-26 which has been attached as Appendix 1. 1.2 The Child Poverty Action Plan Progress Report is a statutory requirement by Scottish Government and is the responsibility of local authorities and NHS Boards. This Progress Report has been developed using a collaborative approach with internal and external partners. It provides an update on the wide range of actions taken and progress made for the year 2025-26. 1.3 Changes to national methodology for measuring child poverty, using improved Department for Work and Pensions household income data, mean that figures are not directly comparable with previous years. Using this revised methodology, North Ayrshire is identified as having the second highest rate of child poverty in Scotland both before and after housing costs, reinforcing the scale and persistence of the challenge locally. 1.4 While national data indicates reductions in child poverty at a Scotland level, and locally, we know that North Ayrshire continues to experience higher-than-average levels of child poverty, with significant variation between communities. This underlines the importance of sustained, system-wide action focused on both mitigating immediate impacts and addressing longer-term drivers. 1.5 A key development during 2025–26 has been the continued embedding of the Child Poverty Strategy Team, providing central oversight of child poverty reduction and mitigation activity across the Council and its partners. This has strengthened coordination, use of evidence and alignment with wider system change programmes. Agenda Item 8 55
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1.6 The report highlights progress across the three recognised drivers of child poverty: income from employment, reducing the cost of living, and maximising income from social security and benefits in kind. The report is structured to outline the intent, implementation, impact and next steps of activity; a structural approach praised by reviewers at Public Health Scotland following the publication of our 2024-25 progress report. 1.7 Alongside delivery, the report evidences growing focus on systems change, including early work to align with the Scottish Government’s Whole Family Support approach, place-based partnership delivery, and co-designed tests of change through programmes such as the Fairer Futures Partnership and the Collaboration for Health Equity Scotland (CHES). 1.8 This report also marks a transition point. From 2026 onwards, action to reduce child poverty will be embedded within a new joint Children & Families Plan, alongside children’s services and children’s rights responsibilities, strengthening integration, accountability and long-term impact. 2. Background Legislation, governance and process 2.1. Under the Child Poverty (Scotland) Act 2017, we have a statutory duty to jointly publish a local child poverty action report with NHS Ayrshire and Arran. The report needs to meet particular criteria, including how we are seeking to reduce child poverty and describe any measures taken to support particularly vulnerable groups. Under the legislation the report must be published as soon as reasonably practicable following year end. 2.2 In June 2023, Cabinet approved our Child Poverty Action Plan 2023-26, a joint plan with our partners. This report provides the final annual update on progress against that plan. 2.3 Our Child Poverty Action Plan 2023-26 was developed by the previous Tackling Child Poverty and Cost of Living Board and is shaped around contributions captured through a series of mini enquiries with community representatives. The resulting activities were designed and delivered with consultation from partners and communities across North Ayrshire. 2.4 Feedback from Public Health Scotland on our 2024-25 Child Poverty Progress Report recognised the clear structure, evident focus on the drivers of poverty, strong strategic and operational alignment, and effective partnership working through the Community Planning Partnership. Feedback also highlighted opportunities to strengthen future reporting by placing greater emphasis on structural drivers of poverty, particularly housing and transport, and by deepening the use of data and lived experience to better understand impacts on priority family groups. This year’s report responds directly to that feedback. Housing is more explicitly positioned as a system enabler for reducing child poverty, with strategic housing activity, affordability pressures and prevention highlighted as part of the wider whole-system response. The report also strengthens its place-based analysis, including island and rural communities. 56
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Child Poverty Statistics 2.5 The most recent Scottish national child poverty figures, measured on an after housing costs (AHC) basis, report a one-year rate of 18% and a three-year average of 21%. These figures are published at national level using a revised methodology that combines family resource survey data with linked Department for Work and Pensions (DWP) administrative records, providing a more accurate picture of household income. It is anticipated that this methodology with shift again, incorporating Social Security Scotland data in the near future. 2.6 Local authority-level child poverty figures are published separately and use a different methodological approach. Using this local authority dataset, North Ayrshire’s AHC child poverty rate is 18.1% in 2024 and 18.0% in 2025. While these percentages appear broadly in line with the Scottish national figure, they are not directly comparable, as they are derived from different data sources and methodologies for different purposes. 2.7 It is therefore important for Cabinet members to note that Scottish national figures and local authority figures should not be compared directly. The national statistics are designed to show overall trends at Scotland level, while the local authority dataset is designed to enable comparisons between councils. Under the local authority methodology, North Ayrshire continues to rank among the areas with the highest levels of child poverty, currently sitting second highest, behind Glasgow City (23.3%), with Dumfries and Galloway (17.4%) being the closest lower-ranking authority. 2.8 The difference in presentation can create the impression that North Ayrshire’s child poverty rate is in line with, or below, the Scottish average, when in fact the two figures answer different questions and serve different purposes. The local authority data remains the appropriate measure for understanding North Ayrshire’s position relative to other councils. 2.8 It is estimated that approximately 7,000 children in North Ayrshire continue to experience poverty with the impact unevenly distributed across communities. Some areas continue to experience substantially higher rates, reinforcing the need for continued, targeted and place-based action. 2.9 This interpretation is consistent with Scottish Government guidance, Joseph Rowntree Foundation analysis and DWP methodology notes. JRF and Save the Children have published a report encouraging caution against over-reliance on headline poverty statistics alone. The shifting and contrasting methodologies reinforce the importance of combining quantitative data with place-based intelligence and lived experience to understand how poverty is experienced locally and to inform effective action. Approach and action 2.10 North Ayrshire continues to prioritise child poverty as a critical challenge. Activity during 2025–26 focused on mitigating immediate financial pressures on families, improving access to income and services, and laying foundations for more preventative, whole-system approaches. 2.11 The six priority family groups are outlined in the Scottish Child Poverty Action Plan 2022- 26 ‘Best Start, Bright Futures’ as follows: - Lone parents 57
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- Families with three or more children - Families where the youngest child is under 1 year old - Mothers aged under 25 years - Households with someone with a disability - Minority ethnic families 2.12 We continue to focus our resources on supporting these six priority groups and measuring the impact of our interventions. This report sets out the wide range of activities undertaken by the Council and partners during 2025-26 to reduce child poverty and outlines areas of focus for 2026-27 for approval for publication and submission to the Scottish Government. 2.13 The Child Poverty and Early Intervention Fund continued during 2025–26, supporting co-designed, partnership-led initiatives. In April 2026, Cabinet approved for £276,000 child poverty budget to move over into the fund, with strengthened governance to improve targeting, prevention and measurable impact. During 2025–26, approved funding included: - Essential Skills Programme: £50,000 A Community Learning and Development-led programme, informed by learning from the Multiply project and delivered in partnership with employability and community services, supporting core skills, digital inclusion and progression towards work. - Swim and Skate: £18,000 Continued partnership delivery with KA Leisure, providing free access to physical activity and reducing cost barriers for children and young people (see KA Leisure report section). - Childcare Development: £107,000 Continued partnership support for a Council-hosted post and third sector activity to build out-of-school childcare capacity, with significant progress in West Kilbride and Kilwinning (see Childcare report section for full information). - Money Max: £227,000 Investment in five third-sector hosted posts working collaboratively to deliver relational, expert support around finances, housing and debt management, aligned with wider financial inclusion and advocacy pathways. - Family Enterprise Programme: £65,000 A partnership with Ayrshire College delivering a co-designed, accredited entrepreneurship course for parents with a product or service they wish to transform into a viable small business, with childcare support provided to improve accessibility. On completion, participating parents can apply for a small business start-up grant. - Fairer Futures Place-based Tests of Change: £112,000 Continued co-design with third sector partners and community members to test relational, wraparound support models through named workers (see Fairer Futures Partnership report section). 58
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- Smart Data Foundry: £10,000 Investment to strengthen partnership understanding of poverty dynamics and trends, and support more targeted, place-based decision-making using the financial data platform. 2.14 The report also covers a large range of other activities from colleagues and partners intended to reduce or mitigate the impact of child poverty in North Ayrshire during 2025- 26. These are focused on the three main drivers of poverty: income for employment, cost of living, and income from social security and benefits in kind. Key activities include: Income from Employment - Targeted employability programmes, including Skills for Life and We Work for Families, supported parents into flexible, paid employment and vocational placements aligned with family responsibilities. - Work to remove childcare as a barrier to employment was strengthened through increased childcare capacity, including in rural and island communities, supporting parental progression into work. - Community Wealth Building activity continued to promote fair, local employment and progression opportunities, contributing to improved access to sustainable work for parents experiencing poverty. Reducing the Cost of Living - Immediate cost-of-living pressures were mitigated through practical supports such as the Fairer Food Network, free Active Schools provision, and targeted crisis support, including the Island Emergency Cost of Living Fund. - Action to reduce the cost of the school day, including free activities, clothing support and transport, helped improve access to everyday opportunities for children and young people. - Affordable credit and financial resilience were supported through partnership work with 1st Alliance Community Bank, reducing reliance on high-cost lending through their Progressive Finance activity. Maximising Income from Social Security and Benefits in Kind - Money Smart, Welfare Rights and third-sector advice services supported families to maximise income, address debt and improve financial stability through accessible, stigma-free support. - Embedding welfare rights support within schools and health settings improved early access to entitlements in trusted environments. - Integrated referral pathways and tests of change focused on reducing complexity and improving uptake of benefits and in-kind support for priority family groups. 2.15 The progress report outlines next steps for all activity included. Partners have committed to building upon progress made during 2025–26 by strengthening prevention and early intervention, improving access to income and support, and embedding learning from place-based and whole-family approaches. This includes extending the Child Poverty and Early Intervention Fund into 2026–27 with stronger governance and targeting, continuing to test and scale effective partnership models, improving use of data to better identify and reach priority families, and transitioning child poverty action 59
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into the forthcoming joint Children & Families Plan to support longer-term, sustainable change. Reporting and planning: Next steps 2.16 Both the Child Poverty Action Plan 2023–26 and the Children’s Services Plan 2023–26 conclude in 2026. In addition, new statutory duties relating to children’s rights reporting will commence. 2.17 Development work on our joint Children & Families Plan is in the final stages. This plan will cover child poverty, children’s services and children’s rights for the period 2026 - 2029, enabling more integrated planning, reporting and delivery. 3. Proposals 3.1 That Cabinet agrees to publication of the Child Poverty Action Plan Progress Report 2025-26 provided at Appendix 1 and its submission to the Scottish Government. 4. Implications/Socio-economic Duty Financial 4.1 None. Human Resources 4.2 None. Legal 4.3 This report meets our statutory obligations under the Child Poverty (Scotland) Act 2017. Equality/Socio-economic 4.4 The activity outlined within the Progress Report at Appendix 1 actively seeks to improve the socio-economic outcomes for North Ayrshire residents. Climate Change and Carbon 4.5 None. Key Priorities 4.6 The Child Poverty Action Plan Progress Report 2025-26 directly demonstrates activity that contributes to our four Council Plan priorities, with a particular focus on transitioning to a Wellbeing economy. 60
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Community Wealth Building 4.7 A range of activity was undertaken with partners during 2025-26, as outlined in the report at Appendix 1, which contributed to our Community Wealth Building approach, in particular the ‘fair employment’ pillar. Islands Communities Impact Assessment (ICIA) 4.8 There are no Islands Communities Impact Assessment implications arising from this report. United Nations Rights of the Child (UNCRC) 4.9 The publication of the Child Poverty Action Plan Progress Report 2025-26 demonstrates our commitment to Children’s Rights and our continued work to ensure children’s rights are being met. Consumer Duty 4.10 None. 5. Consultation 5.1 Members of the Community Planning Partnership including NHS Ayrshire and Arran, TACT, Arran CVS and the HSCP contributed to the content of this report. Sam Anson Executive Director (Education) For further information please contact Laura Kayes, Policy & Performance Officer (Child Poverty), on laurakayes@north-ayrshire.gov.uk. Background Papers Appendix 1: Child Poverty Action Plan Progress Report 2025-26 61
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1 Child Poverty Action Plan 2023 – 2026 Progress Report 2025 - 2026 62
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2 Contents 1. Executive Summary p3 2. Introduction p4 3. Progress So Far p6 3.1 Income from Employment - Key Activities, Impact and Next Steps p9 - Case Studies p15 3.2 Reducing the Cost of Living - Key Activities, Impact and Next Steps p16 - Case Study p26 3.2.1 Our Island Communities p27 3.3 Income from Social Security and Benefits in Kind - Key Activities, Impact and Next Steps p28 3.4 Systems Change - Whole Family Wellbeing Fund p34 - Case Studies p34 - Whole Family Support p35 - Collaboration for Health Equity Scotland p36 - Fairer Futures Partnership p37 - Community Wealth Building p39 - Housing as a Systems Enabler for Reducing Child Poverty p39 - Young Carers p41 4. Conclusion p43 5. Appendices 5.1 North Ayrshire Child Poverty Action Plan 2023-26 p44 For anyone requiring support with the cost of living, please visit our dedicated Cost of Living webpage or call 01294 310000. 63
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3 1. Executive Summary Welcome to our 2025–26 Progress Report on Child Poverty in North Ayrshire. This report sets out the actions taken by North Ayrshire Council, NHS Ayrshire & Arran and partners across the Community Planning Partnership (CPP) to reduce and mitigate the impacts of child poverty, as part of our shared ambition to eradicate it. Child poverty remains one of the most significant and complex challenges facing our communities. Recent changes in national methodology for measuring child poverty, using improved Department for Work and Pensions (DWP) household income data, provide a more accurate picture of need but reduce the validity of comparisons with previous years. What is clear is that the scale of the issue within North Ayrshire remains significant and underpins the need for sustained systems-wide action for children and families in our area. Addressing child poverty is central to the Council Plan 2023–28, which sets out a mission of ‘A North Ayrshire that is fair for all’. Membership across the Community Planning Partnership Board ensures senior leadership, accountability and shared ownership of this agenda across partners. This report reflects the collective effort underway across the Council, Health and Social Care Partnership, NHS Ayrshire & Arran and the Third Sector to drive long-term change. This report highlights progress against the three nationally recognised drivers of child poverty: - income from employment - reducing the cost of living - maximising income from social security and benefits in kind This report also marks a point of transition. While it represents the final standalone progress report under North Ayrshire’s Child Poverty Action Plan 2023–26, it has been developed alongside work to establish a joint Children and Families Plan. From 2026 onwards, action to reduce child poverty will be embedded within this integrated planning framework, recognising child poverty as a cross-cutting determinant of the realisation of children’s rights, wellbeing, safety and life chances. This shift reflects an ongoing commitment to a more joined-up, whole-system approach, ensuring that efforts to increase income, reduce costs and improve outcomes for children are fully aligned with wider priorities for family support, early intervention and prevention. We recognise that child poverty is a long-term, complex and deeply rooted challenge, and the work outlined here demonstrates our continued commitment to coordinated, evidence-informed action. By listening to families, working alongside communities, and strengthening how our system responds, we will continue to take meaningful steps towards a fairer North Ayrshire for all children. Sam Anson Executive Director of Education North Ayrshire Council Professor Gordon James Chief Executive NHS Ayrshire and Arran 64
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4 2. Introduction This report outlines progress made during 2025–26 to reduce and mitigate the impact of child poverty, in response to actions set in our Child Poverty Progress Report from 2024-25. Recent changes to national methodology for measuring child poverty have improved the accuracy of such data but, regrettably, mean that national and local figures are not directly comparable with previous years. Using improved DWP household income data, North Ayrshire is identified as having one of the highest child poverty rates in Scotland. While challenging, this provides a clearer evidence base and reinforces the need for ambitious, sustained and system-wide action. A key development during this reporting period has been further embedding of the Child Poverty Strategy Team, providing central oversight, coordination and leadership on systems change. The team works across directorates and partner organisations to strengthen collaboration, improve use of data and evidence, and embed robust evaluation. A critical priority has been the authentic inclusion of community voice and lived experience, supported through Scottish Government Fairer Futures Partnership funding. This includes early co-design activity with third sector partners and community members to develop person-centred, trauma-informed interventions that reflect the realities of family poverty. Progress during the year reflects a whole-system approach focused on the three key drivers of child poverty from Scottish Government’s Best Start, Bright Futures: Tackling Child Poverty Delivery Plan 2022–26: Income from Employment - Targeted employability programmes, including Skills for Life and We Work for Families, supported parents into paid work and vocational placements. These programmes are part of Your Next Move Working North Ayrshire which also delivers employability support to unemployed parents as well as funding for accredited training for employed parents to enable them to upskill and increase earnings through improved employed. Tailored, flexible opportunities aligned with family responsibilities help increase household income, improve mental wellbeing and support positive outcomes for children. Work to address childcare as a barrier to employment was further strengthened through a large-scale childminder recruitment programme, increasing childcare availability across North Ayrshire, including rural and island communities. 65
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5 Reducing the Cost of Living - Immediate, practical supports continued through initiatives such as the Fairer Food Network, free Active Schools provision, community-based crisis supports and affordable credit through Progressive Finance. These interventions reduced household costs, prevented crisis and improved access to essential goods, services and activities. Maximising Income from Social Security and Benefits in Kind - Financial inclusion pathways, including Money Smart, Health Visitor referrals and third sector partnerships, supported families to maximise income, address debt and improve financial resilience. Integrated service delivery ensured families could access multiple forms of support in familiar, trusted settings. A significant theme throughout the year was a growing focus on systems change, supported by increased investment in partnership working, community-led approaches and early intervention. Early work to embed the Scottish Government’s Whole Family Support approach has begun to shape more joined-up and flexible thinking, helping partners better recognise the interconnected financial, social, physical and emotional needs of children and families. While challenges remain, this report demonstrates clear progress and a strengthened foundation for future action. By continuing to work collaboratively and learn alongside families and communities, North Ayrshire is committed to making a tangible difference to the lives of children living in poverty. 66
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6 3. Progress So Far North Ayrshire’s Child Poverty Action Plan 2023–26 is tailored to local needs across the key actions (see Appendix 5.1) and includes a specific focus on the six national priority family groups: - lone parent families - families with three or more children - families with a child under one year old - families where the mother is under 25 - families with a disabled adult or child - ethnic minoritised families While we continue to explore opportunities to further improve data-sharing practices, progress is already being made through improved partnership working and better use of available data sources, including our investment in access to Smart Data Foundry. Refinements to funding criteria and service commissioning are helping ensure support is available in the communities where need is greatest. Geography also plays a significant role in shaping local responses. Rural and island communities face distinct challenges related to transport, childcare availability and access to services. These factors are reflected throughout the actions outlined in this report. The interconnected nature of the three drivers of child poverty means families often experience multiple, overlapping pressures. In response, North Ayrshire has continued to strengthen a holistic, whole-family approach, recognising that financial security, wellbeing, housing, childcare and access to services cannot be addressed in isolation. Working towards Collective Impact A range of multi-agency initiatives continue to deliver both direct and indirect benefits for families experiencing poverty in North Ayrshire. Governance for child poverty activity remains within the Community Planning Partnership, with the Community Planning Partnership Senior Officers Group providing strategic oversight and shared accountability across partners. Our Child Poverty and Early Intervention Fund has been continued and aligned to priority areas identified through partnership learning, lived experience and emerging data. During 2025–26, approved funding included: - Essential Skills Programme (£50,000) A Community Learning and Development-led programme, informed by learning from the Multiply project and delivered in partnership with employability and community services, supporting core skills, digital inclusion and progression towards work. - Food Larders and Community Shops (£100,000) The CPEIF provided funds to continue support to 16 local food larders / community shops in 25/26 as we support groups to transition to self-sustaining models where possible. 67
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7 - Housing Advisor within CHAP (£53,000) This funded role focuses on providing expert advice to families on housing issues, homelessness prevention, and related social security support. As of December 2025, 60 individuals had been referred to the service. 25% of those referred fell within at least one child poverty priority family group, and several families are represented across multiple priority groups. Over a third of cases have since been closed following successful resolution, and those ongoing are receiving continuing support. The work is also generating key learning, evidencing increased complexity of cases requiring multi-agency work, higher demand for representation at Summary Court and gaps in early intervention for at-risk tenants. - Swim and Skate (£18,000) Continued partnership delivery with KA Leisure, providing free access to physical activity and reducing cost barriers for children and young people (see Active Schools and KA Leisure section). - Childcare Development (£107,000) Continued partnership support for a Council-hosted post and third sector activity to build out-of-school childcare capacity, with significant progress in West Kilbride and Kilwinning (see Childcare section below for full information). - Money Max (£227,000) Investment in five third-sector hosted posts working collaboratively to deliver relational, expert support around finances, housing and debt management, aligned with wider financial inclusion and advocacy pathways. - Family Enterprise Programme (£65,000) A partnership with Ayrshire College delivering a co-designed, accredited entrepreneurship course for parents with a product or service they wish to transform into a viable small business, with childcare support provided to improve accessibility. On completion, participating parents can apply for a small business start-up grant. - Fairer Futures Place-based Tests of Change (£112,000) Continued co-design with third sector partners and community members to test relational, wraparound support models through named workers (see Fairer Futures Partnership section below for full information). - Smart Data Foundry (£10,000) Investment to strengthen partnership understanding of poverty dynamics and trends, and support more targeted, place-based decision-making using the financial data platform. 68
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8 Alongside this funded activity, North Ayrshire continues to participate in the Collaboration for Health Equity Scotland (CHES), led locally by the Education Directorate and the Health and Social Care Partnership. This work applies learning, data and research to address the social determinants of health through a place-based, whole-system approach (see Systems Change section below for full information). Together, these represent just a selection of the partnership-led programmes that support North Ayrshire’s transition towards a wellbeing economy, strengthening prevention, improving access to support and contributing to sustained action to reduce child poverty. 69
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9 3.1 Income from Employment – Key Activities, Impact and Next Steps Increasing income through fair, sustainable employment is a central pillar of North Ayrshire’s response to child poverty. Our approach recognises that parents experiencing poverty often face multiple, interrelated barriers including childcare, confidence, health, skills and affordability of work. Activity during 2025–26 focused on flexible, supported routes into employment that align with family life through strength-based partnership working. High level trends over time: Description 2020 2021 2022 2023 2024 2025 Source Percentage of working age population in employment 67.7% 64.7% 73.6% 70.3% 64.2% 69.5% ONS/NOMIS Gross weekly earnings - Workforce based £587.10 £592.20 £654.70 £713.20 £742.80 £798.6 (median figure) ONS Annual Survey of Hours and Earnings Employment rate Percentage (women) 63.4% 64.4% 71.9% 68.7% 63.1% 67.3% ONS/NOMIS Employment rate work limiting disabled 44.3% 44.7% 51.7% 39.2% 34.3% 36.7% ONS/NOMIS Youth employment rate 55.3% 42.2% 66.1% 57.8% 46.1% 43.6% ONS/NOMIS Total economic inactivity (percentage of those aged 16-64 who are economically inactive) - - - - 33% (Calendar year) 27.9% (Academic year) ONS/NOMIS These figures indicate a mixed picture, with overall employment rates increasing from 2024 to 2025 alongside an increase in gross weekly earnings. In contrast, there are continued challenges in youth employment, employment for disabled people and economic inactivity. This reinforces the importance of our approach of providing targeted, flexible employability support aligned to priority family groups. Childcare as an Enabler of Employment: Pre-School Childcare Intent To increase availability of flexible, affordable childcare in North Ayrshire, particularly in rural and island communities, enabling parents to take up employment, training and education. Implementation North Ayrshire Council partnered with the Scottish Childminding Association (SCMA) to recruit and support new childminders during 2025–26. 70
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10 Delivery included: • Targeted and North Ayrshire wide promotion • Discovery sessions (4 in-person, 8 online) • Training, workforce support and start-up grants • Ongoing employability and business support Priority areas included our rural and island communities in Arran, Cumbrae, the North Coast and Garnock Valley. Impact • 24 individuals supported through the programme • 19 new childminding businesses progressing • Up to 114 new full-time childcare spaces created • The number of childminders on Arran doubled, including provision on the west of the island where none previously existed The programme exceeded its target of recruiting 20 childminders and demonstrated strong demand for childminding as a viable, flexible career pathway. Next Steps The programme has been recommissioned for 2026–27 with a further target of recruiting 20 new childminders, with continued learning around rural housing constraints, regulatory changes and business sustainability. Supporting Childcare Providers: School Age Children Intent This initiative aims to strengthen and future-proof third sector school aged childcare (SACC) provision across North Ayrshire. By improving the sustainability, quality and availability of childcare before and after the school day, the project supports parents to access and sustain employment, increase household income and improve economic stability for families. Addressing gaps in childcare provision is a key enabler for workforce participation, particularly in areas experiencing poverty. Implementation During 2025–26, Connected Communities worked with nine third sector SACC providers (some operating multiple services) to enhance sustainability and responsiveness to local need. Support included: - Workforce development through in-person and online training, qualification funding and regulatory support - Assistance with premises, including alignment with schools where buildings could be accessed at no cost and establishment of keyholding agreements where year-round access was required - One-to-one business and service development support, alongside regular network meetings to strengthen collaboration across the sector 71
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11 - Support for parents to establish a new SACC service in a rural village, responding directly to a gap in local provision - Development of new breakfast club provision in schools and community venues - Joint working with We Work for Families and Employability services to fund childcare places for parents undertaking training or work placements Impact The initiative has significantly strengthened childcare capacity and supported parental employment across North Ayrshire: - 9 SACC organisations supported, equating to 346 registered childcare places - 1 new service created, providing an additional 24 childcare places - 26 schools now have registered after-school provision (including pick-up services) - 3 new breakfast clubs established - 72 hours of training delivered across 13 sessions, with 161 staff attending - Professional development supported, including SCQF Levels 7, 8 and 9 qualifications - 59 one-to-one sessions delivered with providers and 15 network meetings held Evidence from questionnaires and case studies demonstrates that accessible, affordable and trusted childcare enables parents to engage in employment, training and progression opportunities, while providing high-quality play and learning experiences for children and young people. Next Steps This work will continue, with additional new SACC services in development within the Kilwinning locality to address remaining gaps in provision. The post currently supporting this initiative is funded until May 2026, and discussions are underway to determine how this important work will be sustained and supported beyond that point. Your Next Move Working North Ayrshire Intent Your Next Move Working North Ayrshire provides a coordinated employability offer for parents, designed to increase household income and reduce child poverty through access to fair work, skills development and progression. The programme supports both unemployed and employed parents, recognising that reducing child poverty requires action not only to support people into work, but also to help parents already in work to increase hours, gain qualifications and improve earnings. Implementation During 2025–26, Your Next Move Working North Ayrshire brought together a range of employability activity for parents under a more coherent and accessible local offer. This included support for unemployed parents through tailored employability pathways, including paid placements, vocational training, in-work support and confidence building, alongside progression support for employed parents through access to accredited training and upskilling opportunities. These programmes registered 800 new parents to engage in a journey towards employment. 72
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12 The programme has helped strengthen alignment between employability services and wider family support, ensuring that parents can access help that reflects the realities of family life, including caring responsibilities, childcare needs, transport barriers and financial pressures. By linking employability support with wider advice and referral pathways, the approach contributes to a more joined-up and person-centred response. Your Next Move Working North Ayrshire also provides a framework through which key parental employability activity is delivered, including Skills for Life and We Work for Families. This creates clearer pathways for parents to move between different forms of support depending on their circumstances, stage of readiness and progression goals. Impact Your Next Move Working North Ayrshire has strengthened the visibility and coherence of North Ayrshire’s parental employability offer, making it easier for families and partners to understand and access available support. By bringing together support for both unemployed and employed parents, the programme reflects a broader understanding of in-work poverty and the need to support progression as well as entry to employment. The programme contributes to child poverty reduction by helping parents access employment, increase confidence and skills, and improve longer-term earning potential. It also strengthens partnership working across employability, education, financial inclusion and family support services, helping create more responsive and flexible pathways for parents. Next Steps In 2026–27, Your Next Move Working North Ayrshire will continue to develop as a more integrated parental employability offer. This will include strengthening progression routes between programmes, increasing awareness of the support available to employed parents, and improving how impact is captured across the full pathway from initial engagement through to sustained employment and increased earnings. Skills for Life – Parental Employability Intent Skills for Life aims to increase household income and reduce child poverty by supporting unemployed parents into paid, flexible employment that fits around family responsibilities. The programme is designed to address key barriers to work, including childcare, wellbeing and financial insecurity, while acting as a bridge into sustained employment. It contributes to the No One Left Behind agenda and Community Wealth Building by reducing parental unemployment and improving family stability. Implementation Skills for Life is a Scottish Government–funded employability programme delivered by North Ayrshire Council. During 2025–26, parents with dependent children were supported into 26-week paid placements (10–20 hours per week) within Council services, including clerical roles, facilities management and pupil support. Placements were paid at the Real Living Wage and scheduled to align with school hours. 73
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13 Participants received: - Job specific training and employability skills development - Accredited learning, including PC Passport and SVQ Level 2 in Administration - A comprehensive 26-week in-work support package, including mentoring, keyworker support, CV development and job search assistance Delivery was supported through partnership working with DWP, We Work for Families, CHAP, Salus, Ayrshire College and a wide range of Council services hosting placements. Impact This year: - 86 parents were supported into paid Council placements - 20 participants achieved PC Passport - 15 participants achieved SVQ Level 2 in Administration - 49% of participants who completed or exited early are already in sustained employment, with final outcomes to be confirmed following late starts. Qualitative feedback from families highlights improved mental wellbeing, increased financial stability and positive impacts on children, including greater participation in activities, improved routines and reduced stress at home. Parents reported increased confidence, a sense of pride and the ability to provide more consistently for their families, demonstrating the programme’s wider social and emotional benefits. Next Steps In 2026–27, Skills for Life will continue to expand, with a further 70 placements across Council services and 20 placements with local employers delivered as a recruitment incentive. The programme will continue to focus on progression into sustained employment while strengthening links with employers and childcare-supporting services. Equal Programme Intent The Equal Programme supports disabled people, those with long-term health conditions and mental health issues to move towards and into employment through tailored, person-centred support. 74
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14 Implementation Delivered in partnership with specialist providers, the programme helps participants build confidence, address barriers, access skills development and progress towards fair and sustainable work. This is particularly important in the context of child poverty with respect to priority family groups, as disability and poor health can significantly reduce household income and increase financial pressure for families. By improving access to employability support for those furthest from the labour market, this contributes to greater inclusion, improved financial resilience and better long- term outcomes for individuals and families. Impact During 2025-2026, 86 new participants were supported with 57 people progressing employment, 7 people progressing to college and 2 people progressing to training, this is a progression rate of 77% which is a high performing mainstream employability programme. Next Steps The Equal Programme have recently moved to a new location creating a Specialist Employability Support Hub within Lochshore Park, unlocking more opportunities to provide vocational experiences providing pathways to sustainable employment. We Work for Families Intent To support parents who are furthest from the labour market to improve confidence, skills, resilience and financial stability, enabling progression into employment or paid placements. Implementation Delivered in partnership with The Lennox Partnership, We Work for Families provided tailored employability support including skills development, paid placements and action planning. During 2025–26: - Nearly 400 families registered - 115 parents moved into employment - 85 parents entered paid placements Support included “Better Off” calculations to assess financial impact alongside qualitative engagement with parents. Impact Around 200 families are recorded as being financially better off as a direct result of participation. Individual case studies below. Next Steps The programme will continue to strengthen links with childcare solutions, Skills for Life placements and Community Wealth Building activity, aiming to reach 450 new registrations in the coming year. 75
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15 Case Studies - We Work for Families To conclude: Whilst increasing income through employment is critical, we recognise that for many families this alone is not sufficient to offset rising household costs, reinforcing the importance of our continued, complementary action to reduce the cost of living. 76
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16 3.2 Reducing the Cost of Living – Key activities, Impact and Next Steps Reducing household costs plays a critical role in preventing crisis and supporting families to meet essential needs whilst longer-term, sustainable income solutions are developed. High level trends over time: Description *Locally sourced data 2020 2021 2022 2023 2024 2025 Percentage of households managing well financially Data not available Data not available 47% 47% 50% 48.1% *Number of new build housing units reaching completion (all tenures) (Actual not cumulative) -- -- 562 384 371 430 *Number of children receiving school clothing grants -- -- 6,135 5,987 6,219 6,734 *Number of families receiving school clothing grants 3,864 3,943 3,869 4,430 The increase in school clothing grant uptake and sustained pressure on household finances highlights continued financial strain for many families, reinforcing the importance of cost-reducing interventions. Looking forward, through use of the Smart Data Foundry we will be able to monitor financial resilience across communities on a more real-time basis. North Ayrshire Fairer Food Network Intent To provide accessible, dignified food provision alongside holistic support to reduce financial pressure and prevent crisis. Implementation During 2025–26, 16 community food larders operated across North Ayrshire, delivering food support alongside onsite and referral-based services including Money Smart, energy advice, welfare support and health interventions. Partnerships with local growers strengthened local supply, while health promotion activity was embedded in familiar, community-based settings. Impact • 26,806 visits recorded across the network • Families reported reduced need for emergency support • Access to food support was combined with income maximisation, energy advice and health interventions 77
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17 • Increased access to fresh, locally grown produce The network also supported health initiatives through partnership working with KA Leisure including smoking cessation, oral health, period poverty support and cardiovascular health checks. Next Steps Continued development of integrated outreach within larder settings, strengthening preventative health engagement and financial inclusion pathways. Cost of Pregnancy – BadgerNet Review Intent To support families with a child under one, a national priority family group, by improving access to clear, timely information on financial rights, entitlements and local support during pregnancy and the post-natal period. The aim was to provide information specific to each Local Authority Area to reflect the variation in the offer across the Ayrshire and Arran Board area, bring all the key contacts together into one concise document and make the information accessible to all. Implementation In January 2026, NHS Ayrshire & Arran undertook a review of the financial support information available through BadgerNet, the NHS maternity app. The review identified gaps in accessible financial inclusion information for patients across the three Local Authority areas that was specific to their own area. In response, the Health Improvement Team worked in partnership with IFAN (Independent Food Aid Network) to update their leaflet series: ‘Worried About Money’ to reflect recent changes to the services and support for financial inclusion across North Ayrshire. This highlights the available support for a range of financial situations that includes primary prevention of poverty, early intervention for families at risk and crisis support for those who need it. 78
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18 NHS Ayrshire & Arran’s Antenatal Rights campaign leaflets were added to the suite of information available, outlining pregnant employees’ rights to paid time off for antenatal care and the responsibility of employers to provide the statutory minimum allowance to expectant parents to access antenatal care, as well as any discretionary additional support they may provide. This was shared internally across NHS Ayrshire and Arran intranet system to make staff aware of their rights, across the Healthy Working Lives database of over 600 employers across Ayrshire and through social media channels including Facebook and LinkedIn. These have been made available in a range of formats, including easy read and hard copies for use across the community where people may have barriers to access. Impact The updated resources improve awareness of financial entitlements and crisis support at a key life stage, supporting early access to income maximisation, food support and employment rights information, that will allow families to plan ahead for the arrival of their baby and utilise any financial support available. It helps keep access to antenatal care equal across the range of industries and employment contracts so there is no dilemma between prioritising maternal health against financial loss. This intervention strengthens preventative action by reaching families before financial pressures escalate and allows families access to early help if they experience challenges. There is a variety of support sources available that cover the wider determinants of financial problems from crisis support to debt management to financial abuse. Next Steps Ongoing monitoring of analytic data from social media platforms will indicate whether the information is reaching members of the public. The Health Information Resource Service will monitor uptake of the IFAN leaflets through their ordering system. Infant Food Insecurity Pathway Intent To provide supportive information for Midwives, Health Visitors, Family Nurses and support staff who are working with families who have infant children and who are experiencing money worries, including those who are struggling to afford infant formula, before and at crisis point. The guidance provides information on available resources, including financial inclusion services in each HSCP area. Implementation Following development in the previous reporting period, the Infant Food Insecurity Pathway was presented to the Maternal and Infant Nutrition Programme Board and disseminated widely to Health Visiting and maternity services. The guidance gives Family Nurse Partnership staff step by step direction towards training, resources and services in the Local Authority Area to help parents maximise their income and access all the financial, physical and practical support available to maintain good health in a child’s early years. Dissemination to the Infant, Children and Young People’s Transformational Change Board Members allowed for dissemination through the locality teams, providing a handbook for information and good practice. 79
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19 Impact The pathway highlights to practitioners the training that is available to increase their familiarity of the support available both to them and families around income maximisation and health related resources such as Best Start vouchers and cash first funds. It strengthens practitioner confidence and consistency in responding to infant food insecurity, supporting early referral to financial inclusion and community support services. Practitioners are aware of the national campaigns, such as Child Poverty Week, that they can tap into to promote up to date information and advice on infant feeding and health in relation to income. Next Steps Further embedding of the pathway within practice and alignment with improved national child health data reporting. NHS Family Nurse Partnership will assess awareness and usefulness of the resources, with scope to expand financial inclusion content within BadgerNet where appropriate. This will be carried out through the Pan Ayrshire Documentation Group and updates will be made to the pathway according to the findings. 80
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20 Active Schools Intent Active Schools aims to provide high quality opportunities for children and young people to participate in sport and physical activity before school, during lunchtimes and after school, while developing effective pathways between schools and local sports clubs. The programme directly supports child poverty objectives by addressing the Cost of Living and Cost of the School Day, recognising that financial barriers can significantly limit participation in activities that support wellbeing, confidence and personal development. Implementation During 2025–26, Active Schools embedded a clear and consistent principle that all provision is entirely free at the point of access, ensuring no child or family is excluded due to cost. This fully funded approach applied to: - Extra-curricular activity delivered in all primary, secondary and ASN schools - Locality-based and authority-wide Active Schools events - Leadership programmes supporting skills development and progression into sport - Holiday programme activities providing safe, inclusive opportunities during school breaks Active Schools and KA Leisure continued to work in close partnership to strengthen links between school-based activity and community provision across all six localities. Focused work to identify and address gaps in provision supported a more equitable offer, regardless of geography. Active Schools and Communities Partnership Officers (ASCPOs) played a key role in delivering targeted interventions for young people facing the greatest barriers to participation, including those who are care-experienced, living in poverty, at risk of disengagement, non-attendance and those with additional support needs. Delivery was supported by strong community involvement, with 703 deliverers contributing to sessions during the year, 98% of whom were volunteers. This was the highest proportion recorded of any Active Schools programmes nationally. Impact Active Schools achieved high levels of reach and sustained engagement: - 9,781 young people participated in sport and physical activity, representing over 53% of our school-aged population - 13,065 sessions delivered, generating 271,061 participant visits, demonstrating regular and sustained participation - 5,310 participants engaged in 75 Active Schools events, delivered at cluster, locality and North Ayrshire-wide levels - 60 community sports clubs actively engaged, strengthening pathways from school into community sport Targeted impact data shows us that this year we saw: - Increased participation and sustained engagement among young people experiencing poverty - Higher engagement and frequency of participation among care-experienced young people 81
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21 - Continued year-on-year increases in participation among ASN pupils, supported through strengthened Ayrshire-wide ASN competition and programming - Increased participation by girls, with girls attending events at higher rates than boys - Higher uptake of holiday activity among young people living in SIMD 1 and 2 areas The ASCPO delivery model – experiential activity followed by supported participation and transition into community-based sport – has proven particularly effective for targeted groups. The programme’s person-centred, young-person-led ethos remains a key strength and is reflected in positive wellbeing, confidence and engagement outcomes. Next Steps Active Schools is entering the final year of its current partnership agreement with sportscotland (2026–27). Early discussions are underway with key stakeholders to support continuity and strategic alignment ahead of the next partnership period 2027–2031. A recent national review of Active Schools will shape the future direction of the programme. As further guidance on aims, priorities and outcome measures is confirmed, this will inform local planning, resourcing and delivery in North Ayrshire. The transition into the next partnership period provides an opportunity to refine our approach, strengthen impact and reinforce the contribution of Active Schools to health, wellbeing, equity and community outcomes, while continuing to address local need. 1st Alliance Community Bank: Progressive Finance Intent To provide affordable credit, prevent reliance on high-cost lenders and improve financial resilience. Implementation Through recycled loan funds, Progressive Finance issued: - 177 loans during 2025–26 - Total lending of £360,521 Support included financial guidance and encouragement of savings alongside borrowing. Impact - £52,275 collective savings through Credit Union savings accounts - The loans have resulted in a collective saving of over £131,000 in interest payments for families - Bad debt on this year’s lending is under 3% - Improved credit behaviours and reduced financial stress reported by families However, 207 applications were declined due to high levels of existing debt, gambling or Buy Now Pay Later use. Next Steps Progressive Finance is piloting alternative support models with third sector partners to respond to households unable to access credit safely. 82
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22 Saltcoats Link Up Intent To reduce child poverty and inequality across Saltcoats, the Three Towns and Kilwinning through a holistic, trauma-informed and person-centred approach, addressing both immediate financial hardship and longer-term wellbeing, confidence and social connection for children and families. Implementation Saltcoats Link Up delivered a wide range of community-based, relational support, working in partnership with local organisations and using trusted, accessible settings. Key elements included: - Family support programmes and 18 community and holiday events to reduce food insecurity and social isolation - A pilot Family After-School Group and Parent Wellbeing Group, co-designed with participants and supported by food provision - Community giving initiatives, including festive and seasonal support - Access to affordable food through the Argyle Community Shop which has 338 members - Practical crisis support of food, fuel vouchers, digital inclusion, uniforms and essential items - One-to-one advocacy and financial inclusion support, with strong referral pathways to advice, debt, energy and health services Impact Activity supported families to manage the rising cost of living while improving wellbeing and connection. Reported impacts included: - Reduced food insecurity and financial stress - Increased confidence, routine and family wellbeing - Improved social connection and reduced isolation for parents and children - Strengthened parental engagement and positive family relationships - Increased access to services through trusted, relationship-based support - Community giving initiatives supported hundreds of families and children, significantly reducing pressure during key periods such as holidays and festive seasons. The Christmas Gift Giving Tree programme alone supported 772 children from 322 families. Next Steps Building on the strong foundations established through Saltcoats Link Up, learning from this work has reinforced the value of community-led, relational approaches in reducing barriers to support and engaging families experiencing the greatest disadvantage. This learning is now being actively embedded into future delivery through the development of Community Link Up, creating a strengthened and more sustainable model of support. Based in Auchenharvie Academy, this next phase will continue to build on established partnerships and approaches, including the Fairer Futures Community Connector model, Whole Family Support development and links with CHES across North Ayrshire. This progression ensures that the insight, relationships and impact developed through Saltcoats Link Up continue to shape system-wide approaches and support improved outcomes for families through Community Link Up. 83
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23 KA Leisure Intent To reduce the financial barriers faced by children, young people and families in accessing sport and physical activity, particularly during school holidays, supporting health, wellbeing and social connection while easing cost-of-living pressures. Implementation KA Leisure delivered two complementary initiatives focused on affordable and inclusive access to leisure services: - Affordable Memberships for Young People: Working in partnership with Youth Services, Young Carers Services, Care Experienced Support Teams and Education, KA Leisure provided free or low-cost leisure memberships to children and young people under 25. This targeted approach focused on removing cost as a barrier to participation in physical activity. - Free Holiday Swim and Skate Sessions: During school holiday periods, KA Leisure delivered free swim and skate sessions for children and young people aged 17 and under, funded through the Community Poverty Equity Innovation Fund (CPEIF) in partnership with North Ayrshire Council. In 2025–26, the programme was expanded to include free access for parents and carers, reducing costs for whole families, and introduced swim and skate sessions for children and young people with additional support needs (ASN) to ensure activities were accessible and inclusive Impact - 192 free or low-cost memberships were provided to children and young people under 25 - Across school holiday periods there were: 1,338 free swim attendances 886 free skate attendances - ASN-specific sessions were particularly well received, with families reporting: improved confidence and comfort participating opportunities to connect with other families experiencing similar support needs Together, these initiatives helped reduce the financial pressure on families whilst supporting physical activity, wellbeing and social inclusion. Next Steps In 26-27 we plan to: - Work more closely with partners to identify and address additional barriers to participation, recognising that memberships alone may not be sufficient to enable access - Explore practical supports such as transport, confidence-building and tailored engagement - Strengthen partnership approaches to measure impact, including outcomes for wellbeing, participation and sustained engagement over time 84
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24 Energy Smart Intent To reduce cost-of-living pressures for children, young people and families by improving household energy efficiency, increasing income maximisation, and supporting access to practical advice and measures to reduce fuel poverty and financial stress. Implementation Energy Smart delivers a coordinated package of energy-related support focused on households most affected by rising energy costs, working in partnership across Council services and with trusted delivery partners. Delivery is aligned with wider child poverty and cost-of-living activity to ensure support is accessible, targeted and joined-up. Key elements include: - Advice and income maximisation Targeted energy advice is offered to help households better understand and manage energy use, with support from Home Energy Scotland. Income is maximised through access to the Council's Energy Crisis Payments, where up to £500 can be offered to eligible households with the cost of electricity and gas. This support is often delivered alongside wider financial inclusion and practical measure support. - Practical Energy Efficiency Measures Households are supported to access practical measures that reduce energy costs, including insulation, heating improvements and small energy efficiency measures. Delivery is aligned with programmes such as Area Based Schemes to maximise impact, particularly for low-income families, mixed-tenure households and those with additional vulnerabilities. - Targeted Delivery Energy Smart activity is focused on priority communities, including families with children, ensuring support is trusted and locally accessible. Impact Key impacts include: - Around £389k provided through Energy Smart crisis payments and £185k provided through practical measures, helped households manage acute cost‑of‑living pressure - Improved access to insulation and heating improvements for households in, or at risk of, fuel poverty, including families living in hard-to-treat and mixed-tenure properties - Increased uptake of benefits, grants and energy support schemes following targeted advice and advocacy - Casework examples include support for families living in flatted blocks, where Energy Smart has enabled coordinated insulation works to proceed so that low-income owner-occupiers are not excluded from essential energy efficiency improvements 85
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25 - Families supported through Energy Smart report reduced financial stress, improved thermal comfort in the home, and greater confidence in managing energy bills and engaging with suppliers Next Steps In 2026-27 we plan to: - Strengthen alignment between Energy Smart and child poverty priorities - Expand delivery through cross service collaboration, utilising existing programmes which support children and families - Increase the variety of support measures offered through the programme 86
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26 Case Study – Auchenharvie Academy The North Ayrshire Cost of the School Day (COSD) policy was collaboratively created in the previous reporting period and individual schools were given autonomy on its implementation. Its impact can be seen in meaningful and deeply embedded practices across our local authority. The team at Auchenharvie Academy in Stevenston have shared just a snippet of their work and impact in 2025/26. Our work around child poverty focusing on the costs associated with the school day at Auchenharvie Academy has been an evolving process which is now embedded into the fabric of the school, right at the heart of everything we do. From early involvement with the Child Poverty Action Group for Scotland (CPAG) and other schools in the authority, we have taken the work of COSD and implemented it into the everyday workings of the school from classroom/study resources, food for learning, accessible school trips, school uniform and prom wear. Every aspect of the school day, from leaving the house, to returning at night is supported by the school to ensure all children and their families have equal access to supports. Classrooms are ‘poverty proofed’ to ensure there are no barriers for any young person to learn. If and when a barrier is identified, it is quickly addressed. A dedicated group of young people act as Cost of the School Day & Equity Ambassadors and are critical leaders of the work in the school. Our Ambassadors work hard to reduce the stigma surrounding accessing support. We have found that young people are much more willing to engage with available supports when offered by their peers as opposed to being offered by staff, and this is something Auchenharvie has embraced and embedded. The Ambassadors speak at assemblies, run drop-in sessions, run social media accounts and act as a ‘go between’ young people and staff responsible for the work. Our Ambassadors have also been involved in writing the Young People’s Poverty and Education Manifesto, which was shared at the Scottish Parliament in March 2026. Our uniform store (‘NA PLUS: New and preloved uniform store’) was initially used infrequently by pupils and their families, but with the support of our Ambassadors and their work to normalise it’s use, we now see multiple visits per day for school supplies, one third of all pupils using our prom wear provision, and approximately 200 families per year utilising our uniform store. Alongside this work, our school also signposts to community partners, such as Saltcoats Link Up, who can support families directly to improve their wider circumstances with longevity. This then creates a link with external supports for the future, ultimately ensuring that once a family makes contact, we can craft a safety net around them and their needs. We’re proud that our school has become a hub for the community either supporting first hand or signposting to relevant agencies/charities to support our children and families. 87
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27 3.2.1 Our Island Communities We recognise that families living within our Arran and Cumbrae communities can experience distinct and often higher costs that can intensify their own experience of child poverty. Transport, fuel and energy costs, potentially limited access to childcare and services, housing affordability pressures and constrained local labour markets can all impact financial resilience. During this reporting year, evidence gathered through the Arran Housing Taskforce Survey reinforced this picture, highlighting the interaction between housing costs, limited housing supply, employment constraints and wider cost of living pressures. While incomes on Arran can appear higher on average, the survey evidenced that affordability challenges, housing insecurity and limited choice remain key issues for many households, particularly those on lower incomes or in insecure accommodation. Throughout the life of the Child Poverty Action Plan 2023-2026, this understanding has shaped a more locally responsive approach to support on the islands. In 2025–26, targeted interventions focused on helping families manage immediate cost pressures and access trusted advice. This included the Island Emergency Cost of Living Fund, delivered through Arran Community and Voluntary Services, providing discreet, locally administered support with essential household costs for residents on Arran and Cumbrae. Access to financial services and support has also been strengthened. In 2025, First Alliance Community Bank recruited an island-based Member Engagement Officer to act as a first point of contact for the Arran and Cumbrae communities. The post, funded for two years, provides practical, place-based support by promoting their Progressive Finance pathways, welcoming and supporting new members, supporting the completion of applications, and connecting individuals to other advice and support services where needed. This role helps address access barriers, supports financial inclusion and strengthens local pathways to affordable credit and saving options. Alongside this, as mentioned above, action to improve childcare availability has remained a priority due to its importance for parental employment and household income. Targeted recruitment activity led to a doubling of registered childminders on Arran, including new provision in areas where none previously existed, reducing a longstanding barrier for island families. Learning from delivery in Arran and Cumbrae has reinforced the need to treat higher costs, limited service access and reduced choice as structural system issues, rather than exceptions. This learning will continue to inform future place-based planning through our joint Children & Families Plan, ensuring island communities remain visible in decision-making and that responses continue to reflect the lived experience of families in North Ayrshire’s island communities. 88
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28 3.3 Income from Social Security and Benefits in Kind - Key Activities, Impact and Next Steps Alongside mitigating the cost of living, ensuring that families are aware of and able to access the support they are entitled to is essential in supporting household income, particularly in the context of rising living costs and financial pressure. This section outlines some of the work we have undertaken this year to connect families with services. High level trends over time: Description *Locally sourced data 2020 2021 2022 2023 2024 2025 *Speed of processing Housing Benefit (New Claims) (days) 8.89 9.45 14.12 21.07 14.37 20.7 * Speed of processing Housing Benefit (Change of Circumstances) (days) 7.59 9.24 14.12 12.41 9.67 16.73 *Number of Crisis Grants Paid 3,539 2,460 3,605 3,436 3,368 3,645 *Gross rent arrears (All tenant as at 31March each year as a percentage of rent due for the reporting year (LGBF) 5.5% 6.6% 7.1% 5.88% 8.03% NYA *Percentage of new tenancies to applicants who were assessed as homeless sustained for more than a year 92.48% 86.92% 88.38% 84.02% - NYA *Speed of processing Council Tax Reduction (New Claims) (days) 19.05 25.59 37.8 34.38 22.23 44.56 * Speed of processing Council Tax Reduction (Change of Circumstances) (days) 5.13 5.95 7.62 4.76 4.44 9.04 These indicators suggest ongoing pressure on household finances, with sustained demand for crisis support and variation in processing times highlighting the complexity of family circumstances and reinforcing the importance of accessible, resilient and joined-up financial inclusion services that support early intervention. Processing times were impacted in 2025 by periodic system downtime. 89
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29 Money Smart Intent North Ayrshire’s Health and Social Care Partnership’s Welfare Rights and Debt advice service is aligned to the Partnership’s priorities in reducing inequalities, preventing crisis and improving wellbeing. Money Smart plays a key role in delivering these strategic priorities by: - Maximising household income for individuals and families by ensuring access to all eligible welfare benefits - Reducing financial hardship, poverty, and inequality through early intervention and targeted advice - Supporting individuals in managing and resolving debt issues, preventing escalation to crisis situations such as eviction, utility disconnection, or legal enforcement - Improving financial resilience, confidence, and long-term stability - Providing inclusive, accessible advice services, particularly for vulnerable or marginalised groups Implementation The service provides a range of support including delivery of specialist welfare rights advice, such as benefit checks, new benefit applications, mandatory reconsiderations, and appeals representation. With respect of debt advice services, these include budgeting support, financial capability guidance and negotiation with creditors. Impact The team have achieved an incredible £20m in financial gains for residents of North Ayrshire in 2025- 26. Through supporting 7560 clients by increasing household income through successful benefit claims and backdated awards, achieving an average £4,623 gain per client. The service continues to have a positive impact on individuals by reducing unmanaged or problem debt through structured repayment plans and debt solutions. In year 2025-26 the total household debt reduction was £568,202.15. By relieving financial concerns this helps to improve mental health and wellbeing and prevent crisis situations like homelessness and fuel poverty and increases financial resilience and confidence in North Ayrshire residents. Next Steps In 2026-27: - Increase capacity to meet rising demand for services due to the continued Cost of living pressures including energy and food costs as well as an ever-increasing complexity of welfare policy changes - Expand early intervention approaches, identifying financial issues before they reach crisis point - Strengthen partnership working, particularly with health services by further embedding advice services within mental health and youth services - Mainstream GP co-location - Start accreditation assessment 90
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30 Money Smart is critical to North Ayrshire’s preventative approach, delivering significant financial gains for residents while reducing inequalities and demand on public services. Continued focus will ensure the service is able to meet increasing demand to maintain high-quality, specialist advice provision and continue to deliver strong outcomes for individuals and families as well as the wider community. Welfare Rights Officers in Schools Intent The Welfare Rights in Schools Project aims to reduce child poverty by ensuring families in North Ayrshire receive the financial support they are entitled to. By embedding Welfare Rights Officers (WROs) within school settings, the project provides early, accessible and stigma-free financial advice, helping to increase household income, prevent financial crises and improve family wellbeing. Improving financial stability for families delivers direct benefits for children’s health, wellbeing and educational outcomes. Implementation During 2025–26, WROs were embedded across all educational establishments in North Ayrshire. Schools acted as trusted, familiar environments where parents could access confidential advice during drop-off, pick-up and school events, including parents’ evenings and wellbeing sessions. WROs provided holistic welfare rights advice, supported benefit claims, and made referrals to partner services including employability, energy advice and wider council and third sector support. School staff, who are well placed to identify early signs of financial hardship, referred families for support, enabling early intervention before issues escalated. Impact The project delivered significant financial and wellbeing outcomes for families during 2025–26: - £1.5 million in financial gains secured for families - 260 referrals received - 240 families achieved positive financial outcomes Families and schools reported reduced stress, improved wellbeing and increased financial stability, including better ability to provide food, heating, clothing and school materials. Improved financial security also contributed to better school attendance and increased parental capacity to engage positively in children’s lives. Next Steps Confirmation of funding for 2026–27 is required to maintain service delivery. Subject to funding approval, the project aims to pilot more intensive, targeted support in selected schools, allowing for closer analysis of referral patterns and outcomes and strengthening the project’s impact on reducing child poverty. 91
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31 Free School Meals Intent The expansion of free school meals (FSM) aims to maximise household income by ensuring families entitled to Scottish Child Payment (SCP) also benefit from associated social security entitlements. By reducing food costs and preventing meal debt, the policy supports household financial stability, ensures children can access nutritious meals, and mitigates the cost of the school day. Implementation During 2025–26, North Ayrshire continued the roll-out of FSM to Primary 6 and 7 pupils in receipt of SCP. The expansion was promoted through social media, press releases and targeted engagement with schools and partners including the Money Smart Team and Welfare Rights Officers. From July 2025, data identifying households in receipt of SCP enabled a targeted approach, with full implementation beginning in August 2025. At the point of expansion, any accrued meal debt for newly eligible pupils was written off at cost to the service. Universal Free School Meals (UFSM) continue for all Primary 1–5 pupils, while Primary 6 and 7 pupils are eligible if their family receives SCP. North Ayrshire maintains a no-refusal policy, ensuring that no child is denied a meal, regardless of their account balance. In addition, North Ayrshire participated in the Scottish Government’s Test of Change pilot, expanding FSM to S1–S3 pupils in receipt of SCP. This was implemented across all nine secondary schools from August 2025, alongside work with education colleagues to encourage uptake and identify barriers to access. Impact As of April 2026: - 84% of primary school pupils are eligible for FSM - Uptake of FSM for Primary 6 and 7 pupils eligible through SCP is 60%, while uptake for Universal Free School Meals (Primary 1–5) is 79% (compared with 42% uptake for paid meals in primary schools) Next Steps Uptake of FSM for Primary 6 and 7 pupils in receipt of SCP, and S1–S3 pupils participating in the Test of Change, will continue to be closely monitored throughout the 2025–26 academic year. Learning from local implementation and national evaluation work, including analysis by Ipsos, will inform understanding of barriers to uptake, particularly in secondary settings. This evidence will support future decisions on expansion, communications and policy design to ensure FSM entitlements effectively maximise income and reduce financial pressure for families. Pupil Equity Funding and Winter Warmers Intent Closing the gap in achievement between North Ayrshire’s least and most disadvantaged young people is one of Education’s five main priorities, focused on helping children affected by poverty 92
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32 reach their potential. Schools receive Pupil Equity Funding (PEF) every year so head teachers can support pupils where help is needed most. Head teachers can choose the best ways to use this money for their learners. The Winter Warmer Breakfast initiative has been running since December 2022 and offers a free breakfast to all secondary school pupils over some of the winter months. Implementation Besides school funding, the Council also provides extra support through central programmes. This includes 21 Excellence and Equity Leads who work in early years settings with the highest levels of deprivation, offering early support to children and families. Impact - The PEF spend across 2025-26 included £59,983 across our Additional Support Needs school, then Primary Schools at £2,999,048 and Secondary Schools at £1,015,373. - Every school day over the Winter 2025-26, all secondary schools offered a free breakfast to pupils every morning which includes either a hot roll or two of the following: fruit pot, croissant, cheese scone, pancake or toast. Many young people leave home in the morning without breakfast and this offering has been well received since its inception, helping sustain learners throughout their morning lessons and help alleviate hidden hunger. An average of over 1,000 breakfast items were given out every day. Next Steps Ongoing monitoring will continue as opportunities increase to bring together these aspects and the fuller range of support that Education offers through schools for families in reducing child poverty. This will support the wider analysis alongside measures such as Free School Meals and Welfare Rights Officers in Schools, as we improve our communication with families in a dignified way of the support available. Health Visitor Financial Inclusion Pathways Intent The Health Visiting Financial Inclusion Pathway aims to maximise family income and reduce child poverty by ensuring parents and carers of children under five are supported to access benefits, financial advice and wider practical support at the earliest opportunity. As the only universal service engaging with every family with a child under five in North Ayrshire, health visiting plays a pivotal role in whole family support and early intervention, in line with the National Health Visiting Action Plan. Implementation As part of the Universal Health Visiting Pathway, health visitors routinely assess financial wellbeing and, where appropriate, connect families to a range of financial inclusion and support services. Health visitors work alongside families as named persons, offering trusted, relationship-based support and making timely referrals to: - Money Smart - We Work for Families - Lemon Aid 93
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33 The service also continues to support families to: - Access eligible funded 2-year-old ELC placements, working closely with education colleagues to improve uptake - Use the Infant Food Insecurity Pathway, including emergency provision of infant formula when required - Access clothing and essential household items through community organisations such as Hillhouse, Garnock Valley Helping Hands and Beith Trust Baby Bundles In addition, the Health Visiting Service coordinates an annual Christmas appeal, ensuring children in families experiencing financial hardship receive gifts during the festive period. Impact - 43 families were supported through the financial inclusion pathway - 2 families supported by Lemon Aid - 17 families supported by Money Smart - 24 families supported by We Work for Families This support has helped families stabilise finances, access entitlements and reduce immediate material hardship. Wider practical support, including access to clothing, equipment and food provision, reduced pressure on household budgets and supported child wellbeing. The 2025 Christmas appeal supported over 100 children, helping mitigate seasonal financial pressures. Next Steps The Health Visiting Service will continue to embed financial inclusion conversations within universal contacts, strengthen referral pathways and work closely with partners to improve uptake of financial entitlements, including funded early learning and childcare. Nationally, the introduction of the new Child Health System will support improved reporting on child poverty and financial inclusion through enhanced Child Health Surveillance forms, aligned to key Health Visitor reviews. This will strengthen identification of financial vulnerability, improve consistency of data collection and support more robust evaluation of impact over time. To conclude: Income from social security remains a critical lever in reducing child poverty. However, the challenge locally is less about the availability of provision and more about whether families are able to access their full entitlements. North Ayrshire partners have acknowledged the increasing emphasis on system-level enablers of access. This includes reducing complexity, stigma and fragmentation across services, and embedding social security awareness and support within trusted, relationship-based settings. This approach aligns closely with wider systems change activity, including Whole Family Support and the Fairer Futures Partnership, recognising that families are more likely to seek and sustain access to financial support when it is offered as part of holistic, dignified and person-centred support rather than through isolated, transactional processes. The following section highlights some of the transformational work we are undertaking in recognition of these findings. 94
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34 3.4 Systems Change Alongside targeted activity addressing the three drivers of child poverty, North Ayrshire has increasingly focused on systems change; meaningfully reshaping how our services, funding and partnerships operate to deliver more coherent, preventative and person-centred support for children and families. During 2025–26, this approach was strengthened through participation in a number of national programmes that support long-term, sustainable change in addition to short-term mitigation. This section focuses on system foundations and early learning rather than population-level outcomes. Impact measurement will follow as delivery models mature. Whole Family Wellbeing Fund The Whole Family Wellbeing Fund (WFWF), led locally through the Health and Social Care Partnership, has supported North Ayrshire’s shift towards earlier, more preventative and whole-family approaches to reducing poverty and improving outcomes for children and families. Aligned with national priorities, including The Promise, WFWF investment focuses on addressing the underlying factors that contribute to family hardship, such as poor mental health, social isolation and barriers to accessing services, helping to reduce the need for crisis intervention. WFWF-funded activity complements wider child poverty action by strengthening relationship-based, person-centred support that improves family resilience and stability. By supporting families to build confidence, establish routines and connect with services, these interventions create stronger foundations for accessing income, employment and wider support. The following case studies illustrate how WFWF investment is supporting families through early intervention, coordinated partnership working and community-based support. Case Study – Family Centred Wellbeing Service The Family Centred Wellbeing Service (FCWS) is a whole-family support model that provides intensive, relationship-based and trauma-informed assistance to families, aligning with Whole Family Support principles of early intervention, dignity and coordinated, multi-agency working. A family of three was referred to the Family Centred Wellbeing Service by a primary school due to concerns around hygiene, routines and a child’s wellbeing. Both parents were committed to improving their circumstances but faced significant barriers, including learning difficulties, trauma, limited experience of managing daily routines and finances, and historic negative experiences with professional services, which had contributed to low confidence and disengagement. Through consistent, relationship-based and trauma-informed support, practitioners provided intensive, practical assistance with home routines, hygiene, nutrition and organisation, alongside advocacy with housing, health and welfare services. A coordinated multi-agency approach ensured that support was aligned across school, health and home environments, with communication tailored to meet the parents’ learning needs. Over time, this resulted in sustained and meaningful improvements. The child’s health, hygiene, nutrition and engagement in school improved significantly, while both parents reported increased 95
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35 confidence, improved mental wellbeing and greater financial stability. The family now maintain a safe, organised home environment and have established consistent routines, strengthening family relationships and long-term resilience. This case highlights how early, trauma-informed, whole-family support can address both the visible symptoms of poverty and the underlying structural and personal barriers, including trauma, learning needs and system mistrust, preventing escalation and enabling long-term, sustainable change. Case Study – Baby Bundles Baby Bundles is a community-based, whole-family support service that provides early, low-barrier practical and emotional support to families with young children, aligning with Whole Family Support principles of accessibility, dignity and prevention. The service accepts referrals from partners and offers a dignified entry point into wider financial inclusion, advice and wellbeing support. A single parent with four children under five, including a newborn, was recently referred to the service due to financial hardship, isolation and poor mental health following the birth of her baby. With no local support network, she was at risk of reaching crisis. Through its low-barrier, community-led approach, Baby Bundles provided essential items including clothing, sleeping equipment and baby supplies, alongside informal, ongoing support. The accessible, trusted environment enabled the parent to engage at her own pace, build confidence gradually and access wider services, including Citizens Advice, to stabilise her financial situation. The intervention reduced immediate financial pressure and improved stability within the home. The parent reported improved mental wellbeing, reduced stress and increased confidence, alongside a growing sense of connection to her local community. Early engagement also supported access to wider networks and activities, reducing isolation. The case demonstrates the value of early, preventative, community-led support in addressing immediate material need while also strengthening confidence, connection and resilience, helping families to stabilise before crisis point and creating the foundations for longer-term improvement. Whole Family Support: Early Adopter During 2025–26, North Ayrshire became an early adopter of the Scottish Government’s Whole Family Support approach, reflecting a clear commitment to transforming how children and families experience support across the system. Whole Family Support recognises that families facing poverty often experience interconnected challenges spanning income, health, wellbeing, childcare, housing and education. Becoming an early adopter reinforces North Ayrshire’s intention to move away from fragmented, service-led responses towards coherent, relational and preventative ways of working that place families at the centre. At this early stage, the focus has been on aligning values and principles across partners rather than introducing new delivery models. This includes a shared commitment to dignity, trust, early intervention, No Wrong Door approaches and recognising families as experts in their own lives. Whole Family Support provides an important foundation for wider systems-change activity, aligning closely with work underway through CHES, the Fairer Futures Partnership and Community Wealth 96
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36 Building. It also supports North Ayrshire’s transition into the joint Children and Families Plan, helping ensure that action on child poverty is embedded across planning, commissioning and service design. Collaboration for Health Equity Scotland (CHES) Good Start, Good Jobs, Good Health Our Approach North Ayrshire is one of three local authority areas participating in the Collaboration for Health Equity Scotland (CHES) programme. CHES aims to improve health outcomes and reduce health inequalities by strengthening action on the social determinants of health through a whole-systems, place-based approach. Local delivery is structured around three interconnected workstreams: Good Start: focused on children aged 0–5 and their families Good Jobs: promoting fair employment and access to good work Good Health: strengthening prevention and reducing the impact of ill health These workstreams reflect the strong alignment between health inequalities and child poverty, recognising that sustainable progress requires integrated action across employment, income, early years, prevention and family support. Governance and Development The CHES programme was launched locally in February 2025 and is driven by a dedicated CHES Steering Group, involving a range of North Ayrshire partners alongside the Institute of Health Equity and Public Health Scotland. The programme is underpinned by guiding principles of being data-informed, place-based and community-engaged. During 2025–26, extensive analytical work was undertaken to map the relationship between deprivation, health outcomes and opportunities for improvement across localities and neighbourhoods. This analysis informed the identification of geographic areas of focus and the prioritisation of the three Good Start, Good Jobs and Good Health workstreams. CHES has adopted the double diamond model of service design, with workstreams completing the ‘discover’ phase and now progressing into the design and deliver phases. This has supported deeper understanding of system strengths, gaps, enablers and barriers, while allowing space for an emergent approach responsive to local context. Emerging Learning While CHES is at an early stage, a key benefit during this phase has been increased system awareness and mobilisation around health inequalities. As a result of CHES activity, local system leaders have committed to: - simplifying and promoting shared language, including the development of the concept ‘Good North Ayrshire – Good Start, Good Jobs, Good Health’ 97
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37 - exploring the feasibility of a hub-based model, with virtual teams aligned to the three CHES principles, informed by the Scottish Prevention Hub - mapping the current (‘as is’) system of support, resources and assets in focused places to inform development of alternative (‘to be’) models - removing organisational and system barriers to enable a No Wrong Door approach for households experiencing multiple vulnerabilities - learning from and embedding effective key-worker approaches where these are shown to improve outcomes This work has contributed to a stronger shared understanding of how existing systems can be better aligned to deliver more holistic, joined-up and preventative support for families experiencing poverty and poor health outcomes. Next Steps Capturing learning from CHES is recognised as essential. An evaluation framework is currently in development and will be implemented as the workstreams move fully into the delivery phase. During 2026–27, CHES will: - progress testing of whole-system approaches within the Good Start, Good Jobs and Good Health themes in identified geographic areas - continue to strengthen integration across partners and services - develop evidence on what supports improved outcomes for children and families experiencing the poorest health and socioeconomic outcomes Fairer Futures Partnership Community-led systems change through lived experience Intent The Fairer Futures Partnership supports North Ayrshire to test new, community-led approaches to reducing child poverty by directly addressing barriers that prevent families from accessing support. Central to this work is the recognition that while services exist, access, not provision, is often the primary challenge. Fairer Futures places lived experience and community leadership at the heart of system design, reflecting a shift from service-led models towards relationship-based, trauma-informed early intervention. Co-design The programme began with small, flexible grants awarded to local third sector organisations rooted in their communities. Funding decisions were made through a multi-agency panel comprising: - the local authority - the Third Sector Interface - community members with lived experience 98
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38 Successful organisations used existing community spaces and trusted local events as the foundation for engagement, ensuring families felt safe, respected and able to participate on their own terms. What Communities Told Us Engagement focused on understanding what children and families need to thrive locally, prioritising: - familiar, informal settings - relationship-based conversations - the voices of people with lived experience This listening phase generated a strong, community-informed understanding of local priorities and directly informed the design of North Ayrshire’s Fairer Futures test of change. A service-mapping exercise, shaped by community feedback, identified that: - there were a large number of services in the area that align with the needs expressed by families and communities - the core issue is difficulty accessing services, rather than the absence of provision Consistently identified barriers included: - lack of awareness, visibility or capacity of services - transport and geographic isolation - stigma and fear of judgement - low confidence and self-efficacy A clear learning emerged: signposting alone is insufficient. Families need trusted, relational support to navigate services and sustain engagement. Test of Change: The Fairer Futures Community Connector Model In response, a proposal was approved through the Community Poverty Equity Innovation Fund (CPEIF) to pilot a new model based on community-based connector roles embedded within trusted third sector organisations. The Community Connector roles are designed to: - attend tailored community and family events - build trusting relationships with families - develop deep knowledge of local services and supports - provide warm handovers rather than referrals, reducing drop-off and disengagement This approach brings services to families, rather than expecting families to navigate complex and fragmented systems. The model is currently being developed in three of our communities identified as being most likely to benefit from support. Emerging Learning The Fairer Futures Partnership is supporting a shift towards: - stigma-free, trauma-informed support - community-led, person-centred pathways 99
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39 - earlier intervention driven by relationships rather than thresholds While still in its early stages, this work is already influencing how partners think about access, trust and engagement, and aligns closely with North Ayrshire’s ambitions for Whole Family Support, No Wrong Door approaches, and wider systems change. Next Steps During 2026–27, the Community Connector model will move further into delivery, with learning captured to inform: - future service design - commissioning and funding decisions - wider replication across localities where impact is demonstrated Evaluation will focus on understanding how relationship-based models improve access, engagement and outcomes for families experiencing poverty, particularly those least likely to engage with traditional services. Community Wealth Building Community Wealth Building (CWB) is a core component of North Ayrshire’s approach to reducing and preventing child poverty at source. Rather than focusing solely on individual employability, CWB seeks to reshape the local economy so that more families can access fair, secure and meaningful work, increasing household income and long-term financial stability. Through its role as an anchor institution, North Ayrshire Council, alongside public sector and third sector partners, has used CWB to influence employment practices, procurement, skills development and supply chains. This approach supports a shift from short-term intervention towards sustainable economic inclusion for parents experiencing poverty. CWB aligns closely with Whole Family Support and No Wrong Door approaches, ensuring that system design reflects the realities of family life, childcare responsibilities and structural barriers to work Delivery through the Fair Employment pillar of the CWB Strategy demonstrates how structural change translates into tangible opportunities for families. Housing as a System Enabler for Reducing Child Poverty Intent Safe, secure and affordable housing is a fundamental enabler of positive outcomes for children and families. In North Ayrshire, housing plays a critical systems-change role in preventing poverty-related harm, reducing instability and supporting whole-family wellbeing, recognising that housing insecurity both contributes to and compounds child poverty. Rather than focusing solely on crisis response, housing activity has increasingly been shaped around prevention, early intervention and place-based planning, aligning with wider ambitions for Whole Family Support and No Wrong Door approaches. 100
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40 Place-based During 2025–26, Housing Services progressed work to strengthen Local Housing Plans, informed by locality-level data, deprivation profiling and partnership engagement. These plans support a more targeted understanding of need at neighbourhood level and provide a mechanism for aligning housing, health, employability and community planning priorities. This place-based approach aligns with wider systems-change activity, including CHES and the Fairer Futures Partnership, recognising housing stability as a key social determinant of health, wellbeing and financial resilience for families. Access and Prevention North Ayrshire has continued to prepare for implementation of the Housing (Scotland) Act 2025, supporting a shift towards stronger prevention duties, enhanced tenant protections and earlier intervention. This legislative change reinforces the role of housing as part of a protective system for families at risk of poverty, insecurity and homelessness. Alongside this, work to refresh the Housing Allocation Policy (2025–30) reflects a commitment to fairness, transparency and accessibility. The emphasis is on reducing complexity, improving navigation and ensuring households experience housing services as human, supportive and joined-up, rather than transactional or fragmented. Preparation of a new Homeless Prevention Strategy is underway, to set out a clear, ambitious and co- ordinated approach to preventing homelessness earlier, reducing the harm caused when homelessness does occur, and supporting people to achieve lasting stability so homelessness does not recur. The Strategy will recognise that more targeting is required for households with children, care experienced young people, and to develop mediation work with families, as well as reduce the number of children in temporary accommodation Housing activity continues to play a key role in increasing supply and reducing financial pressure on households. Reducing the number of empty homes remains a priority, with 432 properties brought back into use as at 31 March 2026. This supports increased availability of housing within local communities, helping to reduce pressure on the system and contributing to the prevention of homelessness and housing instability, both of which are closely associated with child poverty. Investment in existing council housing also contributes directly to reducing the cost of living for families. Ongoing improvement works, including external wall insulation and solar panels, are supporting tenants to reduce energy costs and mitigate the impact of fuel poverty. This is particularly significant for low-income households, where energy costs represent a disproportionate financial burden. Partnership Working Housing Services have contributed to cross-sector partnership work to address housing pressures, including participation in local homelessness prevention activity, sustainment forums and collaborative planning with Registered Social Landlords and third sector partners. This reflects a shared recognition that housing outcomes cannot be improved in isolation and must be aligned with wider family support, financial inclusion and health initiatives. 101
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41 At this stage, the focus remains on system alignment and foundation-building, rather than measuring direct impact on income or poverty outcomes. However, this work establishes the conditions for more effective, integrated support for families experiencing or at risk of poverty. Next Steps As North Ayrshire transitions into the joint Children and Families Plan, housing will continue to play a central enabling role in supporting family stability, prevention and equity. Ongoing systems development will ensure housing policy and practice are fully aligned with child poverty objectives and contribute to sustainable, long-term change for children and families. Young Carers North Ayrshire is taking a whole-system, prevention-focused approach to embedding early identification and consistent support for Young Carers across education and partner services. Young carers are more likely to experience financial hardship, reduced participation in education and increased risk of poorer long-term outcomes, making early support critical within wider child poverty activity. Key developments during 2025–26 include: - 15 schools have signed the Young Carers Covenant, embedding recognition and support into school culture, supported by a shared Education Information Pack - Increased uptake of Young Carer Statements reflects stronger referral pathways and improved staff confidence, supported by targeted training - A jointly agreed, annually reviewed framework between schools and the Carers Gateway ensures aligned roles, shared priorities and coordinated delivery - Schools deliver a core offer including group work, one-to-one support, awareness-raising and transition support tailored to local need The approach shifts practice upstream, embedding sustainable system change to ensure young carers are identified earlier and supported consistently. By improving wellbeing, engagement with education and access to support, this contributes to reducing longer-term poverty risk and supports improved life chances for young carers and their families. To conclude: Taken together, systems-change activity across programmes such as the Fairer Futures Partnership, Collaboration for Health Equity Scotland, Whole Family Wellbeing Fund and Whole Family Support demonstrates a clear shift towards earlier, more preventative and whole-system approaches. Looking ahead, this direction of travel is being further strengthened through the development of more joined-up, accessible systems of support. Work is underway to embed approaches such as No Wrong Door and Single Shared Assessment through our Accessing our Services programme. The newly assembled project board brings together key partners to reduce complexity and improve coordination across financial inclusion, advice and wider support services. Whilst this work is at an early stage, it 102
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42 reflects a shared commitment to ensuring families can access the right support at the right time, without experiencing barriers, duplication or gaps in provision. As this approach develops, it will support a more responsive, coordinated system that strengthens income maximisation, reduces the risk of unmet need and contributes to longer-term efforts to reduce child poverty. 103
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43 4. Conclusion This report brings to a close our current Child Poverty Action Plan 2023 - 2026. Over its lifespan, partners across North Ayrshire have worked collectively to strengthen how we respond to child poverty, laying important foundations for a more connected approach that supports families earlier, more consistently and with greater dignity. Across the duration of the plan, significant progress has been made in addressing the three key drivers of child poverty. Activity to maximise household income through employment and social security has expanded and strengthened, with parental employability support, welfare rights advice and financial inclusion services delivering sustained financial gains for families. Action to reduce the cost of living has focused on practical support for families with food, transport, education, childcare and leisure at its centre, helping to ease financial pressure while challenging stigma and improving access to everyday opportunities for children and young people. Crucially, progress under this plan has not been limited to individual programmes or short-term interventions. There has been a meaningful shift in how support is designed and delivered. Whole Family Support and No Wrong Door principles are increasingly embedded across services, enabling families to access help more easily and reducing duplication. Child poverty is now more firmly understood as a shared, system-wide responsibility across Community Planning, supported by stronger governance, improved use of data, and growing engagement with people who have lived experience of poverty. This final progress report reflects both the continued scale of challenge locally and the foundations that have been established to strengthen our response. It evidences a maturing approach that combines immediate mitigation with sustainable, long-term prevention, recognises the importance of place and priority family groups, and prioritises dignity, access and early intervention. This report focuses on the drivers of child poverty, though sits in alignment with a range of related strategies and partnership plans, including the Children’s Services Plan and Whole Family Wellbeing Fund reporting, which together provide a more holistic picture of activity to support children and families across North Ayrshire. As our standalone Child Poverty Action Plan comes to an end, the focus now turns to the next phase of work. From 2026 onwards, action to prevent and reduce child poverty will be fully embedded within our joint Children and Families Plan, alongside children’s rights, children’s services, wellbeing and whole family support priorities. This integrated approach will strengthen accountability, improve alignment of resources, and support a clearer focus on outcomes for children and families, in alignment with Scottish Government’s Bringing Hope, Building Futures: Tackling Child Poverty Delivery Plan 2026-31. While child poverty remains a complex and long-term challenge, the progress made during the life of this plan provides a strong platform for the next stage. By continuing to work collaboratively, listen to communities, and build on the system changes already underway, North Ayrshire is better placed to deliver sustained improvements for children and families and to support a future that is fairer for all. 104
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44 5. Appendices 5.1 North Ayrshire Child Poverty Action Plan 2023 to 2026: Key Actions 105
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NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet Title: Children’s Services Performance Report 2025/26 Purpose: To seek approval for: a) The North Ayrshire Children’s Services Plan Performance Report 2025/26 Recommendation: That Cabinet: a) Approves the North Ayrshire Children’s Services Plan Performance Report 2024/26 b) Notes the update in relation to the new Children and Families Plan 2026-2029 1. Executive Summary 1.1 1.1 1.1 Every Local Authority and relevant Health Board are required to jointly prepare a Children's Services Plan for the area of the local authority for each three-year period. Plans are developed collaboratively with other members of the Community Planning Partnership (CPP), as well as with children, young people and their families at various stages of the development and review of the Plan. We published our current Children’s Services Plan 2023-26 in June 2023. 1.2 Our North Ayrshire Children’s Services Plan 2023-26 is part of a suite of child focussed plans which outline how we are actively supporting the wellbeing and wellness of our children and young people, as well as promoting and advocating for the rights of our children and young people. 1.3 This paper presents the North Ayrshire Children’s Services Plan Performance Report 2025/26 and has been prepared in collaboration with the Children’s Services Strategic Partnership (CSSP) which consists of representatives from our Community Planning Partners. We have a duty under the Children and Young People (Scotland) Act 2014 to produce a Children’s Services Plan Performance report at the end of each year. The 2025/26 Performance Report is the final report associated with this plan cycle and closes off the current Children’s Services Plan. Agenda Item 9 107
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1.4 Our Children’s Services Plan Performance Report 2025/26 highlights some of the key achievements and areas of work which impact on babies, infants, children, young people and their families. 1.5 The Children’s Services Strategic Partnership also monitors the Whole Family Wellbeing Fund. The Whole Family Wellbeing Fund is a £500 million investment over the life of the Scottish Parliament (2022 to 2026). 1.6 Appendix 3 of the Children’s Services Performance Report provides a summary of progress to date including updates on the previously agreed proposals and new developments, as well as the current funding position. 1.7 The Children’s Services Strategic Partnership agreed that a new style of Children and Families Plan for 2026 to 2029 would be developed to set out our collective strategic responsibility to promote the wellbeing, rights, and outcomes of babies, infants, children and young people and their families in our area. This responsibility is underpinned by three key statutory duties, including: • Children’s Services Planning: Every local authority and its Health Board must jointly prepare a Children’s Services Plan for each three-year period. • Child Poverty Reporting: The local authority and Health Board must jointly produce an annual Local Child Poverty Action Report. • Children’s Rights Compliance: Local authorities and Health Boards, as listed public authorities, must act in a way that is compatible with the UN Convention on the Rights of the Child (UNCRC) and embed children’s rights in their decision- making and service delivery. 1.8 Recognising the links across these areas of the children’s services plans and reports, we have aligned our planning and reporting, which will be supported by a shared set of child and family wellbeing actions and indicators. This streamlines processes, strengthens accountability, and will enable more effective targeting of resources to improve outcomes for babies, infants, children, young people, and families. 1.9 This work sits within our wider ambitions of strengthening whole family support. We are one of the Scottish Government’s ‘early adopter’ authorities, with that programme established to address the twin barriers of: i) policy complexity and overlap, and ii) funding and reporting approaches. 2. Background Children’s Services Plan Performance Report 2025/26 2.1 Part 3 of the Children and Young People (Scotland) Act 2014 seeks to improve outcomes for all children and young people in Scotland by ensuring that local planning and delivery of services is integrated, focused on securing quality and value through preventative approaches, and dedicated to safeguarding, supporting and promoting child wellbeing. It aims to ensure that any action to meet need is taken at the earliest appropriate time and that, where appropriate, this is taken to prevent need arising. The aims are about creating and maintaining a local environment which facilitates Getting it Right for Every Child Practice (GIRFEC) for individual children and young people. 108
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2.2 Section 13 (1) of the Act requires that as soon as practicable after the end of each one-year period, a local authority and the relevant health board must publish (in such manner as they consider appropriate) a report on the extent to which: a. children’s and related services have, in that one-year period, been provided in accordance with the Children’s Services Plan; and b. that the provision of services has achieved – i. the aims of children’s services planning (section 9(2)), and ii. such outcomes in relation to the wellbeing of children in the area as the Scottish Ministers may by order prescribe. 2.3 This is our final performance report relating to our 2023-26 Children’s Services Plan which focusses on our vision 'For all our children and young people to have the best start in life and for North Ayrshire to be the best place in Scotland to grow up'. The Performance Report 2025/26 has been structured in line with our five priorities set out in the Plan. These are – 1. The rights of children and young people are promoted and protected. 2. Acting early to improve what happens next. 3. Making Things Fairer 4. Promoting good mental health and wellbeing 5. Inspiring children and young people to be active 2.4 A set of actions were identified to be delivered by CPP partners. Updates on the progress of the actions has been included in Appendix 1 of the report. We have established a set of indicators to measure progress, as attached in Appendix 2 of the report. 2.5 A summary version of the report will be produced in collaboration with young people to ensure it is fully accessible and engaging for our young people. 2.6 Some of the key highlights from the 2025/26 Performance Report include: • All North Ayrshire schools take part in the UNICEF Rights Respecting Schools Award (RRSA) programme, showing a strong commitment to children’s rights • 15 local primary and secondary schools have now signed up to the Young Carers Covenant, ensuring that young carer awareness and tailored support are embedded into school culture. • From 1 July 2025, the National Childbirth Trust began providing postnatal breastfeeding support for women discharged from Ayrshire Maternity Unit who were breastfeeding. Between July and March, 1,331 women accessed this support, with around half exclusively breastfeeding at 6–8 weeks. • 89 practitioners are now trained in the Building Positive Relationships programme, embedding a preventative, trauma-informed approach that strengthens parental regulation, relationships and resilience while reducing reliance on crisis intervention. • 12 local projects and services received a share of the £1.19 million Whole Family Wellbeing Fund investment in North Ayrshire, to support the delivery of positive outcomes for children, young people and families across North Ayrshire. • The Duke of Edinburgh’s Award provided a strong wellbeing and achievement pathway, engaging over 1,000 young people and supporting progression through Bronze, Silver and Gold levels. 109
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• 9,781 young people participated in sport and physical activity sessions through Active Schools. 2.7 The Children’s Services Strategic Partnership also monitors the Whole Family Wellbeing Fund. The Whole Family Wellbeing Fund is a £500 million investment over the life of the Scottish Parliament (2022 to 2026). Children and Families Plan 2026 to 2029 2.8 Our new joint approach in our Children and Families Plan 2026-29 was approved by Cabinet in January 2026, where it was agreed that the joint responsibilities for planning and reporting could be brought together into one plan, including: • Children’s Services Planning (Part 3 of Children and Young People (Scotland) Act 2014). The legislation sets out a requirement to develop and publish a Children’s Services Plan every three years, reporting annually on its progress. These plans describe how partners will work together and with local communities, to plan and deliver the right types of services and support so these result in improved life experiences and outcomes for the children and families living in that area. • Child Poverty (Scotland) Act 2017. This legislation sets out a requirement to develop and publish an annual report to: describe measures taken and planned to meet 2030 Scottish Government child poverty targets; include income maximisation supports, advice and financial assistance; and highlight tailored actions for families facing additional challenges due to protected characteristics. • UNCRC Incorporation (Scotland) Act 2024. This legislation sets out a requirement to develop and publish report on actions taken to comply with UNCRC and outline future improvement plans. This supports the integration of children’s human rights into planning, communications, and decision-making. 2.9 Combining these planning approaches is in line with the Scottish Government’s Whole Family Support (WFS) project, where we are one of seven ‘early adopter’ local authorities. The Whole Family Support approach recognises that reporting complexity and overlap acts as a barrier to local authorities and aims to address this by increasing permissions and reducing reporting and bureaucracy burdens. 2.10 The Children and Families Plan 2026-2029 is in an advanced phase of development with the Children’s Services Strategic Partnership and will be a high level, strategic plan, designed to bring together the impact of our collective efforts on child and family wellbeing. This intends to shift traditionally siloed data practices to reveal an interconnected picture of outcomes. With a shared and consistent evidence base, our strategic planning and decision making will be more robust, enabling us to target resources to where they will have the greatest impact. 2.11 The process of strengthening alignment across governance, planning and service provision is complex and multi-faceted. The Scottish Government’s Whole Family Support approach is underway but is operating on a multi-phase basis with real-time learning integrated into the process. Similarly, we are viewing our own local reform as incremental. The opportunity to align these areas now as a result of natural policy cycles is timely. Our overarching goal remains to further strengthen our capacity to deliver integrated and holistic support to those residents who require it. 110
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2.12 It is proposed that the new Children and Families Plan 2026-29 will be presented to Cabinet and to IJB in September for formal approval. 3. Proposals 3.1 It is proposed that Cabinet: a) Approves the North Ayrshire Children’s Services Plan Performance Report 2025/26; b) Agrees that the North Ayrshire Children’s Services Plan Performance Report 2025/26 can be submitted to the Scottish Government; c) Notes that child friendly versions of these reports and Plan will be published as soon as possible, and; d) Notes the progress relating to the development of the new Children and Families Plan 2026-2029. 4. Implications/Socio-economic Duty Financial 4.1 There are no financial implications for North Ayrshire Council contained within the current report. Human Resources 4.2 There are no HR implications for North Ayrshire Council contained within the current report. Legal 4.3 We have a duty under the Children and Young People (Scotland) Act 2014 to produce a Children’s Services Plan Performance report every year detailing the activities undertaken in relation to Children’s Services. We have a duty under Children’s Services Planning (Part 3 of Children and Young People (Scotland) Act 2014). The legislation sets out a requirement to develop and publish a Children’s Services Plan every three years, reporting annually on its progress. These plans describe how partners will work together and with local communities, to plan and deliver the right types of services and support so these result in improved life experiences and outcomes for the children and families living in that area. Equality/Socio-economic 4.4 Recognising and advocating the rights of our children and young people directly contributes to ensuring equality and equity of opportunity in North Ayrshire. Climate Change and Carbon 4.5 There are no Climate Change and Carbon implications. 111
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Key Priorities 4.6 This report directly supports our Council’s vision of creating ‘a North Ayrshire that is Fair for All’ and our mission of ‘Working together to improve the lives our people in North Ayrshire’. It demonstrates how we are contributing all of our priorities ‘Wellbeing’, ‘Communities and Local Democracy’, ‘Climate Change’ and ‘A Sustainable Council’ in ensuring children’s rights are embedded throughout our services as well as reducing inequality and improving outcomes. This report directly supports the Health and Social Care Partnership Strategic Plan and vision “To empower people in North Ayrshire to live safe, healthy and active lives with fair and equal access to sustainable health and care services.” This report directly supports the North Ayrshire Community Planning Partnership Plan and three key themes of ‘Wellbeing’, ‘Work’ and ‘World’. Community Wealth Building 4.7 There are no Community Wealth Building implications for North Ayrshire Council contained within the current report. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 The joint plan explicitly demonstrates our commitment to Children’s Rights and our continued work to ensure children’s rights are being met. Consumer Duty 4.10 None. 5. Consultation 5.1 Contributions from services across our Council and Partners have been included in this report. Services regularly consult with children, young people and families. A Young Person’s version of the report will be developed over the summer months to ensure it is fully accessible for our young people. Caroline Cameron Director (North Ayrshire Health and Social Care Partnership) For further information please contact Lauren McMath, Policy Officer (Children’s Services), (Health and Social Care Partnership), on 01294 324160, laurenmcmath@north-ayrshire.gov.uk. Background Papers Appendix 1: North Ayrshire Children’s Services Performance Report 2025/26 112
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Children’s Services Plan – Performance Report 2025-26 113
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2 Contents Welcome 3 Introduction 4 Priority 1 – The rights of children and young people are promoted and protected 5 Priority 2 – Acting early to improve what happens next 16 Priority 3 – Making things fairer 25 Priority 4 – Promoting good mental health and wellbeing 37 Priority 5 – Inspiring children and young people to be active 41 114
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3 Welcome Welcome to the 2025-26 Children’s Services Plan Performance Report. In this report we hope to demonstrate some of the key work of the Children's Services Strategic Partnership members and highlight our progress and achievements over the past year. This is the last performance report aligned to our 2023-26 Children’s Services Plan and we close off this Plan hoping to show the improvements that have been made as we worked towards our vision for ‘North Ayrshire to be the best place in Scotland to grow up’ while we continued to focus on promoting children and young people’s wellbeing, underpinned by Getting it Right for Every Child (GIRFEC) and the United Nations Convention on the Rights of the Child (UNCRC). We recognise that our strong partnership foundation in North Ayrshire provides continued commitment to collectively focus on improving outcomes for our babies, children, young people and families. Our aim going forward will now be to join up our key areas of focus and planning into a streamlined Children and Families Plan for 2026-29 and continue to build on all the progress made through our Children’s services Strategic Partnership to drive forward our ambitions for North Ayrshire. We want to make sure that we move seamlessly into a Whole Family Support model of working where we continue to place babies, children, young people and families at the very heart of service delivery so we can provide the right support at the right time. Caroline Cameron Director North Ayrshire Health and Social Care Partnership (Chair of North Ayrshire Children’s Services Strategic Partnership) 115
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4 Introduction This report focuses on the key highlights over 2025/26 and has been organised around the five Priorities set out in the Children’s Services Plan 2023-26. We are currently reporting on the third and final year of our Children’s Services Plan which covers 2025-26. The five Strategic Priorities are shown above. Our Children’s Services Strategic Partnership is the responsible group providing leadership in the delivery of the Children’s Services Plan’s vision of our children and young people having the best start in life and for North Ayrshire to be the best place to grow up. This strategic group includes members from: • North Ayrshire Council • NHS Ayrshire and Arran • North Ayrshire Health & Social Care Partnership • Police Scotland • Scottish Children’s Reporters Administration • Care Inspectorate • Children’s Panel • Third Sector • Scottish Fire and Rescue • Ayrshire College • KA Leisure Appendix 1 to this report provides detailed updates for the 2023-2026 Children’s Services Plan Actions for 2025-26. Appendix 2 provides Performance Indicator data. Appendix 3 provides our Whole Family Wellbeing Support report for 2025-26. For any further information please contact Strategic Planning Team on strategicplanningHSCP@north-ayrshire.gov.uk 116
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5 Priority 1 – The rights of children and young people are promoted and protected Key Highlights and Progress Children’s Rights We have been working to champion the United Nations Convention on the Rights of the Child (UNCRC), ensuring that all children in North Ayrshire have their rights met, protected and advocated for. In July 2024, the United Nations Convention on the Rights of the Child (Incorporation) (Scotland) Act 2024 came into effect. The Act provides protection for the human rights of children and young people in Scotland. Rights Respecting Schools All North Ayrshire schools take part in the UNICEF Rights Respecting Schools Award (RRSA) programme, showing a strong commitment to children’s rights in education. Schools are making good progress — by December 2025, 24 have Bronze, 29 have Silver, and 18 have Gold awards. Schools say the RRSA programme helps children talk about their rights, builds confidence, and improves school life. Pupils are more involved in making decisions and support each other, creating welcoming and safe environments for everyone. North Ayrshire is clearly committed to children’s rights through this work. Case Study: Lockhart Campus was recognised for making good progress towards embedding the principles of the United Nations Convention on the Rights of the Child into their ethos and curriculum by gaining Silver accreditation. 117
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6 The Silver Rights Respecting Schools accreditation is a significant milestone to celebrate how Lockhart Campus is putting children and young people’s rights into the heart of everything that they do. The campus joins others such as Largs Early Years Centre, Springside Primary School, West Kilbride Primary School and St John Ogilvie Primary School who have all progressed to silver in the last year. Assessed at the end of 2025, the silver accreditation has been reached following a number of actions and initiatives developed alongside the Rights Respecting Schools Steering group – with pupil representation from right across the school. Embedding the United Nations Convention on the Rights of the Child (UNCRC) Over the last year, UNCRC principles were embedded through targeted consultation and participation activity with children and young people. Engagement included 114 Primary 7 pupils participating in Youth Council workshops exploring key UNCRC articles, including Article 8 (identity), Article 26 (child poverty), Article 27 (risk-taking behaviour) and language and inclusion (Article 30). Feedback gathered is informing service planning and was shared with partners. Young people co-produced the Pupil Voice Toolkit, providing practical guidance to support inclusive and meaningful pupil participation and delivery of Article 12 of the UNCRC. Connected Communities staff, alongside Education, continued to lead UNCRC implementation through staff training, member briefings, child-friendly reporting and direct engagement with young people, ensuring a consistent rights-based approach across Council services. Care experienced young people were engaged through the Champions Board across all 10 secondary schools, with delivery of the What Is The Promise? programme supporting awareness of rights and The Promise. 118
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7 Young people identified priorities through structured engagement, which were presented directly to staff and senior leaders to inform corporate parenting practice. Strategic consultation also took place through large-scale engagement events, including a Joint Cabinet session involving over 200 secondary pupils, where young people shared views on poverty, wellbeing, risk-taking and employability with elected members and Chief Officers. Additional UNCRC-aligned engagement was delivered through the Joint Youth Forum and Youth Conference, ensuring children and young people’s voices informed policy development, service redesign and decision-making across the Council. Maximising learner participation and voice The new Learner Participation policy and operating procedure (POP) was launched across all establishments. The Young Leaders of Learning programme was piloted by 11 Early Years centres and schools. This programme enhanced opportunities to maximise learner participation and learner voice across the pilot establishments. Young Carers We are committed to identifying Young Carers earlier in their caring journey and increasing the uptake of Young Carers Statements. Significant progress has been made across education settings to embed consistent, meaningful support. • 15 local primary and secondary schools have now signed up to the Young Carers Covenant, ensuring that young carer awareness and tailored support are embedded into school culture. • The number of Young Carers Statements offered and accepted across education continues to grow, reflecting stronger identification pathways and increased confidence among staff in recognising and supporting young carers. • A comprehensive Young Carers Education Information Pack has been developed to strengthen professional understanding and enable a consistent approach to support • Young Carer Statement training sessions have been delivered for staff, helping ensure that statutory duties are met and support is personalised and meaningful. • Through collaborative work, the Carers Gateway and local schools have established a shared working agreement, reviewed annually, which sets out mutual goals for identifying and supporting young carers. These may include: o Regular group sessions within schools o Dedicated one-to-one support for young carers o Developing a Young Carers Charter tailored to each school o Awareness-raising activities for pupils, families, and staff o Providing targeted resources for each school’s needs o Support during key transition points, including P7–S1 and the move to post-school destinations 119
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8 This collaborative, prevention-focused approach ensures young carers are identified earlier, understood better, and supported in ways that make a genuine difference to their wellbeing and educational experience. LGBT Youth Scotland Charter of Education Irvine Royal Academy has become the first school in North Ayrshire and the latest secondary school in Scotland to have achieved the prestigious LGBT Youth Scotland Charter of Education Gold Award. A national award, the LGBT Youth Scotland Charter of Education Gold Award accreditation - awarded by Glasgow based charity, LGBT Youth Scotland - recognises schools that go above and beyond the basic requirements to support LGBT pupils, staff, parents and carers. Being accredited enables schools to share a positive message championing the LGBT community with confidence, where all LGBTQ+ staff, parents and learners can be safe, supported and included. As part of the important work, over the past year, Irvine Royal pupils and the colleagues supporting them have: • Hosted a weekly Pride Group drop-in every Tuesday for LGBT pupils and allies • Created their own LGBT inclusion board in the main foyer of the school • Hosted a Pride Month celebration with film screening of Heartstopper film • Introduced more diverse book titles in the school library • Ran a drop-in session during LGBT History Month 2025 to celebrate queer icons • Enjoyed a picnic outing and scavenger hunt at McGavin Park in Kilwinning in partnership with Kilwinning Academy’s Equalities group • Helped to promote and be involved in weekly wellbeing walking sessions 120
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9 • Worked closely with the school’s leadership team and pupil voice ambassadors to develop initiatives to support pupils who may be self-conscious or finding it difficult to be themselves in school Young people involved in the Irvine Royal Pride Group said: • “I really feel like I can be myself and I know where I can turn to for support.” • “I am proud to be part of a school that celebrates my muchness and gives me safe spaces to express myself and make my voice heard.” • “Although I am not queer, I feel like I have the strategies and knowledge now to help my friends who are if they are struggling so that they know they are not alone.” • “The weekly group has made such a difference to my wellbeing.” Six North Ayrshire secondary schools have now either achieved or are on their journey to achieving their next level LGBT Charter for Education accreditation. Irvine Royal Academy now has Gold. Greenwood Academy and the North Ayrshire Youth Services team follow closely behind, holding Silver Level. Although not a school – North Ayrshire Youth Work is part of the council’s Community Learning and Development team and should still be recognised equally for their accomplishments to achieve the Silver Level. Engagement and Consultation Our Youth Services Team are central to the engagement and consultation with our young people through various methods including community-based youth forums, Executive Youth Council, thematic youth work groups, Joint Cabinet, P7 youth council and various other events. We also actively engage with young people to gather their views and opinions through online methods and social media. Topics are co designed and produced with young people and provide valuable data to inform polices, plans and service delivery. 121
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10 Community learning and Development supported 5,796 young people through active citizenship and community participation through youth forums, Joint Cabinet, Community Councils, Place Framework activity, consultations, climate workshops, community investment activity and issue- based youth work. Engagement strengthened voice, shared decision-making and confidence in shaping local priorities. Democracy and Citizenship We support children and young people to have their voices heard, in line with UNCRC Article 12. They are involved through youth forums, Joint Cabinet, Community Councils, consultations, climate workshops and issue-based youth work. These activities help young people build confidence and take part in decisions about their communities. We worked closely with partners such as Education, the Alcohol and Drug Partnership, Police Scotland, outreach services and third sector organisations. This created more chances for young people to get involved and speak about issues important to them, including wellbeing, substance use, poverty and keeping safe. The Executive Youth Council and MSYPs met regularly and took part in work on budgets, food insecurity, period poverty and equality. Young people also helped shape services through Joint Cabinet sessions, the Youth Forum and the annual Youth Conference. What young people told us continues to shape planning, services and decision-making. Case Study: During National Youth Work Week in November 2025, the bi-annual Joint Cabinet took place at Saltcoats Town Hall welcoming pupils from across our six localities, with Arran joining virtually. This was a landmark #YouthParticipation event for young people between the ages of 12-25, and the meeting was delivered by North Ayrshire Youth Work and the council’s team of Youth Work Modern Apprentices for pupils to tackle a range of hard-hitting issues. The 122
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11 joint meeting involved North Ayrshire Council’s Cabinet, senior education managers and other senior officers alongside Members of Scottish Youth Parliament and the Youth Council Executive. Almost 100 pupils representing the secondary schools of Irvine Royal, Greenwood, St Matthew’s, Kilwinning, Largs, Auchenharvie, Ardrossan, Garnock Community Campus and Lockhart Campus gave it their all in the action-packed session. In a conversation café format, the discussions centred around key themes that had been decided upon by young people prior to the event, including: • Alcohol and drugs, where pupils discussed concerns, health harms and community impact • Risk taking behaviour, discussing consequences and sharing views on early intervention, risk-awareness and restorative justice • Child Poverty, looking at the council’s Child Poverty Action Plan, the impact on young people and how families can access help without stigma • Positive Relationships and Wellbeing, talking about alternatives to exclusion from school and how to maintain relationships with friends, school, and beyond • Employability Pathways, including modern apprenticeships, digital and cyber opportunities, how to access support and what work experience activities young people want The theme of this year’s National Youth Work Week centred around building brighter futures and safe spaces for young people to thrive. Youth voice is an essential part of ensuring our young people have safe and accessible spaces where they can be supported and empowered to speak up on what matters to them and learn more about how their local authority operates and where to find support locally. The energising morning was a brilliant example of the true power that the youth voice in action has, and the council’s commitment to the United Nations Convention on the Rights of the Child. 123
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12 The Promise Champions Board Our Champions Boards place care experienced young people at the heart of decision-making across their schools and the wider community. They provide safe, positive spaces where young people can be heard, build confidence and belonging, and shape the services and supports around them. Supported by the Corporate Parenting Team, the Boards help ensure North Ayrshire fulfils its duties as a Corporate Parent and continues to deliver on its commitment to #KeepThePromise. Across the current school year 2025/26, engagement has strengthened, with all 10 secondary schools now running active Champions Boards. Some of the impact on young people can be seen below: “I have made new friends and can be myself.” – Young person, 2025 “One of our pupils attended the Champions Board for the first time feeling unsure… She realised she wasn’t alone and left feeling connected, understood and comforted.” – Guidance Teacher, 2026 As part of their ongoing Champions Board work this year, young people requested clearer support to understand what The Promise means for them. In response, schools are working through the What Is The Promise? programme (developed with Action for Children), which helps build knowledge, confidence and a shared understanding of rights. Several young people are also completing the Hi5 Award, recognising their achievements and participation through the Champions Board pathway. 124
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13 Champions Board Conference In November 2025, we held our annual joint Champions Board Conference, attended by 9 out of 10 secondary schools and 59 young people. The conference was co-designed with young people and focused on themes they identified as important, including: • Understanding The Promise • Using their voice safely and powerfully • Building connections with peers across schools • Planning the Summer 2026 Programme Their views from the day have been captured in the What Matters To Us poster (pictured above), alongside feedback from other engagement activities. Together, this provides a summary of what matters most to our care experienced young people and will directly inform the next Corporate Parenting Plan. Staff Promise Conference The staff Promise Conference on 20th January 2026 brought together 81 attendees, including 10 care experienced young people, senior leaders, operational managers, and corporate parenting partners. The event focused on reflecting on our responsibilities as corporate parents, strengthening commitment to The Promise, and gathering staff voice to inform the Corporate Parenting Plan refresh. Key Points from the conference included hearing directly from young people and reinforcing the need for collaboration, clarity, and shared ownership across services. Actions from the conference will be taken forward into the refreshed Corporate Parenting Plan. 125
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14 Brighter Pathways Programme The Brighter Pathways Programme of remodelling care options aims to improve outcomes for care experienced children and young people, addressing systemic challenges, and ensuring sustainable care models. The Strategic Vision emphasises collaboration, investment, and a rights-based approach to create a sustainable, responsive, and a nurturing care system for children and young people in North Ayrshire and aligns with The Promise. The Brighter Programmes Programme Board was established in February 2024 and has provided strategic leadership with a strong corporate parenting collaboration. The transformation and service developments were delivered through focussed workstreams on the following areas: 1. Housing and Throughcare 2. Fostering and Kinship 3. Education including Residential School Placements 4. Internal Children’s Houses – Model of Care 5. Early Intervention & Intensive Family Support 6. Strategic Needs Assessment/Data/Workforce 7. Best Practice Models and Research Key themes and challenges emerging from the workstreams are: • Placement Pressures and Over-occupancy. • Workforce Wellbeing and Sustainability. • Fostering Capacity. • Transitions and Continuing Care. • Early and Intensive Support Gaps. • System Complexity and Coordination. • Use of Data and Evidence. • Housing and Throughcare Pressures. The Brighter Pathways work has involved all corporate parents which has assisted in a shared awareness of the challenges and opportunities to improve the provision of services for families, looked after children and care experienced young people. Progress during 2025-26 has included: Our supported accommodation model of care is nearing completion with a proposed opening date of 1st June 2026. This is designed to increase independence whilst maintaining relational support on a phased and gradual basis, rather than young people experiencing the cliff edge of transitioning to adulthood which they often talk about. Fortnightly planning meetings are taking place to discuss matching young people to the supported accommodation. A new Fostering Scheme has been introduced, effective from 1st April 2026 to help retain current foster cares and encourage new foster carers. This will support placement stability by increasing retention of current experienced carers alongside strengthening approaches to local recruitment, reducing reliance on external provision (which is more often than not, not local). 126
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15 The Moving on Forum has been implemented to encourage multi agency working between Throughcare and Housing. The Forum has improved coordination between Housing and Throughcare, with reduced delays in accommodation making decisions resulting in more predictable and better planned transitions for care leavers. This joint approach has helped mitigate impact of increased housing pressures by ensuring earlier planning alongside shared ownership this has resulted in day-to-day collaboration across Throughcare, Housing, internal children’s houses, fostering and kinship services. Care Experienced Leavers educational outcomes 2025 North Ayrshire care experienced school leavers data continued to show improvements. 65% of care experienced leavers achieved at least one qualification at SCQF Leve 5 or better. 42% of care experienced school leavers in North Ayrshire left with at least one qualification at SCQF level six or better. Enhancing digital learning Our Education Service’s Digital Learning Strategy was launched in March 2025 following successful collaborative work of the Digital Service Improvement Group, a group consisting of highly experienced practitioners from across all sectors with responsibility for delivery of the curriculum from 2-18. The Digital Learning Strategy aims to: • develop learners’ digital skills and prepare them for life in an increasingly complex world • ensure that our practitioners are able to use a range of digital technologies confidently and appropriately to deliver exciting, supportive, relevant and engaging learning experiences • support our establishments in achieving strong outcomes in external evaluations There are four main areas within the strategy as outlined below: 1. the vision and aims of the strategy (linked to high quality learning experiences for all children and young people in NAC) 2. the digital skills our children and young people need for learning, life and work (progression tables for each skill) 3. the digital skills our practitioners require to ensure our learners’ digital needs are met (progression tables for each skill) 4. tools and training, as well as examples of good practice at local and national levels Following a successful pilot, the expectation has been that all educational establishments will adopt the strategy from session 2025-26 onwards as part of their raising attainment approaches and across 2025-26 the strategy will become embedded across establishments, from Early Years through to Senior Phase. Underpinning this strategy are the digital skills of our practitioners. Our digital learning offer in 2024-25, delivered by the Digital Development Officer, has resulted in the following: 127
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17 Priority 2 – Acting early to improve what happens next Key Highlights and Progress Child Protection - Children and Young People Engagement Event In May 2025, over 100 children and young people engaged with the North Ayrshire Child Protection Committee (CPC) in relation to child protection messaging. The CPC wanted to learn more about what children and young people knew about accessing support on a range of child protection issues. Gaps in knowledge or sources of information were identified and discussions with children and young people identified the best ways to share child protection messages and information and in accessible formats. During the engagement event children and young people (aged 11-13 years) from schools across North Ayrshire took part in six workshops to share their views and opinions on a safety theme including, general child protection messages, mental health and suicide prevention, alcohol and substance misuse (vaping), bullying and healthy friendships, domestic violence and relationships, and online safety /safer schools. Using feedback and data from this event and consultations with our children and young people will continue to be a focus and also guide next steps to implementation of child protection messaging. North Ayrshire children and young people’s views will influence policy developments and resources required to make improvements. Through the Safer Choices, Safer Futures, progress has been made in working with whole families, whole systems and whole communities to provide early intervention support for children and young people across North Ayrshire. 129
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18 Partnership working with Education, ADP, Police Scotland, extended outreach services and the third sector has strengthened joined-up responses to identified risks, enabling support to be offered at the earliest possible stage. This whole-system approach has focused on prevention, relationship-based practice and community engagement, ensuring that children, young people and families receive the right support at the right time. By aligning universal services with targeted interventions, Safer Choices, Safer Futures continues to support positive outcomes, reduce escalation of need and promote safer, healthier communities. Signs of Safety Signs of Safety was launched in North Ayrshire Health and Social Care Partnership in 2023 and is now fully embedded into professional practice. Signs of Safety (SoS) is described as an approach “to enable children's services to deliver services with a rigorous focus on child safety and wellbeing, and to set up their practice, policy, procedures and organisation so that the practitioners can do everything possible to put the parents, children and everyone naturally connected to the children at the centre of the assessment and decision-making”. Implementation has included briefings and training for relevant staff, baseline audit work and realignment of paperwork. In June 2025, the Health and Social Care Partnership carried out a Signs of Safety audit where 10% of parents and carers were interviewed. Between 70% and 84% reported that their worker showed care, spent time with their children, helped them solve problems, recognised family strengths and followed through on agreed actions. This feedback provides a strong foundation for continued improvement. Children and young people also reported positive experiences. Most said they felt listened to (63%), supported by their social worker (69.5%), and confident that their social worker understood their family circumstances (76%). Importantly, 71% said they felt they had a say in decisions affecting them. Overall, the findings indicate strong, trusting relationships between families and practitioners. Given the central role of effective relationships in achieving positive change for children, this provides a solid and encouraging base for ongoing development of Signs of Safety practice. 130
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19 Social Media We have recently developed a Public Protection Facebook page. In August 2025, North Ayrshire Protecting People Facebook page achieved 2,372 views with 218 followers and 138 likes. This remains under review with a further assessment to be made in 2026 on the efficacy and reach of this channel in supporting Child Protection communications. Children and Families Health Support There are over 5000 children aged 0-4 years in North Ayrshire, all of whom are supported by either a Health Visitor or a Family Nurse. In addition to following the nationally agreed Universal Health Visiting Pathway from the antenatal period through to a child commencing school, within North Ayrshire, children under 5 and their families continue to have access to additional support from the wider, integrated early years team. During 2025/26 (as at March 26), 730 requests for assistance from the various members of the integrated team were made. This included: • 461 (83.6%) for Health Visiting Support Workers for areas such as communication, sleep, toileting, infant feeding and behavior • 64 (8.8%) for the Perinatal Wellbeing Team, supporting new and expectant mums experiencing low level mental health difficulties • 60 (8.2%) for the Family Nurturers who offer support around bonding and attachment, routines, home conditions and community integration • 57 (7.8%) for Early Years Social Workers supporting with domestic violence, parental mental health difficulties amongst others • 38 (5.2%) for specialist infant feeding support • 29 (4.0%) for support to dads via our partnership with national charity Dads Rock 131
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20 • 19 (2.6%) for the Healthcare Support Worker who provides additional support to the Perinatal Wellbeing Team as well as baby massage Childhood Immunisations The most recent childhood immunisation data for 2024/25, shows 75.2% of those in S1 were immunised for HPV in Ayrshire and Arran, compared to a Scottish uptake of 72.6%. HPV immunisation uptake has seen a rise of 10.1% in North Ayrshire from 2022 to 2025. In 2024/25, 67.5% of S3 pupils received a Td/IPV booster and MenACWY vaccines. This compares to a national uptake of 70.1% for both programmes. North Ayrshire has seen a rise of 0.7%. (2025-26 data is not available at time of writing). It is acknowledged that immunisation rates in North Ayrshire have been historically lower than in South and East Ayrshire, closely correlated with deprivation levels. A range of targeted actions have been taken to promote uptake rates. With the targeted interventions and data capture our aspiration is to continue our upward trajectory for Immunisation Uptake in both HPV, Teenage Booster and Meningococcal ACWY across Ayrshire and Arran, and in particular North Ayrshire to lessen the gap in uptake across Local Authorities. Infant Feeding and Support Breastfeeding has clear short- and long-term health benefits for both babies and mothers. It helps protect babies against infections such as ear, chest and gastrointestinal illnesses, as well as conditions including asthma and diabetes. Breastfed babies are also more likely to follow a healthy growth pattern, reducing the risk of overweight in later childhood. As a result, breastfeeding is a key indicator of child wellbeing and remains a priority for children’s services. Although breastfeeding rates have historically been low and closely linked to deprivation, North Ayrshire has seen encouraging improvement. Increases have been recorded at the first health visitor review (10–14 days) and at 6–8 weeks. More babies are now receiving some breastmilk, and the drop-off in breastfeeding between birth and early reviews has reduced. From 1 July 2025, the National Childbirth Trust began providing postnatal breastfeeding support for women discharged from Ayrshire Maternity Unit who were breastfeeding. Between July and March, 1,331 women accessed this support, with around half exclusively breastfeeding at 6–8 weeks. Community-based infant feeding support continues to be strengthened through: • Mandatory, high-quality training for health visiting and support staff, reviewed regularly to reflect best practice • Annual audits involving staff and mothers to inform training and recognise good practice • Clear care pathways to support consistent and standardised delivery • Specialist support for families with more complex feeding needs through the Infant Feeding Support Nurse • Community infant feeding groups, expanded following a successful pilot in Largs 132
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21 • Roll-out of the national Early Learning and Childcare (ELC) Breastfeeding scheme • Ongoing development of the Local Authority Breastfeeding scheme North Ayrshire, together with health visiting and Family Nurse Partnership services in East and South Ayrshire, holds UNICEF Baby Friendly Initiative Gold accreditation. This reflects high standards of infant feeding support, a strong focus on breastfeeding, and a continued commitment to quality improvement. This remains a significant achievement, with only a small number of areas across Scotland holding this status. Ayrshire Bairns app A digital resource providing evidence-based parenting advice and support was piloted by North Ayrshire in 2022 and is now well established across all three Ayrshires Health and Social Care Partnerships. The app provides information on what to expect from the health visiting service as well as information on how to support early years development. Collaboration for Health Equity in Scotland (CHES) North Ayrshire is one of three local authorities who have been working with the Institute of Health Equities (IHE) and Public Health Scotland as part of the Collaboration for Health Equity in Scotland (CHES) programme. Three priority areas were identified in North Ayrshire: Good Start (Irvine), Good Work (Three Towns) and Good Health (Garnock Valley). The Good Start workstream is aiming for all children to have the best start in life and through stakeholder and family engagement has identified areas of work that may help improve wellbeing in early years and wider family support. Work will be taken forward in 2026/27 through a multi- agency approach. North Ayrshire’s involvement in the CHES programme provides an additional opportunity to focus on early years. Indeed, data on developmental concerns was a key driver in the prioritisation of 133
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22 the early years’ principle, and helped identify the Irvine communities of Fullarton, Bourtreehill and Castlepark as the focal point for the work. Nesta and CELCIS family support in pregnancy and early years North Ayrshire is one of six local Children’s Services Strategic Partnerships (CSSP) selected to work with national organisations Nesta and CELCIS to explore existing pregnancy and early childhood supports and infrastructure. The opportunity aims to: • formulate a tailored early years data profile compiling indicators relevant to your area and at intermediate zone level where possible (created by Nesta) • map current support offer for pregnancy and early childhood • identify specific strengths and areas of unmet need to inform local planning • make clear, evidence-based recommendations for our local planning processes • facilitate engagement with peers from five other CSPP areas to share learning and improve systems across Scotland • contribute to national and local policy and practice recommendations Key partners have participated in two workshops to look at what works well and where things could be better for families. Learning will be used locally to improve our family support and will also be shared nationally to influence children’s services’ policy. Speech and Language We have a North Ayrshire Early Language Network group that meets regularly to share information about supports available to children, young people and families seeking support for speech, language and communication. The groups consist of partners from Health, education, early years social work, Family Nurse Partnership, and the 3rd sector. We also have a Communication Champion Network in Early Years in North Ayrshire that links closely with the Speech and Language Therapy team to share practice. Additional training has been provided for Communication Champions to identify children who may require targeted support in early years, share resources with parents and signpost them to the Speech and Language Therapy helpline and our in person drop-in sessions. We run a monthly Social Communication in person drop-in session. Any family with a concern about their child's social communication or activities for daily living can meet with the Speech and Language Therapy team and Occupational Therapy team to receive advice. The NHS Ayrshire & Arran Children's speech and language therapy Facebook page and NHS Ayrshire & Arran app contains lots of useful information for families and practitioners, with many activities to help support children's speech, language and communication. The Helpline is available for anyone with a concern about a child's speech, language and communication. They can speak to a registered Speech & Language therapist and receive advice and resources. 134
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23 Early Learning and Childcare The 1140 funded hours continue to be delivered with flexibility and choice for parents across localities. Our models offer a blend of full year and term time places with various patterns in establishments delivering 8am-6pm and 9am-3pm. Allocations have taken place for session 2025-26 and 85% of parents have been offered their 1st choice for establishment. Work is continuing to raise awareness of eligibility and increase the uptake of eligible 2s. ESOL (English for Speakers of other Languages) and Asylum Seekers and Refugee support The New Scots ESOL (English for Speakers of Other Languages) Hub provides a strong illustration of how education, voice, advocacy, rights, community connection and belonging can be translated into effective practice. It delivers a holistic, rights-based model of support for unaccompanied asylum-seeking children, trafficked young people and refugees across North Ayrshire. Accessible and sustainable language support is key, underpinning engagement with education, health, advocacy, employment and community life which contribute to positive outcomes. Our nurturing and responsive environment supports our young people who have experienced trauma, disruption or displacement. Inclusive practices and culturally responsive approaches ensure that learners’ identities are respected and valued, promoting a sense of identity, belonging and connection. Fourteen learners attended the Hub during 2025-26, representing a wide range of backgrounds. Learners accessed full-time education alongside community-based learning opportunities, supported through strong multi-agency partnership working with education, Outreach Support Services, Community Learning and Development, Health and Social Care Partnership, Aberlour Guardianship, Ayrshire College and other third-sector partners. Learners participated in a range of opportunities including the Gowanbank Residential, with pupils from Extended Outreach, which supported confidence, teamwork and resilience. Other activities included tree planting and a Christmas Multicultural Event. Participation, Attainment and Positive Destinations: A wide range of achievements, including personal development, language acquisition and a range of academic and wider awards were celebrated. • Eight young people achieved SQA National 2 ESOL alongside SQA National 2 Lifeskills Mathematics • A further 2 young people achieved National 3 ESOL at Ayrshire College and National 2 Lifeskills Mathematics 135
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24 • As a result of targeted support and effective partnership working, 8 learners will successfully progress to college courses • Two young people achieved accreditation through the John Muir Award delivered in partnership with Barnardo’s. This supported environmental awareness, responsibility and achievement of a nationally recognised award, contributing positively to confidence and wellbeing. • Effective partnership working with Skills Development Scotland supported career education, employability skills and transition planning, ensuring learners received timely advice linked to post-school destinations. The Hub contributed actively to the Unaccompanied Asylum-Seeking Children (UASC) Working Together group, strengthening information sharing, safeguarding and coordinated planning. Engagement with the Guardianship Pilot drop-in at Saltcoats Town Hall improved access to advocacy and guidance for young people. Collectively, this work contributes to: • Improved safety, advocacy and coordinated support for vulnerable learners • Enhanced wellbeing, confidence and resilience • Increased achievement and progression • Strengthened participation, inclusion and rights-based practice • More robust partnership working and shared accountability Practice from the Hub was shared at The Promise Conference, contributing to national dialogue and supporting wider systems improvement across children’s services and education. 136
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25 Priority 3 – Making things fairer Key Highlights and Progress Educational Attainment Raising Attainment Raising attainment continues to be a focus for all schools and Early Years establishments, with a commitment to ensuring added value across and through all 3 sectors in a child’s learning, attainment and achievement. Senior leaders’ feedback and the Data Service Improvement Group have helped to shape a refreshed approach to collecting Literacy and Numeracy data and how this is then used to create targets for all establishments. A more focused approach in analysing attainment data is helping to shape Service priorities and collaborative working between central staff and schools to ensure that all learners attain and achieve their best outcomes. Achievement of Curriculum for Excellence Levels In 2025, 68.2% of primary aged children in North Ayrshire Council achieved the appropriate attainment level in Literacy. In Numeracy, 73.9% of primary aged children in North Ayrshire Council achieved the appropriate attainment level in 2025. North Ayrshire’s performance has remained lower than the national picture since Covid. Improving leavers’ attainment in literacy and numeracy In 2025, just over 93% of North Ayrshire’s school leavers achieved level four literacy or better. This is in line with the national figure. Similarly, at level five, 81.9% achieved literacy at level five or better. In 2025, 91.3% of school leavers in North Ayrshire achieved level four numeracy, which is again in line with the national figure. 73.3% of school leavers attained level five numeracy which has increased from the previous year. Attainment of School Leavers In 2025, 80.9% of school leavers attained 5 or more awards at SCQF Level 4 or better which is slightly lower than in 2024 (83.4%). 64.5% attained 5 or more awards at SCQF Level 5 or better which is in line with 2024. These levels are slightly below the National figures. School Leavers entering an initial positive destination An initial positive destination means that a school leaver has gone on to one of the following activities immediately after leaving school: further or higher education, training, skills development or employment. At 95.7%, the proportion of leavers in North Ayrshire moving into an initial positive destination in 2025 is in line with the national figure. To maximise the percentage of school leavers entering and sustaining positive destinations, schools continue to work hard in strong partnership with Skills Development Scotland. 137
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26 The Annual Participation Measure for all 16–19-year-olds The Annual Participation Measure (APM) is a measurement of the proportion of 16-19-year-olds participating in education, training or employment over a whole year (1 April-31 March). The indicator provides a measure of the status of the wider aged 16-19 cohort – not just those who have left school. The Annual Participation Measure, covering the year from April 2024 – March 2025 showed that of the 6,028 16-19-year-olds in North Ayrshire, 92.5% were in education, employment or training and personal development. School Inspections – Case Studies Dalry Early Years Centre was praised by the Care Inspectorate for creating a warm, nurturing and safe environment for young people. The unannounced inspection took place in September 2025 and carried out a thorough assessment of the staff and facility and concluded that the experiences of children and families was extremely positive. During their visit, the inspection team spoke to one parent who said: ‘The staff are amazing, always got time to chat and will help any way they can’ while another commented ‘I have been involved in my child's plan from the moment they started at the nursery. All my views are taken into account.’ Some of the findings include: • Children were safe, secure, and emotionally supported • Children's individual needs were well understood • Children who required additional support received timely and effective intervention • Children experienced rich and varied play opportunities indoors and outdoors 138
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27 • Staff were warm, respectful, and purposeful • Indoor and outdoor spaces were thoughtfully arranged to promote independence • Leadership was strong and improvement-focused The inspection also described the facility as a ‘welcoming, spacious, and well-ventilated environment’, while playrooms were equipped with age-appropriate resources and natural materials that supported children's play, learning, and creativity. Springside Primary came under the spotlight in a visit in 2025 – and received a glowing report. In the report, the head teacher and senior management staff were praised for their strong leadership, including consistently driving improvements across the whole school. It also highlighted that ‘a strength of the staff team is their significant work towards improving how they meet children’s needs across the school’. Staff also develop trust and strong relationships with all the pupils Pupils are described as being happy and that they feel safe and secure. Staff are praised for nurturing relationships and understanding the needs of those pupils who need additional support. As well as internally, the report praises the strong relationships that exist with parents/carers and says most are very supportive of the work of the school. Springside Head Teacher Lynsey Boyes said: “We are absolutely delighted with the outcome of our recent inspection which recognises the dedication, effort and commitment of our entire school community. While we celebrate this achievement, we remain committed to the continuous improvement of the school and early years and providing the very best education for our children and young people.” Employability First Steps Programme Launch First Steps is an employability initiative that runs four times over the course of a year for care- experienced North Ayrshire residents aged 16 to 24. It offers opportunities in activities such as food hygiene, cooking, barista skills, team building, First Aid, the Duke of Edinburgh Award and a host of other group and interactive training sessions. 139
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28 Feedback from people who have completed the course has been positive, and 17-year-old participant Axel, from Irvine, said: “The highlight, for me, was getting to learn about First Aid. I am now exploring becoming a volunteer with St Andrew’s First Aid as I feel this is something I would be really good at.” Most participants go on to work experience, further education or training – and tailored work experience is included. It is ideal for young people who are thinking about their future but are unsure where to start and would like support when considering work, college, training and volunteering options. Participants build on existing skills and move forward in a friendly and relaxed environment. Other participants shared: “The programme really helped me feel more confident in myself and in my abilities and also helped me make new friends. I would recommend the course to my friends and any other young people who are perhaps feeling unsure about their future and what type of job they would like as First Steps really helped me feel better about my future. I am now enjoying work experience in Barnardo's … and know I can make a difference.” First Steps is run under the banner of the Council Employability service’s Your Next Move. The Council’s Employability Service delivers a range of support through its Your Next Move, Working North Ayrshire programme. Contracted partners include We Work for Families and CEIS Ayrshire, who all contribute to delivering a wide range of support to help individuals prepare and progress into employment. Poverty - Closing the poverty-related attainment gap Closing the gap in achievement between North Ayrshire’s least and most disadvantaged young people is one of the Education Service’s five main priorities. Around 45% of local learners live in the most deprived parts of Scotland. North Ayrshire’s Education Service is focused on helping children affected by poverty reach their potential. Schools receive £4.2 million every year in Pupil Equity Funding so head teachers can support pupils where help is needed most. Head teachers can choose the best ways to use this money for their learners. 140
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29 Rigorous analysis of data for improvement at all levels includes a focus on closing the poverty- related attainment gap and how educational establishments can support those children and young people most affected by poverty. Education Service priorities ensure that universal approaches to improving learning, teaching and assessment, as well as raising attainment, allow a focus on approaches to closing the gap. Strategic planning and spending of Pupil Equity Funding by schools allows for focused and targeted interventions and supports for learners most affected by poverty, with input focused on Health and Wellbeing, Literacy and Numeracy. There remains a commitment in schools and in the Education Service to mitigating against the Cost of the School Day, with approaches such as uniform banks, Prom dresses and low/no cost trips and excursions. Co-designing approaches to reduce child poverty North Ayrshire Council’s Child Poverty Strategy Team, through the Scottish Government’s Fairer Futures Partnership, launched a local project to better understand and reduce child and family poverty in specific areas. Initial research involved meeting families in libraries during school holidays, speaking with 140 Primary 7 Youth Council members about the cost of living, and asking young apprentices about how easy it is to get support online. After this, two local Third Sector organisations received grants to help design and deliver new ways to support families, working together with the council and community groups. New roles were created to connect families with the right services at community spaces and events, and to spot gaps in support. This work helps families access social and economic support and ensures children and families have a say in decisions that affect them. A shared database is also being developed to list services related to child poverty and wellbeing, which will help staff — and eventually the community — find support more easily. Case Study: Three pupils from Irvine Royal Academy had the chance to meet First Minister John Swinney and discuss a poverty-related issue close to their hearts in Scotland’s first Children and Young People’s Cost of the School Day Summit 2025, held at The Social Hub in Glasgow and hosted by Child Poverty Action Group (CPAG). The young people, who form part of Irvine Royal Academy’s Cost of the School Day (COSD) group discussed with Mr Swinney directly how to make education more inclusive and affordable for all. Savanah, Jacob and Evie also played a key role in shaping the day – helping design sessions, leading discussions and representing pupil voices from across Scotland. During the summit, they delivered confident presentations and took part in engaging workshops. The event provided a powerful platform for pupils to share their lived experiences and ideas for reducing financial barriers in schools. Chiara Sheridan, Youth Worker at Irvine Royal Academy said: “We are so proud of our young people. They showed real leadership, confidence, and compassion, ensuring the voices of pupils 141
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30 are heard at a national level. Their involvement in this summit will help shape positive change across schools in Scotland.” Welfare Rights in Schools Project The Welfare Rights in Schools project expanded significantly during 2025–26, with three Welfare Rights Officers embedded across all educational establishments, including early years centres. Schools have provided trusted, stigma-free access to advice, enabling early intervention. During the year, the project has secured significant financial gains for families. Child Poverty and Early Intervention Fund Across its first two years, the Child Poverty and Early Intervention Fund has now committed over £1 million, supporting both direct financial relief and innovative, co-designed test-of-change initiatives. This includes investment in integrated data through Smart Data Foundry and piloting a Family Enterprise Programme in partnership with Ayrshire College. Financial Inclusion Our 2025 ambitions to deliver services through an Advice Line and a single point of contact are now fully embedded. Client-centred surveys are routinely issued to strengthen our understanding of impact and ensure service improvement. In-house debt advice is fully operational, providing seamless access to both debt and welfare rights support. The Financial Inclusion Partnership Communications Subgroup was established during the year and successfully delivered the Partnership’s first multi-agency event in October. The event, themed around winter preparedness, brought together a range of services with the aim of increasing awareness of support available across North Ayrshire and improving understanding of how services connect and refer between one another. Workshops were delivered by Citrus, Community Link Workers and Christians Against Poverty (CAP). The Financial Inclusion Partnership continues to grow and strengthen, with new members joining throughout the period. Collaborative working with third sector organisations and partner agencies remains central, with a shared focus on developing clear referral pathways and delivering coordinated, joined-up support for residents. Rosemount Crisis Service The Rosemount Crisis Service has built strong collaborative partnerships across North Ayrshire by operating as a highly integrated, multi-agency service focused on supporting children and young people with complex needs and significant levels of risk, with the clear aim of keeping children safely at home with their families and out of local authority care wherever possible. The service mainly works with the four Children & Families Social Work teams in North Ayrshire - but also accepts referrals from the Families for Children, Children & Families (Disabilities), Kinship and Young Person Support teams - and plays an important role in the wider multidisciplinary response to family crisis, escalating risk, and instability. Rosemount is embedded within statutory planning and decision-making processes. 142
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31 Partnership working extends beyond social work to include Education, CAMHS, Police Scotland, health services, and community-based supports, ensuring that children and families receive a holistic, coordinated, and responsive service. This integrated model enables Rosemount to respond effectively to overlapping issues such as family breakdown, distressed behaviour, trauma, school non-attendance, mental health concerns, and contextual risks. A key measure of the service’s impact is its consistent success in keeping over 90% of the children involved with the service each year out of local authority care. This demonstrates the effectiveness of intensive, relationship-based crisis intervention when delivered in close partnership with families and professionals. Overall, the service’s strong local partnerships are central to delivering high-quality, child- centred, and family-focused support, ensuring that children and young people with the most complex needs receive the right help at the right time, while reducing the likelihood of escalation into care. Building Positive Relationships The Building Positive Relationships (BPR) programme has been successfully implemented, adapted and evaluated. Staff have been training and supporting facilitators, updating resources and responding flexibly to family and service needs. As a result, 89 practitioners across the authority are now trained in the Building Positive Relationships programme, embedding a preventative, trauma-informed approach that strengthens parental regulation, relationships and resilience while reducing reliance on crisis intervention. The Education Psychology Service has delivered large-scale, evidence-based professional Neurodevelopmental learning (e.g. We Were Expecting You, Supporting Neurodevelopmental Needs, NAIT resources) that reached hundreds of practitioners across Early Years and schools, with over 97% of participants reporting the training met their needs. This work is improving inclusive, neuro-affirming practice, strengthening anticipatory planning and consistency, and enabling many families to experience more predictable, supportive environments across home and education. Whole Family Wellbeing Fund The Whole Family Wellbeing Fund (WFWF) has supported a shift towards preventative, trauma informed and whole family approaches, in line with Scottish Government ambitions, GIRFEC and The Promise commitment to reduce the number of children and young people in care by addressing challenges earlier. During the reporting period, 12 local projects and services received a share of the £1.19 million WFWF investment in North Ayrshire, to support the delivery of positive outcomes for children, young people and families across North Ayrshire. Three of the funded activities are detailed below. Dads Support Workers Dads Support workers are strengthening preventative approaches by intervening at key transition points, addressing underlying risks early and helping families break cycles of trauma to improve long-term outcomes for children. For example, 20 referrals through Safeguarding Midwifery enabled multi-agency support before birth; 13 families were care experienced, highlighting significant intergenerational vulnerability. Reflective, relationship-based support alongside 143
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32 antenatal care helped parents build insight, emotional regulation and confidence, contributing to safer early environments. Preventative impact is also evident in father-inclusive work, where tailored one-to-one support enabled meaningful change, rebuilt trust and led to a supported, child-led reunion—reducing the need for escalation and supporting family permanence. Peer support further strengthens prevention, with Dads Rock networks offering ongoing informal support beyond services. Five Dads Antenatal Workshops (launched July 2025) were delivered during the reporting period, engaging 18 dads. Several participants went on to connect with peer support through the WhatsApp community and weekly in-person groups following the birth of their children, strengthening continuity of support during the early parenting journey. Engagement is underpinned by non-judgemental, consistent relationships that build trust and encourage earlier, sustained participation. A major success was the service’s expansion, increasing capacity to 1.8 FTE, widening delivery from Ardrossan, Saltcoats and Stevenston to include Irvine and Kilwinning, alongside the introduction of a second group activity delivered outside standard 9–5 hours. This led to a 90% exceedance of engagement targets, with 103 families supported and over 400 one-to-one sessions delivered. Impact was further recognised through awards nominations and strong peer networks that continued beyond formal involvement. The Family Centred Wellbeing Service The Family Centred Wellbeing Service (FCWS) plays a key preventative role across North Ayrshire, supporting families early to reduce escalation to crisis and statutory intervention. Partners across education and social work consistently report that, without FCWS, more families would reach crisis point, increasing demand on child protection and specialist services. The fact that cases are often retained within FCWS following Initial Referral Discussions (IRDs) reflects strong partner confidence in the service’s ability to manage risk proportionately and provide effective early intervention. During 2025/26, FCWS received 212 referrals, with 81% relating to primary-aged children, indicating that needs are increasingly being identified and addressed 144
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33 earlier, before difficulties become entrenched. Education remains the main referral route, demonstrating a wider cultural shift towards proactive, early help within universal services. This preventative impact is further evidenced through both qualitative feedback and outcomes. Families report improved relationships, better communication and greater understanding of their child’s needs, leading to increased confidence in managing challenges. Case study evidence highlights how coordinated, whole-family support improves stability and prevents escalation to statutory thresholds, while group-based interventions reduce isolation and build social connections—key protective factors against crisis. FCWS also plays an important role in supporting the “missing middle”: families experiencing emerging neurodevelopmental, emotional or behavioural needs that do not meet statutory thresholds. By responding early with holistic, flexible support—including home visits, group programmes and community-based activity—FCWS helps prevent gaps in provision and reduces longer-term reliance on higher-cost services. The non-judgemental, relationship-based model is central to engagement, with families reporting that they feel more comfortable seeking help earlier and sustaining involvement. A key strength of FCWS is its collaborative, whole-system approach. The service works in close partnership with education, health, social work and third sector organisations, contributing to multi-agency planning such as Team Around the Child (TAC) and acting as a bridge between services. This ensures coordinated, holistic support tailored to the strengths and needs of each family, including access to community-based opportunities that promote inclusion and reduce isolation. This model has contributed to improved outcomes across a range of areas, including school attendance and engagement, emotional wellbeing, parenting capacity and access to mental health, financial and community supports, particularly for families experiencing disadvantage. Workforce development has also strengthened early intervention across the system. Input from Educational Psychology and Speech and Language Therapy, alongside interventions such as Building Positive Relationships, has increased practitioner confidence in identifying and responding to emerging need. Weekly consultation with Educational Psychology has been particularly valued, enhancing problem-solving skills and the use of practical tools such as goal setting, scaling and emotion coaching. Overall, sustained demand for the service, alongside strong qualitative and quantitative evidence of impact, highlights FCWS as a key contributor to early intervention and prevention, improving outcomes for children and families while reducing pressure on statutory services. EmpowerED The EmpowerED programme demonstrates a strong preventative impact by engaging young people before difficulties escalate into crisis, particularly those at risk of disengagement from education, emotional distress or more intensive intervention. Evidence from surveys, session reflections and school feedback consistently indicates that many participants were struggling with school engagement and wellbeing when referred. Preventative impact is evident in the programme’s relationship based and flexible delivery model. Session reflections show that early stages often involved a period of settling in, with young people initially hesitant or disengaged. Over time, however, there was a clear and sustained shift towards increased participation, confidence and motivation. This progression illustrates the 145
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34 value of consistent, trusted relationships in preventing problems from becoming entrenched and reducing the likelihood of escalation to statutory or crisis services. The programme also strengthens preventative outcomes by supporting emotional regulation, resilience and social connection. Young people frequently reported feeling calmer and more able to cope after sessions, especially following outdoor and active learning experiences. Opportunities to build friendships, share activities and support peers reduced isolation and enhanced protective factors. Importantly, EmpowerED contributes to longer-term prevention, with some young people progressing into peer mentoring roles, indicating growing confidence, aspiration and leadership. Modern Apprenticeships The Modern Apprenticeship programme is being used as a peer support model by creating visible, relatable role-model opportunities for young people within their own communities. Apprentices, many of whom have lived experience of local challenges, support younger peers through informal mentoring, shared learning and positive role-modelling, helping to build confidence, aspiration and engagement. By positioning apprentices within community and youth work settings, the programme supports peer-led learning, early intervention and prevention, enabling young people to access advice, reassurance and support from someone they can identify with. This approach strengthens relationships, promotes positive behaviours and supports children and young people to make safer choices, while also building skills, confidence and progression routes for the apprentices themselves. 146
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35 Island Communities Work has continued to strengthen equity of access to youth work support and participation opportunities for children and young people in North Ayrshire’s island communities. Partnership working with Arran Youth Foundation has supported the development of a local youth work offer on Arran, ensuring provision is responsive to local need while remaining connected to wider Council priorities. Island communities are routinely included in all youth voice structures and engagement activity, including the Youth Council, Joint Cabinet events and wider consultation processes, ensuring young people from Arran have opportunities to influence local and strategic decision-making. The appointment of an MSYP from Arran has further strengthened parity of access, enabling regular feedback from island young people and ensuring their views are represented consistently at both local and national consultations. 147
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36 Young Carers We are committed to ensuring that young carers can access support in ways that are flexible, familiar, and responsive to their needs. A range of access routes have now been embedded across education and community settings, ensuring a no wrong door to support model. Dedicated Young Carers Champions are now in place within every primary and secondary school. These Champions act as a first point of contact for identification, support, and information-sharing within their school communities. Three Young Carer Workers are aligned to clusters of three secondary schools and their associated primary schools. This structure ensures consistent partnership working, proactive engagement, and timely support for young carers and their families. A termly Young Carer Newsletter is shared with education staff, providing updates on supports available, upcoming events, awareness activities, and practical resources for working with young carers. This helps maintain visibility and ensures staff remain informed throughout the year. An upgraded Carers Gateway digital self-help portal for young carers was launched in August 2025, offering 24/7 access to a wide range of information, resources, wellbeing tools, and guidance. The platform significantly enhances accessibility - enabling young carers to seek help at any time, in a format that suits them. Together, these access points ensure that young carers can engage with support through trusted adults in school, dedicated staff, digital tools, or wider community activities. This blended model strengthens early identification, reduces barriers, and offers young carers multiple pathways to information, advice, and personalised support. 148
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37 Priority 4 – Promoting good mental health and wellbeing Key Highlights and Progress Counselling support and community wellbeing supports Our school counselling service supports children and young people aged 10–18 in school settings. This year, 500 young people accessed the service, with 98.6% reporting an improvement in CORE-YP scores. Area Inclusion Workers and additional support staff continue to deliver Let’s Introduce Anxiety Management (LIAM), with positive impact. Mental and emotional wellbeing remains one of the ten priority pathways within the school nursing service, with all staff nurses trained in LIAM and work underway to improve recording and reporting. Through Children and Young People’s Community Mental Health and Wellbeing Supports and Services Framework grant funding, 6,527 children and young people and 1,212 family members were supported through a range of programmes, with 94% reporting improved outcomes. Early intervention continues to be delivered across primary and secondary settings, with pathways in place to school counselling, LIAM and conflict resolution sessions, and onward referral to CAMHS where required. Collaboration with third sector partners has further strengthened local provision. The revised wellness model is now in place across all localities except the Three Towns, with full rollout planned early next session. Education and primary healthcare colleagues report positive partnership working, supporting timely access to mental health and wellbeing support. Support materials for delivery of the SQA Award in Mental Health and Wellbeing at Levels 4 and 5 were provided this session, with 343 young people achieving the full award. The refreshed Be Amasin’ anxiety resources were shared via education and community mental health blogs, attracting over 11,000 views combined. Project Restore continues to develop, with early feedback showing improved wellbeing and engagement, particularly through breathing and grounding strategies. Area Inclusion Workers supported 5,541 children and families through individual and group interventions to improve engagement with education and wellbeing. This included 64 reflections groups and Building on Positive Relationships family groups for 35 families, using relational approaches to address conflict and support positive family relationships Nurture A nurturing approach is being embedded across Children’s Services through shared trauma-informed and relational practice. In Education teams this is evolving into a New Authority model that combines compassion with clear, supportive boundaries. Professional learning in nurturing, Emotion Coaching, Positive Behaviour Support and CALM is supporting consistent adult responses focused on safety, regulation and repair. This year there are examples of joint problem-solving with Psychological Services, Children’s Houses and CAMHS - growing a community of practice for care-experienced young people enabling shared learning and consistency across services. 149
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38 Physical activity and Social Participation Targeted and universal programmes supported mental health, resilience and positive relationships across schools and communities. Evidence-based and creative approaches such as Your Resilience, Bounceback, Drama for Wellbeing and outdoor and physical activity programmes developed emotional literacy, coping skills and self-regulation. Early intervention addressing suicide, alcohol and vaping risks was complemented by workforce development in neurodiversity, trauma and complex behaviours, improving the quality and consistency of support. The Duke of Edinburgh’s Award provided a strong wellbeing and achievement pathway, engaging over 1,000 young people and supporting progression through Bronze, Silver and Gold levels. Alongside this, targeted programmes and partnerships supported care experienced young people, young New Scots and those facing additional barriers to sustain engagement, build confidence and progress to positive destinations. Active Schools played a key role in promoting positive mental health through year-round extracurricular activity, events and leadership opportunities that reduce stress, boost mood and enhance self-esteem. A dedicated guidance resource for schools and comprehensive mental health training for coaches and volunteers strengthened inclusive, supportive practice. Together, these approaches demonstrate a coherent, strengths-based model combining participation, prevention and progression to improve wellbeing outcomes at scale. Public Health Public Health have worked over the 2025-26 period to produce a suite of life course evidence briefings. The mental health and suicide prevention briefing will be used in the coming year to shape conversations with partners regarding the preventive potential of a life course approach and opportunities based on evidence across the life course and across all stages of prevention (universal, primary, secondary, tertiary). 150
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39 During 2025-26, Public Health has continued to strengthen and embed mental health improvement activity across Education and wider children’s services in North Ayrshire. Examples of activity include: Promotion and Utilisation of Mental Health and Wellbeing Resources in Practice- The Guide for Children, Guide for Young People and Children’s Workbook for Mental Wellbeing continue to be actively promoted across Education and to partners who support children, young people and families. Work this year has focused on reinforcing awareness of these resources, supporting staff to build them into everyday practice, and ensuring consistent access to practical tools that help initiate and sustain wellbeing conversations. Mental Health Improvement – a Practical Approach (MHI-apa) training is now being delivered across Education by the MHWB Operational Lead, building capacity at school level and ensuring staff have the knowledge and skills to support children, young people and families. Area Inclusion Workers continue to use and cascade this learning within their roles, contributing to more consistent approaches across schools. This training is available through Public Health for other groups who wish to participate. There continues to be a network of facilitators delivering Time, Space, Compassion (TSC) workshops which are open to staff working across children's and young people's services. During April 2025 and March 2026, Public Health has organised and delivered 12 TSC workshops across Ayrshire and Arran. Four of these sessions were in North Ayrshire. Staff from North Ayrshire have accessed a number of sessions, with attendance including staff working with children and young people within both public and third sector organisations. Initial discussions and awareness raising regarding the Enabling Conversations Toolkit has taken place through the Strategic Suicide Prevention Group. In the coming year Public Health would like to see further awareness raising and engagement with this toolkit as a guide which was created by and for young people, to find help and support when experiencing painful feelings about suicide. Enabling conversations toolkit - Suicide Prevention Scotland. Supporting Young Carers We continue to prioritise opportunities that enable young carers to experience a positive quality of life beyond their caring responsibilities, while ensuring they are fully supported during key transitions in education and life. • Young Carers Education Fund (£15K–£20K annually) provides flexible financial support to meet identified needs through Young Carers Statements. This includes opportunities for breaks from caring, participation in hobbies and activities, and access to life-enhancing experiences that contribute to wellbeing, resilience, and personal development. • KA Leisure memberships are available for young carers, giving them regular access to health, fitness, and wellbeing activities within their local community and supporting them to take time for themselves. • Eligible young carers have been supported by Carers Gateway to apply for the ILF Scotland Transition Fund, helping them build independence, confidence, and opportunities to engage socially, explore interests, and become more active in their communities. 151
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40 • Time to Live funding, accessed via Carers Gateway, provides young carers with the opportunity to apply for personalised short breaks—helping reduce stress, improve wellbeing, and create positive time away from their caring role. • To support key educational transitions, Carers Gateway actively participates in enhanced transition planning from primary to secondary school, ensuring young carers are identified early and their needs are understood. Young carers preparing to leave secondary school can access a 1:1 Young Adult Carers Transition Plan, offering tailored guidance around their caring responsibilities, available supports, future aspirations, and the move into further education, training, or employment. This multi-layered approach ensures that young carers are supported not only in their caring role, but also in experiencing a balanced life, developing their potential, and moving confidently into adulthood. 152
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41 Priority 5 – Inspiring children and young people to be active Key Highlights and Progress Jumpstart - Child Healthy Weight Services During 2025–26, 40 children and young people aged 5–17 were supported through our Child Healthy Weight programme (JumpStart) in North Ayrshire. Referrals showed a balanced gender profile (21 male, 19 female), indicating equitable access across genders. Referrals were largely concentrated in early and middle childhood. Children aged 5–9 accounted for 45% (18/40) of referrals, those aged 10–13 comprised 37.5% (15/40), and 17.5% (7/40) were aged 14+. This reflects strong early identification through school-based pathways. Service delivery strongly aligns with health inequalities priorities. 62.5% (25/40) of referrals were from the most deprived (SIMD 1) communities, with a further 20% (8/40) from SIMD 2. Overall, 82.5% of referrals came from the two most deprived quintiles, demonstrating effective targeting of families experiencing the greatest socioeconomic disadvantage. Referrals were driven primarily by core health partners. School Nurses accounted for 27.5% (11/40) of referrals, GPs for 20% (8/40), and Dietitians for 17.5% (7/40). This highlights strong multi-agency engagement, particularly within universal and primary care services. 66 group-based sessions were delivered within community settings. In addition, seven young people (teens) were supported through one-to-one interventions, making use of KA Leisure facilities. All participating children were provided with a KA Leisure card, offering a minimum of three months’ free access to KA Leisure facilities to support ongoing physical activity and sustain engagement beyond the intervention. Outdoor Play Case Study: Children and their families have been taking advantage of updates to local playparks in Kilwinning and Irvine. The welcomed playground upgrades have been unveiled at Bourtreehill Playpark and Eglinton Country Park. Each of the popular outdoor playgrounds have been assessed and upgraded by the council’s Streetscene team and refreshed to create exciting spaces that are more accessible and inclusive for all. Funded by the Scottish Government’s Capital funding programme with support from Eglinton Country Park’s fund, the upgrades are the latest of several playpark upgrades across North Ayrshire since 2021. 153
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42 Completely revamped, the new additions to Bourtreehill Playpark, located just a few minutes’ walk from the main bus route and village include: • An obstacle course with stepping stones, climbing stilts and rope walk • Impressive tower slide with wobble bridge, climbing wall and low-level hammock swinging seats • Accessible bench for wheelchairs, strollers and prams • Dynamic single-user dish roundabout and sculptural spinning platform • New freestanding swing seat • Motorbike wobble seat • Wheelchair and stroller accessible roundabout with seating for children • Engaging Neurodivergent games boards at main entrance • Protective playground surface underfoot for added protection • Re-painted and upgraded basketball court One child shared: “I love how high up the slide is because we didn’t have one before! I really am king of the castle!” At Eglinton Country Park, in the main playpark children can enjoy: • A new, impressive multi-sensory climbing dome • Kaleidoscope-inspired sensory play boards for sensory exploration • Low level climbing options for all abilities to hone their skills • Wheelchair accessible toddler play corner with small slide, interactive clock and number boards to encourage imaginary play and learning • Improved perimeter fencing • Neurodivergent boards for non-verbal members of our communities Eglinton Park will welcome other improvements in the coming months as maintenance on other pieces of equipment is currently underway. The popular playground at Eglinton Park has also been complimented by parents and carers, with one sharing: “I like it because there’s a lot more for the children to do now and something for all ages. 154
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43 “It feels safe too because there’s perimeter fencing added in and the new equipment is also very inclusive and has added variety and excitement for children visiting the country park. It’s really nice to see it all freshened up and everyone having fun exploring the new options together.” Improvements to the playparks are part of North Ayrshire Council’s wider investment strategy to make all play facilities in North Ayrshire more inclusive and accessible. Safe Spaces for Young People Youth work programmes continued to create safe, inclusive and purposeful outdoor spaces that support children and young people’s physical health, mental wellbeing and social connection. Outdoor learning remains a key delivery approach, enabling young people to build confidence, resilience and a sense of belonging through structured, supported activity in community and natural environments. Programmes are deliberately inclusive, ensuring access for care-experienced young people, young New Scots and those facing additional barriers to participation. The Duke of Edinburgh’s Award continues to be a cornerstone of this work, engaging large numbers of young people in regular outdoor activity, skills development and expeditions across Scotland. Duke of Edinburgh expeditions, day trips and overnight experiences provide well-managed, safe environments where young people develop teamwork, leadership and problem-solving skills while enjoying the outdoors. 155
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44 Alongside this, Outdoor Learning, Outdoors for Wellbeing and residential opportunities offer accessible entry points for young people who may not engage with traditional settings, including targeted provision for at-risk groups. Complementary initiatives such as Gardening for Wellbeing, mountain biking, football and outdoor creative activities further enhance safe outdoor provision by promoting routine physical activity, positive mental health and connection to place. Gardening and nature-based activities support emotional regulation, responsibility and mindfulness, while team sports and outdoor challenges strengthen social connections and confidence. Together, these approaches ensure children and young people have regular access to safe, supportive outdoor spaces that encourage play, exploration and wellbeing, while contributing to wider prevention, participation and achievement outcomes. 354 Children and young people participating in outdoor residential learning through DofE Bronze, Silver and Gold awards, camping residentials and AYA residentials reported positive experiences, supporting confidence, resilience, teamwork and personal achievement. 183 Young people participated in CLD supported employability activity through Duke of Edinburgh Bronze and Silver awards, including sectional achievements, and PDA in Youth Work programmes. Active Schools and KA Leisure Active Schools and KA Leisure have continued to work collaboratively to increase opportunities for children and young people to be active across both school and community settings. Through strong partnership working, we have ensured that each of the six localities has well-established links between school-based activity and wider community provision. Over the past year, our joint efforts have also focused on identifying and addressing gaps in local provision. This has allowed us to create a more equitable offer across all areas, ensuring that every young person, regardless of where they live, has access to a broad range of activity and sporting opportunities. As a result, the pathways from school participation into local clubs and community sport have been strengthened, supporting smoother transitions and encouraging sustained engagement. 156
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45 Furthermore, Active Schools has maintained a strong commitment to supporting young people who face the greatest barriers to participation. By prioritising targeted programmes and coordinated support, we continue to ensure that those who need our help most are able to access and benefit from positive, inclusive sporting experiences, particularly for young people who are care-experienced, living in poverty, at risk of disengagement, non-attenders, or otherwise identified for targeted support. Our overarching ambition of achieving “More Kids, More Active, More Often.” supports all schools across North Ayrshire to deliver high-quality, inclusive extra-curricular programmes that are accessible to every child and young person. Throughout the year, participation trends across our schools have highlighted the continued popularity of several key sports. The top five most actively engaged activities were football, netball, racket sports, dance and multi-sports, reflecting a broad range of interests and demonstrating the strength of provision offered across our localities. 157
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46 KA Leisure continues to deliver a broad and inclusive programme of sport and physical activity opportunities. Working closely with communities and partner organisations, we offer a varied calendar of term-time sessions alongside an extensive holiday programme. Our term-time offer spans all localities, delivering more than 150 classes each week and ensuring that young people and families have access to high-quality, community-based activity opportunities throughout the year. Our annual events calendar has also continued to grow in both scale and impact. This year, more than 5310 young people took part in a diverse programme of 75 competitive and participative events, showcasing their skills, representing their schools and experiencing the excitement of large-scale sporting occasions. These events play an essential role in developing teamwork, resilience and confidence while providing memorable experiences for participants. We have worked closely with partners to ensure pupils with additional support needs (ASN) can participate in meaningful and appropriate competitive opportunities. This includes supporting ASN young people to attend both the Ayrshire Sportsability events and activities within the Scottish Disability Sport calendar. By providing tailored pathways and ensuring representation at these events, we continue to uphold our ambition that every young person has the chance to perform, compete and celebrate their achievements at a level that is right for them. 158
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47 Engagement levels have been strong. A total of 9,781 young people participated in sport and physical activity sessions during the year—representing over 53% of the entire school-aged population in North Ayrshire. This reflects both the reach of our programme and the value placed on physical activity by our schools, families and communities. Across the year, 13,065 individual sessions were offered, generating an impressive 271,061 participant visits. This figure illustrates the depth of engagement within the programme: for example, ten pupils attending ten sessions each equates to 100 recorded visits. These levels of participation highlight the consistency with which young people return to Active Schools activities. This year, 703 individuals contributed to the delivery of Active Schools sessions, and 98% of them were volunteers. This represents the highest proportion of volunteer deliverers recorded anywhere in Scotland. Their commitment, time and passion are critical to the success of the programme. During the last academic year, Active Schools worked closely with 60 community sports clubs across North Ayrshire, strengthening partnerships and increasing the breadth of provision available to children and young people. These clubs contributed significantly to school engagement by delivering a variety of high-quality activities, including: • Curriculum enhancement sessions, providing additional PE input beyond the statutory two hours • Health week activities, supporting whole-school wellbeing initiatives • One-off taster days, offering pupils the chance to try new sports and activities • Visits to local clubs, helping young people experience community-based environments • Promotion of club opportunities, such as distributing flyers and raising awareness of routes into long-term participation In addition to this strong school-club collaboration, our North Ayrshire Community Sport Hubs continue to thrive. Working in partnership with KA Leisure, we have provided extensive support to local clubs, including access to training opportunities, facility provision, and tailored one-to-one development sessions aimed at strengthening governance, sustainability and volunteer capacity. 159
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48 To further enhance community engagement, we have collaborated with selected affiliated clubs to deliver satellite club programmes, enabling more localised and accessible participation options for young people. These satellite sessions are helping bridge the gap between school activity and long-term involvement in community sport. Leadership Programmes At primary level, the P6 Move and Improve Programme has made a significant impact, with 1,006 pupils trained as young leaders this year. These pupils play a key role in their school communities by planning and delivering high-quality lunchtime sport and physical activity sessions for their peers. To strengthen the sustainability of the programme, 34 teaching staff have also been trained, enabling them to support leadership development and ensure consistency across all participating schools. In secondary schools, the Young Ambassador Programme continues to thrive, with 126 S1–S6 representatives actively championing sport and promoting the importance of being active within their school communities. These young leaders act as role models, supporting events, raising awareness of opportunities and helping influence positive attitudes toward sport and wellbeing. 160
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49 Leadership development is further enhanced through the North Ayrshire Sports Academy, aimed at senior pupils in S5–S6. This year, 147 young people took part in the programme, gaining between 8 and 12 recognised qualifications each. These include Saltire Awards, National Governing Body coaching qualifications, and, at the highest level, the SQA Higher Leadership Award. The breadth of accreditation provides participants with valuable skills and nationally recognised credentials that support future education, employment and volunteering pathways. This equates to more than 5000 volunteer hours within schools and the wider community. This comprehensive leadership pathway not only builds capacity within North Ayrshire’s sporting landscape but also empowers young people with lifelong skills, confidence and a sense of civic responsibility. Active Girls Committees This year marked the successful introduction of Active Girls Committees across all nine secondary schools in North Ayrshire, representing an important step forward in promoting gender equity in sport and physical activity. A total of 45 motivated young leaders were appointed to these committees, each entrusted with the responsibility of encouraging increased participation among female pupils and helping to remove the barriers that often limit girls’ engagement in physical activity. Throughout the year, these young leaders have demonstrated exceptional commitment and maturity, acting as positive role models within their school communities. They have collaborated closely with PE departments, Active Schools staff and wider school teams to identify areas for improvement and to contribute to the development of more inclusive, girl-friendly environments. Their work has included advocating for the needs and preferences of female pupils, improving visibility of opportunities, and championing a culture where girls feel confident and supported to be active. In addition to their strategic contributions, the committees have played an active role in designing and delivering bespoke girls-only programmes and events, tailored specifically to increase engagement and create safe, welcoming spaces for participation. These initiatives have included lunchtime and after-school sessions, awareness campaigns, taster activities and targeted interventions to encourage girls who may be less physically active. The creation and success of the Active Girls Committees have strengthened the voice of young 161
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50 women in shaping school sport, contributing meaningfully to North Ayrshire’s wider commitment to inclusion, empowerment and lifelong participation. Quote: “Active Girls was one of the best experiences I’ve ever been a part of. It helped me build strong relationships with other girls and keep those friendships going. It also improved my communication skills and helped me feel more confident, relaxed, and able to enjoy every moment. I loved meeting new people and learning how to encourage other girls to enjoy sport the same way I do. I would honestly recommend this experience to anyone because it has helped me grow as a person through sport and physical activity. One of the tasks I enjoyed most was finding out what girls at my school liked and disliked about sport. Getting this feedback allowed me to help make changes within the PE department so that every girl felt included and comfortable taking part. This motivated me to get to know the girls better and understand the barriers they face, so I can hopefully help tackle them and make sport more enjoyable for everyone.” Quote: “I have enjoyed planning and creating change in an around sport for girls to feel more comfortable when participating in Sport. From my experience being in active girls for 2yrs it has helped me develop my confidence as I know speak up and use my voice to make change for other girls in sport.” Care Experienced Young People By adopting a Whole Systems Approach, the programme supports individuals to access sport and physical activity opportunities that contribute to healthier, more active lifestyles. 373 young people participated in a wide range of experiential opportunities. These experiences were diverse and engaging, including activities such as water sports, climbing, sailing, residential trips, and community fun days. To ensure equitable access, the team worked closely with internal and external partners to address individual barriers, including transport, appropriate clothing, food provision, and activity access. This coordinated support enabled seamless participation for those who may otherwise have been excluded. Following their initial experiential opportunity, young people were encouraged and supported to transition into regular physical activity within their school or local community. As a result, 84% chose to continue their involvement in ongoing sport or activity programmes. Of the 373 participants, 53% were living in the two most deprived SIMD quintiles (SIMD 1 and 2), demonstrating the programme’s strong reach into communities experiencing significant inequality. 162
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51 Appendix 1 contains the detailed action updates for 2025-26 for the Children’s Services Plan Actions. Appendix 2 contains the most recent Performance Indicator data for the associated PIs. Appendix 3 contains the Whole Family Wellbeing Fund Report which covers the detailed information associated with the fund. 163
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Appendix 1 – Children’s Services Plan Action Updates 2025-26 Priority 1: The rights of children and young people are promoted and protected No. Action Update 2025-26 1 Implement the North Ayrshire UNCRC Plan actions, ensuring the rights of all children and young people are protected. North Ayrshire Council has continued to put children’s rights at the heart of how services are planned and delivered. Staff across the council have taken part in training to understand their responsibilities under the new UNCRC law, including a mandatory online course. The council has also reviewed tools like the Equalities and Children’s Rights Impact Assessment and made the complaints processes more child-friendly so young people can speak up more easily. Work to combine the Children’s Services Plan, Child Poverty Action Plan and UNCRC Plan into one joint plan—shaped and overseen by young people—means children’s rights are now further embedded in children's services planning and delivery. Children and young people have been more involved in shaping services and decisions that affect them. They have taken part in budget consultations, contributed to health and social care planning, and influenced school and council priorities through groups like Youth Voice and Champions Boards. The UNCRC Steering Group has supported this work by raising awareness, providing training, and checking progress across services. Now that the group has completed its main tasks, ongoing work to protect children’s rights will continue through existing partnerships and the new joint plan, helping make sure all children and young people are listened to, included and protected. 2 Ensure the voices of children and young people are heard and influence the work of the Community Planning Partnership. Community Learning and Development supported 5796 young people through active citizenship and community participation through youth forums, Joint Cabinet, Community Councils, Place Framework activity, consultations, climate workshops, community investment activity and issue-based youth work. Engagement strengthened voice, shared decision-making and confidence in shaping local priorities. 3 Provide opportunities for children and young people to develop their citizenship skills, including active democratic participation opportunities. Over the year, North Ayrshire Council has continued to strengthen youth participation and rights-based practice through the Champions Board, Executive Youth Council, Members of the Scottish Youth Parliament (MSYPs) and a range of engagement activity. This work has supported delivery of The Promise, UNCRC duties and Council Plan priorities by ensuring young people are informed of their rights and meaningfully involved in decision-making. Care experienced young people were supported across all secondary schools through the Champions Board, including delivery of the What Is The Promise? programme and strategic input from Champions Board Representatives, whose priorities were shared directly with staff and senior leaders. The Executive Youth Council and MSYPs met regularly throughout the year, contributing to Council engagement on key issues including budget consultation, food insecurity, period poverty and equality campaigns. MSYPs continued to represent young people locally and nationally, with one North Ayrshire MSYP successfully proposing a national motion on access to free school breakfasts. Youth voice was further strengthened through large-scale engagement, including a Joint Cabinet session with elected members and senior officers, a refreshed Joint Youth Forum model, and the annual Youth Conference delivered during National Youth Work Week. Feedback gathered across these activities continues to inform service planning and policy development. Significant progress was also made in embedding participation structures and children’s rights. Young people co-produced the Pupil Voice Toolkit in partnership with Education, providing practical guidance to support 164
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2 No. Action Update 2025-26 inclusive and meaningful pupil participation and delivery of Article 12 of the UNCRC. Connected Communities, alongside Education, continued to lead UNCRC implementation through staff training, member briefings, child-friendly reporting and direct engagement with young people, ensuring a consistent rights-based approach across Council services. 4 Equality and Children’s Rights Impact Assessment (ECRIA) will be carried out on all new policies that affect the lives of our children and young people. During 2025/26, eight full Equality and Children’s Rights Impact Assessments (ECRIA) and seventeen pre-assessment screening forms were completed, each assessment asks about the potential impact on protected characteristics including age (incorporating young people) and on which Children’s Rights could be affected by any policy or proposal being reviewed or developed. Mitigations are identified to counteract any impacts identified through the assessment process; some of the mitigations required further research or exploration or identified other processes to reduce or negate any potential impacts. During 2025, six training sessions took place on how to carry out an ECRIA, each session included an overview of the Children’s Rights process. Briefing sessions were delivered in conjunction with our legal team. We also continue to support services by providing advice and guidance on an on-going basis in relation to completing impact assessments. 5 Through the engagement workstream of the care experienced task force, work proactively with Children and Young People. Significant progress has been made this year in strengthening engagement with care experienced young people across secondary schools and through wider corporate parenting work. All 10 schools now have active Champions Boards; young people co-designed two major Promise Conferences; and the Boards continue to shape service priorities through “What Matters to Us”. Large-scale events, including the Employability & Skills Fair, the Summer Programme, Care Experienced Week, and the Christmas Dinner, further broadened opportunities for participation and connection. The Promise Champions staff network has supported learning and improved Corporate Parenting practice across services. Feedback gathered from staff and young people throughout 2025–26 will inform the refreshed Corporate Parenting Plan, ensuring it is inclusive and grounded in lived experience. 6 Co-create with children and young people new, systematic mechanisms for maximising learner participation and voice and create a new Learner Participation Policy. The new Learner Participation policy and operating procedure (POP) was launched across all establishments. The Young Leaders of Learning programme was piloted by 11 Early Years centres and schools. This programme enhanced opportunities to maximise learner participation and learner voice across the pilot establishments. 7 Ongoing consultation with children and their families on service design and delivery. Over the year, we engaged a significant number of young people through structured consultation and events to gather views on key issues. This included the 2 Joint Cabinet event, where over 200 secondary pupils engaged directly with elected members and senior officers on priorities such as child poverty, wellbeing, risk-taking behaviour and employability. Engagement was further strengthened through the 3 Joint Youth Forum (almost 40 young people), the Youth Conference (94 young people), and targeted budget consultation at youth-led events. Additional consultation was delivered through the Champions Board, engaging care experienced young people across all secondary schools, and Primary 7 engagement, involving 114 pupils focusing on UNCRC themes including identity, language and poverty. Feedback from all engagement has informed service planning, strategy development and policy discussions, ensuring young people’s views are embedded in decision-making at local and strategic levels. 8 Ensure that Children’s engagement forums focus on rights, helping children and Over the year, UNCRC principles were embedded through targeted consultation and participation activity with children and young people. Engagement included 114 Primary 7 pupils participating in Youth Council workshops exploring key UNCRC 165
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3 No. Action Update 2025-26 families understand UNCRC and what this means. articles, including Article 8 (identity), Article 26 (child poverty), Article 27 (risk-taking behaviour) and language and inclusion (Article 30). Feedback gathered informed service planning and was shared with partners. Care experienced young people were engaged through the Champions Board across all 10 secondary schools, with delivery of the What Is The Promise? programme supporting awareness of rights and The Promise. Young people identified priorities through structured engagement, which were presented directly to staff and senior leaders to inform corporate parenting practice. Strategic consultation also took place through large-scale engagement events, including a Joint Cabinet session involving over 200 secondary pupils, where young people shared views on poverty, wellbeing, risk-taking and employability with elected members and Chief Officers. Additional UNCRC-aligned engagement was delivered through the Joint Youth Forum and Youth Conference, ensuring children and young people’s voices informed policy development, service redesign and decision-making across the Council. 9 Work with local partners/members to identify opportunities for children and young people to become involved locally. Throughout the year, strong partnership working with Education, Alcohol and Drug Partnership (ADP), Police Scotland, extended outreach services and third-sector organisations has supported increased opportunities for children and young people to become involved locally. Joint approaches enabled young people to engage meaningfully on issues such as substance use, risk-taking behaviour, wellbeing, child poverty and safeguarding. This partnership approach was evident through strategic engagement including the Joint Cabinet event, Joint Youth Forum, Youth Conference and targeted outreach activity, providing young people with direct access to elected members, senior officers and partner services. Collaborative working has strengthened early intervention, widened participation and ensured young people’s views are embedded in local decision-making, service planning and community responses across North Ayrshire. 10 Through our Advocacy Strategy prioritise community-based advocacy to children and young people ensuring they are aware of their rights and are appropriately represented. Independent, community based, advocacy continues to be provided via Barnardo’s Hear 4U service. It provides one to one advocacy to children and young people from North Ayrshire and priority is given to children and young people, who: • Are involved in the Child Protection process and/or Children’s Hearing system • Are care experienced in Foster Care, Residential Care and/or Kinship Care • Are on the periphery of Secure Care • Were previously looked after and accommodated • Have additional support needs They continue to support young people to ensure they are aware of their rights, as defined within the United Nations Convention on the rights of the Child (UNCRC). They are committed to ensuring that the voices of children and young people are heard, in a way which builds their confidence, also ensuring that they are listened to and their rights are appropriately represented, when decisions are made 11 Implement learning and improvements identified through the HSCP SDS Learning Phase 1 activity is largely complete. The SDS Policy has been finalised and accompanying SDS Practice Guidance has been completed to support consistent and proportionate application in practice. A North Ayrshire Directory of Services has also 166
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4 No. Action Update 2025-26 Review Board for the Children with a Disabilities Team. been produced to support signposting. The SDS website has also been fully developed and is now live, providing updated and accessible information for children and families, adults and practitioners. Work is at the final stage in relation to Level 1 SDS Awareness and Training. Further development work is still required in relation to the ethical care framework to ensure full alignment with SDS principles and revised operational practice under the Eligibility Policy. 12 Include young carers in the planning and shaping of their services. A peer-led approach, such as the Young Carers Champions Boards now being delivered across all secondary schools, creates meaningful opportunities for young carers to influence decisions that affect them. These initiatives amplify young carers’ voices and ensure that a diverse range of experiences is represented, including those of young carers from minority ethnic backgrounds, LGBTQ+ communities, and young carers who have their own disabilities or health needs. 13 Develop a young people users forum for KA Leisure and ensure their views and opinions are considered when developing programmes and initiatives. Delay in implementation due to a governance review. Following recent board approval, the panel will be established in 2026/27. Priority 2: Acting early to improve what happens next No. Action Update 2025-26 14 Work with our partners to keep all children and young people safe, with the robust implementation of the new National Guidance for Child Protection. In collaboration with our Pan Ayrshire Colleagues, the North Ayrshire Child Protection Committee have developed the Ayrshire Child Protection Procedures. These procedures were updated following the publication of the National Guidance for Child Protection, 2021 (updated 2023). Changes in North Ayrshire practice have been embedded in accordance with the guidance across the partnership and are reviewed via the Management Information Sub-group and Evaluation and Improvement Sub- group of the Committee. 15 Support families with children aged 0-5 through our integrated universal early years’ service. There are over 5000 children aged 0-4 years in North Ayrshire, all of whom are supported by either a Health Visitor or a Family Nurse. In addition to following the nationally agreed Universal Health Visiting Pathway from the antenatal period through to a child commencing school, within North Ayrshire, children under 5 and their families continue to have access to additional support from the wider, integrated early years team. During 2025/26 (as at 17 March 26), 730 requests for assistance from the various members of the integrated team were made. This included: • 461 (83.6%) for Health Visiting Support Workers for areas such as communication, sleep, toileting, infant feeding and behaviour • 64 (8.8%) for the Perinatal Wellbeing Team, supporting new and expectant mums experiencing low level mental health difficulties • 60 (8.2%) for the Family Nurturers who offer support around bonding and attachment, routines, home conditions and community integration • 57 (7.8%) for Early Years Social Workers supporting with domestic violence, parental mental health difficulties amongst others 167
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5 • 38 (5.2%) for specialist infant feeding support • 29 (4.0%) for support to dads via our partnership with national charity Dads Rock • 19 (2.6%) for the Healthcare Support Worker who provides additional support to the Perinatal Wellbeing Team as well as baby massage 16 Increase access to early learning and childcare. The 1140 funded hours continue to be delivered with flexibility and choice for parents across localities. Our models offer a blend of full year and term time places with various patterns in establishments delivering 8am-6pm and 9am – 3pm. Allocations have taken place for session 25-26 and 85% of parents have been offered their 1st choice for establishment. Work is continuing to raise awareness of eligibility and increase the uptake of eligible 2s. 17 Work together with parents or carers to provide support to their children. We have continued to roll out the Building on Positive Relationships Families groups. This financial year 17 groups have taken place with 22 families taking part. All participants have reported that the programme was either extremely useful or very useful and it has had a positive impact on family life. 18 Improve outcomes for care-experienced young people. Our Brighter Pathways transformation programme to improve outcomes and opportunities for care experienced children and young people has been progressing since April 2024. The transformation and service developments were delivered through focussed workstreams on the following areas: 1. Housing and Throughcare 2. Fostering and Kinship 3. Education including Residential School Placements 4. Internal Children’s Houses – Model of Care 5. Early Intervention & Intensive Family Support 6. Strategic Needs Assessment/Data/Workforce 7. Best Practice Models and Research The Brighter Pathways work has involved all corporate parents which has assisted in a shared awareness of the challenges and opportunities to improve the provision of services for families, looked after children and care experienced young people. Progress during 2025-26 has included: 1. Our supported accommodation model of care is nearing completion with a proposed opening date of Summer 2026. This is designed to increase independence whilst maintaining relational support on a phased and gradual basis, rather than young people experiencing the cliff edge of transitioning to adulthood which they often talk about 2. Fortnightly planning meetings are taking place to discuss matching young people to the supported accommodation. 3. A new Fostering Scheme has been introduced, effective from 1st April 2026 to help retain current foster cares and encourage new foster carers. This will support placement stability by increasing retention of current experienced carers alongside strengthening approaches to local recruitment, reducing reliance on external provision (which is more often than not, not local). 4. The Moving on Forum has been implemented to encourage multi agency working between Throughcare and Housing. The Forum has improved coordination between Housing and Throughcare, with reduced delays in accommodation making decisions resulting in more predictable and better planned transitions for care leavers. This joint approach has helped mitigate impact of increased housing pressures by ensuring earlier planning alongside shared ownership this has resulted in day-to-day collaboration across Throughcare, Housing, internal children’s houses, fostering and kinship services. 168
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6 19 We continue to develop and implement the Childsmile programme, focussing on early referral and preventive advice for all families. In 2025 along with all boards in Scotland, NHS Ayrshire and Arran embarked on a programme to reorientate the Childsmile programme. This included changing how the Fluoride Varnish programme is delivered in educational establishments. The team are working to an action plan which is reported through the Oral Health Improvement Plan. Additionally a review of the Dental Health Support Worker programme has provided a clear direction for improving this service working alongside health visiting colleagues and other stakeholders. 20 We will continue to deliver Jumpstart, a family centred healthy lifestyle programme for children aged 2-17, who are above a healthy weight. During 2025/26, 40 children and young people aged 5–17 were supported through our Child Healthy Weight programme (JumpStart) in North Ayrshire. Referrals showed a balanced gender profile (21 male, 19 female), indicating equitable access across genders. Referrals were largely concentrated in early and middle childhood. Children aged 5–9 accounted for 45% (18/40) of referrals, those aged 10–13 comprised 37.5% (15/40), and 17.5% (7/40) were aged 14+. This reflects strong early identification through school-based pathways. Service delivery strongly aligns with health inequalities priorities. 62.5% (25/40) of referrals were from SIMD 1 communities, with a further 20% (8/40) from SIMD 2. Overall, 82.5% of referrals came from the two most deprived quintiles, demonstrating effective targeting of families experiencing the greatest socioeconomic disadvantage. Referrals were driven primarily by core health partners. School Nurses accounted for 27.5% (11/40) of referrals, GPs for 20% (8/40), and Dietitians for 17.5% (7/40). This highlights strong multi-agency engagement, particularly within universal and primary care services. During the reporting period, 66 group-based sessions were delivered within community settings. In addition, seven young people (teens) were supported through one-to-one interventions, making use of KA Leisure facilities. All participating children were provided with a KA Leisure card, offering a minimum of three months’ free access to KA Leisure facilities to support ongoing physical activity and sustain engagement beyond the intervention. 21 Expand our peer support service to all breastfeeding mothers as part of our integrated infant feeding service working alongside the Breastfeeding Network. From 1st July 2025, The National Childbirth Trust took over the contract with the third sector to provide postnatal breastfeeding support to all women who were breastfeeding on discharge from Ayrshire Maternity Unit. Between 1st July - 31st March, 1,331 breastfeeding women engaged in the support offered. Of those, around 50% were exclusively breastfeeding at 6-8 weeks. 22 Continue working with whole families, whole systems and whole communities to provide early intervention support to all of North Ayrshire’s Children. Through Safer Choices, Safer Futures, continued progress has been made in working with whole families, whole systems and whole communities to provide early intervention support for children and young people across North Ayrshire. Partnership working with Education, ADP, Police Scotland, extended outreach services and the third sector has strengthened joined-up responses to identified risks, enabling support to be offered at the earliest possible stage. This whole-system approach has focused on prevention, relationship-based practice and community engagement, ensuring that children, young people and families receive the right support at the right time. By aligning universal services with targeted interventions, Safer Choices, Safer Futures continues to support positive outcomes, reduce escalation of need and promote safer, healthier communities. 23 Providing training/guidance to families, schools, partners and communities that enhances the understanding of early intervention and provides skills needed for families to feel confident and equipped to manage family life. 1801 children and young people engaged with programmes delivered by the Mental Health and Wellbeing Project Delivery Officers. These activities prioritise supporting children and young people to develop ways to keep mentally well and promotes positive wellbeing practices. Examples of programmes delivered include, Drama for Wellbeing, Outdoors for Wellbeing, TakeTime Families and Your Resilience at The Hive in Ayrshire College. The BounceBack programme continues in Primary 169
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7 Schools with one young person aged 11 reporting “I liked the resilience exercise, I learned to believe in myself and try not to give up.” The CLIMB programme has been introduced in Secondary Schools where young people develop skills to positively manage their mental wellbeing and also gain some qualifications. Staff involved report substantial improvements in several areas including - Confidence and Self-Belief, Emotional Regulation and Wellbeing and Social Skills and Teamwork. Please see response to No. 15 and No 17. 24 We will implement the Signs of Safety approach to social work practice. Signs of Safety was launched in North Ayrshire HSCP in 2023 and now is fully embedded into professional practice. Signs of Safety (SoS) is described as an approach “to enable children's services to deliver services with a rigorous focus on child safety and wellbeing, and to set up their practice, policy, procedures and organisation so that the practitioners can do everything possible to put the parents, children and everyone naturally connected to the children at the centre of the assessment and decision-making”. Implementation has included briefings to CPC members, 5-day training for HSCP Social work children and families staff, baseline audit work and realignment of paperwork. In June 2025 an audit was undertaken. Activity involved a random sample across all open social work Children and Family cases on which at that point were 956. Within this audit, 10% of parents /carers of all open cases in children and families’ teams were interviewed and 70%-84% of the cohort interviewed felt that their workers show care, spend time with the children, help solve problems, recognise strengths within the family and are following through on actions. This is very positive feedback and an excellent base from which to build and improve practice. There is strong evidence from the responses gathered from children and young people that they feel listened to (63%), feel their social worker helps them (69.5%), feel their social worker knows their family (76%) and 71% of the children and young people interviewed feel they have a say in what happens to them. This data provides strong indications that there are positive working relationships between families and practitioners. Given how important working relationships are in evoking change for children this is an excellent starting point for implementation. 25 Improve planning for transitions of care to ensure children and young people are able to thrive moving into adulthood. A series of Short Life Working Groups (SLWGs) were completed between September and December 2025. The SLWGs looked at areas including resource allocation, Self-Directed Support, eligibility criteria and assessment formats. The conclusion of these groups provided actions to drive forward for future implementation. The following will be taken forward: • One resource allocation group for children with disabilities and adult learning disabilities. • Revise the current SDS model to bring up to date the budget structure. • Re-write the eligibility criteria for an All-Age Disability Team. • Continue to use Signs of Safety in CFDIS, however, to review the current paperwork format as was in period of review. Not to use the Signs of Safety Pathways Assessment as a transition assessment. Seek to move towards the use of GIRFE for transition and adult LD assessments. Since these decisions were agreed, changes outwith our control has meant that there are further amendments to make. Social Work Scotland Self Directed Support Children's Peer Space has provided a draft Scottish Government document which moves away from indicative budget-based supports to needs led. Further work is now required in relation to our current model. 170
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8 26 Invest in premises infrastructure to support children and young people experiencing distress in appropriate environments. The service approach is strongly aligned with the core principles of the Bairns’ Hoose national model. This includes a commitment to trauma-informed practice, ensuring children do not have to repeatedly retell their experiences, and providing coordinated, multi-agency support that prioritises safety, dignity and wellbeing. Joint Investigative Interviews (JII) and the Scottish Child Interview Model (SCIM) – Staff trained in SCIM undertake interviews using trauma-informed, child-led approaches designed to reduce distress, support memory accuracy and uphold children’s rights throughout the justice process. This ensures that the child’s voice is captured safely and respectfully, while supporting improved investigative and decision-making outcomes. The alignment between SCIM, JII and Bairns’ Hoose principles means that our workforce is already operating within the national direction of travel. We have established processes that reduce duplication, strengthen cross-agency communication and ensure that children have access to advocacy, therapeutic support and a consistent professional network. As the local Bairns’ Hoose model becomes fully operational, these foundations will enable seamless integration, ensuring that children’s journeys through care, protection and justice pathways remain centred on participation, protection and recovery. 27 Work across partners to develop robust pathways of support for infants, children and young people and their families seeking support for speech, language and communication development support. North Ayrshire Early Language Network group meets regularly to share information about supports available to children, young people & families seeing support for Speech, language and Communication (SLC). Health, education, early years social work, Family Nurse Partnership, 3rd sector representative are part of the network. Communication Champion Network in Early Years in North Ayrshire link closely with the SLT team and as a group quarterly to share practice. Communication Champions have received additional training from SLT to identify children who may require targeted support in early year, can share resources with parents and signpost them to SLT helpline and in person drop in session with SLT. A Social Communication in person drop in runs monthly. Any family with a concern about their child's social communication or activities for daily living can receive advice. The NHS Ayrshire & Arran Children's speech and language therapy Facebook page and app contains information for families and practitioners to access with many activities to help support children's speech, language and communication. There is a Helpline available for anyone with a concern about a child's speech, language and communication. They can speak to a registered Speech & Language therapist and receive advice and resources. Annual meetings with our Health Visitor colleagues ensure that they are familiar with the SLT pathways and build relationships with colleagues. 28 Improve access to Speech and Language therapy for children and young people who require specialist support. If families contact us through the helpline or attend an in person drop in with Speech and Language Therapy (SLT), they will receive advice and resources from the service. If a Request for Assistance is required because the child needs a complex SLT assessment they will be added to the waiting list. While the child is waiting for this complex SLT assessment the family will be offered support at a targeted level. They can continue to access the in person drop in, they may be offered a one off assistant demonstration session, for example, on Makaton. 29 Develop a trauma informed workforce by rolling out trauma aware and trauma skilled resources North Ayrshire Health and Social Care Partnership has invested in providing the majority of trauma informed training on a face- to-face basis. At this moment in time, many other organisations are relying on an online format. The positives of providing training in this manner is that staff are having the opportunity to have the discussions around what is working and what is not. This is crucial for services to start the process of looking at where changes need to occur. In partnership with Connected 171
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9 Communities we have developed a guide on Trauma informed Language for staff within the residential care setting. This has involved working with young people on how language has impacted them and what they would like to see improved. This informed training for residential staff along with a guide on language use. This has been rolled out to Canmore Children's House, but it is hoped that the other three houses will also get involved. Additional trauma inputs also take place for all newly qualified social workers and student social workers. Input is now also incorporated into the 5-day Child Protection Training Course. Education’s recently launched Supporting Relationships and Behaviour Policy and Professional Learning Programme supports the development of a trauma-informed workforce by providing a clear, graduated pathway from Trauma Aware to Trauma Skilled practice across universal, targeted and intensive levels. Universal professional learning, including CALM Theory, New Authority, Emotion Coaching, Expectations and Consequences develops workforce awareness of the impact of trauma, stress and adversity on relationships and behaviour, establishing a shared relational, compassionate and preventative approach that prioritises safety, predictability and emotional regulation. Targeted and intensive elements, including Positive Behaviour Support, CALM Physical Intervention, re-accreditation and structured train-the-trainer delivery with ongoing locality-based coaching, deepen the ability of education teams’ to respond safely and in a neuroaffirming way to dysregulated behaviour using low-arousal, dignity-preserving and trauma-informed strategies. Sustained coaching, peer reflection and access to national trauma, nurture and relationships-based resources ensure practice is embedded, consistent and reflective, supporting team wellbeing and resilience while enabling children and young people to experience emotionally safe, regulated and supportive learning environments. Develop an evaluation framework to maximise resources to support children and young people, to enable system partners to invest and sustain early intervention approaches. A monitoring and evaluation framework has been developed to support implementation of the Whole Family Wellbeing Fund. All funded elements provide 6 monthly reports setting out how they are meeting the aims and outcomes of the WFWF, involvement and impact on children, young people and their families, and sustainability. This is in line with the annual Scottish Government reporting expectations. 31 Reach and identify all young carers earlier in their caring role and promote increased uptake of Young People’s Carer Support Plans. We are committed to identifying young carers earlier in their caring journey and increasing the uptake of Young Carers Statements. Significant progress has been made across education settings to embed consistent, meaningful support. • 15 local primary and secondary schools have now signed up to the Young Carers Covenant, ensuring that young carer awareness and tailored support are embedded into school culture. • The number of Young Carers Statements offered and accepted across education continues to grow, reflecting stronger identification pathways and increased confidence among staff in recognising and supporting young carers. • A comprehensive Young Carers Education Information Pack has been developed to strengthen professional understanding and enable a consistent approach to support. • Young Carer Statement training sessions have been delivered for both education and HSCP staff, helping ensure that statutory duties are met and support is personalised and meaningful. • Carers Gateway Young Carer staff now able to offer and complete Young Carers Statements where appropriate. • Through collaborative work, Carers Gateway and local schools have established a shared working agreement, reviewed annually, which sets out mutual goals for identifying and supporting young carers. These may include: o Regular group sessions within schools 172
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10 o Dedicated one-to-one support for young carers o Developing a Young Carers Charter tailored to each school o Awareness-raising activities for pupils, families, and staff o Providing targeted resources for each school’s needs o Support during key transition points, including P7–S1 and the move to post-school destinations This collaborative, prevention-focused approach ensures young carers are identified earlier, understood better, and supported in ways that make a genuine difference to their wellbeing and educational experience. Priority 3: Making things fairer No. Action Update 2025-26 32 Implement the North Ayrshire Child Poverty Action Plan. Significant progress has been made this year in strengthening governance, delivery and system change to reduce child poverty in North Ayrshire. Child poverty is now embedded as a core priority of the Community Planning Partnership, strengthening strategic oversight and accountability. The Child Poverty Strategy Team, initially established through Fairer Futures Partnership funding, is now fully embedded and staffed through permanent roles, providing sustained leadership and coordination across partners. The No Wrong Door approach has transferred into the Child Poverty Strategy Team, ensuring closer alignment with strategic objectives. Fairer Futures Partnership activity has prioritised co-designing place-based tests of change with third sector partners and community members with lived experience as equal partners. This has led to the creation of new third sector posts within co-identified priority communities and the commencement of feasibility work on a community directory to improve access to local supports and services. A new Project Board has been established in recognition of the intersectional work and impact of child poverty, and to drive delivery at pace across three priority workstreams: Single Shared Assessment, No Wrong Door, and Data and Evidence. This structure will enhance collaboration, reduce fragmentation and improve the targeting of support. The Welfare Rights in Schools project expanded significantly during 2025–26, with three Welfare Rights Officers embedded across all educational establishments, including early years centres. Schools have provided trusted, stigma-free access to advice, enabling early intervention. During the year, the project secured £1.5 million in financial gains, with 240 families achieving positive outcomes. Continued funding is required to sustain and further develop the model, including testing more intensive support in selected schools. 173
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11 No. Action Update 2025-26 Across its first two years, the Child Poverty and Early Intervention Fund has now committed over £1 million, supporting both direct financial relief and innovative, co-designed test-of-change initiatives. This includes investment in integrated data through Smart Data Foundry and piloting a Family Enterprise Programme in partnership with Ayrshire College. Youth participation has been strengthened through engagement with the P7 Youth Council and Joint Cabinet, while modern apprentices have shaped the content of family friendly versions of the 24/25 Child Poverty Progress Report. Looking ahead, the development of the joint Children and Families Plan brings together children’s services, child poverty and UNCRC statutory duties. A focused youth panel with scrutiny and oversight responsibilities will be established as a key component of governance to ensure actions and implementation accurately reflect the needs of the communities they are intended to serve. 33 Improve attainment and achievement for all. There has been a focus on raising attainment for all children and young people across session 2025-26, including: • Key discussions and planning of attainment priorities with senior leaders across Early years, Primary & Secondary • Use of data for improvement, raising attainment and closing the poverty-related attainment gap • Relevant and purposeful uses of Play in EY and Primary • Involvement in the CYPIC National Writing programme for Achievement of a Level in Writing • Professional learning delivered by NAC Professional Learning Academy • Target-setting and monitoring of progress towards targets through attainment meetings across all 3 sectors • Focused and targeted support from Education Scotland Attainment Advisor • Data clinics for staff across all 3 sectors to support improved use of data to raise attainment • Embedded use of approaches and tools to gathering and analysing attainment data in Literacy and Numeracy from Early Years to S3, including input from EY Funded Providers and Childminders • Analysis of Senior Phase data with Secondary senior leaders to provide key priorities for next academic session • Looking outwards at national level as well as sharing strategy nationally • Development of a NAC Reading Programme which will begin to be implemented in academic session 2026-27 34 Close the poverty related attainment gap. Rigorous analysis of data for improvement at all levels includes a focus on closing the poverty-related attainment gap and how educational establishments can support those children and young people most affected by poverty. With 46% of learners residing in SIMD Q1, Education Service priorities ensure that universal approaches to improving learning, teaching and assessment, as well as raising attainment, allow a focus on approaches to closing the gap. Strategic planning and spending of Pupil Equity Funding by schools allows for focused and targeted interventions and supports for learners most affected by poverty, with input focused on Health and Wellbeing, Literacy and Numeracy. Quality assurance of this is included in annual PEF impact reports as well as Improvement Plans and Standards and Quality reports. Senior Education Authority staff attended national events on Scottish Attainment Challenge and PEF and delivered input to highlight effective practice in NAC schools. 174
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12 No. Action Update 2025-26 There remains a commitment in schools and in the Education Service to mitigating against the Cost of the School Day, with approaches such as uniform banks, Prom dresses and low/no cost trips and excursions. 35 Implement the recommendations from the Independent Care Review (Scotland), The Promise. We are fully committed to #KeepThePromise which provides a benchmark for corporate parents, carers, practitioners, managers, care experienced community, and decision makers in fulfilling the goal to meet the collective and individual needs of all of our Care Experienced infants, children and young people. A staff Promise Conference was held on 20th January 2026 and brought together care experienced young people, senior leaders, operational managers, and corporate parenting partners. The event focused on reflecting on our responsibilities as corporate parents, strengthening commitment to The Promise, and gathering staff voice to inform the Corporate Parenting Plan refresh. In November 2025, we held our annual joint Champions Board Conference, attended by 9 out of 10 schools and 59 young people. The conference was co-designed with young people and focused on themes they identified as important, including: Understanding The Promise Using their voice safely and powerfully Building connections with peers across schools Planning the Summer 2026 Programme Their views from the day have been captured in the “What Matters To Us” poster, identifying the six shared young people’s priorities: Feeling Safe and Secure Trust and Relationships Having a Voice and Being Listened To Friendships and Social Connections Opportunities and Aspirations Understanding and Respect Together, this provides a summary of what matters most to our care experienced young people and will directly inform the next Corporate Parenting Plan. The HSCP and multi-agency partners continue to promote and implement The Promise locally. The Corporate Parenting Steering Group continues to meet quarterly to drive the work of the Corporate Parenting Action Plan which captures all activity associated with The Promise. The action plan has been aligned with the 5 key foundations upon which The Promise is built - Care, Voice, Family, People and Scaffolding. 36 Implement the recommendations from the Additional Support for Learning Review (Scotland). Educational Psychology Service continues to contribute to recommendations from the ASL review, building workforce capacity through trauma-informed, inclusive professional learning and coaching, strengthening inclusive leadership, mindsets and practice, improving attendance and participation, and securing equitable outcomes for neurodivergent learners through consultation , assessment, intervention and research. 175
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13 No. Action Update 2025-26 37 Build strong collaborative partnerships in local areas to ensure we deliver high-quality services for all of our children, young people, and families. Rosemount: The Rosemount Crisis Service has built strong collaborative partnerships across North Ayrshire by operating as a highly integrated, multi-agency service focused on supporting children and young people with complex needs and significant levels of risk, with the clear aim of keeping children safely at home with their families and out of local authority care wherever possible. The service mainly works with the four Children & Families Social Work teams in North Ayrshire - but also accepts referrals from the Families for Children, Children & Families (Disabilities), Kinship and Young Person Support teams - and plays an important role in the wider multidisciplinary response to family crisis, escalating risk, and instability. Rosemount is embedded within statutory planning and decision-making processes and contributes to Child Protection processes and plans, Looked After and Accommodated Children (LAAC) processes, Children’s Hearings, and wider young person protection pathways, including Vulnerable Young People (VYP) and CARM arrangements. Partnership working extends beyond social work to include Education, CAMHS, Police Scotland, health services, and community-based supports, ensuring that children and families receive a holistic, coordinated, and responsive service. This integrated model enables Rosemount to respond effectively to overlapping issues such as family breakdown, distressed behaviour, trauma, school non-attendance, mental health concerns, and contextual risks. A key measure of the service’s impact is its consistent success in keeping over 90% of the children involved with the service each year out of local authority care. This demonstrates the effectiveness of intensive, relationship-based crisis intervention when delivered in close partnership with families and professionals. Rosemount’s collaborative approach strengthens risk management, improves family functioning, and creates the conditions for safer, more stable home environments. Overall, the service’s strong local partnerships are central to delivering high-quality, child-centred, and family-focused support, ensuring that children and young people with the most complex needs receive the right help at the right time, while reducing the likelihood of escalation into care. Family Centred Wellbeing Service: The Family Centred Wellbeing Service (FCWS) has built strong, effective partnerships across North Ayrshire by embedding a whole-system, relationship-based approach to early intervention and family support. Working collaboratively with education, health, social work, and a wide range of third sector and community partners, FCWS ensures that children, young people, and families receive coordinated, holistic support that responds to complex and interconnected needs. Practitioners actively engage in multi-agency planning, including Team Around the Child (TAC) processes, and play a key role in bridging gaps between services, advocating for families, and improving communication across the system. 176
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14 No. Action Update 2025-26 Partnerships are also shaped by the needs and voices of children and families, with flexible approaches that connect individuals to supports aligned with their strengths, interests, and circumstances, including community-based opportunities that promote inclusion and reduce isolation. This collaborative model has contributed to tangible improvements in outcomes, including: • improved school attendance and engagement, • increased emotional wellbeing and confidence, • strengthened family relationships and parenting capacity, and • improved access to mental health, financial, and community supports. By working in this integrated and responsive way, FCWS has strengthened local service delivery, enhanced access to early support, and contributed to preventing escalation to crisis or statutory intervention - particularly for families experiencing the greatest levels of disadvantage. An example of this is the first year of joint delivery of the SCQF level 5 Performing Engineering Operations Award between NAC Education Service and Ayrshire College. Learners from over 5 different NAC Secondary schools are taught the course at Ardrossan Academy and Ayrshire College, resulting in an increased number of pupils being able to access the course. other benefits have been upskilling of school staff in the delivery and assessment of the Award, improved partnership working with the College and a direct link to opportunities within the Ayrshire Growth Deal. 38 Create a new 3 year Raising Attainment Strategy. Raising attainment continues to be a focus for all schools and Early Years establishments, with a commitment to ensuring added value across and through all 3 sectors in a child’s learning, attainment and achievement. Senior leaders’ feedback and the Data Service Improvement Group have helped to shape a refreshed approach to collecting Literacy and Numeracy data and how this is then used to create targets for all establishments. A more focused approach in analysing attainment data is helping to shape Service priorities and collaborative working between central staff and schools to ensure that all learners attain and achieve their best outcomes. 39 Maximise opportunities to work with Third Sector providers to provide early intervention and prevention supports, with a particular focus on primary prevention approaches. Through Whole Family Wellbeing Funding, the Children’s Services Strategic Partnership has awarded grants to third sector organisations during this financial year with the aim of testing or expanding early intervention projects which support a whole family approach. Some of these projects include support to kinship families, transition support to young people with additional support needs and support to dads. Through Children and Young People’s Community Mental Health and Wellbeing Funding, small grants have been awarded to a range of Third Sector partners. Examples of programmes include, using judo to promote wellbeing, KA Leisure have developed programmes and work in collaboration with schools, nature based programmes, and programmes that promote financial stability. 177
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15 No. Action Update 2025-26 40 Providing a robust ‘peer’ support model that upskills parents and carers, providing training and volunteering opportunities and enhances employability skills as well as building self-esteem and confidence. In 2025/26, the Employability service has registered 811 new parents who are engaging, developing skills, confidence, and resilience to secure and sustain employment in the future. In this period 85 parents have secured paid work experience through placements created from the Skills for Life initiative. We Work for Families have supported 134 parents to progress to sustainable employment as well as increasing their household incomes. Two new Peer Navigators have been recruited to engage and support parent to engage in training, volunteering and the range of opportunities provided by Your Next Move Working North Ayrshire to prepare people to progress to employment. 41 Take an asset-based approach to communities/children and families and build upon the skills and strengths that exist. North Ayrshire has been implementing Safe and Together since 2021, a model which is designed to improve our practice and how we work together with families where there is domestic abuse and concerns about children. 42 Establish a Financial Inclusion Partnership in North Ayrshire to better support access to support for families. Our 2025 ambitions to deliver services through an Advice Line and a single point of contact are now fully embedded. Client- centred outcomes surveys are routinely issued at case closure, strengthening our understanding of impact and ensuring continual service improvement. In-house debt advice is fully operational, providing seamless access to both debt and welfare rights support across all tenures. The Financial Inclusion Partnership Communications Subgroup was established during the year and successfully delivered the Partnership’s first multi-agency event in October. The event, themed around winter preparedness, brought together a range of services with the aim of increasing awareness of support available across North Ayrshire and improving understanding of how services connect and refer between one another. Workshops were delivered by Citrus, Community Link Workers and Christians Against Poverty (CAP). The Financial Inclusion Partnership continues to grow and strengthen, with new members joining throughout the period. Collaborative working with third sector organisations and partner agencies remains central, with a shared focus on developing clear referral pathways and delivering coordinated, joined-up support for residents. 43 Develop peer support models. The Modern Apprenticeship programme is being used as a peer support model by creating visible, relatable role-model opportunities for young people within their own communities. Apprentices, many of whom have lived experience of local challenges, support younger peers through informal mentoring, shared learning and positive role-modelling, helping to build confidence, aspiration and engagement. By positioning apprentices within community and youth work settings, the programme supports peer-led learning, early intervention and prevention, enabling young people to access advice, reassurance and support from someone they can identify with. This approach strengthens relationships, promotes positive behaviours and supports children and young people to make safer choices, while also building skills, confidence and progression routes for the apprentices themselves. 44 Strive for parity of access to support and services for our Island Communities including for Children and Young People. Work has continued to strengthen equity of access to youth work support and participation opportunities for children and young people in North Ayrshire’s island communities. Partnership working with Arran Youth Foundation has supported the development of a local youth work offer on Arran, ensuring provision is responsive to local need while remaining connected to wider Council priorities. Island communities are routinely included in all youth voice structures and engagement activity, including the Youth Council, Joint Cabinet events and wider consultation processes, ensuring young people from Arran have 178
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16 No. Action Update 2025-26 opportunities to influence local and strategic decision-making. The appointment of an MSYP from Arran has further strengthened parity of access, enabling regular feedback from island young people and ensuring their views are represented consistently at both local and national consultations. 45 Provide multiple points of access for young carers into carer support services. We are committed to ensuring that young carers can access support in ways that are flexible, familiar, and responsive to their needs. A range of access routes has now been embedded across education and community settings, ensuring no wrong door to support. • Dedicated Young Carers Champions are now in place within every primary and secondary school. These Champions act as a first point of contact for identification, support, and information-sharing within their school communities. • Three Young Carer Workers are aligned to clusters of three secondary schools and their associated primary schools. This structure ensures consistent partnership working, proactive engagement, and timely support for young carers and their families. • A termly Young Carer Newsletter is shared with education staff, providing updates on supports available, upcoming events, awareness activities, and practical resources for working with young carers. This helps maintain visibility and ensures staff remain informed throughout the year. • An upgraded Carers Gateway digital self-help portal for young carers was launched in August 2025, offering 24/7 access to a wide range of information, resources, wellbeing tools, and guidance. The platform significantly enhances accessibility - enabling young carers to seek help at any time, in a format that suits them. Together, these access points ensure that young carers can engage with support through trusted adults in school, dedicated staff, digital tools, or wider community activities. This blended model strengthens early identification, reduces barriers, and offers young carers multiple pathways to information, advice, and personalised support. Priority 4: Promoting good mental health and wellbeing No. Action Update 2025-26 46 Develop our nurturing approach across all Children’s Services. A nurturing approach is being embedded across Children’s Services through shared trauma-informed and relational practice. In Education teams this is evolving into a New Authority model that combines compassion with clear, supportive boundaries. Professional learning in nurturing, Emotion Coaching, Positive Behaviour Support and CALM is supporting consistent adult responses focused on safety, regulation and repair. This year there are examples of joint problem-solving with Psychological Services, Children’s Houses and CAMHS - growing a community of practice for care-experienced young people enabling shared learning and consistency across services. 47 Work with children, young people, families, and communities to improve mental health and wellbeing through physical activity and social participation. Youth work activity continued to make a significant contribution to improving the health, wellbeing and life chances of young people across North Ayrshire. A sector-leading approach to youth voice and participation enabled young people to influence decision-making on issues including rights, equalities, mental health and community priorities through Youth Forums, Champions Boards and the Joint Cabinet. This work strengthens confidence, belonging and civic participation, ensuring services are shaped by young people’s lived experience, including care-experienced young people and young New Scots. 179
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17 No. Action Update 2025-26 Targeted and universal programmes supported mental health, resilience and positive relationships across schools and communities. Evidence-based and creative approaches, including Your Resilience, Bounceback, Drama for Wellbeing and outdoor and physical activity programmes, helped young people develop emotional literacy, coping strategies and self-regulation. Early intervention and prevention activity addressing suicide, alcohol and vaping risks was complemented by workforce development on neurodiversity, trauma and complex behaviours, strengthening the quality and consistency of support available to young people. The Duke of Edinburgh’s Award continued to provide a strong wellbeing and achievement pathway, engaging over 1,000 young people across schools and communities and supporting progression through Bronze, Silver and Gold awards. Alongside this, targeted programmes and partnerships supported care-experienced young people, young New Scots and those facing additional barriers to build confidence, maintain connections to education and progress to positive destinations. Together, these approaches demonstrate a coherent, strengths-based model that combines participation, prevention and progression to improve wellbeing outcomes at scale. All Active Schools activities are designed to support and promote positive mental health and wellbeing for every child and young person who takes part. Our year‑round programme of extra‑curricular opportunities, events and leadership initiatives plays a vital role in reducing stress, boosting mood, and enhancing self‑esteem among participants. To further strengthen our approach, the Active Schools team has developed a comprehensive guidance resource for schools. This guide raises awareness of how our programmes contribute to improved mental health outcomes and provides practical examples of the ways physical activity and leadership experiences can positively influence wellbeing. In addition, all coaches and volunteers involved in Active Schools delivery participate in a robust mental health training programme. This training equips them with the knowledge and confidence to recognise signs of poor mental health, create inclusive and supportive activity environments, and respond appropriately to the needs of young people during their weekly sessions. Through this combined focus on participation, education and staff development, Active Schools continues to play a significant role in nurturing healthier, happier and more resilient young people across our communities. 48 Continue to have appropriate pathways in place for supporting mental wellbeing. Our school counselling service supports children and young people aged 10-18, in the school setting, this year 500 children and young people accessed the service with 98.6% reporting an improved CORE-YP score. Our Area Inclusion workers and additional support staff continue to deliver Let’s Introduce Anxiety Management (LIAM) with positive impact. Mental and emotional wellbeing is one of the 10 priority pathways in the school nursing service. We are currently exploring ways to record this to allow more accurate reporting. All staff nurses supporting the school nursing service are trained in LIAM. 49 Work together with children, young people, and their families to help build resilience. Education and Social Work teams have worked together in the following areas – see WFWF report for greater detail. • Building parental confidence and capacity: The Building Positive Relationships (BPR) programme strengthens adult presence, helping parents regulate, de-escalate and repair relationships, reducing reliance on crisis intervention and supporting sustained family resilience. Pre-programme assessment, readiness processes and flexible delivery enable families to access timely support before challenges escalate, building coping strategies and emotional regulation skills. Emotion coaching, neurodevelopmental understanding and co-parenting inputs support parents to 180
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18 No. Action Update 2025-26 better understand their child’s needs, improving relationships and reducing family stress. There is evidence that the BPR approach is helping some families feel less alone, fostering peer connections and shared problem-solving that strengthens family resilience. • Consistent, joined-up support around families: Weekly Educational Psychology consultation with the Family Centred Wellbeing Service (FCWS) has enhanced problem-solving, goal-setting and reflective practice, enabling tailored, strengths-based support for families. • Supporting attendance and anxiety: Development of targeted resources (e.g. animation groups and attendance-related anxiety supports) helps children and families build confidence and coping skills linked to engagement and participation. • Empowering families of neurodivergent children: Training and resources shared with practitioners and families promote understanding of sensory, emotional and communication needs, enabling consistent approaches across home, early years and school. Psychological Services are working in partnership with NEST and the new Learning and Development Advisor. • Proactive planning and transitions: Use of NAIT resources such as Let’s Not Just See How It Goes and We Were Expecting You with school teams supports anticipatory planning and predictable environments, reducing stress at key transition points for children and families. 50 Improve services for children with neuro- developmental conditions, implementing a whole system approach with partners across Health, Education, Social Services and the Third Sector. (Implementation of the National CAMHS and Neurodevelopmental Specifications). The Business Case for a pan-Ayrshire diagnostic Neurodevelopmental service for children and young people is currently being finalised and will be presented to Chief Officers. In North Ayrshire, there has been a focus on training and development of the children’s services’ workforce through WFWF monies to NEST, including the recruitment of an Learning & Development Adviser for Neurodevelopmental Delay (NDD), who has been delivering a programme of opportunities to upskill the workforce. This was a recommendation from a NDD training needs analysis undertaken in North in 2024. 51 Public Health will implement a life course approach to Mental Health and Wellbeing, focusing on the first thousand and one days, infancy and Children and Young People. Public Health have worked over the 25-26 period to produce a suite of life course evidence briefings. The mental health and suicide prevention briefing will be used in the coming year to shape conversations with partners regarding the preventive potential of a life course approach and opportunities based on evidence across the life course and across all stages of prevention (universal, primary, secondary, tertiary). During 2025 - 26, Public Health has continued to strengthen and embed mental health improvement activity across Education and wider children’s services in North Ayrshire. Examples of activity include: • Promotion and Utilisation of MHWB Resources in Practice – The Guide for Children, Guide for Young People and Children’s Workbook for Mental Wellbeing continue to be actively promoted across Education and to partners who support children, young people and families. Work this year has focused on reinforcing awareness of these resources, supporting staff to build them into everyday practice, and ensuring consistent access to practical tools that help initiate and sustain wellbeing conversations. • Supporting a Whole School Approach – Public Health continues to work with the North Ayrshire Education Mental Health and Wellbeing Operational Lead to promote a Whole School Approach to mental health. 181
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19 No. Action Update 2025-26 • Mental Health Improvement – a Practical Approach (MHI‑apa) – training is now being delivered across Education by the MHWB Operational Lead, building capacity at school level and ensuring staff have the knowledge and skills to support children, young people and families. Area Inclusion Workers continue to use and cascade this learning within their roles, contributing to more consistent approaches across schools. This training is available through Public Health for other groups who wish to participate. • Time, Space, Compassion – There continues to be network of facilitators delivering Time, Space, Compassion workshops which are open to staff working across children's and young people's services. During April 2025 and March 2026, Public Health has organised and delivered 12 TSC workshops across Ayrshire and Arran. Four of these sessions were in North Ayrshire. Staff from North Ayrshire have accessed a number of sessions, with attendance including staff working with children and young people within both public and third sector organisations. Enabling Conversations Toolkit – Initial discussions and awareness raising regarding the Enabling Conversations Toolkit has taken place through the SSPG and Young People's Taskforce. In the coming year Public Health would like to see further awareness raising and engagement with this toolkit as a guide which was created by and for young people, to find help and support when experiencing painful feelings about suicide. Enabling conversations toolkit - Suicide Prevention Scotland. 52 Establish a Community Planning Partnership led Health and Wellbeing Alliance to bring key partners together to co-ordinate approach to targeting support to improve individual, family and community health and wellbeing. Work continues to align the Alliance to the strategic programmes including CHES and Active Communities. Updates to follow 53 Build on services that encourage parenting skills and interactions with between family members. Please see responses to No. 15 and No. 23. 54 Build on the National CAMHS Specification through the 3 established pathways (core, unscheduled care, neuro), ensuring young people are on the correct pathway at a much earlier stage. Pathways have been established and are now in place. 55 Continue to provide ‘worry workshops’ e.g. identifying key issues raised as worries by North Ayrshire children and young people and using this to develop targeted workshops on these issues. This action was cancelled as no longer required. 56 Be responsive and pro-active in responding to and learning from Young Person’s Suicide through our Young People’s Suicide Prevention Taskforce. Our Young People’s Suicide Taskforce (YPST) has been a well-established group that has very successfully delivered positive outcomes for suicide prevention. The Taskforce was focussed of ensuring that a professional, cohesive and effective multi-agency response was taken in the event of a child or young person completing suicide. This work resulted in the creation and maintenance of a multi-agency Crisis Response Plan, that ensures all partners respond and contribute to 182
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20 No. Action Update 2025-26 supporting young people, families, teachers and any other parties who require support at a very vulnerable time. In April 2025, the Taskforce considered what actions were required to be taken forward in the forthcoming period; the conclusion being that the substantive objectives of the group had been achieved. A bespoke meeting of the YPST on 07 May 2025 agreed that the YPST had achieved its main purpose – the development of the Crisis Response Plan (CRP). The CPR remains effectual and operational to date and continues to serve as a trauma informed framework for responding to a young persons suicide, ensuring timely support for families, schools, communities etc. Collectively this work demonstrates a shift from individual service responses to a more coordinated , relationship based system built around what matters to infants, children, young people and their families. As the YPST was aligned to the Strategic Suicide Prevention Group (SSPG) it was proposed that the responsibilities of the YPST would be subsumed by the SSPG, with the Terms of Reference being amended to reflect that change. The excellent and important work of the YPST was recognised by all members; and it was agreed that the tradecraft developed would not be lost during the transition of responsibilities. On 26 May 2025 the proposal to stand down the YPST and transfer responsibilities to the SSPG was presented at the Child Protection Committee (CPC). The proposal was unanimously agreed. This approach was endorsed by COG in June 2025. 57 Deliver the new National Secure Adolescent Inpatient Secure Unit (Foxgrove) for children across Scotland, which will also benefit young people in North Ayrshire. The service has been delayed in opening due to the facility not having been handed over by the main contractor as 'complete'. We are working with all parties to remedy this and it is hoped that the facility will be ready for handover in late summer/ early autumn 2026. At this point there is a projected 8-week period of post-handover works to be completed. It is anticipated, based on current projections, that we will be ready to receive admissions by December 2026. 58 Explore opportunities to ensure young people are not admitted to non-specialist environments including options to develop and in-house CAMHS inpatient provision. Working with the West of Scotland Tier 4 Regional Board to develop intensive home treatment services building on the existing CAMHS Unscheduled Assessment Intensive Treatment Team (CUAIT). 59 Building on the success of the Kilwinning Wellness Model, the Revised Wellness Model working group will now seek to roll out the approach across all North Ayrshire localities. The Wellness Model is now in place in all localities. Partnerships between the Education Service and local GPs have been strengthened and CAMHS are receiving more robust referrals when necessary. 60 Enable young carers to have a quality of life outside caring and ensure support when moving through key life stages. We continue to prioritise opportunities that enable young carers to experience a positive quality of life beyond their caring responsibilities; while ensuring they are fully supported during key transitions in education and life. • Young Carers Education Fund (£15K–£20K annually) provides flexible financial support to meet identified needs through Young Carers Statements. This includes opportunities for breaks from caring, participation in hobbies and activities, and access to life-enhancing experiences that contribute to wellbeing, resilience, and personal development. • KA Leisure memberships are available for young carers, giving them regular access to health, fitness, and wellbeing activities within their local community and supporting them to take time for themselves. 183
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21 No. Action Update 2025-26 • Eligible young carers have been supported by Carers Gateway to apply for the ILF Scotland Transition Fund, helping them build independence, confidence, and opportunities to engage socially, explore interests, and become more active in their communities. • Time to Live funding, accessed via Carers Gateway, provides young carers with the opportunity to apply for personalised short breaks—helping reduce stress, improve wellbeing, and create positive time away from their caring role. • To support key educational transitions, Carers Gateway actively participates in enhanced transition planning from primary to secondary school, ensuring young carers are identified early and their needs are understood. Young carers preparing to leave secondary school can access a 1:1 Young Adult Carers Transition Plan, offering tailored guidance around their caring responsibilities, available supports, future aspirations, and the move into further education, training, or employment. This multi-layered approach ensures that young carers are supported not only in their caring role, but also in experiencing a balanced life, developing their potential, and moving confidently into adulthood. Priority 5: Inspiring children and young people to be active No. Action Update 2025-26 61 Create innovative physical activity and sports opportunities with communities and partners. Active Schools and KA Leisure have continued to work collaboratively to increase opportunities for children and young people to be active across both school and community settings. Through strong partnership working, we have ensured that each of the six localities has well‑established links between school‑based activity and wider community provision. Over the past year, our joint efforts have also focused on identifying and addressing gaps in local provision. This has allowed us to create a more equitable offer across all areas, ensuring that every young person—regardless of where they live—has access to a broad range of activity and sporting opportunities. As a result, the pathways from school participation into local clubs and community sport have been strengthened, supporting smoother transitions and encouraging sustained engagement. Furthermore, Active Schools has maintained a strong commitment to supporting those young people who face the greatest barriers to participation. By prioritising targeted programmes and coordinated support across our system, we continue to ensure that those who need our help most are able to access and benefit from positive, inclusive sporting experiences. The Active Schools and Communities Partnership Officers have been instrumental in widening access to participation, particularly for young people who are care‑experienced, living in poverty, at risk of disengagement, non‑attenders, or otherwise identified for targeted support. Their work has effectively removed barriers and created meaningful pathways that ensure these groups can participate in sport and physical activity with confidence and consistency. In addition, the team has continued to provide valuable support to the HSCP, third sector organisations and children and young people with additional support needs, strengthening collaboration across the wider system. 184
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22 No. Action Update 2025-26 KA Leisure continues to deliver a broad and inclusive programme of sport and physical activity opportunities. Working closely with communities and partner organisations, we offer a varied calendar of term‑time sessions alongside an extensive holiday programme. Our term‑time offer spans all localities, delivering more than 150 classes each week and ensuring that young people and families have access to high‑quality, community‑based activity opportunities throughout the year. 62 Adopt a whole systems approach to diet and healthy weight. This action is no longer being progressed as it has been superseded by work on the requirement to develop a Good Food Nation Plan. 63 Design opportunities into the whole system to enable children, young people, and their families to access supported physical activity opportunities and have a healthy lifestyle. Active Schools remains firmly committed to its core priority of supporting all schools across North Ayrshire to deliver high‑quality, inclusive extra‑curricular programmes that are accessible to every child and young person. This commitment underpins everything we do and ensures that opportunities to be active, build skills and experience new sports are open to all, regardless of background or ability. Throughout the year, participation trends across our schools have highlighted the continued popularity of several key sports. The top five most actively engaged activities were football, netball, racket sports, dance and multisports, reflecting a broad range of interests and demonstrating the strength of provision offered across our localities. Our annual events calendar has also continued to grow in both scale and impact. This year, more than 5310 young people took part in a diverse programme of 75 competitive and participative events, showcasing their skills, representing their schools and experiencing the excitement of large‑scale sporting occasions. These events play an essential role in developing teamwork, resilience and confidence while providing memorable experiences for participants. Importantly, our commitment to inclusion extends across all aspects of the programme. Active Schools has worked closely with partners to ensure pupils with additional support needs can participate in meaningful and appropriate competitive opportunities. This includes supporting ASN young people to attend both the Ayrshire Sportsability events and activities within the Scottish Disability Sport calendar. By providing tailored pathways and ensuring representation at these events, we continue to uphold our ambition that every young person has the chance to perform, compete and celebrate their achievements at a level that is right for them. 64 Ensure all our early years indoor and outdoor learning environments and activities enable children to be physically active. All early year’s establishments provide learning environments which provide opportunities for physical play both indoors and outdoors. All staff are aware of the importance of developing gross motor skills and ensure experiences offered support development of core strength, stability, balance, spatial awareness, co-ordination and agility. 65 Promote access to leisure services for children and young people to encourage participation in physical activities. KA Leisure continues to promote inclusive access to leisure facilities through targeted programmes, concessions and outreach, increasing participation among children and young people across a range of physical activities. 66 Promote the introduction of the INSPIRE programme to improve opportunities for alternative activities, including arts, drama and music. KA Leisure has supported the rollout and promotion of the INSPIRE programme, widening access to alternative activities such as arts, drama and music to engage children and young people with diverse interests. We currently provide 105 classes across all localities in North Ayrshire. 185
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23 No. Action Update 2025-26 67 Create and protect safe spaces for children to play and enjoy being outdoors. Youth work programmes continued to create safe, inclusive and purposeful outdoor spaces that support children and young people’s physical health, mental wellbeing and social connection. Outdoor learning remains a key delivery approach, enabling young people to build confidence, resilience and a sense of belonging through structured, supported activity in community and natural environments. Programmes are deliberately inclusive, ensuring access for care-experienced young people, young New Scots and those facing additional barriers to participation. The Duke of Edinburgh’s Award continues to be a cornerstone of this work, engaging large numbers of young people in regular outdoor activity, skills development and expeditions across Scotland. DofE expeditions, day trips and overnight experiences provide well-managed, safe environments where young people develop teamwork, leadership and problem-solving skills while enjoying the outdoors. Alongside this, Outdoor Learning, Outdoors for Wellbeing and residential opportunities offer accessible entry points for young people who may not engage with traditional settings, including targeted provision for at-risk groups. Complementary initiatives such as Gardening for Wellbeing, mountain biking, football and outdoor creative activities further enhance safe outdoor provision by promoting routine physical activity, positive mental health and connection to place. Gardening and nature-based activities support emotional regulation, responsibility and mindfulness, while team sports and outdoor challenges strengthen social connections and confidence. Together, these approaches ensure children and young people have regular access to safe, supportive outdoor spaces that encourage play, exploration and wellbeing, while contributing to wider prevention, participation and achievement outcomes. 68 Support parents to understand the importance of movement and enjoyment for children and young people. Social Media campaigns have highlighted the importance of regular movement, enjoyment and positive experiences in supporting children and young people’s wellbeing and development. 69 Work with local small business/ fitness team to provide access to activity and nutrition information. As above. 70 Creation of new and local growing spaces to support communities to grow foods, to upskills families, enhance family time and connection. Work continues to progress positively at the Three Towns Growers, with the HUB nearing completion. Final-stage planning is now underway to agree operational arrangements for groups and individuals wishing to access and use the space. A further successful Potato Day was held in March, attracting hundreds of visitors to the allotment site to purchase seed potatoes. Community Roots have completed Phase One of their build and are currently securing funding to complete the remaining elements. Once finished, the space will support education activities, holistic therapies, and provide a dedicated rest area for volunteers. In parallel, preparations are underway to support local larder users to grow potatoes at home, with resources including grow bags, compost, and seed potatoes being gathered for distribution. Eglinton Community Gardens are preparing for the forthcoming growing season and will host their annual Potato Planting Party, inviting local families to participate and engage in food-growing activities. The Organic Growers of Fairlie are once 186
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24 No. Action Update 2025-26 again planting and growing potatoes for the benefit of the local community and community larders. Springside Community Association is developing a local network of growers, with plans to cultivate space surrounding the community centre to grow a variety of vegetables for local residents and the community larder. An initial meeting has taken place with Facilities Management to discuss the proposal, and the group is now exploring funding opportunities to enable the work to progress. 71 Ensure all primary, secondary and ASN schools are provided with quality extra- curricular opportunities in sport and physical activity that are open to all. Active Schools has remained firmly committed to its overarching ambition of achieving “More Kids, More Active, More Often.” This focus continues to underpin our planning, partnerships and delivery across North Ayrshire. Throughout the year, we have ensured that high‑quality extra‑curricular opportunities have been available across all primary, secondary and ASN establishments, providing children and young people with a broad range of accessible, engaging activities. Engagement levels have been exceptionally strong. A total of 9,781 young people participated in sport and physical activity sessions during the year—representing over 53% of the entire school‑aged population in North Ayrshire. This reflects both the reach of our programme and the value placed on physical activity by our schools, families and communities. In terms of delivery, the scale of provision has continued to grow. Across the year, 13,065 individual sessions were offered, generating an impressive 271,061 participant visits. This figure illustrates the depth of engagement within the programme: for example, ten pupils attending ten sessions each equates to 100 recorded visits. These levels of participation highlight the consistency with which young people return to Active Schools activities, demonstrating the positive experiences and meaningful connections being created. Our programme is powered by a dedicated network of deliverers. This year, 703 individuals contributed to the delivery of Active Schools sessions—and notably, 98% of them were volunteers. This represents the highest proportion of volunteer deliverers recorded anywhere in Scotland. Their commitment, time and passion are critical to the success of the programme and play an essential role in ensuring sustained, high‑quality opportunities for children and young people. 72 Ensure all young people have the opportunity to compete and perform regardless of what level they are at. This year, our Active Schools Events Calendar has continued to grow in both scale and impact, providing a wide range of meaningful sporting experiences for children and young people across North Ayrshire. More than 5310 participants engaged in a diverse programme of 75 events, demonstrating the strong appetite for competition, participation and school‑to‑school collaboration. These events are delivered across cluster, locality and authority‑wide levels, ensuring pupils have opportunities to take part in sport close to home as well as within larger, North Ayrshire‑wide settings. This tiered structure not only widens access but also allows young people to progress through different levels of competition and develop confidence in a supportive environment. A key focus of our events programme is ensuring that all young people, regardless of ability or need, have access to appropriate and meaningful sporting pathways. We are particularly proud of the continued support offered to pupils with additional support needs (ASN). Throughout the year, Active Schools has actively facilitated ASN participation in Ayrshire Sportsability events as well as opportunities within the Scottish Disability Sport calendar. In addition to this, this year we have establish a three Ayrshire approach to ASN competition and programming. This has allowed wider access and more 187
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25 No. Action Update 2025-26 opportunities for our ASN young people to attend. All these partnerships enable pupils to compete, perform and experience success at a level tailored to their individual needs, ensuring fairness, inclusion and the chance to celebrate personal achievement. Through this comprehensive and inclusive approach, our events programme continues to play a vital role in promoting participation, encouraging healthy competition, and ensuring that every young person across North Ayrshire can experience the enjoyment and benefits of taking part in sport. 73 Create and support a school to community club pathway for sport across North Ayrshire. During the last academic year, Active Schools worked closely with 60 community sports clubs across North Ayrshire, strengthening partnerships and increasing the breadth of provision available to children and young people. These clubs contributed significantly to school engagement by delivering a variety of high‑quality activities, including: • Curriculum enhancement sessions, providing additional PE input beyond the statutory two hours • Health week activities, supporting whole‑school wellbeing initiatives • One‑off taster days, offering pupils the chance to try new sports and activities • Visits to local clubs, helping young people experience community‑based environments • Promotion of club opportunities, such as distributing flyers and raising awareness of routes into long‑term participation In addition to this strong school‑club collaboration, our North Ayrshire Community Sport Hubs continue to thrive. Working in partnership with KA Leisure, we have provided extensive support to local clubs, including access to training opportunities, facility provision, and tailored one‑to‑one development sessions aimed at strengthening governance, sustainability and volunteer capacity. To further enhance community engagement, we have collaborated with selected affiliated clubs to deliver satellite club programmes, enabling more localised and accessible participation options for young people. These satellite sessions are helping bridge the gap between school activity and long‑term involvement in community sport. We have also prioritised the development of inclusive opportunities and have been working with the other Ayrshire’s to provide more opportunities for our ASN young people to take part in at Club leave. 74 Ensure an effective leadership pathway is developed for P6 through to S6 and beyond to develop transferable skills. At primary level, the P6 Move and Improve Programme has made a significant impact, with 1,006 pupils trained as young leaders this year. These pupils play a key role in their school communities by planning and delivering high‑quality lunchtime sport and physical activity sessions for their peers. To strengthen the sustainability of the programme, 34 teaching staff have also been trained, enabling them to support leadership development and ensure consistency across all participating schools. In the secondary sector, the Young Ambassador Programme continues to thrive, with 126 S1–S6 representatives actively championing sport and promoting the importance of being active within their school communities. These young leaders act as role models, supporting events, raising awareness of opportunities and helping influence positive attitudes toward sport and wellbeing. 188
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26 No. Action Update 2025-26 Leadership development is further enhanced through the North Ayrshire Sports Academy, aimed at senior pupils in S5–S6. This year, 147 young people took part in the programme, gaining between 8 and 12 recognised qualifications each. These include Saltire Awards, National Governing Body coaching qualifications, and, at the highest level, the SQA Higher Leadership Award. The breadth of accreditation provides participants with valuable skills and nationally recognised credentials that support future education, employment and volunteering pathways. The commitment and enthusiasm of these young leaders is demonstrated through their collective contribution of more than 5000 volunteer hours within schools and the wider community. Their involvement has enriched local programmes, expanded opportunities for younger pupils, and strengthened community engagement in sport. This comprehensive leadership pathway not only builds capacity within North Ayrshire’s sporting landscape but also empowers young people with lifelong skills, confidence and a sense of civic responsibility. This year marked the successful introduction of Active Girls Committees across all nine secondary schools in North Ayrshire, representing an important step forward in promoting gender equity in sport and physical activity. A total of 45 motivated young leaders were appointed to these committees, each entrusted with the responsibility of encouraging increased participation among female pupils and helping to remove the barriers that often limit girls’ engagement in physical activity. Throughout the year, these young leaders have demonstrated exceptional commitment and maturity, acting as positive role models within their school communities. They have collaborated closely with PE departments, Active Schools staff and wider school teams to identify areas for improvement and to contribute to the development of more inclusive, girl‑friendly environments. Their work has included advocating for the needs and preferences of female pupils, improving visibility of opportunities, and championing a culture where girls feel confident and supported to be active. In addition to their strategic contributions, the committees have played an active role in designing and delivering bespoke girls‑only programmes and events, tailored specifically to increase engagement and create safe, welcoming spaces for participation. These initiatives have included lunchtime and after‑school sessions, awareness campaigns, taster activities and targeted interventions to encourage girls who may be less physically active. The creation and success of the Active Girls Committees has strengthened the voice of young women in shaping school sport, contributing meaningfully to North Ayrshire’s wider commitment to inclusion, empowerment and lifelong participation. 75 Ensure we remove any barriers to participation for care experienced young people to take part in sport and physical activity. The Active Schools and Community Partnership plays a critical role in collaborating with key partners and stakeholders to remove barriers faced by young people and families with Care Experience across North Ayrshire. By adopting a Whole Systems Approach, the programme supports individuals to access sport and physical activity opportunities that contribute to healthier, more active lifestyles. Throughout the 2025–2026 period, 373 young people participated in a wide range of experiential opportunities. These experiences were diverse and engaging, including activities such as water sports, climbing, sailing, residential trips, and community fun days. To ensure equitable access, the team worked closely with internal and external partners to address 189
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27 No. Action Update 2025-26 individual barriers, including transport, appropriate clothing, food provision, and activity access. This coordinated support enabled seamless participation for those who may otherwise have been excluded. Following their initial experiential opportunity, young people were encouraged and supported to transition into regular physical activity within their school or local community. As a result, 84% chose to continue their involvement in ongoing sport or activity programmes. Of the 373 participants, 53% were living in the two most deprived SIMD quintiles (SIMD 1 and 2), demonstrating the programme’s strong reach into communities experiencing significant inequality. Over the four-year duration of the programme (Roles), the team delivered over 150 bespoke opportunities, engaging 1,124 young people with Care Experience. These experiences created meaningful pathways into sustained activity, with 72% of participants moving into more frequent participation supported by their school or community settings. In addition, the team delivered targeted support for 435 young people within ASN provision, ensuring that they too had access to high-quality experiential opportunities. Impressively, 89% of these young people transitioned into regular, sustained participation following their initial engagement. Collectively, these achievements highlight the significant impact of the Active Schools and Community Partnership in reducing barriers, widening access, and improving health and wellbeing outcomes for young people with Care Experience across North Ayrshire. Unfortunately, these dedicated roles will come to an end in March 2026. 76 Expand and develop the Health and Wellbeing Service to accommodate children and young people, with a focus on partnership working within the Mind and Be Active programme to establish an early intervention approach that provides supported physical activity opportunities for children and young people who are experiencing poor mental health. Funding for the Mind and Be Active Programme was withdrawn by the Health and Social Care. Empower is a programme that supports young people to engage in regular physical activity with the aim to improve their mental health, confidence and life skills. The programme targets young people facing mental health challenges such as stress, anxiety or social isolation. These individuals are referred through healthcare professionals, schools or self-referrals with delivery taking place within a school environment or local leisure centres. 77 We will work with Community Planning Partners to establish a set of outcome indicators to measure progress on each of the priorities and actions. A set of performance indicators were established and have been used to monitor the progress of the Children’s Services Plan 2023-26 as can be seen in Appendix 2 of the Children’s Services Plan 2025-26 Performance Report. 190
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APPENDIX 2: Childrens Services Plan Performance Indicators 2025-26 Priority 1: The rights of children and young people are promoted and protected Indicator 2022/23 2023/24 2024/25 2025/26 Children and Young People receiving Advocacy Support 282 284 240 352 Number of young people taking part in influence and engagement through CLD (Community Learning and Development) (e.g. engagement, youth participation and citizenship work) 20,694 15,202 11,746 11,185 Proportion of child protection re-registrations within 18 months 10.8% 11.4% 7.2% N/A Priority 2: Acting early to improve what happens next Indicator 2022/23 2023/24 2024/25 2025/26 Percentage of children reviewed with at least one developmental concern recorded at their 27-30 month review (PHS Dashboard) 20.5% 22.6% 20.0% N/A Babies who have always been exclusively breastfed (reported at 6/8 weeks) 20.3% 25.6% 25.9% N/A Children referred to Reporter for offences (aged 12-16) (rate per 1000) 10.0 14.7 10.1 N/A Children referred to Reporter for care and protection (aged under 16) (rate per 1000) 15.0 16.8 13.2 N/A Immunisation uptake for 6-in-1 - children (aged 24 months) (annual, calendar year) 96.6% 97.1% 96.2% N/A Immunisation uptake for MMR - children (aged 24 months) (annual, calendar year) 92.2 % 94.6% 93.9% N/A Number of Requests for Assistance received - referred to Specialist Services - for Speech and Language 26 46 12 29 Number of Requests for Assistance received – referred to HV support workers within UEY (Universal Early Years) team in the period for Speech and Communication 139 157 171 100 Percentage of Primary 1 Children free from dental decay 73.32% 69% N/A N/A Percentage of Primary 7 Children free from dental decay 77.34% 70.1% 71.9% N/A Uptake of the HPV vaccine in S3 girls (annual, school year) 84.1% 78.8% 80.5% N/A Deaths from suicide (aged 11-25) (rate per 100,000) (5 year rolling average) 10.3 11.2 N/A N/A Alcohol-related hospital admissions (aged 11-25) (rate per 100,000) (3 year rolling average) N/A 151.9 N/A N/A Drug-related hospital admissions (aged 11-25) (rate per 100,000) (3 year rolling average) 147.1 116 N/A N/A Smoking during pregnancy as reported at antenatal booking (Calendar year) (2022) 15.4 (2023) 13.2 (2024) 11.2 N/A Priority 3: Making things fairer Indicator 2022/23 2023/24 2024/25 2025/26 Proportion of Looked after Children with more than 1 placement in the last year 17.4% 18.3% 17.8% N/A Children looked after by the local authority as at 31st July (aged 0-17) 404 405 416 N/A Children on the child protection register as at 31st July (rate per 1,000 children) 3.5 3.9 4.6 N/A School attendance rate for whole population 89.0% 89.1% 89.6% N/A School attendance rate for looked after children 84.2% 83.7% N/A N/A Number of families receiving cash payments for Free School Meals during holiday periods (school year, snapshot of data) 2,706 2,626 2,690 2,497 Combined Numeracy achievement for P1, P4 & P7 (expected CFE level) 75.9% 76.2% 73.9% N/A Combined Literacy achievement for P1, P4 & P7 (expected CFE level) 68.5% 68.6% 68.2% N/A Percentage of pupils gaining 5+ awards at SCQF Level 5 (LGBF) 63% 65% 64% N/A 191
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Indicator 2022/23 2023/24 2024/25 2025/26 Percentage of pupils from 20% most deprived areas gaining 5+ awards at SCQF Level 5 52% 53% 54% N/A Annual participation measure for all 16-19 year olds (calendar year) 92.0% 91.7% 92.5% N/A School leavers entering an initial positive destination 96.5% 95.6% 95.7% N/A Percentage of Children living in poverty after housing costs N/A (not comparable due to method change) 18.1% 18.0% N/A Priority 4: Promoting good mental health and wellbeing Indicator 2022/23 2023/24 2024/25 2025/26 Number of referrals to CAMHS (ISD Child and Adolescent Mental Health Services in Scotland) (Pan Ayrshire) 2,166 2,741 1,194 1,252 Percentage of referrals to CAMHS started treatment within 18 Weeks 95% 99% 99.6% 100% Number of children and young people accessing Community Mental Health and Wellbeing Supports and Services 6,038 5,962 6,527 TBC Total number of children accessing counsellors (school year) 666 379 477 500 Percentage of children who have reported an improved outcome following access to a counsellor 100% 100% 99.4% 98.6% Priority 5: Inspiring children and young people to be active Indicator 2022/23 2023/24 2024/25 2025/26 Child healthy weight in Primary 1 (2% to 85% centile) 76.7% 74.8% 70.9% N/A Number of young people (Distinct participants) engaged with Active Schools during Extra Curricular (school year) 9,285 9,201 9,781 N/A Number of Young people who are leaders in our key Active Schools programmes (school year) 1,171 1,327 1,132 N/A Number of Active Schools experiential opportunities offered to Care experienced young people (school year) 31 31 25 N/A Number of ASN (Additional Support Needs) pupils engaging with Active Schools extra-curricular and through experiential opportunities (school year) 140 213 435 N/A KA Leisure memberships distributed either free or funded by partners 69 TBC 201 136 Active travel to school 47.49% 48% 42.4% N/A Please note – data that is not available yet is due to timescales of national data releases or variations in reporting schedules, for example, academic years. Data will be reviewed and updated when available. 192
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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 Agenda Item 10 193
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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) 194
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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) 195
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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 196
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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 : 197
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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. 198
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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. 199
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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) 200
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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. 201
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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 202
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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% 203
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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% 204
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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) 205
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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) 206
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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% - - - 207
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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. 208
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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. 209
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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 61,734 845 210
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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%) 211
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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) 212
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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. 213
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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. 139 214
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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) 215
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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%) 216
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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) 217
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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) 218
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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%) 219
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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 196 220
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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. 221
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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) 222
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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. 223
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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 224
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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 2025/26 225
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NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet Title: Capital Programme Performance to 31 March 2026 Purpose: To advise Cabinet of progress in delivering the Capital Investment Programme 2025/26. Recommendation: That Cabinet agrees to: (a) note the revisions to budgets outlined in the report; (b) note (i) the General Services and HRA revised budgets at 31 March 2026; and (ii) the net expenditure to 31 March 2026; (c) approve the virement proposal noted within the HRA programme detailed in appendix 2. 1. Executive Summary 1.1 The General Services Capital Investment Programme 2025/26 to 2033/34 was approved by Council on 26 February 2025. The Housing Revenue Account (HRA) Capital Investment Programme 2025/26 sits within the updated HRA Business Plan and was approved by Council on 12 February 2025. 1.2 This report identifies the current programme for 2025/26, taking account of adjustments made to the initial budgets. The report presents the revised budgets and actual expenditure to 31 March 2026. 1.3 At Period 12 the General Fund is reporting a break even position against a revised budget of £59.499m. The HRA is reporting a net underspend of (£0.560m) against a revised budget of £37.477m. 1.4 Within the General Fund, adjustments to funding have resulted in net reduction to the overall capital programme of (£0.954m), primarily related to Scottish Government Grant for Arran Youth Foundation and Brodick Hall and accounting adjustments to transfer funding to the General Fund Revenue budget. 1.5 Reviews of individual project plans have identified several adjustments to the current profiles. As a result, projects totalling (£21.007m) have been reprofiled for delivery in 2026/27 and beyond. These have been partly offset by the acceleration of £12.332m to 2025/26 from future years. Agenda Item 11 227
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1.7 Within the HRA Capital Programme, a review of delivery timescales has resulted in the re-profiling of (£6.481m) of works for delivery in 2026/27 and beyond, partly offset by the acceleration of £2.000m from future years. 1.8 Ongoing uncertainty arising from inflationary pressures and construction cost volatility continue to impact on the Capital Programme. The risk profile is also impacted by recent global events including the middle east conflict which has the potential to have a significant inflationary effect and current Bank of England forecasts indicate an increase in interest rates through 2026 is likely. Financial risks have been identified across several high value projects. Council has provided for a degree of mitigation within the overall 10-year General Services Capital Investment Programme and the HRA Capital Investment Programme. Projects will continue to be monitored closely with cost increases met initially from the additional flexibility built into the programme and considered as part of the closure of the year end Revenue Budget process. Any requirement for further borrowing not met from a funding source will be a matter for Council to consider. 2. Background General Fund 2.1 The following table outlines the movements in the 2025/26 General Services budget: General Services Capital 2025/26 £ million Budget as at 31 January 2026 69.128 Changes to Funding 0.883 Other Revisions to the Programme (1.837) Revised Budget 68.174 Alterations to phasing of projects 2025/26 to 2026/27 (21.007) Alterations to phasing of projects 2026/27 to 2025/26 12.332 Budget as at 31 March 2026 59.499 2.2 Changes to Funding The capital programme has been updated to reflect the following changes to funding: Funding Body Amount £ million Project Scottish Government Grant 0.382 Arran Youth Foundation Scottish Government Grant 0.324 Brodick Hall Dept for Transport 0.271 Depot charging scheme SPT 0.072 Road Safety Improvement Fund Active Travel 0.009 B714 LTA Tennis Foundation 0.002 Brodick Tennis Courts Active Travel grant - Downturned (0.002) Girdle Toll to Irvine Town AT Route Doveyard Ltd - Downturned (0.003) Roads Remediation 228
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Active Travel grant - Downturned (0.009) Links to Eglinton Park Scottish Government Grant - Downturned (0.163) 20mph Implementation Total Funding Adjustments 0.883 2.3 Other Revisions to the Programme Funding Source Amount £ million Project CFCR 0.050 Vehicles CFCR 0.037 Great Harbour Phase 1 CFCR 0.026 AGD Marine Tourism Capital Receipts 0.014 Vehicle Insurance Recoveries CFCR 0.010 AGD Phase 2 Maritime Mile Transfer to Revenue (0.002) PBIP Beith Kirk Transfer to Revenue (0.005) RTPI North Coast & Garnock Valley Transfer to Revenue (0.006) Repurposing Property (VDLF) Transfer to Revenue (0.008) Repurposing Property (PBIP) Transfer to Revenue (0.010) Repurposing Property (NAVT) Transfer to Revenue (0.025) Kildonan Hall Transfer to Revenue (0.026) Millport Town Hall Phase 2 Transfer to Revenue (0.029) VDLF Transfer to Revenue (0.030) Cumbrae Youth Forum Transfer to Revenue (0.045) PBIP CFCR (0.057) General Transfer to Revenue (0.144) PBIP Community Project Transfer to Revenue (0.289) Island Pit Stops Transfer to Revenue (0.356) Garrison House Transfer to Revenue (0.417) UK Shared Prosperity Transfer to Revenue (0.525) Improvement Grants Total Other Adjustments (1.837) 2.4 Alterations to the Phasing of Projects A review of individual project plans has identified a requirement to re-profile (£21.007m) of works for delivery in 2026/27 and beyond. Project Amount £ million Arran Youth Foundation Centre (0.382) CCTV Review (0.252) Abbey Tower (0.067) Brodick Tennis Courts (0.020) Total Communities & Housing (0.721) Ardrossan new Build (4.608) 229
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UFSM (0.113) Schools ICT (0.030) Total Education (4.751) Eclipse CAH system (0.153) Other Minor Movements (0.033) Total HSCP (0.186) Flexibility (3.737) Other Minor Movements (0.001) Total Other (3.738) AGD i3 Flexible Space (4.630) AGD I3 DPMC Phase 2 (1.000) AGD Marine Tourism Cumbrae (0.746) LBPR (0.610) AGD Coastal Hub Phase 1 (0.441) Millburn FPS (0.405) AGD I3 DPMC Phase 1 (0.337) Brodick Hall (0.324) Cemeteries (0.266) Coastal Adaptation (0.258) Millport Pier (0.215) Bridges Infrastructure (0.211) Long Drive (0.202) Nature Restoration Fund (0.175) PLI (0.170) UK Shared Prosperity Fund (0.160) Marine Tourism Lochranza (0.130) Goldcraigs Refurb (0.128) PBIP (0.112) Irvine High Street (0.099) Access Park Network Prog (0.089) Mont Park Neighbourhood Centre (0.081) Fleet Decarbonisation (0.080) Lochshore Garden Activity Hub (0.080) Lighting (0.070) Montgomerie Park Masterplan (0.062) Lochshore Garbock Hub (0.060) Parking Charges, DPE (0.054) Portland Road (0.050) Other Minor Movements (0.335) Total Place (11.580) ICT Investment Fund (0.026) Telephony (0.005) Total Corporate Services (0.031) Alterations 2025/26 to 2026/27 (21.007) 230
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These adjustments have been partly offset by the acceleration of £12.332m of expenditure to 2025/26 from future years. Project Amount £ million Flexibility 4.872 Total Other 4.872 Other Minor Movements 0.009 Total Education 0.009 AGD Projects 5.237 AGD I3 DPMC Phase 2 1.000 Millburn FPS 0.635 Active Travel Ter 1 0.225 B714 0.145 Local Regeneration Fund 0.139 Roads Improvements 0.070 Total Place 7.451 Alterations 2026/27 to 2025/26 12.332 2.5 These adjustments have resulted in a revised 2025/26 budget at 31 March 2026 of £59.499m, a net reduction of (£9.629m). 2.6 The following graph illustrates the movement in each programme on a service basis compared to the revised programme: (20.000) 0.000 20.000 40.000 60.000 80.000 100.000 120.000 Corporate Communities & Housing Education HSCP Place Other items Total 0.378 0.133 21.106 0.139 37.743 0.000 59.499 £ million 231
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2.7 The impact on budgeted funding, elements of which are related to the profile of expenditure reported above, is a reduction of £9.629m from the revised budget, including: Category Amount £ million Comments General Capital Grant (0.071) Rephased and revised contributions Borrowing (1.115) Rephased aligned to projected expenditure Specific Grant (8.241) Rephased and revised contributions CFCR 0.066 Rephased and revised contributions Other Grants 0.222 Rephased and revised contributions Capital Receipts (0.490) Realigned capital receipts Total Funding Adjustments (9.629) 2.8 Capital Expenditure to 31 March 2026 The projections are summarised by service in the following table: Service / Category Approved Budget 2025/26 £ million Carry Forwards and Adjustments £ million Revised Budget 2025/26 £ million Projected Expenditure / Income to 31 March 2026 £ million Projected Variance Over / (Under) £ million Corporate Services 0.409 (0.031) 0.378 0.378 0.000 Communities & Housing 0.866 (0.733) 0.133 0.133 0.000 Education 25.975 (4.869) 21.106 21.106 0.000 HSCP 0.850 (0.711) 0.139 0.139 0.000 Place 41.046 (3.303) 37.743 37.743 0.000 Other Items (0.018) 0.018 (0.000) (0.000) 0.000 Total Expenditure 69.128 (9.629) 59.499 59.499 0.000 General Grants (10.395) 0.071 (10.324) (10.324) 0.000 Specific Grants (18.570) 8.241 (10.329) (10.329) 0.000 Use of Reserve Funds 0.000 0.000 0.000 0.000 0.000 CFCR (0.358) (0.066) (0.424) (0.424) 0.000 Capital Receipts (1.650) 0.490 (1.160) (1.160) 0.000 Other Grants & Contributions (1.133) (0.222) (1.355) (1.355) 0.000 232
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Prudential Borrowing (37.022) 1.115 (35.907) (35.907) 0.000 Total Income (69.128) 9.629 (59.499) (59.499) 0.000 2.9 Ongoing uncertainty and areas of cost risk remain across a number of projects. While some mitigation was built into the Capital Programme in the form of flexibility budgets at February 2025, totalling £23.6m over the next few years, cost pressures may exceed this provision. To further address this risk, Council approved additional flexibility of £15.0m from 2026/27 on 25 February 2026. The risk profile however, is also impacted by recent global events including the middle east conflict which has the potential to have a significant inflationary effect and current Bank of England forecasts indicate an increase in interest rates through 2026 is likely. These risks will be quantified as interest rates are monitored and individual projects are financially completed and tendering exercises are finalised, with the impact on the costs of the programme being monitored and reported to Cabinet as appropriate. Projects will continue to be monitored closely with cost increases met initially from the additional flexibility built into the programme and considered as part of the closure of the year end Revenue Budget process. Any requirement for further borrowing not met from a funding source will be a matter for Council to consider. Information on the progress on all projects can be found in Appendix 1. Housing Revenue Account 2.10 The following table outlines the movements in the 2025/26 HRA Capital budget: Housing Revenue Account 2025/26 £m Budget as at 31 January 2026 41.958 Alterations to phasing of projects 2025/26 to 2026/27 (6.481) Alterations to phasing of projects 2026/27 to 2025/26 2.000 Budget as at 31 March 2026 37.477 2.11 Alterations to the Phasing of Projects A review of the timescale for delivery of capital projects has identified a requirement to re-profile (£6.481m) of works for delivery in 2026/27 and beyond, including: Project Amount £ million Contingency (3.287) Acquisitions (open market) (0.327) Ayrshire Central Site (0.288) Kings Arms (113-115 High St) (0.257) Harbourside (0.152) Garnock Academy Site (0.143) 233
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Laburnum Avenue (0.108) Montgomerie Park (0.107) James McFarlane site (0.065) Stanecastle Site (0.048) Total Alterations to New Builds (4.782) Solar Panels (0.422) Saltcoats MSF Investment (0.187) Wallfloor Rendering (0.171) EWI (0.165) Roofing (0.144) Smoke Detector Programme (0.081) Windows (0.038) Other Minor Adjustments (0.038) Total Alterations to Stock Improvements (1.246) Estate Based Regeneration (0.310) Lift replacement (0.093) Sheltered Housing Units (0.050) Total Alterations to Other Capital Works (0.453) Alterations 2025/26 to 2026/27 (6.481) 2.12 This has been partly offset by the acceleration of £2.000m of project expenditure for delivery during 2025/26, including: Project Amount £ million Other Minor Adjustments 0.018 Total Alterations to New Builds 0.018 Kitchens 0.032 Slippage 1.945 Other Minor Adjustments 0.005 Total Alterations to Stock Improvements 1.982 Alterations 2026/27 to 2025/26 2.000 2.13 These adjustments have resulted in a revised 2025/26 budget at 31 March 2026 of £37.477m. 2.14 The impact on budgeted funding is a reduction of (£4.481m) from the approved budget: Project Amount £ million Capital Grants 4.269 Other Capital Receipts 0.143 Affordable Housing Contribution (0.272) Prudential Borrowing (8.621) TotalFunding Adjustments (4.481) 234
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2.17 In addition to the adjustments noted above, Appendix 2 highlights proposed virements which are required from contingency to meet overspends in Management recharges, and other capital works and from Bathrooms planned to Wet rooms planned to reflect the composition of works. 2.18 Cost pressures will continue to be monitored and a review of any potential impact on the Business Plan and Capital Programme will be undertaken to address any identified issues. Further information on the progress of all projects can be found in Appendix 2. 3. Proposals 3.1 It is proposed that Cabinet agrees to: (a) note the revisions to budgets outlined in the report; (b) note (i) the General Services and HRA revised budgets at 31 March 2026; and (ii) the net expenditure to 31 March 2026; (c) approve the virement proposal noted within the HRA programme detailed in appendix 2. 4. Implications/Socio-economic Duty Financial 4.1 The financial implications are as outlined in the report. Expenditure will continue to be closely monitored to ensure early action is taken regarding any projected underspends or overspends. Human Resources 4.2 None. Legal 4.3. None. Equality/Socio-economic 4.4 None. Climate Change and Carbon 4.5 None. Key Priorities 235
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4.6 This report directly supports the Council Plan 2023 to 2028 by focusing our investment on priorities, managing risk and supporting delivery of key 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 Natalie Graham, Senior Manager Corporate Finance (Financial Management), on 01294 324533. Background Papers Capital Programme and Treasury Management Performance to 30 June 2025 - Cabinet 2 September 2025 Capital Programme and Treasury Management Performance to 31 August 2025 - Cabinet 28 October 2025 Capital Programme and Treasury Management Performance to 30 November 2025 - Cabinet 27 January 2026 Capital Programme and Treasury Management Performance to 31 January 2026 - Cabinet 17 March 2026 236
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OFFICIAL INFORMATION# TOTAL PROJECT Project Description Total Project Budget Cumulative Expenditure to date Total Project Forecast Projected Over/ (Under) Spend Total Revised Budget 2025/26 Brought / Carry Forward to 2026/27 Total Revised Budget 2025/26 Actual Expenditure to 31st March 2026 Projected Expenditure to 31st March 2026 Actual Over/ (Under) Spend for 2025/26 True Over/ (Under) Spend £ £ £ £ £ £ £ £ £ £ £ EXPENDITURE Education Nursery Education 4,076,308 4,076,308 4,076,308 0 82,516 0 82,516 82,516 82,516 0 0 Primary Schools 45,767,469 38,500,384 45,767,469 0 2,524,329 (1) 2,524,328 2,524,328 2,524,328 0 0 Secondary Schools 117,358,721 25,407,705 117,358,721 0 17,500,335 0 17,500,335 17,500,335 17,500,335 0 0 Schools Other 1,292,172 1,260,674 1,292,172 0 998,418 1 998,419 998,419 998,419 0 0 SUB TOTAL 168,494,670 69,245,070 168,494,670 0 21,105,598 0 21,105,598 21,105,598 21,105,598 0 0 Communities & Housing Information & Culture 647,464 139,298 647,464 0 132,736 (0) 132,736 132,736 132,736 0 0 SUB TOTAL 986,269 139,298 986,269 0 132,736 (0) 132,736 132,736 132,736 0 0 Corporate Services Council IT Strategy 9,832,380 3,754,316 9,832,380 0 378,000 0 378,000 378,000 378,000 0 0 SUB TOTAL 9,832,380 3,754,316 9,832,380 0 378,000 0 378,000 378,000 378,000 0 0 Health & Social Care Management & Support 1,657,281 874,790 1,657,281 0 139,644 0 139,644 139,644 139,644 0 0 SUB TOTAL 6,265,358 5,470,941 6,265,358 0 139,644 0 139,644 139,644 139,644 0 0 Place Roads 112,772,041 79,854,249 112,772,041 0 12,469,245 (0) 12,469,245 12,469,245 12,469,245 0 0 Streetscene 5,408,446 3,428,513 5,408,446 0 786,429 0 786,429 786,429 786,429 0 0 Transport 8,761,707 4,029,794 8,761,707 0 3,908,293 (0) 3,908,293 3,908,293 3,908,293 0 0 Waste Services 13,492,976 13,444,027 13,492,976 0 171,485 0 171,485 171,485 171,485 0 0 Renewable Energy 15,956,436 15,743,235 15,956,436 0 2,367,742 (0) 2,367,742 2,367,742 2,367,742 0 0 Office Accommodation 1,785,731 1,090,217 1,785,731 0 1,090,218 (1) 1,090,217 1,090,217 1,090,217 0 0 Other Property 4,490,577 3,356,587 4,490,577 0 2,507,135 (0) 2,507,135 2,507,135 2,507,135 0 0 Economic Development & Regenerat 196,686,417 90,731,629 196,686,417 0 14,265,301 1 14,265,302 14,265,302 14,265,302 0 0 Completed Projects 6,508,081 6,508,081 6,508,081 0 177,088 0 177,088 177,088 177,088 0 0 SUB TOTAL 365,862,412 218,186,330 365,862,412 0 37,742,936 (0) 37,742,936 37,742,936 37,742,936 0 0 Other Other 24,858,909 0 24,858,909 0 0 0 0 0 0 0 0 SUB TOTAL 24,858,909 0 24,858,909 0 0 0 0 0 0 0 0 Total Project Expenditure 576,299,998 296,795,956 576,299,998 0 59,498,914 0 59,498,914 59,498,914 59,498,914 0 0 Total Project Income (59,498,914) (0) (59,498,914) (59,498,914) (59,498,914) 0 0 Total Net Expenditure 0 0 0 0 (0) 0 0 On Target (+0.5% of budget) Slightly off target (+ 0.5% to 2% of budget, or £0.125m, whichever is less) Significantly off target (+2% or more of budget, or £0.500m, whichever is less) The following classifications have been used to highlight financial performance against budget CURRENT YEAR 2025/26 North Ayrshire Council Capital Statement 2025/26 Year Ended 31st March 2026 Period 12 The following classifications have been used to highlight delivery performance against original timescales set # OFFICIAL INFORMATION 237
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OFFICIAL INFORMATION# Revised Budget 25/26 Variance £ £ £ £ £ £ £ £ £ CAPITAL BORROWING Prudential Borrowing 54,463,198 16,882,663 2,656,651 74,002,512 (47,076,362) 8,979,671 35,905,821 35,905,822 35,905,822 1 SUB TOTAL 54,463,198 16,882,663 2,656,651 74,002,512 (47,076,362) 8,979,671 35,905,821 35,905,822 35,905,822 1 SCOTTISH GOVERNMENT FUNDING Specific Capital Grants Local Authority Direct Award 41,337 41,337 41,337 41,337 (0) Vacant & Derelict Land Funding 3,397,568 238,809 358,499 3,994,876 (3,924,982) 69,894 69,894 69,894 0 Scottish Government Grant - AGD Great Harbour Ph 1 2,737,842 (29,141) 451,870 3,160,571 (302,732) 2,857,839 2,857,839 2,857,839 (0) UK Government Grant - AGD DPMC Ph 1 (337,440) 1,000,000 662,560 662,560 662,560 (0) Ardrossan Promenade 0 1,307 1,307 (1) 1,306 1,306 1,306 0 Islands Pit Stops 0 67,540 440,000 507,540 (473,766) 33,774 33,774 33,774 0 Place Based Investment Programme 316,043 136,857 251,385 704,285 (582,917) 121,368 121,368 121,368 (0) UK Government Grant - B714 Improvements 17,553,389 (229,290) 17,324,099 (13,206,034) 4,118,065 4,118,065 4,118,065 (0) UK Government Ayrshire 5GIR 0 281,711 281,711 575,000 856,711 856,711 856,711 0 UK Government - Local Regeneration Fund Funding Commercial & 0 0 573,703 139,304 713,007 713,007 713,007 (0) Road Safety Improvement Fund 404,314 404,314 404,314 404,314 0 20 mph Implementation 448,281 448,281 448,281 448,281 0 Capital Grants Flooding (2,206,000) (2,206,000) 0 (2,206,000) 0 0 2,206,000 General Capital Grant 10,573,000 (454,000) 10,119,000 1,958,395 454,000 12,531,395 10,325,395 10,325,395 (2,206,000) SUB TOTAL 39,038,920 687,972 1,047,754 40,774,646 (15,337,544) (4,783,251) 20,653,851 20,653,850 20,653,850 (1) CFCR 0 0 0 0 423,908 0 423,908 423,908 423,908 (0) General CFCR 0 (56,180) (56,180) (56,180) (56,180) Vehicles 0 70,650 70,650 70,650 70,650 Locality Based Property Review 0 49,000 49,000 49,000 49,000 Salt Dome Goldcraigs 0 115,000 115,000 115,000 115,000 Street Furniture 0 2,161 2,161 2,161 2,161 Waste Compactors 0 171,485 171,485 171,485 171,485 AGD - GH Phase 2 Maritime Mile 0 9,792 9,792 9,792 9,792 AGD - Marine Tourism Arran 0 12,750 12,750 12,750 12,750 AGD - Marine Tourism Cumbrae 0 12,750 12,750 12,750 12,750 Great Harbour Phase 1 0 36,500 36,500 36,500 36,500 Grants & Contributions 101,099 99,437 85,000 285,536 1,069,080 0 1,354,616 1,354,617 1,354,617 1 Quarry Road Phase 1 - IRBC 0 19,827 19,827 0 19,827 19,827 19,827 0 AGD - Great Harbour - Sustrans 0 0 (10) (10) (10) (10) 0 AGD - Great Harbour - FCC Communities Foundation 0 0 40,000 40,000 40,000 40,000 0 AGD - Great Harbour - Sportscotland 0 0 135,000 135,000 135,000 135,000 0 AGD - Great Harbour - LT Funding 0 0 40,000 40,000 40,000 40,000 0 B777 Corridor Improvements - Active Travel Tier 2 0 0 25,995 25,995 25,995 25,995 0 Old Caledonian Railway Saltcoats Ph 2 - Active Travel Tier 2 49,979 49,979 49,979 49,979 0 B714 Sharphill to NCN AT Route - Active Travel Tier 2 170,321 170,321 170,321 170,321 0 Cumbrae AT Route - Active Travel Tier 2 49,963 49,963 49,963 49,963 0 Girdle Toll to Irvine Town AT Route - Active Travel Tier 2 77,909 77,909 77,909 77,909 (0) Irvine to Drybridge AT Route - Active Travel Tier 2 8,000 8,000 8,000 8,000 0 Links to Eglinton Park - Active Travel Tier 2 0 0 105,800 105,800 105,800 105,800 0 NCN7 Valefield/Glengarnock Bridge - Walk Wheel Cycle Trust 0 0 60,959 60,959 60,959 60,959 0 Panel Reinstatement Works 0 40,189 40,189 0 40,189 40,189 40,189 0 Roads Remediation Works 0 39,651 39,651 (3,023) 36,628 36,628 36,628 0 NCN7 Crossing Improvements Walk Wheel Cycle Trust 39,724 39,724 39,724 39,724 0 Brodick Tennis Courts - LTA Tennis Foundation 0 80,235 80,235 80,235 80,235 0 Brodick Tennis Courts - KA Leisure Contribution 52,500 52,500 52,500 52,500 0 UFSM West Kilbride PS - Persimmons Contribution 50,000 50,000 50,000 50,000 0 Depot Charging Scheme - Department of Transport 271,597 271,597 271,597 271,597 (0) Capital Receipts 1,500,000 837,950 0 2,337,950 (1,190,042) 12,810 1,160,718 1,160,718 1,160,718 (0) Sale of Land and Buildings 1,500,000 837,950 2,337,950 (1,515,140) 12,810 835,620 835,620 835,620 Sale of Vehicles 0 0 73,257 73,257 73,257 73,257 Insurance Recoveries (Vehicles) 0 0 24,345 24,345 24,345 24,345 Salt Dome - Insurance Recovery 227,496 227,496 227,496 227,496 SUB TOTAL 2,304,806 937,387 (618,707) 2,623,486 302,946 12,810 2,939,242 2,939,243 2,939,243 1 TOTAL CAPITAL PROGRAMME FUNDING 95,806,924 18,508,022 3,085,698 117,400,644 (62,110,960) 4,209,230 59,498,914 59,498,914 59,498,914 0 Approved Budget at Cabinet Feb 2025 Capital Programme Funding 2025/26 Projected Income to 31st March 2026 Approved budget at Period 1 used as revised starting point 2025/26 Actual Income to 31st March 2026Funding Description Carry Forward from 2024/25 Changes after Capital Refresh Feb 2025 Total Changes in Year Changes at Capital Refresh Feb 2026 # OFFICIAL INFORMATION 238
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OFFICIAL INFORMATION# EDUCATION MILESTONE Total Project Budget Cumulative Expenditure to date Total Project Forecast Projected Over/ (Under) Spend Total Revised Budget 2025/26 Actual Expenditure to 31st March 2026 Actual Over/ (Under) Spend for 2025/26 True Over/(Under) Spend Brought / Carry Forward to 2026/27 Original Target Revised Forecast Current Project Stage Delivery Status Financial Delivery Status Physical £ £ £ £ £ £ £ £ £ Nursery Education Early Years Programme MARRESS HOUSE 4,076,308 4,076,308 4,076,308 0 82,516 82,516 0 0 Complete Complete Complete Complete Complete Total Nursery Education 4,076,308 4,076,308 4,076,308 0 82,516 82,516 0 0 0 Primary Schools MOORPARK PRIMARY 14,885,024 14,885,024 14,885,024 0 2,137,057 2,137,057 (0) (0) Complete Complete Complete Complete Complete MONTGOMERIE PARK SCHOOL 22,848,999 22,164,969 22,848,999 0 18,256 18,256 (0) (0) Complete Complete Complete Complete Complete FAIRLIE PRIMARY SCHOOL 542,444 100,712 542,444 0 95,712 95,712 (0) (0) 31-Aug-26 31-Aug-26 Feasibility On Target On Target UFSM ARDEER PRIMARY SCHOOL 17,634 16,851 17,634 0 812 813 1 1 Complete Complete Complete Complete Complete UFSM CORSEHILL PRIMARY SCHOOL 147,940 147,940 147,940 0 10,725 10,725 0 0 Complete Complete Complete Complete Complete UFSM GARNOCK COMMUNITY CAMPUS 54,043 54,043 54,043 0 38 38 (0) (0) Complete Complete Complete Complete Complete UFSM HAYOCKS PRIMARY SCHOOL 94,984 94,984 94,984 0 1,941 1,941 (1) (1) Complete Complete Complete Complete Complete UFSM LOUDOUN-MONTGOMERY PRIMARY SCHOOL 2,082,541 128,972 2,082,541 0 77,510 77,510 (0) (0) 31-Dec-26 31-Dec-26 Feasibility On Target On Target UFSM WEST KILBRIDE PRIMARY SCHOOL 4,047,764 413,700 4,047,764 0 181,921 181,921 0 0 31-Aug-27 31-Aug-27 On Site On Target On Target UFSM WHITEHIRST PARK PRIMARY 52,893 52,894 52,893 0 357 357 0 0 Complete Complete Complete Complete Complete Total Primary Education 45,767,469 38,500,384 45,767,469 0 2,524,329 2,524,328 (1) 0 (1) Secondary Schools KILWINNING LEARNING ENVIRONMENT 2,770,121 2,770,120 2,770,121 0 2,534 2,534 (0) (0) Complete Complete Complete Complete Complete ARDROSSAN NEW BUILD 114,588,600 22,637,585 114,588,600 0 17,497,801 17,497,801 0 0 Autumn 2027 Winter 2027 On Site Slightly off target Slightly off target Total Secondary Education 117,358,721 25,407,705 117,358,721 0 17,500,335 17,500,335 0 0 0 Schools Other CO2 MONITORS IN SCHOOLS 298,000 266,501 298,000 0 4,246 4,246 0 0 31-Mar-26 31-Mar-26 Planning On Target On Target SCHOOLS ICT INVESTMENT * 994,172 994,172 994,172 0 994,172 994,172 0 0 31-Mar-26 31-Mar-26 On-going On Target On Target Total Schools Other 1,292,172 1,260,674 1,292,172 0 998,418 998,419 1 0 1 Total Education 168,494,670 69,245,070 168,494,670 0 21,105,598 21,105,598 0 0 0 CAPITAL MONITORING 2025/26 CommentsProject Description TOTAL PROJECT COMPLETION DATES DELIVERY STATUS2025/26 BUDGETS # OFFICIAL INFORMATION 239
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OFFICIAL INFORMATION# COMMUNITIES & HOUSING MILESTONE Total Project Budget Cumulative Expenditure to date Total Project Forecast Projected Over/ (Under) Spend Total Revised Budget 2025/26 Actual Expenditure to 31st March 2026 Actual Over/ (Under) Spend for 2025/26 True Over/(Under) Spend Brought / Carry Forward to 2026/27 Original Target Revised Forecast Current Project Stage Delivery Status Financial Delivery Status Physical £ £ £ £ £ £ £ £ £ Information & Culture BRODICK TENNIS COURTS 153,055 132,736 153,055 0 132,736 132,736 (0) (0) 30-Sep-25 31-May-26 Construction On Target On Target Total Information & Cultural 647,464 139,298 647,464 0 132,736 132,736 (0) 0 (0) Total Communities & Housing 986,269 139,298 986,269 0 132,736 132,736 (0) 0 (0) Comments CAPITAL MONITORING 2025/26 Project Description TOTAL PROJECT 2025/26 BUDGETS COMPLETION DATES DELIVERY STATUS # OFFICIAL INFORMATION 240
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OFFICIAL INFORMATION# CORPORATE SERVICES MILESTONE Total Project Budget Cumulative Expenditure to date Total Project Forecast Projected Over/ (Under) Spend Total Revised Budget 2025/26 Actual Expenditure to 31st March 2026 Actual Over/ (Under) Spend for 2025/26 True Over/(Under) Spend Brought / Carry Forward to 2026/27 Original Target Revised Forecast Current Project Stage Delivery Status Financial Delivery Status Physical £ £ £ £ £ £ £ £ £ Council IT Strategy ICT INVESTMENT FUND 4,915,581 1,870,326 4,915,581 0 358,403 358,403 0 0 31-Mar-26 31-Mar-26 On-going On Target On Target TELEPHONY 303,693 298,883 303,693 0 19,597 19,597 0 0 31-Mar-28 31-Mar-28 Implementation On Target On Target Total IT Strategy 9,832,380 3,754,316 9,832,380 0 378,000 378,000 0 0 0 Total Corporate Services 9,832,380 3,754,316 9,832,380 0 378,000 378,000 0 0 0 CAPITAL MONITORING 2025/26 CommentsProject Description COMPLETION DATESTOTAL PROJECT DELIVERY STATUS2025/26 BUDGETS # OFFICIAL INFORMATION 241
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OFFICIAL INFORMATION# HEALTH & SOCIAL CARE MILESTONE Total Project Budget Cumulative Expenditure to date Total Project Forecast Projected Over/ (Under) Spend Total Revised Budget 2025/26 Actual Expenditure to 31st March 2026 Actual Over/ (Under) Spend for 2025/26 True Over/(Under) Spend Brought / Carry Forward to 2026/27 Original Target Revised Forecast Current Project Stage Delivery Status Financial Delivery Status Physical £ £ £ £ £ £ £ £ £ Management & Support ECLIPSE 536,058 382,993 536,058 0 139,644 139,644 0 0 14-Jan-27 31-Mar-27 Construction On Target On Target Total Health & Social Care 6,265,358 5,470,941 6,265,358 0 139,644 139,644 0 0 0 CAPITAL MONITORING 2025/26 2025/26 BUDGETSTOTAL PROJECT COMPLETION DATES CommentsProject Description DELIVERY STATUS # OFFICIAL INFORMATION 242
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OFFICIAL INFORMATION# PLACE MILESTONE Total Project Budget Cumulative Expenditure to date Total Project Forecast Projected Over/ (Under) Spend Total Revised Budget 2025/26 Actual Expenditure to 31st March 2026 Actual Over/ (Under) Spend for 2025/26 True Over/(Under) Spend Brought / Carry Forward to 2026/27 Original Target Revised Forecast Current Project Stage Delivery Status Financial Delivery Status Physical £ £ £ £ £ £ £ £ £ Roads ROADS IMPROVE/RECONSTRUCTION * 3,853,578 3,853,578 3,853,578 0 3,853,578 3,853,578 (0) (0) 31-Mar-26 31-Mar-26 Multiple Projects On Target On Target ROAD SAFETY IMPROVEMENT FUND 404,314 404,314 404,314 0 404,314 404,314 0 0 Complete Complete Complete Complete Complete ROADS REMEDIATION WORKS 36,628 36,628 36,628 0 36,628 36,628 0 0 31-Mar-26 31-Mar-26 In Development On Target On Target 20MPH IMPLEMENTATION 448,281 448,281 448,281 0 448,281 448,281 0 0 Complete Complete Complete Complete Complete LIGHTING * 900,727 900,727 900,727 0 900,727 900,727 (0) (0) 31-Mar-26 31-Mar-26 Multiple Projects On Target On Target UPPER GARNOCK FPS 18,579,086 18,579,085 18,579,086 0 205,336 205,336 (0) (0) Complete Complete Complete Complete Complete MILLPORT COASTAL FPS 41,794,797 41,794,797 41,794,797 0 984,849 984,849 0 0 Complete Complete Complete Complete Complete MILLBURN FPS 4,684,650 1,570,825 4,684,650 0 1,197,211 1,197,211 (0) (0) 31-Jul-26 31-Jul-26 Tender On Target On Target BRIDGES INFRASTRUCTURE PROG * 272,605 272,605 272,605 0 272,605 272,605 0 0 31-Mar-26 31-Mar-26 Multiple Projects On Target On Target LARGS PROMENADE SEAWALL 4,698,482 4,698,483 4,698,482 0 6,581 6,581 0 0 Complete Complete Complete Complete Complete COASTAL ADAPTATIONS 315,000 41,070 315,000 0 41,070 41,070 0 0 31-Mar-29 31-Mar-29 In Development On Target On Target B714 UPGRADE 34,749,635 7,023,752 34,749,635 0 4,118,065 4,118,065 (0) (0) 31-Aug-27 31-Aug-27 Tender On Target On Target Total Roads 112,772,041 79,854,249 112,772,041 0 12,469,245 12,469,245 (0) 0 (0) Streetscene CMTY, KILBIRNIE - WALLS 119,675 119,675 119,675 0 700 700 0 0 Complete Complete Complete Complete Complete CMTY, BEITH - WALLS 162,395 162,395 162,395 0 760 760 0 0 Complete Complete Complete Complete Complete CMTY, ABBEY TOWER - WALLS 159,357 159,357 159,357 0 37,484 37,484 (0) (0) Complete Complete Complete Complete Complete CMTY, STEV HAWKHILL - WALLS 89,670 89,670 89,670 0 4,291 4,291 0 0 Complete Complete Complete Complete Complete CMTY, WEST KILBRIDE - WALLS 110,397 110,397 110,397 0 35,592 35,592 0 0 Complete Complete Complete On Target On Target CMTY, IRVINE OP CHURCH - WALLS 15,243 6,998 15,243 0 4,223 4,223 0 0 Future years Future years Feasibility Works On Target On Target CMTY, DREGHORN - WALLS 19,227 19,227 19,227 0 5,676 5,676 0 0 Future years Future years Feasibility Works On Target On Target CMTY, STEV HIGH KIRK - WORKS 30,802 25,732 30,802 0 1,028 1,028 0 0 Future years Future years Feasibility Works On Target On Target CMTY, KILBIRNIE - NEW 1,501,663 554,521 1,501,663 0 426,013 426,013 0 0 30-Sep-25 30-Sep-26 Tender Awarded On Target On Target CMTY, ARDROSSAN - EXTENSION 1,000 1,000 1,000 0 1,000 1,000 0 0 Future years Future years Feasibility Works On Target On Target CMTY, NEW STREET STEV - WALLS 1,515 1,515 1,515 0 1,515 1,515 0 0 Complete Complete Complete Complete Complete STREET FURNITURE IMPROVEMENT 225,511 225,511 225,511 0 2,585 2,585 0 0 31-Mar-26 31-Mar-26 Planning On Target On Target PARK ENABLING WORKS 149,895 149,415 149,895 0 1,700 1,700 0 0 31-Mar-26 31-Mar-26 Planning On Target On Target RENEWAL OF PLAY PARKS 1,411,000 849,665 1,411,000 0 263,862 263,862 0 0 31-Mar-27 31-Mar-27 Construction On Target On Target Total Streetscene 5,408,446 3,428,513 5,408,446 0 786,429 786,429 0 0 0 Transport VEHICLES * 3,409,343 3,409,343 3,409,343 0 3,409,343 3,409,343 (0) (0) 31-Mar-26 31-Mar-26 Ongoing On Target On Target FLEET DECARBONISATION 5,352,364 620,451 5,352,364 0 498,950 498,950 0 0 31-Mar-26 31-Mar-26 Ongoing On Target On Target Total Transport 8,761,707 4,029,794 8,761,707 0 3,908,293 3,908,293 (0) 0 (0) Waste Services WASTE COMPACTORS 171,485 171,485 171,485 0 171,485 171,485 0 0 Complete Complete Complete Complete Complete Total Waste Services 13,492,976 13,444,027 13,492,976 0 171,485 171,485 0 0 0 Renewable Energy SOLAR PV INVESTMENT - NETHERMAINS 8,290,950 8,290,950 8,290,950 0 887,693 887,693 (0) (0) Complete Complete Complete Complete Complete SOLAR PV INVESTMENT - SHEWALTON 5,954,484 5,915,974 5,954,484 0 1,025,813 1,025,813 (0) (0) Complete Complete Complete Complete Complete NON DOMESTIC ENERGY EFFICIENCY PROGRAMME 1,000,001 1,000,001 1,000,001 0 45,951 45,951 0 0 Complete Complete Complete Complete Complete NATURE RESTORATION FUND 711,001 536,309 711,001 0 408,285 408,285 (0) (0) 31-Aug-24 31-Mar-26 Planning On Target On Target Total Renewable Energy 15,956,436 15,743,235 15,956,436 0 2,367,742 2,367,742 (0) 0 (0) Office Accommodation PLI GOWANLEA DAY SERVICES 28,844 28,843 28,844 0 28,844 28,843 (1) (1) Complete Complete Complete Complete Complete PLI CENTRAL AVE STREETSCENE DEPOT 3,825 3,825 3,825 0 3,825 3,825 0 0 Complete Complete Complete Complete Complete PLI GOLDCRAIGS DEPOT 169,887 13,265 169,887 0 13,265 13,265 0 0 Complete Complete Complete Complete Complete PLI CALEDONIA PRIMARY 670,765 332,410 670,765 0 332,410 332,410 (0) (0) 31-Mar-26 30-Jun-26 Construction On Target On Target PLI DALRY PRIMARY SCHOOL 220,000 22,756 220,000 0 22,756 22,756 (0) (0) 19-Dec-25 31-Aug-26 Construction On Target On Target PLI FAIRLIE PRIMARY SCHOOL 7,531 7,531 7,531 0 7,531 7,531 (0) (0) Complete Complete Complete Complete Complete Comments CAPITAL MONITORING 2025/26 COMPLETION DATES Project Description TOTAL PROJECT 2025/26 BUDGETS DELIVERY STATUS # OFFICIAL INFORMATION 243
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OFFICIAL INFORMATION# PLACE MILESTONE Total Project Budget Cumulative Expenditure to date Total Project Forecast Projected Over/ (Under) Spend Total Revised Budget 2025/26 Actual Expenditure to 31st March 2026 Actual Over/ (Under) Spend for 2025/26 True Over/(Under) Spend Brought / Carry Forward to 2026/27 Original Target Revised Forecast Current Project Stage Delivery Status Financial Delivery Status Physical Comments CAPITAL MONITORING 2025/26 COMPLETION DATES Project Description TOTAL PROJECT 2025/26 BUDGETS DELIVERY STATUS PLI HAYOCKS PRIMARY SCHOOL 373,262 369,970 373,262 0 369,970 369,970 0 0 Complete Complete Complete Complete Complete PLI SKELMORLIE PRIMARY SCHOOL 1,942 1,942 1,942 0 1,942 1,942 0 0 Complete Complete Complete Complete Complete PLI ST LUKES PRIMARY SCHOOL 21,477 21,477 21,477 0 21,477 21,477 (0) (0) Complete Complete Complete Complete Complete PLI ST WINNINGS PRIMARY SCHOOL 27,333 27,333 27,333 0 27,333 27,333 0 0 Complete Complete Complete Complete Complete PLI WEST KILBRIDE PRIMARY SCHOOL 94,562 94,562 94,562 0 94,562 94,562 0 0 Complete Complete Complete Complete Complete PLI ARDROSSAN ACADEMY 54,005 54,005 54,005 0 54,005 54,005 (0) (0) Complete Complete Complete Complete Complete PLI AUCHENHARVIE ACADEMY* 269 269 269 0 269 269 (0) (0) Complete Complete Complete Complete Complete PLI KILWINNING ACADEMY 21,134 21,134 21,134 0 21,134 21,134 0 0 Complete Complete Complete Complete Complete PLI WEST KILBRIDE EARLY YEARS 3,232 3,232 3,232 0 3,232 3,232 (0) (0) Complete Complete Complete Complete Complete PLI ARRAN OUTDOOR CENTRE 5,181 5,181 5,181 0 5,181 5,181 (0) (0) Complete Complete Complete Complete Complete PLI ANAM CARA 50 50 50 0 50 50 0 0 Complete Complete Complete Complete Complete PLI BRODICK HWRC 21,505 21,505 21,505 0 21,505 21,505 0 0 Complete Complete Complete Complete Complete PLI THE PORTAL 48,132 48,132 48,132 0 48,132 48,132 0 0 Complete Complete Complete Complete Complete PLI IRVINE WASTE TRANSFER 12,795 12,795 12,795 0 12,795 12,795 0 0 Complete Complete Complete Complete Complete Total Office Accommodation 1,785,731 1,090,217 1,785,731 0 1,090,218 1,090,217 (1) 0 (1) Other Property LBPR - TRINITY CHURCH 1,490 1,490 1,490 0 630 630 0 0 Complete Complete Complete Complete Complete LBPR IRVINE LIBRARY 50,967 50,968 50,967 0 12,893 12,893 0 0 Complete Complete Complete Complete Complete LBPR BRIDGEGATE HOUSE 2,172 2,172 2,172 0 197 197 0 0 Complete Complete Complete Complete Complete LBPR CUNNINGHAME HOUSE 238,000 109,292 238,000 0 51,739 51,739 (0) (0) 31-Mar-27 31-Mar-27 Construction On Target On Target LBPR CUNNINGHAME HOUSE GRD EAST/4TH WEST 1,248,118 1,095,545 1,248,118 0 1,012,179 1,012,179 0 0 31-Mar-26 30-May-26 Construction On Target On Target LBPR CUNNINGHAME HOUSE GRD WEST 201,777 173,673 201,777 0 9,583 9,583 0 0 Complete Complete Complete Complete Complete LBPR - THE TOWNHOUSE 25,000 9,360 25,000 0 5,781 5,780 (1) (1) 31-Jul-25 30-Apr-26 Construction On Target On Target LBPR THE CIRCUIT 311,571 248,327 311,571 0 227,379 227,379 (0) (0) 31-Mar-27 30-May-26 Construction On Target On Target EMERGENCY CONTROL CTR 158,000 153,438 158,000 0 (1,451) (1,451) 0 0 Complete Complete Complete Complete Complete GOLDCRAIGS REFURBISHMENT 1,163,495 1,035,446 1,163,495 0 841,689 841,688 (1) (1) Complete Complete Complete Complete Complete SALT DOME GOLDCRAIGS 346,516 346,516 346,516 0 346,516 346,516 0 0 31-Mar-26 31-Mar-26 Planning On Target On Target Total Property 4,490,577 3,356,587 4,490,577 0 2,507,135 2,507,135 (0) 0 (0) Regeneration ISLANDS PIT STOPS 218,321 33,774 218,321 0 33,774 33,774 0 0 31-Jul-25 31-Jul-26 In development On Target On Target PLACE BASED INVESTMENT PROGRAMME (PBIP) 225,551 49,373 225,551 0 18,596 18,596 0 0 31-Mar-27 31-Mar-27 In development On Target On Target AYRSHIRE 5GIR 4,366,000 4,366,000 4,366,000 0 856,711 856,711 0 0 Complete Complete Complete Complete Complete PBIP – KILWINNING ABBEY IMPROVEMENTS 264,559 55,016 264,559 0 54,660 54,660 (0) (0) 31-Mar-25 31-Dec-26 Construction On Target On Target LOCHSHORE HUB PLAY AREA 355,000 303,592 355,000 0 4,838 4,838 (0) (0) Complete Complete Complete Complete Complete PBIP GALT HOUSE 49,444 49,444 49,444 0 8,328 8,328 0 0 Complete Complete Complete Complete Complete IRVINE HIGH STREET 2,837,315 2,738,228 2,837,315 0 211 211 0 0 Complete Complete Complete Complete Complete MONTGOMERIE PARK MASTERPLAN 4,218,597 1,959,236 4,218,597 0 87,845 87,845 0 0 31-Mar-30 31-Mar-30 In development On Target On Target LOCHSHORE, KILBIRNIE 2,101,881 2,015,480 2,101,881 0 30,424 30,424 0 0 31-May-25 01-Dec-26 In development On Target On Target LOCHSHORE GARNOCK HUB 4,170,999 4,110,507 4,170,999 0 11,938 11,938 0 0 Complete Complete Complete Complete Complete VDLF - KYLE ROAD PHASE 2 4,525,506 190,782 4,525,506 0 41,627 41,627 0 0 31-Mar-27 31-Mar-28 In development On Target On Target VDLF - ANNICKBANK PH 3 1,948,996 1,944,450 1,948,996 0 5,919 5,919 (0) (0) Complete Complete Complete Complete Complete LUF3 - ANNICKBANK 6,074,602 140,661 6,074,602 0 60,566 60,566 (0) (0) 31-Mar-27 31-Mar-28 In development On Target On Target LOCHSHORE GARDEN/ACTIVITY HUB 827,075 44,917 827,075 0 44,917 44,917 0 0 31-Dec-26 31-Dec-26 In development On Target On Target PBIP DOCKHEAD STREET 250,000 8,358 250,000 0 8,358 8,358 0 0 31-Mar-26 31-Mar-27 In development On Target On Target PBIP HAYOCKS HALL COMMUNITY LARDER 32,500 806 32,500 0 806 806 0 0 31-Mar-27 31-Mar-27 In development On Target On Target PBIP CRANBERRY MOSS COMMUNITY CENTRE 32,500 131 32,500 0 131 131 0 0 31-Mar-27 31-Mar-27 In development On Target On Target PBIP EGLINTON PARK IMPROVEMENTS 10,000 833 10,000 0 833 833 0 0 31-Mar-27 31-Mar-27 In development On Target On Target ACTIVE TRAVEL TIER 1 848,823 3,779,771 848,823 0 848,823 848,823 0 0 31-Mar-26 31-Mar-27 Various On Target On Target ACCESS PATH NETWORK PROGRAMME 77,906 77,906 77,906 0 77,906 77,906 (0) (0) 31-Mar-26 31-Mar-27 Various On Target On Target LOCAL AUTHORITY DIRECT AWARD 41,337 41,337 41,337 0 41,337 41,337 0 0 Complete Complete Complete Complete Complete ARDROSSAN PROMENADE 1,206 787,900 1,206 0 1,206 1,206 0 0 Complete Complete Complete Complete Complete B777 CORRIDOR IMPROVEMENTS 137,766 137,766 137,766 0 25,995 25,995 0 0 Complete Complete Complete Complete Complete SALTCOATS OLD CAL RAILWAY PH2 49,979 49,979 49,979 0 49,979 49,979 0 0 Complete Complete Complete Complete Complete BUS INFRASTRUCTURE FUND 288,000 246,993 288,000 0 246,993 246,993 0 0 31-Mar-26 30-Jun-26 Construction On Target On Target NCN7 CROSSING IMPROVEMENTS 39,724 39,724 39,724 0 39,724 39,724 0 0 Complete Complete Complete Complete Complete # OFFICIAL INFORMATION 244
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OFFICIAL INFORMATION# PLACE MILESTONE Total Project Budget Cumulative Expenditure to date Total Project Forecast Projected Over/ (Under) Spend Total Revised Budget 2025/26 Actual Expenditure to 31st March 2026 Actual Over/ (Under) Spend for 2025/26 True Over/(Under) Spend Brought / Carry Forward to 2026/27 Original Target Revised Forecast Current Project Stage Delivery Status Financial Delivery Status Physical Comments CAPITAL MONITORING 2025/26 COMPLETION DATES Project Description TOTAL PROJECT 2025/26 BUDGETS DELIVERY STATUS B714 SHARPHILL TO NCN AT ROUTE 170,321 170,321 170,321 0 170,321 170,321 0 0 Complete Complete Complete Complete Complete CUMBRAE AT ROUTE 49,963 49,963 49,963 0 49,963 49,963 0 0 Complete Complete Complete Complete Complete GIRDLE TOLL TO IRVINE TOWN AT ROUTE 77,909 77,909 77,909 0 77,909 77,909 (0) (0) Complete Complete Complete Complete Complete IRVINE TO DRYBRIDGE AT ROUTE 8,000 8,000 8,000 0 8,000 8,000 0 0 Complete Complete Complete Complete Complete LINKS TO EGLINTON PARK 273,976 273,976 273,976 0 105,800 105,800 0 0 Complete Complete Complete Complete Complete NCN7 VALEFIELD/GLENGARNOCK BRIDGE 64,460 64,460 64,460 0 60,960 60,960 (1) (1) Complete Complete Complete Complete Complete LONG DRIVE 956,620 349,573 956,620 0 349,573 349,573 (0) (0) 31-Mar-26 31-May-26 Construction On Target On Target RIVERSIDE WAY 867,180 5,662 867,180 0 5,662 5,662 (0) (0) 31-Mar-26 31-Aug-26 In development On Target On Target STRATEGIC INVESTMENT ROUTE 2,386,826 188,667 2,386,826 0 188,667 188,667 (1) (1) 31-Mar-27 31-Mar-27 Construction On Target On Target KYLE ROAD AT ROUTE 1,073,678 64,111 1,073,678 0 64,111 64,111 0 0 31-Mar-26 31-Aug-26 In development On Target On Target Total Regeneration 50,258,442 30,026,340 50,258,442 0 3,683,411 3,683,411 0 0 0 Ayrshire Growth Deal AGD - I3 DPMC PHASE 1 1,000,000 662,560 1,000,000 0 389,871 389,871 0 0 31-Mar-26 31-Mar-26 Delivery On Target On Target AGD - I3 DPMC PHASE 2 6,225,000 336,924 6,225,000 0 22,557 22,557 (0) (0) 31-Mar-29 31-Mar-30 Feasibility On Target On Target AGD - I3 FLEXIBLE BUSINESS SPACE PHASE 1 4,897,985 4,897,985 4,897,985 0 53,084 53,084 0 0 Complete Complete Complete Complete Complete AGD - I3 FLEXIBLE BUSINESS SPACE PHASE 2 6,156,259 487,209 6,156,259 0 131,559 131,559 0 0 31-Mar-29 31-Mar-29 Multiple Projects On Target On Target AGD - HUNTERSTON - CENTRE OF LOW CARBON ENERGY & CIRCULARECONOMY 12,040,000 302,730 12,040,000 0 34,997 34,997 0 0 31-Mar-30 30-Nov-30 Feasibility On Target Slightly off target AGD - GH PHASE 1 COASTAL HUB 4,873,946 4,589,852 4,873,946 0 3,079,024 3,079,024 (0) (0) 31-Mar-29 31-Mar-27 Delivery On Target On Target AGD - GH PHASE 2 MARITIME MILE 7,996,866 111,812 7,996,866 0 111,812 111,812 0 0 31-Mar-29 31-Mar-29 Design On Target On Target AGD - IMSE 15,275,000 243,166 15,275,000 0 68,559 68,559 0 0 31-Mar-30 31-Mar-30 Feasibility On Target On Target AGD - MARINE TOURISM ARRAN 4,571,992 293,108 4,571,992 0 86,348 86,348 (0) (0) 31-Mar-29 31-Mar-30 Feasibility On Target Significantly off t tAGD - MARINE TOURISM CUMBRAE 4,796,278 310,180 4,796,278 0 103,795 103,795 0 0 31-Mar-29 31-Mar-30 Design On Target Significantly off t tAGD -BUILDING DIGITAL CAPITAL 4,630,000 11,882 4,630,000 0 11,882 11,882 0 0 31-Mar-30 31-Mar-30 Design On Target On Target Total Ayrshire Growth Deal 82,108,625 12,523,125 82,108,625 0 4,093,488 4,093,489 1 0 1 Growth & Investment ARDROSSAN HARBOUR INTERCHANGE 4,127,113 607,991 4,127,113 0 5,511 5,511 (0) (0) 1st Qtr 2026 TBC Design On Hold On Hold ARDROSSAN NORTH SHORE 48,888,716 47,158,412 48,888,716 0 6,479,171 6,479,171 (0) (0) Complete Complete Complete Complete Complete VDLF - HARBOUR MASTERS OFFICE 158,740 158,740 158,740 0 3,720 3,720 0 0 Complete Complete Complete Complete Complete Other Growth & Investment 64,319,350 48,182,164 64,319,350 0 6,488,402 6,488,402 (0) 0 (0) Total Economic Development & Regeneration 196,686,417 90,731,629 196,686,417 0 14,265,301 14,265,302 1 0 1 Completed Projects QUARRY ROAD PHASE 1 3,129,917 3,129,918 3,129,917 0 177,088 177,088 0 0 Complete Complete Defects Period Complete Complete Total Completed Projects 6,508,081 6,508,081 6,508,081 0 177,088 177,088 0 0 0 Total Place 365,862,412 218,186,330 365,862,412 0 37,742,936 37,742,936 (0) 0 (0) # OFFICIAL INFORMATION 245
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OFFICIAL INFORMATION# OTHER BUDGETS AE Total Project Budget Cumulative Expenditure to date Total Project Forecast Projected Over/ (Under) Spend Total Revised Budget 2025/26 Actual Expenditure to 31st March 2026 Over/ (Under) Spend for 25/26 £ £ £ £ £ £ £ FLEXIBILITY / IMPROVEMENT FUND 24,858,909 0 24,858,909 0 0 0 0 CORE INFRASTRUCTURE INVESTMENT 2,001,000 0 2,001,000 0 0 0 0 Total Other Budgets 26,859,909 0 26,859,909 0 0 0 0 2025/26 BUDGETS CommentsProject Description TOTAL PROJECT # OFFICIAL INFORMATION 246
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OFFICIAL-PROTECT INFORMATION# HRA Capital Statement 2526 Appendix 2 TOTAL PROJECT CURRENT YEAR 2025/26 - Period 12 Project Description Total Project Budget Cumulative Expenditure to date Total Project Forecast Projected Over/ (Under) Spend Total Revised Budget 2025/26 Actual Expenditure to 31 March 2026 Virement Request Carry /Brought Forward to /From Future Years True Over/ (Under) Spend Delivery Status Financial Delivery Status Physical Narrative EXPENDITURE Council House Building Afton Court 1,335,654 1,249,279 1,249,898 (85,756) Complete Complete Complete. Flatt Road 20,178,000 19,706,151 19,709,046 (468,954) 0 0 Complete Complete Complete Friars Lawn 2,199,628 2,085,562 2,085,598 (114,030) 0 0 Complete Complete Complete Garrier Court 2,335,551 2,414,910 2,348,027 12,476 0 0 Complete Complete Complete Harbourside 14,622,742 14,334,446 14,622,742 0 152,530 500 (152,030) Complete Complete Complete - carry forward required due to reimbursement of funds to the general fund and Scottish Government for abnormal works that cost less than projected. James McFarlane Site 4,784,118 1,042,008 4,784,118 0 271,868 207,279 (64,589) Complete Complete Complete - project still under DLP, carry forward required to cover any additional works which may be required during this period. Laburnum Ave/Newhouse Dr (Regen 1a&b) 3,274,506 1,390,770 2,953,449 (321,057) 257,091 149,058 (108,033) Complete Complete Complete - not financially complete due to contractor going in to administration. Largs Police Station 2,769,301 2,749,762 2,769,301 0 1,258 1,618 360 Complete Complete Complete Stanecastle Site 7,854,314 1,410,323 7,854,314 0 353,849 306,142 (47,707) Complete Complete Complete - project still under DLP, carry forward required to cover any additional works which may be required during this period. St Beya Gardens 3,691,052 3,689,345 3,691,052 0 0 0 0 Complete Complete Complete St Michael's Wynd 13,996,769 14,097,411 14,087,664 90,895 0 0 0 Complete Complete Complete Ukraine Buy Backs 0 0 0 0 Complete Complete Complete St Mary's Primary, Largs 6,528,399 6,553,916 25,517 474,703 47,564 (427,139) Complete Complete Complete Towerlands Primary School 8,579,943 8,574,482 8,579,943 0 0 0 Complete Ayrshire Central Site 49,841,415 18,469,660 49,841,415 0 15,570,238 15,281,909 (288,329) On Target On Target Work continues to progress on site and is currently expected to complete during winter 2027. In year slippage due to additional services required which weren't picked up during the initial surveys and the delay in the de-watering of the site due to the weather. Bourtreehill Village 10,037,524 310,067 10,037,524 0 128,176 122,999 (5,177) On Target On Target Demolition of Crofthead Court complete. Professional fees only to be incurred during 2025/26. Fullarton Street (High Flats) 13,302,808 114,693 13,302,808 0 70,000 81,363 11,363 On Target On Target Projected spend during 2025/26 is for statutory consents & consultancy fees only. Garnock Academy Site 12,092,889 5,835,046 12,092,889 0 5,293,737 5,150,334 (143,403) On Target On Target Work continues to progress on site and Ashleigh (Scotland) Limited hope to complete works by late summer 2026, amended from spring 2026 due to utilities delays. First handovers took place April 2026. Kings Arms (113-115 High Street) 2,982,159 1,515,293 2,982,159 0 1,438,438 1,181,152 (257,286) On Target Significantly off target McLaughlin Construction have submitted an updated programme and now expect to complete the Irvine town centre project during spring 2026. Contractor delays has caused in-year slippage. Montgomerie Park (Both Phases) 49,739,946 5,200,514 49,739,946 0 250,000 143,284 (106,716) On Target Slightly off target Infrastructure works delay due to phasing of works alongside adjacent sites. Final plan consultation event took placee in August 2025. St Michaels Phase 3 13,996,769 0 13,996,769 0 0 0 Nelson Street Regeneration 1,079,858 3,726 1,079,858 0 5,000 3,726 (1,274) On Target On Target Tender application with Scottish Government for review/ approval. Acquisition Houses-Open Market 1,273,080 327,269 1,273,080 0 654,177 327,269 (326,908) On Target On Target Harbour Street 0 0 0 0 0 0 0 On Target On Target Project removed from the SHIP 2025-2030 as at 3 December 2024. Grange Court, Stevenston 1,532,642 20,882 1,532,642 25,000 20,882 (4,118) On Target On Target Demolition of existing flats currently out to tender. Future Years Projects 0 0 0 0 Nursery Place 1,775,219 0 1,775,219 25,000 0 (25,000) Final plans consultation event to be scheduled. Corsehillhead (Shadow Programme) 2,032,906 0 2,032,906 0 0 0 0 On Target On Target Project in SHIP 2026-2031 Shadow Programme James Reid Site (Shadow Programme) 11,820,675 17,026 11,820,675 0 501 17,026 16,525 Significantly off target Significantly off target Project in SHIP 2026-2031 Shadow Programme Internal Management Charges 1,489,046 1 1,489,046 0 (10,070) 1 10,070 On Target On Target Regeneration Project 1e Consultants Fees 25,649 0 25,649 25,649 Contingency 4,012,524 0 2,988,321 3,305,562 0 (18,674) (3,286,888) House Building - General 3,210 0 3,210 3,210 0 0 0 0 0 0 0 0 0 SUB TOTAL 269,159,437 104,584,275 267,274,325 (860,908) 28,267,058 23,070,967 (5,394) (4,763,920) (426,778) DELIVERY STATUS # OFFICIAL-PROTECT INFORMATION 247
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OFFICIAL-PROTECT INFORMATION# TOTAL PROJECT CURRENT YEAR 2025/26 - Period 12 Project Description Total Project Budget Cumulative Expenditure to date Total Project Forecast Projected Over/ (Under) Spend Total Revised Budget 2025/26 Actual Expenditure to 31 March 2026 Virement Request Carry /Brought Forward to /From Future Years True Over/ (Under) Spend Delivery Status Financial Delivery Status Physical Narrative DELIVERY STATUS Improvements to existing stock Wet Room - Void 382,334 275,487 275,487 (106,847) 382,334 275,487 (106,847) On Target On Target lower projected unit nos than budgeted Bathrooms - Void 488,879 399,940 399,940 (88,939) 488,879 399,940 (88,939) On Target On Target lower projected unit nos than budgeted Wet Room - Planned 119,644 165,880 165,880 46,236 119,644 165,880 40,879 5,357 On Target On Target Bathrooms - Planned 195,545 154,666 154,666 (40,879) 195,545 154,666 (40,879) On Target On Target Secondary bathrooms planned 8,542 0 0 (8,542) 8,542 0 (8,542) Electrical Rewiring 920,438 1,002,099 1,002,099 81,661 920,438 1,002,099 81,661 On Target On Target Overspend includes anticipated additional voids Heating 1,909,516 1,937,082 1,937,082 27,566 1,909,516 1,937,082 27,566 On Target On Target Increase in both heating systems and voids Kitchens 1,815,386 1,846,915 1,846,915 31,529 1,815,386 1,846,915 31,529 On Target On Target Kitchens - Void 1,106,741 1,091,231 1,091,231 (15,510) 1,106,741 1,091,231 (15,510) On Target On Target Reduction in anticipated voids Roofing 781,956 637,975 637,975 (143,981) 781,956 637,975 (143,981) On Target On Target Carry forward due to adverse weather Wallfloor rendering 1,107,217 936,231 936,231 (170,986) 1,107,217 936,231 (170,986) On Target On Target Carry forward due to adverse weather EWI 339,435 174,919 174,919 (164,516) 339,435 174,919 (164,516) On Target On Target Carry forward due to adverse weather Window Replacement 420,795 350,925 350,925 (69,870) 420,795 350,925 (38,371) (31,499) On Target On Target underspend due to lower average cost. Cf for potential future year 2627 Saltcoats MSF Investment 222,079 35,258 35,258 (186,821) 222,079 35,258 (186,821) On Target On Target Smoke Detector Programme 523,551 442,141 442,141 (81,410) 523,551 442,141 (81,410) On Target On Target Energy Efficiency 10,000 5,229 5,229 (4,771) 10,000 5,229 (4,771) On Target On Target may be a future carry forward beyond 2627. Still awaiting updated guidance from Scottish Govt re SHNZS Path Finder Project 25,000 0 0 (25,000) 25,000 0 (25,000) Significantly off target Significantly off target Difficulty in gaining access to properties to allow the work to be carried out. PMI are to identify new addresses. Solar Panels 2,813,735 2,391,293 2,391,293 (422,442) 2,813,735 2,391,293 (422,442) On Target On Target Carry forward due to adverse weather HRA Slippage (1,945,479) 0 0 1,945,479 (1,945,479) 0 1,945,479 SUB TOTAL 13,190,793 11,847,271 11,847,271 (1,343,522) 11,245,314 11,847,271 0 735,525 (133,569) Other Capital works Estate Based Regeneration 1,481,785 1,171,906 1,171,906 (309,879) 1,481,785 1,171,906 (309,879) On Target On Target Underspend across various projects to be carried forward Lift Replacement 612,513 519,543 519,543 (92,970) 612,513 519,543 (92,970) On Target On Target Sheltered Housing Units 351,516 301,750 301,750 (49,766) 351,516 301,750 (49,766) Slightly off target On Target Final account agreed for Barnett court. Underspend to be added to overall SHU budget High Flats Demolition 0 0 0 0 0 0 0 On Target On Target Other Capital Works 0 5,394 5,394 5,394 0 5,394 5,394 SUB TOTAL 2,445,814 1,993,200 1,993,200 (452,614) 2,445,814 1,998,594 5,394 (452,614) 0 Total Expenditure 271,605,251 106,577,475 269,267,525 (1,313,522) 41,958,186 36,916,831 0 (4,481,009) (560,347) Income Affordable Housing Contributn (721,008) (449,200) 271,808 CFCR (8,348,729) (8,348,729) Capital Grants (10,104,000) (14,372,671) (4,268,671) Prudential Borrowing (21,971,251) (12,789,841) 8,621,064 560,347 Reduced borrowing required to reflect rephasing and projected underspends Use of Reserves (721,620) (721,620) Sale of Assets (11,684) (15,599) (3,915) Capital receipts. Other Capital Income (79,894) (219,171) (139,277) SUB TOTAL (41,958,186) (36,916,831) 0 4,481,009 560,347 Total Project Expenditure 271,605,251 106,577,475 269,267,525 (1,313,522) 41,958,186 36,916,831 0 (4,481,009) (560,347) Total Project Income (41,958,186) (36,916,831) 0 4,481,009 560,347 # OFFICIAL-PROTECT INFORMATION 248
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NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet Title: Community Asset Transfer – Blacklands Hall, Kilwinning Purpose: To seek approval for the transfer of ownership of Blacklands Hall (and adjacent land), Abbots Avenue, Kilwinning, KA13 6BZ to the Kilwinning Community Shed. Recommendation: That Cabinet: a) Agrees to the asset transfer of Blacklands Hall and the adjacent land from North Ayrshire Council to the Kilwinning Community Shed; b) Approves the recommended terms of transfer on this occasion at 5% of the property valuation of £85,000 (totalling £4,250); and c) Authorises officers to conclude the associated legal and community asset transfer processes for Blacklands Hall and adjacent land. 1. Executive Summary 1.1 The report proposes the Community Asset Transfer (CAT) of Blacklands Hall (and adjacent land), Abbots Avenue, Kilwinning from North Ayrshire Council to the Kilwinning Community Shed SCIO (the Shed). 1.2 The transfer of the asset will provide a sustainable base for local community activity, focusing on the group’s key priorities and providing a space for the community to come together, create and support each other. The proposed uses include a range of events and activities which contribute to the Shed’s key objectives. 1.3 This report recommends that Cabinet agrees to the transfer of Blacklands Hall and adjacent land at 5% of the valuation costs of £85,000 (totaling £4,250). This reflects the condition of the facility, savings made against future upkeep and the potential social return on investment. The report also recommends that officers are authorised to conclude the process under these terms. 2. Background Agenda Item 12 251
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2.1 North Ayrshire Council wishes to support its communities to make the best use of land and assets which are available as part of our Community Wealth Building ambitions. Under the terms of the Community Empowerment (Scotland) Act 2015, community asset transfer (CAT) provides an opportunity for people to be involved in developing and providing opportunities or services for their local communities to acquire public assets. It may also allow groups to develop commercial ventures which will support community benefit. Asset transfer may also mean that public assets get used more frequently and more effectively. Furthermore, community-led ownership may allow additional opportunities for groups to secure additional funding or resources. 2.2 Blacklands Hall sits in the heart of the Kilwinning community. The asset was originally a sports facility with changing and office facilities. It was previously leased to a local football club who have recently vacated the premises making it available for a CAT. The proposed transfer will provide a sustainable base for the local Community Shed. The transfer includes a small, grassed area adjacent to the hall which will allow the group to meet the growing demand from members for gardening and growing activities. and gives future capacity to contribute to the Local Community Food Network. Appendix 1 identifies both the hall and the grassed area proposed for transfer. 2.3 The benefits of Community Sheds are well evidenced and the Shed group is keen to deliver these to the local community of Kilwinning. Proposed uses include a range of events and activities which contribute to their key objectives. This includes: • Creating, developing and maintaining a facility, namely a Community Shed that will benefit the community • Offering members opportunities to meet and undertake creative, physical, purposeful and recreational activities of their choice • Reducing the isolation of members, contributing to their physical and mental wellbeing, and fostering community spirit • Developing the capacity of the members to share their skills and knowledge with others 2.4 Kilwinning Community Shed was set up in May 2024 and has so far grown to 44 members. Having their own facility will allow the Shed to further develop in a variety of ways to better serve the community and meet the needs of the members. They are keen to work alongside local community groups helping to enhance the local area and well as supporting local schools with learning opportunities and developing learning and play spaces. 2.5 The group currently use various venues in the town for different activities. Acquiring the asset will allow them to come together under one roof and consolidate the different elements, creating a better sense of belonging and improving social cohesion. The group aspire to expand and deliver gardening, woodworking, arts and crafts, model making, computing skills, cookery, 3D printing and a model railway with a community cafe a potential development for the future. 2.6 The Shed have been operating and caring for another asset in the town and have proven their ability in this regard. They upgraded that building to meet their needs and have reaped the benefits of having their own facility, however have been unable to remain there due to the building being used for other purposes by its owner. The CAT 252
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of Blacklands Hall will allow them to stabilise and further grow their offering to the local community. 2.7 Having ownership, enhancing the assets and increasing the range of events and activities within an improved facility will encourage a wider range of people to get involved. Participants will benefit from being more active and engaged in community led activity. This will support several strategic and policy areas relating to physical activity, positive mental health and wellbeing. Opportunities for local volunteering will increase, stimulating involvement in shaping and regenerating community life, building self-esteem and confidence. The activities delivered by the Shed support the advancement of all four of Kilwinning’s Locality Planning priorities: • Supporting Skills and Work • Improving our Local Environment • Alleviating Poverty and Promoting Equality of Access to Opportunities • Improving Community Wellbeing 2.8 The ownership will have wider community benefit as the care and maintenance of the asset will be carried out by the Shed members supported by local businesses as and when required, contributing to the local economy and supporting the principles of Community Wealth Building. 2.9 The request includes the hall and the small grass area adjacent to the hall (as note on Appendix 1). The car park is currently shared with the local bowling club. The Shed is keen to work with the bowling club to continue that relationship, as well as develop a closer partnership with them and support them wherever possible. 2.10 The statutory community consultation required for a Community Asset Transfer has taken place with no objections received. 3. Proposals 3.1 That Cabinet: 1. Agrees to the asset transfer of Blacklands Hall and adjacent land from North Ayrshire Council to Kilwinning Community Shed; 2. Approves the recommended terms of transfer on this occasion at 5% of the property valuation of £85,000 (totalling £4,250); and 3. Authorises officers to conclude the associated legal and community asset transfer processes for Blacklands Hall and adjacent land. 4. Implications/Socio-economic Duty Financial 4.1 Through the transfer of the assets, the Council will achieve an overall capital receipt of £4,250 and be relieved of ongoing care and maintenance costs. Human Resources 253
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4.2 None. Legal 4.3 The Local Government (Scotland) Act 1973 places a statutory obligation on the Council to obtain the best price or the best rent when it disposes of any asset by sale or lease. These regulations permit a disposal at less than the best price achievable where either (a) the property is valued at less than £10,000, or (b) the Council has compared the financial cost of transfer against the community benefits and determined that the transfer is reasonable and promotes either economic development or regeneration, health, social well-being or environmental well-being. Equality/Socio-economic 4.4 There will be considerable socio-economic benefits from the transfer which are detailed within this paper, and the value proposed reflects the community benefits. Climate Change and Carbon 4.5 The transfer seeks to provide sustainable community facilities through securing the asset for a wide range of community-led activities. Key Priorities 4.6 The proposals contained within the report support the following North Ayrshire Council Plan priorities: • Wellbeing, by providing a space to support connection and social cohesion. • Communities and Local Democracy, by allowing a community group to take control of an asset. • Climate Change, through the work of the group to improve environmental sustainability and support the circular economy by repurposing materials. Community Wealth Building 4.7 This proposal supports the following pillars of community wealth building: • Advancing community enterprises; • Advancing local ownership of underused land and buildings; and • Supporting local business activities and increasing the variety of ownership models. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 None. 254
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Consumer Duty 4.10 None. 5. Consultation 5.1 The consultation required in terms of the Community Empowerment (Scotland) Act 2015 for a community asset transfer application has now concluded. The outcome is outlined in section 2.10. 5.2 Within North Ayrshire Council, consultation has taken place with Streetscene, Connected Communities, Finance, Estates, Property Maintenance and Investment, and Legal Services. All parties are supportive of the proposal for the listed assets. David W. Hammond Executive Director (Communities & Housing) For further information please contact Rhonda Leith, Head of Service (Connected Communities, on 01294 324395. Background Papers Appendix 1 255
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NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet Title: Community Asset Transfer – Auld Dirrans Resource Centre, Kilwinning Purpose: To seek approval for the transfer of ownership of Auld Dirrans Resource Centre, 70 Dirrans Terrace, Kilwinning KA13 7PH to Irvine Elite Boxing Club. Recommendation: That Cabinet: a) Agrees to the asset transfer of Auld Dirrans Resource Centre from North Ayrshire Council to Irvine Elite Boxing Club b) Approves the recommended terms of transfer on this occasion at 5% of the property valuation of £85,000 (totalling £4,250) and c) Authorises officers to conclude the associated legal and community asset transfer processes for Auld Dirrans Resource Centre. 1. Executive Summary 1.1 This report proposes the Community Asset Transfer (CAT) of Auld Dirrans Resource Centre, 70 Dirrans Terrace, Kilwinning KA13 7PH from North Ayrshire Council to Irvine Elite Boxing Club (SCIO). 1.2 The transfer of the asset will provide a sustainable base for local community activity focusing on boxing and physical activity. The proposed uses include a range of events and activities which contribute to the Club’s key objectives. 1.3 It is recommended that Cabinet agrees to the transfer of Auld Dirrans Resource Centre with a recommended associated fee of 5% of the valuation price of £85,000 (£4,250 in total) applied. This reflects the condition of the facility; savings made against future upkeep, and the potential social return on investment. The report also recommends that officers should be authorised to conclude the process under these terms. 2. Background 2.1 North Ayrshire Council wants to support its communities to make the best of the land and assets which are available as part of its Community Wealth Building ambitions. Agenda Item 13 257
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Under the terms of the Community Empowerment (Scotland) Act 2015, Community Asset Transfer (CAT) provides an opportunity for people to be involved in developing and providing opportunities or services for their local communities. It may also allow groups to develop commercial ventures, which will support community benefit. Asset transfer may also mean that public assets get used more frequently and more effectively. Furthermore, community-led ownership may allow additional opportunities for groups to secure extra funding or resources. 2.2 Auld Dirrans Resource Centre is located in the south east of Kilwinning and is easily accessible by car, public transport or by foot and bicycle (see site plan at Appendix 1). The transfer will give the club a base to deliver their events and activities from and will allow the club the expand its offering and in turn grow its members and impact in the local community and beyond. 2.3 The proposed uses include a range of events and activities which contribute to the group's key objective: “to advance public participation in boxing for people living in North Ayrshire.” In order to achieve this the club delivers activities: • To teach children and adults the sport of boxing and uphold the rules of sport • To encourage and promote health, fitness and wellbeing across the community • To provide play and training facilities for the community • To promote and maintain the highest standards of technical competences and safety in boxing 2.4 The group formed in 2016 and changed governance in December 2024 to become a SCIO. The group have held a lease of an industrial unit in Irvine for the past six years. They have done so successfully and demonstrated skills in the care and maintenance of an asset. 2.5 Leasing the unit has allowed the club to deliver valuable opportunities to its Community; however, having ownership of a facility will allow them to further develop in a variety of ways to better serve their community and meet local needs. The club is committed to keeping membership fees low and offering free or subsided sessions for families facing financial hardship. Securing the asset will allow the club to expand its offering to include a community gym running from 9.00am-9.00pm alongside its core boxing and fitness classes. The club run a successful girls’ boxing classes which opens the sport up to a demographic not usually associated with it. The club also plans to offer free taster sessions and school holiday programmes and will work closely with community link workers and social services to identify individuals and families who would benefit most from participating in their programmes. 2.6 The asset has been vacant for some time and will benefit from active use and improvement. The group are keen to improve the facility whilst equipping the asset to meet their specific needs. Having sole use of the space will allow them to permanently install key pieces of equipment, saving setting up time and improving safety and accessibility. The space offered by the asset will allow for events to take place on the premises assisting in income generation. 2.7 Boxing has had a strong presence in North Ayrshire for many years and the benefits of involvement in the sport is impactful. The individual, personal testimonies of 258
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members clearly demonstrate the breadth the depth of the benefits that its members experience by attending. These include – • Physical and Mental Health: Boxing is an excellent way to improve cardiovascular health, build endurance, and increase muscular strength. It also helps with mental health by reducing stress, improving focus, and boosting confidence. • Social Connections: Boxing clubs foster a sense of camaraderie and team spirit. Members often form close-knit relationships, supporting each other through training and other challenges. This creates a supportive network and a sense of belonging. • Youth Engagement and Mentorship: Boxing clubs often engage with at-risk youth, providing them with a positive outlet and mentorship. This can offer diversionary opportunities and can help steer them away from negative influences and towards personal growth and development. • Inclusivity and Diversity: Boxing gyms are known for their inclusivity, welcoming people from diverse backgrounds, ages, and skill levels. This diversity enriches the experience and promotes mutual understanding and acceptance. 2.8 Irvine Elite Boxing Club is fully affiliated with Boxing Scotland, the official governing body responsible for the sport’s standards, regulations, and athlete development across Scotland. Boxing Scotland is a member of World Boxing and the IABA and is directly supported and endorsed by sportscotland. This ensures the club operates to nationally regulated standards, including those for coach qualifications, safeguarding procedures, medical protocols, and athlete progression pathways. Because of this recognised affiliation, Irvine Elite Boxing is the only club in the local area authorised to teach and participate in Olympic-style amateur boxing, including access to sanctioned competitions, talent pathways, and national coaching structures. This distinction is important for ensuring athlete safety, proper development, and recognised competitive opportunities. 2.9 Having ownership, enhancing the asset and increasing the range of events and activities within an improved facility will encourage a wider range of people to get involved. This will support several strategic and policy areas relating to physical activity as well as positive mental health and wellbeing. Opportunities for local volunteering will increase, stimulating involvement in shaping and regenerating community life, building self-esteem and confidence. 2.10 The ownership will have wider community benefit as the care and maintenance of the asset will be carried out by local businesses, contributing to the local economy and supporting the principles of Community Wealth Building. 2.11 The statutory community consultation has taken place with no objections received. 3. Proposals 3.1 That Cabinet: a) Agrees to the asset transfer of Auld Dirrans Resource Centre from North Ayrshire Council to Irvine Elite Boxing Club b) Approves the recommended terms of transfer on this occasion at 5% of the property valuation of £85,000 (totalling £4,250) and 259
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c) Authorises officers to conclude the associated legal and community asset transfer processes for Auld Dirrans Resource Centre. 4. Implications/Socio-economic Duty Financial 4.1 Through the transfer of the assets, the Council will achieve a potential capital receipt of £4,250 and be relieved of ongoing care and maintenance costs. Human Resources 4.2 None. Legal 4.3 The Local Government (Scotland) Act 1973 places a statutory obligation on the Council to obtain the best price or the best rent when it disposes of any asset by sale or lease. These regulations permit a disposal at less than the best price achievable where either (a) the property is valued at less than £10,000, or (b) the Council has compared the financial cost of transfer against the community benefits and determined that the transfer is reasonable and promotes either economic development or regeneration, health, social well-being or environmental well-being. Equality/Socio-economic 4.4 There will be considerable socio-economic benefits from the transfer and the value proposed reflects the community benefits. Climate Change and Carbon 4.5 The transfer seeks to provide sustainable community facilities through securing the asset in Kilwinning for the key purposes of Irvine Elite Boxing as detailed in 2.3 above. Key Priorities 4.6 The proposals contained within the report support the following North Ayrshire Council Plan priorities: • Wellbeing – To transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people, through providing opportunities for people to come together to support each other. • Communities and Local Democracy - We will have active inclusive and resilient communities, through supporting networking and community ownership. In addition, the transfer supports the Kilwinning Locality Priorities - • Supporting Skills and Work • Improving our Local Environment • Alleviating Poverty and Promoting Equality of Access to Opportunities • Improving Community Wellbeing 260
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Community Wealth Building 4.7 This proposal supports the following pillars of community wealth building: • Advancing community enterprises; • Advancing local ownership of underused land and buildings; and • Supporting local business activities and increasing the variety of ownership models. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 The request supports the rights of children and young people through offering better access to facilities, in particular supporting the article 12 right to be heard as young people have been instrumental in the success of the facility and the impact of the services provided ensured the success of the application. Consumer Duty 4.10 None. 5. Consultation 5.1 The consultation required in terms of the Community Empowerment (Scotland) Act 2015 for a community asset transfer application has now concluded. The outcome is outlined in section 2.11 above. 5.2 Consultation has taken place with, Streetscene, Finance, Estates, Connected Communities, Property Maintenance and Investment the Business Team and Legal Services. All parties are supportive of the proposal for the asset. David W. Hammond Executive Director (Communities & Housing) For further information please contact Rhonda Leith, Head of Service (Connected Communities), on 01294 324395. Background Papers Appendix 1 - Plan 261
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PUBLIC INFORMATION PUBLIC INFORMATION NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet (Education) Title: Proposals for Community Investment Fund (CIF) Expenditure Purpose: To determine applications by Locality Partnerships to allocate CIF funding to proposed projects. Recommendation: That Cabinet: a) Reviews the application from Garnock Valley Locality Partnership in line with CIF criteria; and b) Approves the CIF application in relation to Dalry Community Sports Club (see Appendix 1). 1. Executive Summary 1.1 Within its budget for 2017-18, North Ayrshire Council provided an allocation for the creation of an innovative fund to enable communities to address the priorities they have identified through Local Planning Partnerships and within the context of North Ayrshire Community Planning Partnership’s Fair for All Strategy and the Council’s Community Wealth Building Strategy. In June 2021, Cabinet approved a further £1m top-up for the funding, with a further £2m added in November 2021. 1.2 Locality Partnerships have subsequently continued to work on their local action plans and refining proposals for expenditure in line with their locally identified needs. It is a testament to the dedication of the Locality Partnerships and their community partners that proposals continue to emerge to provide creative approaches to addressing local challenges. 1.3 This report brings forward proposals which respond to the specific needs of the local community, and which have been developed based on local circumstances and opportunities. 2. Background 2.1 Within its budget for 2017-18, North Ayrshire Council provided an allocation for the creation of an innovative fund to enable communities to address the priorities they have identified through Locality Planning Partnerships and within the context of North Ayrshire Community Planning Partnership’s Fair for All Strategy and the Council’s Community Wealth Building Strategy. A further £3m was added to the funding in 2021. A summary of the current position on disbursement of CIF monies is summarised in the table below: Agenda Item 14 263
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PUBLIC INFORMATION PUBLIC INFORMATION 2.2 It was agreed that the CIF awards would range between £5,000 and £100,000 for community organisations, as defined in the CIF guidance, in order to support proposals and projects that connect with: • The North Ayrshire Local Outcomes Improvement Plan overarching aim of North Ayrshire: Fair for All, with consideration for how applications contribute to community support for the cost-of-living crisis; • The Community Planning Partnership and locality priorities; • North Ayrshire Council’s values, priorities, and business objectives; and • The Community Wealth Building and Sustainable North Ayrshire Strategies And will also: • Fulfil a compelling need and not duplicate existing services or facilities. • Provide long-term, sustainable, positive results for the greatest number of people possible; • Exhibit project and/or organisational innovation in their approaches to their work in their way of addressing community challenges and in their request to Locality Partnerships and the Council; • Come from (an) organisation(s) that is financially viable (can provide financial statements upon requests) and efficiently and effectively managed. This can include an organisation to be created to deliver the project; • Include options or potential for NAC and CPP employee engagement and volunteering where possible; and • Include measurable outcomes and can report to NAC on outcomes on a regular basis. 2.3 The proposal development and application process has been agreed as follows: • Locality Partnerships should continue to engage with their communities and stimulate interest in the CIF. Each Locality Partnership will then strategically Locality Value of CIF from first funding allocation (2017-18) Expenditure to date Value of CIF from second funding allocation (June 2021) Value of CIF from third funding allocation (Nov 2021) Total balance available Irvine £754,000 £1,146,010 £290,000 £580,000 £477,990 Kilwinning £286,000 £438,060 £120,000 £240,000 £207,940 Three Towns £598,000 £1,318,000 £240,000 £480,000 £0 Garnock Valley £390,000 £601,103.04 £150,000 £300,000 £238,896.96 North Coast £468,000 £935,761 £170,000 £340,000 £42,239 Arran £104,000 £125,079 £30,000 £60,000 £68,921 TOTAL £2,600,000 £4,564,013.04 £1,000,000 £2,000,000 £1,035,986.96 264
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PUBLIC INFORMATION PUBLIC INFORMATION access the applications, make links, and look at the funding ‘in the round’. • If the partnership supports a bid, then the group will be encouraged to submit a full application form, which they will decide upon before making a proposal to Cabinet for final approval. • The proposal will go to the next suitable Cabinet for final approval. 2.4 The enclosed application at appendix 1 has been developed by community partners and North Ayrshire Council officers and are now recommended for approval by Cabinet. The application is summarised below. 2.5 The Garnock Valley Locality Partnership The allocation and funds committed to date are outlined in the table below. The Garnock Valley Locality Partnership CIF allocation to date: £840, 000 Garnock Valley Mens Shed - Project Initiation £28,000 Travel Needs Analysis £25,000 Geilsland Hall - Volunteering and Employability £45,000 Garnock Valley 20:20 Vision £15,000 Beith Community Development Trust - YOUth Lead £43,500 Garnock Valley Mens Shed - Heating System Replacement £20,000 Café Solace - Development Worker £49,723 Geilsland Courtyard Feasibility Study £15,582 Beith Playpark £100,000 Beith Community Association £22,098.04 Garnock Valley 2023 Development Worker £51,200 Beith Hive £41,000 Radio City Association £65,000 Beith Trust - 3G £80,000 Balance £238,896.96 2.6 Proposal: Dalry Community Sports Club (£100,000) (See Appendix 1) 2.6.1 Dalry Community Sports Club, established in 2007 and incorporated as a SCIO in 2014, was originally focused on increasing participation in sport and leisure through supporting existing local activities and developing new opportunities. Over the past seven years, the organisation has broadened its remit to address wider community challenges, particularly social isolation and food insecurity. This shift included the introduction of free food provision within activities and events, for example Park Lives. In response to rising need and in alignment with North Ayrshire Council priorities, the organisation established a Community Larder in November 2020, alongside a Warm Space initiative. The group is also progressing a Community Asset Transfer of Dalry Public Park pavilion. 2.6.2 In addition, the organisation seeks to create training and employment opportunities, support skills development, and strengthen community cohesion through partnership working, engagement and the promotion of civic pride. Overall, its work contributes 265
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PUBLIC INFORMATION PUBLIC INFORMATION to building a more inclusive, resilient and connected community in the Garnock Valley. 2.6.3 The group is seeking funding to support the development of community allotments and associated infrastructure on land adjacent to Dalry Public Park. This includes the creation of raised growing beds and plots, establishment of a shared community growing space, and the development of an educational area to support learning and skills development. Funding will also contribute to essential site works and equipment, enabling accessible, sustainable use of the space, as well as supporting the creation of additional playing fields and activity areas to enhance opportunities for sport, recreation and community engagement. The group will ensure that all consents and approvals required are in place prior to work commencing, including agreement of a change of use for the land if required. From a land use planning perspective, use of land for community or health purposes is likely to be supported in principle subject to detailed assessment in a planning application if it is confirmed to be required. 2.6.4. The proposal aligns with Garnock Valley Locality Partnership priorities by supporting ‘Work and Local Economy’ through skills and employability opportunities, ‘enhancing Facilities and Amenities’ via community growing space and recreational provision, and supporting ‘Moving Around’ by increasing access to inclusive local spaces. Additionally, there are close links to both the recently prepared Our Garnock Valley Local Place Plan and the North Ayrshire LOIP by enhancing community facilities, promoting health and wellbeing, creating skills and employability opportunities, and strengthening community connections while addressing inequality and social isolation. In addition, the project will align with the development of North Ayrshire Council’s Good Food Plan and become part of the food system and local growing network. 2.6.5 Match funding of £58,000 has been secured to support the project. Dalry Community Sports Club has 19 years’ experience of operating as a community organisation and registered charity, with established governance and financial management arrangements, including the preparation of annual audited accounts and multi-year financial projections as part of its Community Asset Transfer activity. Provision has also been made for the longer-term sustainability of the project through the introduction of modest membership fees, ongoing fundraising activity, and the pursuit of additional external funding opportunities. 3. Proposals 3.1 That Cabinet: a) Reviews the application from Garnock Valley Locality Partnership in line with CIF criteria; and b) Approves the CIF application in relation to Dalry Community Sports Club (see Appendix 1). 4. Implications/Socio-economic Duty Financial 266
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PUBLIC INFORMATION PUBLIC INFORMATION 4.1 CIF funding is allocated from within existing resources. Human Resources 4.2 None. Legal 4.3 None. Equality/Socio-economic 4.4 The purpose of Locality Planning is to reduce inequalities, increase community cohesion and advance community empowerment. Each of the CIF proposals is tested against that purpose before being presented to Cabinet. Climate Change and Carbon 4.5 Environmental and sustainability along with climate change and carbon reduction opportunities are considered in relation to each CIF application. This proposal supports recycle and re-use principles. Key Priorities 4.6 The proposals contained within the report support the North Ayrshire Council Plan strategic aims. • To transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people. • We will have active, inclusive, and resilient communities. • A Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities. Community Wealth Building 4.7 The applications support the following pillars of community wealth building: • Financial Power: Listening to communities and local enterprises to maximise the impact of financial investment and grow local business, enhance innovation and empower communities. • Land and Assets: Maximising the function and ownership of local physical assets for the benefit of communities and enterprises. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 The proposals support the rights of children and young people through offering better access to facilities, in particular supporting the right to play and the right to be part of their community. 267
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PUBLIC INFORMATION PUBLIC INFORMATION Consumer Duty 4.10 None. 5. Consultation 5.1 The proposals contained within this report have been developed by the Locality Partnerships, through consultation with local people, including young people. David W. Hammond Executive Director (Communities & Housing) For further information please contact Rhonda Leith, Head of Service (Connected Communities), on 01294 324415. Background Papers Appendix 1: CIF Application Dalry Community Sports Club 268
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COMMUNITY INVESTMENT FUND GARNOCK VALLEY LOCALITY PARTNERSHIP The CIF will support proposals and projects that: • Connect with: o the Community Planning Partnership (CPP) and Locality priorities; and o North Ayrshire Council’s (NAC) values, priorities and business objectives. • Fulfil a compelling need and do not duplicate existing services or facilities; • Provide long-term, sustainable, positive results for the greatest number of people possible; • Exhibit project and/or organisational innovation in their approaches to their work in their way of addressing community challenges and in their request to Locality Partnerships and the Council; • Come from (an) organisation(s) that is financially viable (can provide financial statements upon request) and efficiently and effectively managed. This can include an organisation to be created to deliver the project; • Include options or potential for NAC and CPP employee engagement and volunteering where possible; and • Include measurable outcomes and can report to NAC on outcomes on a regular basis. When to apply and how? • LPs should continue to engage with their communities, and stimulate interest in the CIF. The Locality Partnership will then strategically assess the applications, make links and look at the funding ‘in the round’. • If the partnership supports a bid then the group will be encouraged to submit a full application form (attached), which they will decide upon before making a proposal to Cabinet for final approval. • The finalised proposal will go to the next suitable Cabinet for final approval. • Forms should be returned to your Locality Officer, by email if possible: Christina Pieraccini Locality Officer - Garnock Valley Connected Communities North Ayrshire Council Walker Hall 45, Main Street Kilbirnie KA25 7BX Tel: 01505 680203 Mob: 07966 160854 Email: cpieraccini@north-ayrshire.gov.uk For more information see the guidance form here: http://www.northayrshire.community/wp- content/uploads/sites/60/2018/06/community-investment-fund-guidance-notes-17-12-17.pdf 269
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COMMUNITY INVESTMENT FUND GARNOCK VALLEY LOCALITY PARTNERSHIP 1. Details of your organisation Name of Organisation Dalry Community Sports Club Postal Address for Correspondence Name of Contact Person Allan McGinlay Position in Organisation Chairperson Telephone Number Email Address Total amount of funding requested: £100,000 Match funding (if any): £58,000 ( confirmed ) 2. Brief description of your organisation Please include its legal status, aims and objectives, activities or services provided and how long it has been in existence. Dalry Community Sports Club was formed in 2007, and became a SCIO in 2014, where our early years helped to encourage participation in various sports and leisure activities. This was achieved primarily through supporting individuals and groups with their existing activities, and with new initiatives driven by ourselves. The last 7 years has seen us looking at opportunities to help address both the social isolation and food deprivation issues that exist within the community. Initially, we did this through offering free food through our activities, like Handball, which quickly progressed to free activities and food at our Park Lives events, both at Dalry Public Park during the summer period, and at Dalry Primary School over the winter. The COVID pandemic saw this need accelerate greatly, and for the need for us to align with North Ayrshire 270
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COMMUNITY INVESTMENT FUND GARNOCK VALLEY LOCALITY PARTNERSHIP Councils priorities, where we formed our Community Larder in November 2020, which was thereafter complimented by our Warm Space initiative. Purposes “The organisation has been formed to benefit the community of Dalry, recognised as being those living within the KA24 postcode area (“the Community”) with the following objectives: 3.1 To advance public participation in sport in Dalry and the surrounding area by promoting and providing opportunities for a wide range of sporting and leisure activities in an accessible manner to all groups of people and to improve the fitness and health of the persons for whom the activities are intended. 3.2 The promotion for the benefit of the public of urban or rural regeneration in areas of social and economic deprivation in Dalry and in the surrounding area by all or any of the following means: (a) The prevention of poverty and the relief of financial hardship by using DIGNITY principles to provide food security to those who need it most and are being disadvantaged due to unemployment, low income, lone parent, health, and social standing. (b) Advancement of environmental protection by reducing food waste and encouraging sustainable development. (c) Advancement of physical and mental health and wellbeing by improving health outcomes, improving emotional wellbeing and promoting social inclusion through acting as a community focal point, and by promoting access to key support such as money advice, credit unions, housing, health, employment and skills. (d) The creation of training and employment opportunities through the provision of facilities, buildings, and/or land for use on favourable terms and for the advancement of education, training or retraining, particularly among unemployed people, and those who by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances, have need of such facilities: 271
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COMMUNITY INVESTMENT FUND GARNOCK VALLEY LOCALITY PARTNERSHIP (e) Bringing the community together through engagement, partnership, collaboration and co-operation and by fostering community spirit and encouraging civic pride. (f) Promote the health and wellbeing of the residents of the area and to work together as residents irrespective of age, sex, ethnicity, ability, religion or political view. 272
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COMMUNITY INVESTMENT FUND GARNOCK VALLEY LOCALITY PARTNERSHIP 3. Title and summary of proposal Tell us about your idea. Please describe in as much detail as possible, what the funding will be used for. Please include: • where it will be held / delivered • who is your target audience • who will benefit from it and how • any partners that are involved. Dalry Community Allotments & Playing Fields Community Allotments / Playing Field – We have recently entered into an agreement with DSM to lease a large field adjacent to the public park for a community allotment space, additional playing fields and possibly a community orchard. We see the introduction of our Community Allotments project as a continuation of our journey, in looking for opportunities that will help address some of the issues within our community, including, social isolation, food deprivation, mental health & wellbeing, and in so doing so help towards building a stronger sense of community in which people want to be involved. Our community allotments with comprise of 3 areas – 1. Plots / beds for lease of various sizes to attract an income to support the running costs. Phase 1 has the potential of 120 raised beds and can be divided into a number of plots, to be determined by the expressions of interest we receive. Initially this will be through Open Days, Social Media, and local advertising as appropriate. GV Allotments have offered their support here, where they have experience of multi-plot sizes, and is reflective of the bandwidth of experience across their plot owners. 2. Community area, where people will be able to come together, free of charge and utilise the area to both grow, and give away free, vegetables, and also provide a safe space that allows social interaction. 3. Educational space – provide the opportunity to invite, schools, kids, people who are interested in growing vegetables, and share knowledge / skills of the various aspects of growing your own vegetables. In this space we would also look to include North Ayrshire Council’s Community Learning and Development ( CLD ) Team, who we already have a relationship with through some of our other activities, and would look to continue to build on this. These 3 areas will help us maximise the opportunity to reach across our community and attract people into all areas of the allotments, and therefore we would look for 273
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COMMUNITY INVESTMENT FUND GARNOCK VALLEY LOCALITY PARTNERSHIP the participation rate to be healthy. If there was looking to be a potential shortfall in uptake, then we would look to open up the opportunity for people outwith the KA24 postcode area. On discussion with other allotments, this is a common theme, especially initially until people find something more local to them. The Government have produced a 25 Year Environment Plan, acknowledging that connecting people to their environment will also improve their health and well-being. Various studies have shown that every 10 per cent increase in exposure to green space translates into an improvement in health equivalent to being five years younger. The many benefits associated with allotments include : 1. Growing food can work towards a healthier, wealthier and more environmentally sustainable community, with low-cost healthy fresh fruit and vegetables. 2. Bringing people together, and providing the opportunity for social engagement, and some physical exercise, helping to improve loneliness and social isolation. 3. The opportunity for people to share their skills and knowledge and for the community to realise that benefit where people now want to get involved. 4. There`s a growing awareness of the role that gardening plays in both preventing and alleviating mental ill-health. Many allotment gardeners tell us that nurturing plants and contemplating nature makes them feel calmer and more hopeful. 5. Gardening can also help to maintain good gait and balance in older people and helps with cognitive decline. 6. Time outdoors in the sun can also help build up your vitamin D levels 7. An allotment can produce enough food to supplement a family’s weekly shop 8. Allotment can be all year round, where the allotment holders experience the seasons, witness the behaviour of birds, insects and other animals and gain an understanding of the eco-system. This appreciation of the natural world also has the potential to inspire more environmentally aware behaviour by themselves and their children. Playing Field – DCSC are in the final stages of the CAT process in relation to the sports pavilion in Dalry Public Park. As part of our lease agreement with DSM, this will see us create a number of football pitches / sports / activity areas which will be supported by the sports pavilion, which we have already renovated to include, both changing and welfare facilities. We recognise the positive benefits that various outdoor activities can have on people’s physical health and wellbeing, and the importance to provide multiple opportunities across a variety of activities to help realise this. Partners to Date 1. Colin Bratt, DSM Director Finance and Business Support 274
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COMMUNITY INVESTMENT FUND GARNOCK VALLEY LOCALITY PARTNERSHIP 2. Graeme Harrison, DSM Solicitor, Morton Fraser MacRoberts LLP 3. Eric McMillan, McMillan and Cronin Architects 4. Ian Briggs, J & J McCosh Solicitors, DCSC Solicitor 5. Antony Hume, North Ayrshire Planning 6. Christina Pieraccini, Locality Officer, North Ayrshire Council 7. Heather McVie Branley, Community Development Worker, North Ayrshire Council 8. Roy Banks, Highland Forestry Services Ltd 9. Robet Miller, R&L Miller Ltd 10. Garnock Valley Allotments 11. Dalry Community Larder 12. Dalry Thistle Football Academy 13. Garnock Rugby Club Future Partners & Potential 1. Dalry Primary School 2. St Paladius Primary School 3. Dalry Community Garden 4. Dalry Action Group 5. Dalry Community Association 6. CEIS Ayrshire Skills and Training 275
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COMMUNITY INVESTMENT FUND GARNOCK VALLEY LOCALITY PARTNERSHIP 7. What difference will this project make within the locality and to local services and programmes? Please include: • The outcomes you aim to achieve • How you will approach reducing inequality • How this proposal fits with the Locality Partnership priorities of 1. Moving Around (Public Transport, Traffic and Parking) 2. Work and Local Community 3. Facilities and Amenities Click or tap here to enter text. Dalry Community Sports Club, along with Partner Groups, has recently been recognised by the Provost and all Elected Members of the Garnock Valley for their contribution in the preparation and completion of the Garnock Valley Place Plan, which clearly sets out the aspirations for the Garnock Valley Locality through the collective working of community groups, the third sector businesses, local and national governments, to enhance the sense of place and improve its economy. We see our Community Allotment / Playing Field Project as clearly aligning with the aspirations within the plan, specifically chapters 8 & 13 ( pages 47-49 ), and in particular where we need to enhance the sense of Community life, and maximise the benefits that are associated with better utilisation of our Parks and Outdoor Spaces. Improvements to Parks and Outdoor Spaces, was 1 of the 8 Calls to Action that were agreed by the Locality Partnership. These additional facilities / amenities would help provide opportunities for people to come together, with a range of benefits, including, socialisation, mental health & wellbeing, exercise, education, sharing skills & knowledge and learning opportunities, overall enhancing the opportunity for Community Wealth Building. Our proposal helps to meet the 5 pillars of community wealth building in terms of : Piller 1 - progressive procurement - using local businesses for the works. Pillar 3 - Use of Land and assets - maximising land use, and Piller 5 - Diverse ownership. Dalry Public Park is at the Heart of our community, where we see our Project with its extension into the DSM field, as an excellent opportunity to bring back some of those benefits enjoyed by previous generations, who had both a more outdoor lifestyle and enhanced sense of community – ultimately, a more active community with better health and wellbeing outcomes, more social inclusion and a greater community pride. 276
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COMMUNITY INVESTMENT FUND GARNOCK VALLEY LOCALITY PARTNERSHIP We are looking to utilise a portion of the products grown to also support our Community Larder, where it has become more difficult to source volumes of products from local Food Retailers in relation to “best before” and “use by” dates, with Retailers utilising their own initiatives to sells these with store. Allotments can have a surprisingly deep impact on a community, especially when designed with inclusion and participation in mind. Reducing inequality One of the biggest differences community allotments make is improving access to fresh, affordable food. The Garnock Valley, which includes Dalry is in an area with above average levels of deprivation and where people may struggle with the cost of living or lack access to healthy produce. Allotments give residents the opportunity to grow their own fruit and vegetables which reduces food expenses and can help address “food deserts,” where supermarkets or fresh options are limited. Allotments also help create a more equal playing field socially. It is planned to allocate plots at low cost (or free), meaning people from different income levels can participate. From our relationship with GV Allotments, we know that they charge £30 per year for a plot and £12 for a single raised bed outwith that plot. We would look for our costs to reflect this, and together with our free Community Beds area, cover the needs of our participants. Beyond food, community allotments offer access to green space—something that is often unevenly distributed, with lower-income communities generally having less access to safe, well-maintained outdoor areas. Dalry is one of only three towns in North Ayrshire to fall below the Fields in Trust (FIT) standard for open spaces and the development of the allotments and playing fields will help create additional outdoor space for community use. Supporting volunteering and community engagement Allotments naturally encourage volunteering because they rely on shared effort. Residents may volunteer to maintain communal areas, organize planting schedules, run workshops, or support new gardeners. This creates opportunities for people of all ages and backgrounds to contribute meaningfully to their community. DCSC have been in contact with Dalry Primary School who are keen to involve some of the older pupils in the project works. Volunteering in this context is also highly accessible—no formal qualifications are needed, and people can contribute as much or as little time as they’re able. This can be particularly valuable for retirees, young people, or those seeking to build confidence, skills, or social connections. Over time, it strengthens community bonds and fosters a sense of ownership and pride in the local area. GV Allotments have 277
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COMMUNITY INVESTMENT FUND GARNOCK VALLEY LOCALITY PARTNERSHIP been very generous is sharing the learning and experience that they have gain since creating their own allotments, and are keen to extend this, into all aspects of what we need to do to realise our own project, and in particular around the initial phases required to get us started, including, recruitment for plots & plot sizes, membership criteria, rules / code of conduct / practice, water entrapment ideas, solar power for re-chargable equipment, and volunteer commitments for community spaces and general running criteria. We would expect the project to run initially with volunteers, however as it grows and develops, then there may be recruitment opportunities in the future for staff like Development Workers or Activity Co-ordinators. We will continue to review these potential opportunities on a regular basis. We have a strong, dedicated and flexible Volunteer base, who cover a variety of activities and functions, including, our Community Larder / Warm Space ( including food pickups and associated admin tasks ), our Community Cinema, Sports Pavilion Activities, Parklives, various Community Events ( incl Skirt the Skeith, Party in the Park, Kids Sports Day ) Meetings / Planning, Funding and our current Allotments / Playing Field Projects. Across the year, our Volunteers contribute to cc4000 hours volunteering time, which would equate to a £50,840 wage bill against the minimum wage if that resource was employed. Moving forward, we will see this increase as our Volunteering commitment to our Allotment Project grows. We are very proud of this contribution to our community. We will also ensure that safe working practices are embedded into everything that we do, and that all volunteers and customers are aware of the relevant risk assessments for the site and are adhered to, flagging any issues as appropriate. Improving local amenities The community allotments will effectively transform the currently underused and underutilised land into vibrant, productive spaces. This will improve the visual appeal of the area and can increase feelings of safety and wellbeing. It is also envisioned that the allotments will evolve into a broader community hubs, offering amenities such as seating areas, tool libraries, composting facilities, and spaces for events or education. Future plans include hosting workshops on gardening, nutrition, and sustainability, adding informal learning opportunities that benefit the wider community and helping support Dalry Community Larder, further extending the reach as a public resource. Overall impact The creation of community allotments goes beyond gardening—they promote 278
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COMMUNITY INVESTMENT FUND GARNOCK VALLEY LOCALITY PARTNERSHIP fairness by improving access to resources, empower residents through volunteering, and enhance local amenities. Together, these changes help build stronger, healthier, and more connected communities. 279
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COMMUNITY INVESTMENT FUND GARNOCK VALLEY LOCALITY PARTNERSHIP 8. What engagement has taken place in relation to the project? Please include the number of people who have been engaged with or consulted as well as the range of people. This project was initiated pre COVID, and has run in tandem with our CAT journey for the Sports Pavilion, which is currently at the Officers Assessment stage. The Pavilion is a key part of our strategy to support both the allotments and the playing fields. There have been various engagement opportunities over this period where we have taken the opportunity to share our vision, and have included, Stalls at Community Windfarm, Dalry Farmers Show, Carvers Event, Dalry Motor Show, Party in the Park, Parklives, Garnock Valley Place Plan Event and also through our Community Larder / Warn Space, Community Cinema Events. We have also successfully secured the appropriate planning authorisation, having navigated that journey, including, the appropriate consultations and objection opportunities, as part of that process, with the support of our architect and North Ayrshire Council Planning. Our Project has also been specifically recognised through the Garnock Valley Place Plan process. All of these interactions have meant that we have engaged with a varied demographic across our community. We have visited other allotments and spoken to their members to ensure that we can learn from their experiences to safeguard the success of our project. Additionally, we have also held discussions with Dalry Thistle academy coaches and representatives from Garnock Rugby Club to align our vision with their requirements 280
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COMMUNITY INVESTMENT FUND GARNOCK VALLEY LOCALITY PARTNERSHIP 9. How will the project be managed? Please include: • How the finances will be managed • Does the proposed project contribute to volunteering or employment opportunities in the Garnock Valley? Please include the number of volunteering opportunities and employment opportunities • If there are any staff requirements, please outline your HR plans Click or tap here to enter text. DCSC has been in existence for 19 years, over which time we have build up a very good knowledge of the financial requirements of an organisation and a charity, which is required to submit it’s audited accounts yearly. Our CAT journey for the sports pavilion has also seen the need for us to produce 3 year financial projections. These requirements have given both our Treasurer and Vice Treasure, a very good understanding of the financial management required for this project. DCSC aims to use funds efficiently by: • Sourcing affordable or donated materials • Using volunteer labour where possible • Investing in long-term assets (like durable tools or irrigation systems) They are also plans for future sustainability, such as small membership fees, fundraising events, or additional grants to maintain the allotment after the initial funding ends. DCSC has compiled a budget showing how the funding will be used to ensure that the money is clearly allocated and aligned with the project’s goals, such as labour costs, purchase of materials planning costs, etc. A clear approval processes for purchases will be maintained to ensure all expenditure is in line with the project priorities All receipts and invoices pertaining to the project will be retained to maintain accurate financial records. This ensures accountability and builds trust with the funding provider. 281
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COMMUNITY INVESTMENT FUND GARNOCK VALLEY LOCALITY PARTNERSHIP DCSC will: • Track spending against the original budget • Produce financial reports showing how money has been used • Provide evidence of impact (e.g., number of plots created, volunteers involved) This will help demonstrate that the funding is being used effectively and for its intended purpose. The aim is for the allotment users to form a managing committee which will help decide priorities and approve any further plans. This will ensure that the plot holders are at the forefront of decision making and that their needs and priorities are being met We have been approached by a number of people who are looking to get involved as a volunteer across various aspects of the project. DSM have also offered the opportunity for their Apprentices to get involved, and we will also be looking to utilise local businesses with the various construction stages. We will also be looking to engage with North Ayrshire Council’s Social Care Partnership to utilise it’s Community Payback Order scheme as appropri 10. Amount of funding being requested Please supply details of funding being requested and any other funding you have had over the past 5 years, both financially and “in kind”. Amount of funding requested (£100,000) Click or tap here to enter text. Please give a breakdown of cost and recent quotations where appropriate. Item Cost Quotation Supplied (Y/N) Deer fencing, carpark,roads & paths 52,680.00 Kissing Gates 1,800.00 Field Gates 1,200.00 Soil / Compost Storage Bays 11,700.00 Composting Toilet 3,395.00 Containers x 4 21,621.60 Water Containers (12x1000ltrs) 2,520.00 Raised Beds (60) 15,000.00 Compost for Raised Beds 8,100.00 282
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COMMUNITY INVESTMENT FUND GARNOCK VALLEY LOCALITY PARTNERSHIP Topsoil for Raised Beds 6,480.00 Power (Solar / Wind) 3,600.00 Poly Tunnel ( 20ft x 30ft ) 2,714.40 Tools / Equipment 3,000.00 Pitch Lining Machine 440.40 Goal Posts ( 8 x 24 ) 3,840.00 Goal Posts ( 7 x 21 ) 3,600.00 Goal Posts ( 6 x 12 ) 1,440.00 Nets ( 8 x 24 ) x2 76.80 Nets ( 7 x 21 ) 36.00 Nets ( 6 x 12 ) 28.80 Corner Flags ( 12 ) 192.00 Football/Rugby Goals 4,092.00 Fencing around Pitch Areas. 500m 19,200.00 Hand Wash Station 360.00 Ride on Mower 3,840.00 Rainwater Harvesting 3,000.00 Hedgerows and Trees 1,200.00 Signage 480.00 CCTV / Security 480.00 Surveys 6,388.80 Architect Fees and Planning 10,500.00 Please give a breakdown of details of match funding (if any) Funder Amount Funding Secured (Y/N) Mental Health & Wealth 20,000.00 Y Postcode Lottery 10,000.00 Y ASDA 3,000.00 Y Shared Prosperity Fund 25,000.00 Y Click or tap here to enter text. 283
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COMMUNITY INVESTMENT FUND GARNOCK VALLEY LOCALITY PARTNERSHIP 11. Monitoring and evaluation process Please include detail on the monitoring and evaluation processes planned or in place. Monitoring and evaluation are essential to make sure the allotment project is achieving its aims (such as reducing inequality, increasing volunteering, and improving local amenities) and using funding effectively. DCSC will set this up in a structured but practical way: Monitoring (ongoing tracking of progress) Continuous monitoring will happen throughout the project and focus on collecting regular data. DCSC will: • Track participation levels: number of plot holders, volunteers, and visitors • Record usage of the site: how often plots are used, attendance at events or workshops • Measure outputs: number of plots created, amount of food grown, number of community activities delivered • Financial monitoring: checking spending against the budget to ensure funds are used correctly • Surveys and feedback: asking participants about their experiences, skills gained, and wellbeing • Case studies: collecting personal stories that show how individuals have benefited (e.g., improved diet or reduced isolation) • Before-and-after comparisons: for example, comparing the condition of the land or levels of community involvement before and after the project • Impact on inequality: assessing whether the project reached targeted groups or improved access to affordable food and green space Reporting to stakeholders Findings from monitoring and evaluation are shared with: • The funding organisation (to show accountability) • The local community (to maintain transparency and engagement) 284
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NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet Title: Use of Animals at Public Events Purpose: To seek Cabinet approval of Guidelines and Policy relating to the use of animals at public events. Recommendation: That Cabinet approves the Guidelines and Policy relating to the use of animals at public events at Appendix 1. 1. Executive Summary 1.1 The Council owns, or is responsible for, areas of land which from time to time are used to hold events of varying types and size. Over the past few years, discussions have taken place at various forums regarding the degree of control the Council has over community events and any potential risks that this might present. This has, however, largely been in the context of wider event controls and licensing which have now been, or are being, addressed. 1.2 At the full Council meeting on 14 May 2024, a motion was carried which instructed officers to carry out a review of Council policy in relation to the ban on letting Council- owned sites to organisations which utilise animals in the provision of entertainment. Although the effective ban on letting Council land where animals are used for public entertainment has been in place since 2012, this has been strengthened since 2018 when the Scottish Government enacted legislation which makes it an offence for circus operators to use wild animals in a travelling circus whilst in Scotland. 1.3 This report provides an update on the current position and seeks approval of proposed guidelines and policy for the use of animals at public events. 2. Background 2.1 Since 19 September 2012, as a result of a motion carried at a meeting of North Ayrshire Council, the letting of Council owned sites to travelling circuses or similar organisations which utilise animals in the provision of entertainment has been banned. 2.2 On 15th May 2024, a further Council motion was carried, which instructed officers to carry out a review of Council policy around the following principles: Agenda Item 15 285
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• That Council adopts a refreshed approach to limit and control the presence of animals for entertainment in our venues, highways, parks and open spaces, where it is legally possible to do so • That normally Council would not support animals being out of their natural environments for events where there is no clear benefit of education, competition leading to national competitions or recognised need for a competitive event. Any approval for the presence of animals would require to take account of animal welfare concerns, including appropriate refuge from crowds • That pet shows for domesticated animals at community events would be permissible • That the policy would cover considerations of land and premises use permissions, grant giving/conditions and licence 2.3 Although the effective ban on letting Council land where animals are used for public entertainment has been in place since 2012, this has been strengthened since 2018, when the Scottish Government enacted legislation which makes it an offence for circus operators to use wild animals in a travelling circus whilst in Scotland. 2.4 As a result of the general events development work by officers, discussions have taken place at both a Pan-Ayrshire level and internally with services such as Streetscene, Legal and Estates, to establish baseline information and how best to proceed with ensuring that best practice is adhered to and the terms of the motion are considered and met, as well as considering how this fits into the wider requirements to ensure we have a robust and sustainable event safety resource to meet statutory requirements, as well as local needs and demands. 2.5 The current policy, which is strictly adhered to in relation to commercial activities and events, as well as the ongoing effectiveness of the national legislation noted above, results in very few issues being reported to officers in relation to the use of animals on Council land. The policy and the legislation however, only cover travelling circuses and other such organisations. 2.6 Officers are aware that some events on Council owned land do involve animals at present. These generally take the form of educational activities and displays. Currently, the Council’s Community Facilities team have a form which requires to be completed when a let is being agreed, and animals are proposed as part of the event. As part of their considerations, the Community Facilities team consult, where required, with the Council’s Animal Health and Welfare Officer in Trading Standards for advice. Occasionally permission is not granted to have animals on their premises if there is no clear educational link. This has resulted in a few complaints. 2.7 In relation to other community events, both on Council land and on private property, previously it was not often clear or obvious whether animals were to be involved in the event. As an interim measure, and to inform this work, there is now an option on the online Community Event application form to notify the Council that animals will be present. 2.8 An assessment of the impact and suitability of the animals at events will still be required. At present, this is best placed with the responsible manager for the premises or the officer agreeing the let or permitting the event to take place when it relates to a 286
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Council property, and with the event organiser - with the appropriate guidance from Council officers - when on private land. 2.9 The proposed policy and guidelines at Appendix 1 do not sit alone in the wider event safety and control work of the Council; this work has developed significantly over the past few years and includes: • Ayrshire Local Resilience Partnership (ALRP) review of event safety arrangements across Ayrshire. • Firework Control Zone Request Process • Bonfire Permission Process • Updated Public Entertainment Licence (PEL) Resolutions (bringing more events under the control of a PEL • Agreed Pan Ayrshire Safety Advisory Group Policy • Agreed Pan Ayrshire Safety Advisory Group Matrix, which determines which events require additional scrutiny. • Ongoing Pan Ayrshire/multi- agency work in relation to the Terrorism (Protection of Premises) Act 2025 (otherwise known as Martyn’s Law) The revised PEL resolutions are of note and bring North Ayrshire into line with other authorities for bonfires and fireworks especially, which were essentially the catalyst for the concerns relating to events on Council land. 2.10 The draft policy and guidance at Appendix 1 focuses strictly on animal welfare matters. Health and safety matters (e.g., risk assessment, insurance, hand washing, waste disposal, crowd segregation, etc.) would be addressed as part of the normal Safety Advisory Group process, and/or through normal Environmental Health and or Licensing considerations. Enforcement of any animal welfare issues may include any or all of the following bodies: Trading Standards; Police Scotland; Scottish Society for the Prevent of Cruelty to Animals. 3. Proposals 3.1 That Cabinet approves the policy and guidelines for the use of animals at public events at Appendix 1. 4. Implications/Socio-economic Duty Financial 4.1 None. Human Resources 4.2 None. Legal 4.3 The Council requires to meet its legal obligations in relation to events and event safety; the proposals contained in this report will enhance the Council’s response. 287
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Equality/Socio-economic 4.4 None Climate Change and Carbon 4.5 None Key Priorities 4.6 The proposals contained within this report, ensuring that we have safe and compliant events in North Ayrshire, support North Ayrshire Council Plan strategic priorities in relation to ‘Wellbeing’; ‘Communities and Local Democracy’; and ‘A Sustainable Council’. 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 The proposals contained within this report, ensuring that we have safe and compliant events in North Ayrshire, supports the delivery of the consumer duty, particularly in relation to the ‘Access’ and ‘Safety’ principles, by ensuring legislation and regulation are upheld, and by considering and where possible addressing issues likely to cause harm. 5. Consultation 5.1 Consultation has taken place both internally and externally, including at Pan Ayrshire level, as part of the extensive and ongoing event safety work led by the Ayrshire Local Resilience Partnership. David W. Hammond Executive Director (Communities and Housing) For further information please contact Scott McKenzie , Senior Manager (Protective Services), on 01294 324347. Background Papers 288
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• Meeting of North Ayrshire Council, 19th September 2012 - Agenda Document Pack • Meeting of North Ayrshire Council, 15th May 2024 - Agenda Contents 289
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Appendix 1 North Ayrshire Council - Draft Guidelines and Policy for Animals at Public Events The use (for performance, display or exhibition) of wild animals in travelling circuses is prohibited under the Wild Animals in Travelling Circuses (Scotland) Act 2018. In all other cases, if an event is the subject of a Public Entertainment Licence, any and all conditions pertaining to animals shall be adhered to. General Considerations • Events including animals which are organised by a recognised and approved body will generally be permitted e.g. dog shows, sheep dog trials, horse racing etc. if all other event related approvals are in place and the organisations credentials are checked. • Events including animals where there is a recognised cultural or historic significance will generally be permitted if all other event related approvals are in place. • Events including animals which have an educational and/or therapeutic purpose will generally be permitted if all other event related approvals are in place. This will require some consideration by the responsible manager/event organiser as an activity which is considered educational or therapeutic in one setting may not be so in another. Animal Welfare Events which include animals including agricultural shows, ridings or theatre productions must ensure that best welfare practices are observed. • A performing animal licence is required for anyone who exhibits or trains a performing animal. • A welfare plan should be drawn up which covers all reasonably foreseeable risks and veterinary personnel available to ensure prevention of infectious diseases and also treatment in the event of accidents. • The welfare plan should also take account of the five freedoms as set out in the Animal Health and Welfare (Scotland) Act 2006: o Freedom from hunger and thirst by ready access to fresh water and a diet to maintain full health and vigour. o Freedom from discomfort by providing an appropriate environment, including shelter and comfortable rest area. o Freedom from pain, injury or disease by prevention or rapid diagnosis and treatment o Freedom to express normal behaviour by providing sufficient space, proper facilities and company of the animal’s own kind. o Freedom from fear and distress by ensuring conditions and treatment that avoid mental suffering. • As with all (human) attendees at an event, the event organiser also has a duty of care to ensure the safety and well-being of animals. 290
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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: Use of Animals for Entertainment on Council Land 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 Public Protection (but policy impacts all services) Lead officer: Scott McKenzie List of participants in the assessment: Scott McKenzie Date completed: 25/03/2025 291
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Version: 7.0 2. What are the main aims of the proposal? The proposal is to create a policy which provides a framework to facilitate consideration of the animal health and welfare issues associated with the use of animals for entertainment purposes on Council land. 3. What data, research or other evidence was used for this screening? A report prepared for ELT on the 1st April 2026 forms the basis of the evidence, with this in turn having been informed by extensive research, discussions with other local authorities and internal working groups and discussions across the relevant council services such as Estates, Legal, Streetscene and Protective Services. The overarching legislative framework is the Animal Health and Welfare (Scotland) Act 2006. 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. No, the proposal does not affect service users, employees or the wider community and specifically to services that are known to being important to particular protected groups. 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: Yes, it is a major proposal, significantly affecting how services are delivered or how other organisations operate. 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. 292
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Version: 7.0 No, it does not relate to an area where there are known inequalities or has significant potential for reducing inequalities or improving outcomes. 293
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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 (please list) No Unsure 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 proposal is centred on animal health and welfare and therefore this does not apply. 7. Children’s Rights (UNCRC) Does the proposal have any impact in relation to the UNCRC articles for Children’s Rights? The proposal is centred on animal health and welfare and therefore this does not apply. The proposal would prevent access to animals at events which were considered to be kept or showed under poor health and welfare conditions. In such circumstances there would be limited opportunities in terms of articles 28 and 31 anyway. 8. Island Proofing Are there any special considerations for the island communities within North Ayrshire? The proposal is centred on animal health and welfare and therefore this does not apply. 294
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Version: 7.0 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) Click or tap here to enter text. 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)? The proposal is centred on animal health and welfare and therefore no impacts have been identified. 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? As the proposal is centred on the established Animal Health and Welfare Scotland Act consultation on the principles would have taken place during the legislative process. The implementation in terms of a policy have been discussed with the relevant Council services. 12. What are the monitoring and review arrangements? The policy will be reviewed on a regular basis or when any issues or learning points are identified. 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.) The policy will be progressed through ELT, PAP and Cabinet and if any potential impacts are identified this will be reconsidered. Likewise it will be further considered at the point of review, likely to be in 1 years time initially. Or Full Impact Assessment Required Click or tap here to enter text. 295
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Version: 7.0 14. Authorisation Policy Lead/Manager: Date: 25/03/2026 Head of Service: Click or tap here to enter text. Date: Click or tap to enter a date. 296
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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 Agenda Item 16 297
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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 298
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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 299
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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: 300
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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. 301
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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 302
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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. 303
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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 304
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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 305
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Local Housing Strategy 2023 to 2028 Strategic Housing Investment Plan 2026 to 2031 306
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Appendix 1 NORTH AYRSHIRE Housing Acquisition Strategy 2026 to 2031 307
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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 ............................................................................................................................... 8 308
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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 309
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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). 310
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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 311
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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 312
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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 313
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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. 314
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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. 315
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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. 316
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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 317
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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. 318
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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. 319
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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. 320
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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. 321
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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. 322
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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. Agenda Item 17 323
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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 324
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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 325
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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. 326
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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. 327
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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 328
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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. 329
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NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet Title: Ayrshire Growth Deal: International Marine Science and Environment Progress (IMSE) Update Purpose: To provide an update on progress on the International Marine Science and Environment project, to seek 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. Recommendation: That Cabinet: a) Notes 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. 1. Executive Summary 1.1 The International Marine Science and Environment project forms part of the Ayrshire Growth Deal with an initial commitment of £10.5m investment towards marine research, education and industry collaboration. This forms part of the wider £251m investment under the Ayrshire Growth Deal which is a partnership between the UK and Scottish Governments and the three Ayrshire Authorities. 1.2 The report provides an update on the progress on the International Marine Science and Environment project, which has evolved towards a partnership-led, networked model, maximising outputs and outcomes through collaboration with established delivery partners, the Field Studies Council and the Community of Arran Seabed Trust. It seeks approval for the strategic direction and notes the development of a Collaboration Agreement with the project partners and the draft Outline Business Case, subject to feedback from the UK and Scottish Governments. Agenda Item 18 331
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2. Background 2.1 Through the £251m Ayrshire Growth Deal (AGD) investment programme, the UK Government provided a commitment of £6.5m matched by £4m from North Ayrshire Council to the International Marine Science and Environment project. This was through the Energy, Circular Economy and Environment Programme which seeks to unlock the benefits of developing low carbon energy technologies and solutions. 2.2 The project aimed to create a world-class centre of excellence to drive innovation in marine science and establish the Firth of Clyde as an exemplar of marine sustainability in Scotland’s blue economy. It was originally envisaged that this would include a flagship building at Ardrossan’s Coastal Quarter managed by a single University with dedicated staff to promote entrepreneurship and innovation projects with emerging and established businesses. 2.3 Since 2020, North Ayrshire Council has explored opportunities to develop a blue economy innovation programme and associated collaboration opportunities. A pathway finder analysis report prepared by the University of Stirling in 2021, identified the potential for a nationally and globally significant blue economy innovation programme. 2.4 Cabinet approved a timebound Collaborative Agreement with the University of Stirling and FSC for two years in February 2024. This sought to achieve the submission of an outline business case to UK and Scottish Government, create a plan of works required for the creation of the full business case, or phased full business cases, and corresponding procurement works. Following the sad loss of Dr John Rogers, the Executive Director of Research, Innovation and Business Engagement, it was established that the University was no longer in a position to progress with its anticipated role in project. 2.5 To advance the concept of the programme and to support the development of a business case further collaboration has progressed between the Council, Field Studies Council (FSC) on Cumbrae and Community of Arran Seabed Trust (COAST) on Arran. This has strengthened the opportunity, providing a cost-effective, lower-risk delivery route building on existing infrastructure and expertise. This has recognised that enhancing the existing offering at both locations and forging strong partnerships could significantly contribute to marine science, and blue economy research, development, and innovation in the region. 2.6 Through a programme deliverability review led by the AGD’s Programme Management Office (PMO), the allocations under the Energy, Circular Economy and Environment Programme were reviewed to ensure that the identified projects could achieve their scope and intended outcomes. Further engagement with the UK and Scottish Governments provisionally confirmed a reapportionment under this programme increasing IMSE’s UK Government allocation to £11.275m. The formal approval of this is subject to the submission and approval of the change management requirements and Business Case. This requires to be progressed through the Ayrshire Growth Deal’s governance processes. 2.7 The collaboration with FSC and COAST is being formalised through a Collaboration Agreement to develop and maintain a partnership supporting the delivery of the IMSE 332
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project and business case progression. The partnership will undertake further work to refine interventions including: • Research and analysis; • Concept design and infrastructure options; • Development of innovation and challenge-led programmes; and • Long and shortlisting in line with HM Treasury Green Book requirements. 2.8 The partners have agreed to contribute up to a maximum of £50,000 to support the work required by this agreement with roles defined as follows: Partner Role(s) North Ayrshire Council Senior Responsible Officer (SRO) Project Management and Project Management Office Liaison AGD reporting to Scottish and UK Government Funder Business Case development Growth Deals link (Ayrshire Growth Deal) Field Studies Council Site Operator expertise Landowner Academic, innovation and enterprise expertise Business Case development Island community engagement on Cumbrae Community of Arran Seabed Trust Academic, innovation and enterprise expertise Business Case development Island community engagement on Arran 2.9 Significant progress has been made in advancing the vision, with a strong emphasis on collaborative planning and strategic alignment with the partners. The project is being designed to harness the combined strengths of industry, academia, and environmental organisations. Efforts have concentrated on the co-design of detailed plans with stakeholders, laying the groundwork for a transformative project that will drive forward marine science, technology and sustainability. 2.10 The Outline Business Case (OBC) is being developed in partnership with FSC and COAST. The proposed approach aligns with national and regional policy priorities and responds to market failures in the Ayrshire marine sector, where significant economic potential remains underdeveloped. It positions the region’s marine environment as an undercapitalised asset and proposes a coordinated cluster linking research institutions, businesses and communities and offering longer term sustainability. 2.11 The IMSE project will focus on applied sciences and bring together research and innovation activities alongside work undertaken by the partners. The project will support investment in these facilities to strengthen collaborations with universities and research organisations. These organisations already support significant grant-funded research and provide a strong foundation for future growth. By fostering collaboration and investment, the IMSE project will address the current lack of a definable research hub and limited cross-sectoral working. 2.12 The preferred option for the project is a networked hub model building on and enhancing existing assets and the marine science activities delivered at FSC in Millport and COAST in Lamlash. This offers the best value approach, managing risk 333
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while maximising impact. It is anticipated that this approach will deliver strong long- term value, with benefits significantly outweighing costs and building on existing research capacity. 2.13 The IMSE project aims to: • Develop a long-term partnership with Scotland’s Universities, the Scottish Association for Marine Science, Marine Alliance for Science and Technology for Scotland. • Grow the number of universities that collaborate with FSC and COAST and use the facilities at Millport Field Studies Centre and COAST in Lamlash from across Scotland, the UK and internationally. • Provide employment and training opportunities for communities and attract professionals to train, develop new industries and encourage innovation and investment in Ayrshire. • Provide educational and vocational training opportunities in partnership with Glasgow university, other university partners and Ayrshire College as well as attracting schools from across Scotland. • Further develop the islands as visitor attractions, build links with the Marine Tourism project and use existing and new tourist operations to showcase the island’s research and innovation activities and natural heritage. • Extend the tourism offer and the average length of stay on Cumbrae by developing a marine, nature-based and heritage visitor attraction. Longer term there is an ambition to host training events for working in the blue economy and tourism sector. 2.14 Delivery will build on established partner capacity, ensuring confidence and reducing delivery risk. Procurement will follow established processes, with risks relating to contractor availability and compliance with subsidy control requirements identified and managed. The project is affordable within the revised AGD allocation, supporting investment in infrastructure such as laboratories, accommodation and monitoring equipment. It is anticipated that the project will deliver significant long-term monetised and non-monetised benefits, including increased investment in the blue economy, job creation, reputational gains and improved ecosystem health, building on existing research activities. 2.15 The formal approval of the reapportionment of funding under the Energy, Circular Economy and Environment Programme to IMSE will be progressed through the Ayrshire Growth Deal’s governance processes. The draft OBC will be updated informed by feedback from the UK and Scottish Government. Thereafter the final OBC will be formally submitted to UK and Scottish Government and create a plan of works required for the creation of the Full Business Case (FBC), or phased FBCs and corresponding procurement works. 3. Proposals 3.1 That Cabinet: a) Notes the progress to date and approves the strategic direction for the International Marine Science and Environment project; 334
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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. 4. Implications/Socio-economic Duty Financial 4.1 There are no financial implications associated with the Collaboration Agreement. Project development activity related to the proposals may require advance funding through the Ayrshire Growth Deal, as allocated within approved capital budgets. Human Resources 4.2 None. Legal 4.3 The Collaboration Agreement partnership with the Field Studies Council and Community of Arran Seabed Trust, has been developed with support from Legal Services. The draft Outline Business Case has been developed in line with Government Green Book guidance and subsidy control requirements. Equality/Socio-economic 4.4 An Equality and Children’s Rights Impact Assessment will be undertaken for the project. Climate Change and Carbon 4.5 The ambitions of the project align with the adopted Sustainable North Ayrshire Strategy. Any statutory requirements related to environmental impact will be undertaken during the project’s development. In addition, the Ayrshire Growth Deal business case requirements include carbon scoring and measures to mitigate and carbon increases. Key Priorities 4.6 The project will contribute to achieving Council Plan priorities and the vision and priorities of the Ayrshire Regional Economic Strategy. Community Wealth Building 4.7 The project will contribute to the Council’s Community Wealth Building ambitions by supporting the use of land and assets, supporting job creation and skills and employability opportunities, supporting investment in North Ayrshire, supporting a just transition to net zero and securing anchor institutions within North Ayrshire. 335
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Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None. 5. Consultation 5.1 The Business Case has been developed and informed by engagement with sector leads from and academia, private and public sector stakeholders. Wider stakeholder and community engagement will be undertaken to inform the next phase of the project’s development. RUSSELL McCUTCHEON Executive Director (Place) For further information please contact Bruce McClure, Senior Manager, Growth & Investment on brucemcclure@north-ayrshire.gov.uk. Background Papers Cabinet Report, 20 February 2024: International Marine Science & Environment (IMSE) Ayrshire Growth Deal project - Collaboration Agreement 336
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NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet Title: Flexible Advanced Manufacturing Space, i3 Irvine: Phase 2, Full Business Case Purpose: To seek endorsement of the Full Business Case for Phase 2 of the Flexible Advanced Manufacturing Space Project at i3, Irvine. Recommendation: That Cabinet agrees to: (a) Endorse the Full Business Case for Phase 2 of the Flexible Advanced Manufacturing Space project at i3, subject to feedback from Scottish and UK Governments and the successful outcome of the tender process; (b) Delegate authority to the Executive Director (Place) to update the Full Business Case to reflect the feedback and outcome of the tender process; and (c) Approve the submission of the Full Business Case to the Ayrshire Economic Joint Committee. 1. Executive Summary 1.1 The i3 Flexible Advanced Manufacturing Space (flexible space) project is one of two projects located at i3 Riverside Business Park in Irvine that is benefitting from an overall investment of over £22M through the Ayrshire Growth Deal. i3 is one of North Ayrshire’s key strategic sites, designated as an Enterprise Area in 2012 to attract life science companies. 1.2 The project is part of a wider programme of new employment space across Ayrshire funded by £69.5M from the AGD, supporting economic infrastructure and engineering and manufacturing sectors and through the Local Regeneration Fund that is delivering additional floorspace in Irvine at Annickbank Innovation Campus on the edge of i3, and at Kyle Road. The overall aim is to meet an identified demand for modern business space where there has been a longstanding issue of market failure, to help grow local businesses and to attract inward investment. Additional funding has also been secured via the £17.4M award for the Levelling Up for Ayrshire: Commercial and Low Carbon Infrastructure project from the Local Regeneration Fund, formerly the Levelling Up Fund. 1.3 Cabinet previously agreed to support the delivery of Phase One, with the approval of the Full Business Case on 29 November 2022 and approval of the related lease on 2 Agenda Item 19 337
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December 2025. The location of AGD flexible space investment is now focussed entirely on a cluster entirely at Riverside Way informed by increased construction costs, market demand and the successful marketing of the Strategic Investment Campus site for inward investment. 1.4 The draft Full Business Case provided at Appendix One is under review by the Scottish and UK Governments. The tender for the design and build contract works has been published, with receipt of tenders expected in July 2026. Subject to the selection of a preferred bidder within the available budget, it is intended that the contract will be awarded following feedback from Governments and any required adjustments, final endorsement by Cabinet and the approval of the FBC by the Ayrshire Economic Joint Committee (AEJC). 2. Background 2.1 The Ayrshire Growth Deal (AGD) investment in the flexible space project comprises of £11M from Scottish Government and £4M from North Ayrshire Council, plus additional funds leveraged from the Local Regeneration Fund (LRF), formerly Levelling Up Fund (LUF) of £4.706M, and the Vacant and Derelict Land Fund (VDLF) of £0.967M, to help create commercial space in a variety of formats and over a series of phases. 2.2 The i3 Flexible Space project is focussed on investing in new business space in a variety of formats, including large units capable of sub-division and small terraced units for business start-ups or research and development. The project will help address the following issues: • High local demand for industrial space. • Low vacancy rates for industrial space of less than 1% for Irvine, 2.4% for North Ayrshire and 4.4% for West of Scotland (amongst the lowest in the UK). • Insufficient rental values to support financially viable new-build speculative development. • Very limited funding sources available for the public sector to intervene. • Constraints on indigenous companies seeking to grow and expand within North Ayrshire. • Constraints on attracting inward investment through lack of modern premises. • The need to grow the local economy through adapting to modern industrial processes linked to Life Science, Advanced Manufacturing and other sectors. • Ageing stock of existing industrial premises that is facing obsolescence. • Constraints due to companies being less accessible to disabled or mobility impaired job seekers / trainees. • Growing pressure through changes in legislation and customer demand, to create better configured, more energy efficient building stock and eliminate hazardous building materials. 2.3 Phase One of the project involved the construction of an 18,180 square foot (1,690 m2) light industrial unit on a 2.7 acres site with an adjoining yard and parking spaces. The unit, which is capable of subdivision or extension, benefits from dedicated parking including EV charging infrastructure, low energy LED lighting, roof mounted photovoltaic panels and full fibre connectivity. A topping out event was held on 17 February 2026 to celebrate the completion of the project. The property has been leased through a successful marketing campaign with the tenant, Barony Universal, now in occupation. 338
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2.4 Phase Two will establish an additional unit of similar scale on a site approximately 4.59 acres in size and with a level of fit-out and also includes some development of the wider site to accommodate a Sustainable Urban Drainage System (SUDS) and road infrastructure. 2.5 This Full Business Case (FBC) focusses on Phase Two of the project which requires an overall estimated capital funding of £6.775M comprised of £4.706M from the LRF and £2.069M from the Ayrshire Growth Deal. The funding supports the design and build contract, consultancy costs, fees and staff costs for the development and delivery of the project. The LRF contribution is assisting to address the increase in construction costs over the time period of the AGD. 2.6 The project and wider programme have revenue implications which are set out in Section 4.1. In summary, there will be revenue costs incurred until the unit is occupied and in relation to ongoing wider site maintenance. These costs will be met from existing resources in the short term and recovered through additional rental income, received once the unit and further developments are occupied. The marketing of the unit will commence following the award of contract. 2.7 The key risks related to the project are detailed within the FBC. These include tenders received being above the available budget, potential delays to the expected timeline for the approval of the FBC and award of tender, or unforeseen project complexities that require additional funding. Mitigations include the delivery of Phase One in close proximity to the Phase Two site and the availability of wider site information and the approval of Phase One FBC. 2.8 The draft FBC has been provided at Appendix One for Cabinet’s consideration, whilst initial feedback from both Governments is awaited and the tender process for the design and build contract is underway. The FBC will be updated informed by the feedback and outcome of the tender process for submission to the Ayrshire Economic Joint Committee (AEJC) for approval. Following the award of the contract, the contractor will finalise the design, apply for building warrant and commence the contract works. 2.9 Progress of Phase Two represents continued positive investment in the i3 area and the development of an innovation cluster complemented by wider investment in the Digital Process Manufacturing Centre which adjoins the Phase One and Phase Two flexible space sites, investment in active travel routes into i3 and the expected major investment in AI and data centre development at the Strategic Investment Campus site. 3. Proposals 3.1 It is proposed that Cabinet agrees to: a) Endorse the Full Business Case for Phase 2 of the Flexible Advanced Manufacturing Space project at i3, subject to feedback from Scottish and UK Governments and the successful outcome of the current tender process; 339
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b) Delegate authority to the Executive Director (Place) to update the Full Business Case to reflect the feedback and outcome of the tender process; and c) Approve the submission of the Full Business Case to the Ayrshire Economic Joint Committee (AEJC). 4. Implications/Socio-economic Duty Financial 4.1 The main financial implications of the project are: i) Capital – An estimated capital investment of £6.775M is required for Phase 2 towards a design and build contract and related costs including staff costs and fees. This is comprised of £2,068,741 from the AGD and £4,706,259 from LRF. These budgets are included in the NAC capital programme. The project’s capital costs will be confirmed in an updated report to Cabinet, following the current tender process and will be subject to the selection of a preferred contractor within the available budget. Feedback from Governments will provide confirmation that Phase Two can proceed and enable the draw down of the Scottish Government AGD grant as part of the project budget. The LRF monies are being prioritised to ensure full expenditure within the fund’s timescales. ii) Revenue – Similar to Phase One, it is anticipated that there will be revenue costs incurred by the Council until the Phase Two unit is occupied, such as building and grounds maintenance, security, rates and utility bills, building insurance, statutory compliance certificates, EPC costs, legal fees and marketing and promotion. In addition, there will also be costs related to wider site maintenance for this Phase and future developments at i3. Revenue costs will be met from existing resources in the short term and will be reimbursed once a tenant is in place and rental income starts to be received. Human Resources 4.2 None. The project is being managed by the Council’s Property Management and Investment (PMI) Team with input from the Growth and Investment Project Lead. Legal 4.3 All Statutory consents have been secured with the exclusion of the Building Warrant which will be secured by the successful contractor. The award of the tender is required within the 150-day period. Furthermore, the Council will require to ensure compliance with the conditions set out within the Local Growth Fund award. Equality/Socio-economic 4.4 The project seeks to tackle market failure through the provision of much needed new, modern and more energy efficient business space to help local businesses grow and expand and to attract inward investment to an area of above average unemployment and low business investment. It will build on recent investment in Phase One of the project which is now under tenancy, and complement the Digital Process Manufacturing Centre (DPMC) pilot project at the adjoining site which is operated by the National Manufacturing Institute Scotland (NMIS). 340
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Climate Change and Carbon 4.5 An assessment of carbon impact has been undertaken for the project and is included within the business case. The unit will offer modern sustainable design features including sustainable urban drainage, solar panels and electric vehicle charging. In addition, the selected contractor will be required to ensure that the building design will facilitate the ability to achieve recognised standards for CO2 emissions. Key Priorities 4.6 The project will contribute to a range of Council Plan outcomes including the key activities to develop infrastructure to support business growth and support local businesses and economic opportunities. Community Wealth Building 4.7 The project will contribute to Community Wealth Building and will have a significant positive impact on Council’s ambitions under the Land and Assets pillar. In relation to: • Procurement: Local procurement and supply chain opportunities will be created through the project. • Fair Employment: The project will create employment opportunities particularly within the construction sector and wider opportunities when the commercial space is occupied by a tenant. • Land and Assets: The project will regenerate a site which is long term vacant and derelict land and identified as priorities for investment. This will bring underutilised land into positive use to support local social, economic and environmental wellbeing. • Financial Power: The project will invest in localities and leverage external national investment into North Ayrshire. • Plural Ownership: The project will create commercial space to support local businesses to stay and grow in North Ayrshire. Islands Communities Impact Assessment (ICIA) 4.8 None. United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None. 341
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5. Consultation 5.1 The Council’s PMI, Finance, Legal, Business Support and Development and Estates Teams have been involved in the development of the project. An updated report for the Irvine area by property agents has confirmed ongoing demand for the business space alongside ongoing engagement with local businesses by the Business Support and Development team. RUSSELL McCUTCHEON Executive Director (Place) For further information please contact Bruce McClure, Senior Manager, Growth and Investment, on 01294 324176. Background Papers Cabinet Report, 29 November 2022, Flexible Advanced Manufacturing Space, i3 Irvine: Phase 1, Full Business Case Cabinet Report, 21 March 2021, i3 Advanced Manufacturing Space Project, Irvine 342
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NAC Growth and Investment AGD Business Case 1 i3, ADVANCED MANUFACTURING SPACE Full Business Case, Phase 2 Version No.2 Issue Date: 01 May 2026 343
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NAC Growth and Investment AGD Business Case 2 VERSION HISTORY Version Date Issued Brief Summary of Version / Change Owner’s Name 1 10 April 2026 First draft version – issued to PMO Marnie Ritchie 2 01 May 2026 Second version addressing initial PMO feedback M Ritchie, L Jamieson, K MacDonald 344
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NAC Growth and Investment AGD Business Case 3 Table of Contents Part A Project Description Part B The Five Cases 1. EXECUTIVE SUMMARY .............................................................................................. 11 1.1 Introduction .............................................................................................. 11 1.1.1 Project aims & objectives ...................................................................... 12 1.1.2 Project scope ........................................................................................ 12 1.1.3 Project phases ...................................................................................... 14 1.1.4 Structure and content ........................................................................... 18 1.2 Strategic case .......................................................................................... 18 1.2.1 The strategic context ............................................................................ 18 1.2.2 The case for change ............................................................................. 20 1.3 Economic case ........................................................................................ 21 1.3.1 OBC long list and short list ................................................................... 21 1.3.2 The procurement .................................................................................. 23 1.3.3 Key findings and the preferred option ................................................... 23 1.4 Commercial case ..................................................................................... 24 1.4.1 Agreed products and services .............................................................. 24 1.4.2 Agreed risk allocation and charging mechanism .................................. 24 1.4.3 Key contractual arrangements .............................................................. 24 1.4.4 Agreed implementation timescales ....................................................... 24 1.4.5 Accountancy treatment ......................................................................... 25 1.5 Financial case .......................................................................................... 25 1.5.1 Financial expenditure ........................................................................... 26 1.5.2 Overall affordability and balance sheet treatment ................................. 26 1.6 Management case ................................................................................... 27 1.6.1 Project management arrangements ..................................................... 27 1.6.2 Benefits Realisation and Risk Management ......................................... 27 1.6.3 Post project evaluation arrangements .................................................. 27 1.7 Recommendation ..................................................................................... 27 2. THE STRATEGIC CASE ................................................................................................ 29 2.0 Introduction .............................................................................................. 29 2.1 Organisational overview ........................................................................... 30 2.2 Business strategies .................................................................................. 30 2.3.2 Regional Policy Context ........................................................................ 34 345
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NAC Growth and Investment AGD Business Case 4 2.4 Investment objectives .............................................................................. 36 2.4.1 Strategic need ...................................................................................... 37 2.5 Existing arrangements ............................................................................. 38 2.6 Business needs ....................................................................................... 38 2.6.1 Property market assessment ................................................................ 39 2.7 Potential business scope and key service requirements .......................... 39 2.8 Main benefits criteria ................................................................................ 40 2.9 Main risks ................................................................................................. 41 2.10 Constraints .............................................................................................. 46 2.11 Dependencies .......................................................................................... 46 3. THE ECONOMIC CASE ............................................................................................... 47 3.1 Introduction .............................................................................................. 47 3.2 Critical success factors ............................................................................ 47 3.3 The long-listed options, Flexible Space Programme ................................ 48 3.4 Short-listed options, Flexible Space Programme ..................................... 50 3.5 The procurement process ........................................................................ 56 3.5.1 The Long List Criteria ........................................................................... 56 3.5.2 Long list ................................................................................................ 56 3.5.3 Short list criteria .................................................................................... 57 3.5.4 Short list ................................................................................................ 57 3.6 Economic appraisal .................................................................................. 57 3.6.1 Introduction ........................................................................................... 57 3.6.2 Estimating benefits ............................................................................... 57 3.6.3 Estimating costs ................................................................................... 59 3.6.4 Cost appraisal conclusions ................................................................... 59 3.7 Qualitative benefits appraisal ................................................................... 59 3.7.1 Methodology ......................................................................................... 59 3.7.2 Qualitative benefits criteria ................................................................... 60 3.7.3 Qualitative benefits scoring ................................................................... 61 3.7.4 Analysis of key results .......................................................................... 61 3.8 Risk appraisal – unquantifiables .............................................................. 61 3.9 The preferred option – selected supplier .................................................. 61 3.10 Sensitivity analysis ................................................................................... 62 3.11 The preferred option ................................................................................ 62 3.12 Sustainability and carbon ......................................................................... 62 346
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NAC Growth and Investment AGD Business Case 5 3.13 Economic / Financial ................................................................................ 62 3.13.1 Embodied Carbon ................................................................................. 62 3.13.2 Operational Carbon .............................................................................. 63 4. THE COMMERCIAL CASE ........................................................................................... 64 4.1 Introduction .............................................................................................. 64 4.2 Required services .................................................................................... 65 4.3 Potential for risk transfer .......................................................................... 67 4.4 Agreed charging mechanism ................................................................... 67 4.5 Agreed contract length ............................................................................. 68 4.6 Key contractual clauses ........................................................................... 68 4.7 Personnel implications (including TUPE) ................................................. 68 4.8 Procurement route and implementation timescales ................................. 68 4.9 FRS 5 accountancy treatment ................................................................. 69 5.0 THE FINANCIAL CASE ................................................................................................ 70 5.1 Introduction .............................................................................................. 70 5.2 Impact on the organisation’s income and expenditure account ............... 71 5.3 Local Regeneration Fund (formerly Levelling Up Fund, 3) ....................... 71 5.4 Impact on the balance sheet .................................................................... 71 5.5 Overall affordability .................................................................................. 72 6.0 THE MANAGEMENT CASE ......................................................................................... 73 6.1 Introduction .............................................................................................. 73 6.2 Programme management arrangements ................................................. 73 6.3 Project management arrangements ......................................................... 74 6.3.1 Project reporting structure .................................................................... 74 6.3.2 Project Roles and Responsibilities ....................................................... 75 6.3.3 Project Plan .......................................................................................... 75 6.4 Use of Special Advisers ........................................................................... 76 6.5 Arrangements for change management ................................................... 77 6.6 Arrangements for benefits realisation ...................................................... 77 6.7 Carbon management ............................................................................... 78 6.8 Arrangements for risk management ......................................................... 78 6.9 Arrangements for contract management .................................................. 79 6.10 Arrangements for post project evaluation ................................................ 79 6.11 OCG Gateway review arrangements ....................................................... 79 6.12 Contingency plans ................................................................................... 80 347
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NAC Growth and Investment AGD Business Case 6 Appendices 81 APPENDIX A: INCLUSIVE GROWTH HEAT MAP ............................................................................... 82 APPENDIX B: AGD PROJECT LINKS .................................................................................................. 83 APPENDIX C: BENEFITS REALISATION LOGIC CHAIN ...................................................................... 85 APPENDIX D: ECONOMIC MODELLING, i3 FLEXIBLE SPACE PHASE 2 ............................................. 86 APPENDIX E: RISK REGISTER ......................................................................................................... 104 APPENDIX F: INCLUSIVE GROWTH & COMMUNITY WEALTH BUILDING ..................................... 110 APPENDIX G: COMMUNITY BENEFIT STATEMENT ........................................................................ 111 APPENDIX H: EQUALITY IMPACT ASSESSMENT ............................................................................ 113 APPENDIX I: CARBON ANALYSIS ................................................................................................. 121 APPENDIX J: AYRSHIRE GROWTH DEAL CHANGE MANAGEMENT PROCESS ............................... 122 LIST of FIGURES 1: Flexible Space, Phase 1, (4A Riverside Way, now complete and let) 2: Project location showing area of focus of AGD Investment 3: Location of Flex Space Phase 1 & DPMC Pilot (within Booth Welsh), on Riverside Way, i3 4: excerpt from i3 draft masterplan, 2021 5: Image of proposal at OBC / Phase 1 FBC Stage 6: Updated - Proposed Phases of Flexible Space Programme 7: Updated Flexible Space Masterplan 8: Active travel path connections to Riverside Way i3, delivered 2021/22 9: Current active travel route improvements in proximity to Ph 1 Flex Space i3 (shown green) 10: Recent Active Travel Improvements on Long Drive 11: Phase 1, Flex Space (4A Riverside Way), front & rear elevations 12: RIBA 2030 Climate Change Target Metrics 13: Phase 2 Unit drawings 14: Standard AGD Governance approach 15: Organisational chart, showing governance of the project LIST of TABLES 1: Flex Space Phase 2 Unit Specification 2: Flexible Advanced Manufacturing Space estimated floorspace profile at OBC stage 3: Flexible Advanced Manufacturing Space profile – reduced and at FBC Ph 1 stage. 4: Flexible Advanced Manufacturing Space profile – at Phase 2 FBC stage. 5: Strategic Drivers for Investment in Advanced Manufacturing Space at i3 6: Assessment of Options at i3 – Long List at OBC Stage 7: Assessment of Options for i3 - Short List OBC Stage 8: Phase 2 and Phase 1 Options considered 9: Flexible Space Phase 2, Project Milestones (working version) 10: Flexible Advanced Manufacturing Space, Phase 2 - Source of Capital Funds 11: Flexible Space Financial Profile – Capital – updated 12: National Policy and Strategies 348
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NAC Growth and Investment AGD Business Case 7 13: Project’s Relationship to UK’s Modern Industrial Strategy 14: Project’s Relationship to Scotland’s National Strategy for Economic Transformation 15: Regional & Local Policy & Strategies 16: Flexible Space Investment Objectives 17: Investment Objectives and Stakeholder Benefits 18: Flexible Advanced Manufacturing Space – Project Risks, Updated 19: Critical Success Factors 20: Preferred Way Forward, Flexible Space Programme – OBC Stage 21: Review of Critical Success Factors for Shortlisted Options for Overall Flexible Space Programme at OBC Stage 22: High-level Economic Outcomes at OBC Stage 23: OBC Investment Appraisal Ranking 24: Flexible Space, Phase 1 - Options 25: Flexible Space Phase 2 Options 26: Benefits-Cost Ratio Timeframe - 25 Year Appraisal 27: Benefits-Cost Ratio Timeframe - 25 Year Appraisal (Construction Impacts Removed) 28: Main Benefits 29: i3 Flexible Advanced Manufacturing Space - Outputs, Outcomes and Impacts, Benefits Realisation Plan 30: Qualitative Benefits Criteria 31: Estimated Embodied Carbon, Flexible Space Phase 2 32: Estimated Operational Carbon, Flexible Space Phase 2 33: Estimated Whole Life Carbon, Flexible Space Phase 2 34: FBC Flex Space Phase 2, Risk Transfer Analysis 35: Key timescales for progress of Phase 2 Unit 36: Flexible Space Phase 2, Project Spend Profile 37: Roles & Responsibilities 38: Special Advisers 39: Benefits-Cost Ratio Timeframe - 25 Year Appraisal – Sensitivity Testing of Single Unit 40: Benefits-Cost Ratio Timeframe - 25 Year Appraisal (Construction Impacts Removed) - Sensitivity Testing of Single Unit 41: Economic Outputs – Overall value for money assessment 42: Profile of Benefits Accrued – 5 Year Periods 43: Green House Gas Accounting 349
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NAC Growth and Investment AGD Business Case 8 PART A: Project Description What is the project about? This project is the second phase of the i3 flexible advanced manufacturing space project at i3 Business Park in Irvine, which is a strategic site for North Ayrshire Council and was designated as a Life Science Enterprise Area in 2012. Phase 1 delivered an advanced industrial unit of 18,180 ft2 (1,690 m2) GIFA to a shell specification suitable for Classes 4, 5 and 6, capable of subdivision to a maximum of 4 self-contained units with a rear service yard and parking spaces, on a total site area of 10,972 m2 or 2.7 acres and at a total cost of £5.147M, which included £0.967M of VDLF funds. The unit is now being leased to Barony Universal Products Ltd who have recently submitted a planning application for an extension to accommodate a new production line and related plant. The budget for Phase 2 is £6,775,000. It should be noted that Phase 2 is mostly being funded by £4,706,259 of the Local Regeneration Fund (formerly the Levelling Up 3 funds) from UK Government, with the remaining funds of £2,068,741 covered by the Ayrshire Growth Deal, comprising £355,650 from North Ayrshire Council and £1,713,091 from Scottish Government. This will deliver a unit of similar size c1,690m2 on a site approximately 4.59 acres in size but also includes some development of the wider site to accommodate suds and roads infrastructure. The project is being delivered in a number of phases. A third phase of the FBC will be submitted in 2027 to cover the final phase of the project. This Full Business Case (FBC) for Phase 2, follows on from an Outline Business Case (OBC) for the overall project which was approved in June 2021 and a Full Business Case for Phase 1 which was approved in December 2022. NAC is seeking the timely endorsement of the FBC for Phase 2 by the Scottish Government and its subsequent approval by the Ayrshire Economic Joint Committee (AEJC) to enable the construction works contract to be awarded by September 2026 and the works to be completed by September 2027. The tender is currently being prepared for publication. Timelines are critical to ensure that the tender award takes place before the 150-day period expires for tenderers holding their costs. The funds sourced from the Local Regeneration Fund require to be spent by 31 March 2028. Tenders will be received for the Phase 2 contract works and the details will be contained within the Commercial Case in Section 4 in an updated version of the FBC. It should be noted that these details will be limited following advice from the Council’s Corporate Procurement Unit, who advised that the sharing of commercial information should be limited prior to the award of the tender. The project will complement Phase 1 of the programme and also the Digital Process Manufacturing Centre (DPMC) facility which is being supported by the Ayrshire Growth Deal (AGD) and has been delivered in partnership with NMIS (National Manufacturing Institute Scotland), University of Strathclyde and CPI (Centre for Process Innovation). The DPMC is currently operating as a pilot in close proximity to the location of the Phase 1 Flex Space unit and the Phase 2 Flex Space site. Why is it being undertaken? Phase 2 of the project will contribute towards meeting current demand for new industrial space within North Ayrshire and Ayrshire, where there is a longstanding issue of market failure that discourages the private sector from building new space. It will help grow local businesses and attract inward investment to an area of above average unemployment and low business investment. It will also help to address an ongoing issue of ageing, obsolete industrial space. 350
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NAC Growth and Investment AGD Business Case 9 The new space also provides the opportunity for interest from businesses linked to the DPMC project to take up space, helping create a cluster of industry and innovation at i3. How does it fit within the wider Deal? This project contributes to the wider AGD Economic Infrastructure Programme, addressing economic underperformance by helping position Ayrshire as the go-to region for smart manufacturing and digital skills and by improving access to employment opportunities. It complements the Ayrshire Innovation Park development at Kilmarnock and commercial space proposals at Prestwick and provides opportunities for investment linked to the DPMC and Building Digital Capital AGD projects. What is being proposed? The original approved OBC estimated that the project would involve the phased delivery of approximately 9,000 m2 (97,000 sq ft) of floorspace in a variety of building types to suit varying needs, ranging from larger 20,000 sq ft to 40,000 sq ft units capable of subdivision, to small, terraced business incubation units and class 4 offices. A draft masterplan was developed in 2020/21 to show the potential location and scale of development across i3. The majority of the buildings were proposed to be located within a central area of i3, creating a cluster area with the proposed DPMC. A small number of units were also proposed at the large Strategic Investment Campus site at i3, to stimulate interest in this area. A review of costs at Phase 1 FBC stage identified that the costs of delivering each phase was likely to be higher than the estimates contained in the OBC, due to the further development of the project following OBC stage which provided a more accurate assessment of costs but also due to cost inflation. It was then highlighted that the level of floorspace that could be delivered for the available budget would be lower than that approved in the OBC at 9,000 sq m. Projections at Phase 1 FBC stage estimated that the amount of floorspace that could be delivered could within the available budget could be 6,000 sq m and this was accounted for in the economic modelling. In order to offset these increased costs, allocations from the Vacant and Derelict Land Fund have supported the development and delivery of Phase 1 and the Local Regeneration Fund (formerly LUF3) is supporting Phase 2. How will it be delivered? The overall project is being delivered in phases, allowing for a review of the market at key stages. Each phase will be designed by a professionally qualified team, led by architects and tendered in packages over a number of phases through either a traditional procurement route or a design and build route. Phase 2 is the subject of this FBC and has been developed with support from North Ayrshire Council’s architects and quantity surveyors and is being tendered as a design and build contract. What outcomes will it deliver and by when? The outcomes anticipated include the delivery of much needed modern business space, new jobs and construction jobs, support to SMEs, additional GVA, access to related employability and skills programmes for local people including those from disadvantaged or protected characteristic groups and removal of sites from the vacant and derelict land register. A Benefits Realisation Plan has been prepared for the overall project in conjunction with the Ayrshire Growth Deal PMO and Phase 2 will contribute to these outcomes. Who will use it and why? The project will be marketed widely to local companies, including SME’s looking to grow and expand and to inward investment companies from Ayrshire, Scotland, the UK and beyond. A marketing campaign will be prepared for Phase 2. At closing date for marketing, Phase 1 received four bids to lease the premises, providing evidence of demand for Phase 2. 351
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NAC Growth and Investment AGD Business Case 10 What are the headline figures around what is being proposed? An allocation of £15M from the Ayrshire Growth Deal was agreed for the i3 Flexible Space project, comprised of £11M from Scottish Government and £4M from North Ayrshire Council. Overall, £22.225M is being invested at i3 by the Ayrshire Growth Deal, including an allocation of £7.225M contributing to the DPMC project. This has been added to by £4.706M from the Local Regeneration Fund from UK Government for Phase 2 of the project, providing an overall investment of £26.931M. Phase 2 is the beneficiary of funding from the Local Regeneration Fund as part of an overall £17.5M allocation to North Ayrshire, aiming to address market failure through the delivery of new energy efficient commercial property alongside the provision of low carbon infrastructure at key employment sites including i3. Phase 1 has invested a total of £5.147M, comprising £4.180M of AGD committed capital funding towards the first unit, supported by £0.967M of Vacant and Derelict Land Funds. Figure 1: Flexible Space, Phase 1, (4A Riverside Way, now complete and let) 352
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NAC Growth and Investment AGD Business Case 11 PART B: The Five Cases 1. EXECUTIVE SUMMARY 1.1 Introduction This Full Business Case (FBC) seeks approval for investment in Phase 2 of the i3 Flexible Advanced Manufacturing Space project of up to a maximum of £2.069M of capital, including a contract with a supplier, to undertake the construction of an 18,191 sq ft (1,690 sq m) industrial unit as a second phase of the project. The remainder of the required funds of £4.706M are being covered by the Local Regeneration Fund (formerly LUF3). The delivery of further phases of the project will be set out in subsequent updates to the FBC. This FBC for Phase 2, follows on from the approval of the first FBC for Phase 1 in December 2022, and the project’s original Outline Business Case (OBC) approved in June 2021 for the investment of £15M in the delivery of approximately 97,000 sq ft (approx. 9,000 sq m) of flexible advanced manufacturing space at i3. The Phase 1 FBC and related change request of April 2022 gained approval for a reduction in the anticipated level of floorspace that would be delivered by the AGD, from 9,000 square metres to 6,000 square metres. Additional funds secured from the Local Regeneration Fund (formerly LUF3) have sought to offset this risk to project outcomes. The overall project includes the delivery of business space in various configurations, aiming to meet demand in a series of phases, responding to market requirements and with a focus on high value sectors. This includes chemical and life science manufacturing, more general local demand and opportunities for space emerging from the development of the Digital Process Manufacturing Centre (DPMC) at i3 by NMIS, CPI and NAC. The DPMC is being delivered as part of the same AGD Economic Infrastructure Programme and is now operational and engaging with business and industry as an NMIS specialist centre at Riverside Way in i3. Figure 2: Project location showing area of focus of AGD Investment 353
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NAC Growth and Investment AGD Business Case 12 1.1.1 Project aims & objectives The main investment objectives of the overall project are: • To create flexible business space capable of meeting manufacturing requirements for chemical and life sciences, but also for a wide range of other high value sectors; • To create a centre of digital innovation which offers digital tools, support and innovation scaled to a national market supporting a restructure of the regional economy to deliver advanced manufacturing; • To create serviced industrial land and capable of immediate development; • To create opportunities for employment and inclusive growth with particular emphasis on making connections to local communities, schools and colleges in preparation for employment, particularly in areas of deprivation and targeting people drawn from disadvantaged or Protected Characteristic groups including women and young people; • To attract mobile and private sector investment both from abroad and from indigenous companies; and • To create a sustainable, high quality business location and R&D cluster, capable of meeting and keeping pace with the changing demands of high value manufacturing sectors and complementing national initiatives including NMIS The project is now beginning to deliver on these objectives with the completion of the first phase of business space and the operation of the DPMC pilot, which is adjacent to flex space, combining to help enable a small innovation cluster. The project also aligns with Inclusive Growth & Community Wealth Building objectives (see Appendix F). 1.1.2 Project scope The scope of the overall project is to contribute to the AGD’s Economic Infrastructure Programme using £15M of AGD investment, additional leverage of £4.706M from the UK Government’s Local Regeneration Fund (formerly LUF 3) and early support funding of £0.967M from the Scottish Government’s Vacant and Derelict Land Fund (VDLF), to create modern flexible advanced manufacturing space that addresses the current issues businesses and inward investors are facing, with lack of modern business space provision in Ayrshire, impacting on business growth and expansion. The project is focused on delivering this space at i3, east of Irvine town centre. The area was developed as part of Irvine New Town from the early 1970s. Given that the town was originally planned with a much higher population than realised, and due to differing industrial structures at the time, the i3 area is of significant scale and covers around 132 ha. Parts of i3 remain undeveloped and/or are in private ownerships and the flexible space development will help to address this by focusing AGD development within a central area around Riverside Way. The inclusion of flexible space and DPMC within this area helps to provide a sense of consolidation, focus and longer term, presents the opportunity to provide services and networking opportunities for businesses (see Figure 3). The large SIC site owned by NAC (see Figure 2) was recently marketed for sale in 2025 and is now in the process of being sold, subject to suspensive conditions. It has also been put forward for AI Growth Zone status, which is currently being considered. 354
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NAC Growth and Investment AGD Business Case 13 Figure 3: Location of Flex Space Phase 1 and DPMC Pilot (within Booth Welsh), on Riverside Way, i3 The advanced manufacturing space proposed will complement the DPMC project and provide modern space in a number of phases. Now operational as a pilot, the DPMC is raising the profile of i3 and encouraging business investment and growth with a focus on Industry 4.0. The proposed investments are part of a strategy for i3 that allows the central Riverside Way area to be developed as a core commercial space and potential service area for i3, that includes flexible space and the DPMC facility, with the large Strategic Investment Campus targeted for major inward investment linked to potential datacentre and AI development through the sale of the site. The proposed Phase 2 unit includes the following specifications: Table 1: Flex Space Phase 2 Unit Specification ITEM PROVISION GENERAL • Unit specification suitable for immediate occupation • GIFA 18,191 ft2 (1690m2) • Site Area 74,023ft2 (6877m2) • Steel portal frame • Profiled and microrib cladding panels to Building Standards Class 1 Storage/Factory Use • Cat A office fit out • Fully serviced with water and electricity (metered) • BT Openreach FTTP fibre connection • Storage areas for waste collection and provision of infrastructure to facilitate future installation of sprinkler system tank provided 355
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NAC Growth and Investment AGD Business Case 14 ITEM PROVISION POWER • 100kVA 3-phase supply to each unit • additional ducts to each sub-divided unit will be installed to allow future Tenants to apply for individual LV connections based upon their anticipated design load requirements. • all apparatus and wiring connected to the low voltage systems shall be suitable for use with a 3 Phase, 4 Wire, 400 Volt or 230 Volt, Single Phase, 50 Hertz earthed neutral system. WAREHOUSE/ FACTORY • 8m haunch height (9.28m to ridge) • Concrete floors with 50kN/m2 floor loading • 10% roof lights • Powered 4.4m (H) x 4.76m (W) level loading doors • High bay LED lighting (330 lux) OFFICE & CONVENIENCE • Suspended ceilings with recessed LED lighting • Kitchen • Unisex and accessible WCs EXTERNAL • Secure 31.5m deep concrete service yard with gates will be formed to the rear of the property accessed from a road constructed to adoptable standards and suitable for RCC (Roads Construction Consent) • Dedicated car parking to NRDG Standards • Covered Bicycle storage to NRDG Standards SUSTAINABILITY • EPC rating "B" • EV charging points • Water saving sanitaryware • Low energy PIR controlled LED lighting • Air source heat pump for office heating and cooling • Roof mounted solar PV installed with scope to increase this as required. SECURITY • gated access, • intruder alarm • internal & external security lighting • 2.4m high open mesh steel panel Security Fencing to the boundary VEHICLE PARKING • 35 spaces for General Industrial (Class 5) use in accordance with minimum NRDG Standards DISABLED PARKING • 4 spaces EV PARKING • 4 active spaces / 8 passive spaces CYCLE PARKING • 12 spaces or 6 cycle stands The unit will be constructed north-west of and immediately adjacent to the Phase 1 unit and in close proximity to the DPMC Phase 1 pilot facility. Phase 1 and 2 of the flex space project and the DPMC pilot will begin to create the cluster of activity at i3. 1.1.3 Project phases Estimated Floorspace at Outline Business Case Stage The original OBC anticipated that the following range of units in Table 2 would be delivered in a number of phases through the £15M investment. This was informed through market assessment and includes the Phase 1 unit highlighted in red, which is now complete. 356
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NAC Growth and Investment AGD Business Case 15 Table 2: Flexible Advanced Manufacturing Space estimated floorspace profile at OBC stage Description Size - sq m Size – sq ft Flexible Space Estimated Floorspace at OBC Stage Terraced units, capable of subdivision 232 2,500 Terraced units, capable of subdivision 465 5,000 Modular building (capable of subdivision and or expansion) 1,858 20,000 Serviced plot tbc tbc Two office pavilions (2 x 425 sq.m.) 850 9,150 Modular building (capable of subdivision and or expansion) 3,716 40,000 Modular building (capable of subdivision and or expansion) 1,858 20,000 Total estimated floorspace 8,979 96,650 These configurations are shown in the i3 draft Masterplan from 2021. Please see the excerpts below. Figure 4 shows the proposed buildings in blue as part of the i3 AGD investment and the potential development in other areas of i3 in red, should funding become available. Figure 5 shows an image of the proposals at that stage. Figure 4: excerpt from i3 draft masterplan, 2021 Figure 5: Image of proposal at OBC / Phase 1 FBC Stage Proposed Flex Space Phase 1 Booth Welsh & DPMC Ph 1 Proposed terraced units Proposed DPMC Phase 2 357
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NAC Growth and Investment AGD Business Case 16 Estimated Floorspace at Phase 1, Full Business Case Stage The Phase 1 FBC advised that due to cost increases, the scale of floorspace to be delivered was likely to be reduced and it was assumed that the estimated floorspace that could be delivered would be in the region of 6,000 m2 for which the profile was shown in the table below with Phase 1 highlighted again. Table 3: Flexible Advanced Manufacturing Space profile – reduced and at FBC Phase 1 stage. Description Size - sq m Size – sq ft Flexible Space Estimated Floorspace at Phase 1 FBC Stage Terraced units, capable of subdivision 232 2,500 Terraced units, capable of subdivision 465 5,000 Modular building (capable of subdivision and or expansion) 1,690 18,180 Modular building (capable of subdivision and or expansion) 1,858 20,000 Modular building (capable of subdivision and or expansion) 1,858 20,000 Total estimated floorspace 6,103 65,680 Estimated Floorspace at Phase 2, Full Business Case Stage For the purpose of Phase 2, the scale of floorspace to be delivered has been reviewed again and the approach to how the AGD investment would be developed has also been reviewed as part of wider considerations of the land available. The amended plans below show the development of industrial units off Riverside Way, including the location of the Phase 1 and Phase 2 units and a proposed Phase 3 which is terraced units and potential future development plots or a further unit, subject to future funding (Figure 6). A cost plan for Phase 3 is awaited, to establish if additional floorspace can be delivered beyond the terraced units, to ensure that the floorspace can be achieved that was estimated at Phase 1. Whilst the Programme has benefited from Local Regeneration Funds, Phase 2 requires to deliver significant infrastructure for the wider site, as a result of planning requirements. The focus of development has been intensified around DPMC Phase 1 (Figure 7), with the large SIC site indicated on the original masterplan now in the process of being sold for redevelopment. Figure 7 also shows a potential site option for DPMC Phase 2 as part of the cluster. Further investment is also anticipated as the new tenant of Phase 1 has submitted a planning application for an extension of approximately 1,200m2. 358
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NAC Growth and Investment AGD Business Case 17 Figure 6: Updated - Proposed Phases of Flexible Space Programme Figure 7: Updated Flexible Space Masterplan 359
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NAC Growth and Investment AGD Business Case 18 Table 4: Flexible Advanced Manufacturing Space profile – at Phase 2 FBC stage. Description Status Square metres Square feet Flexible Space Estimated Floorspace at Phase 2 FBC Stage Modular building (capable of subdivision & expansion), Phase 1 Complete 1,690 18,180 Modular building (capable of subdivision & expansion), Phase 2 FBC 1,690 18,180 Terraced units (3A), capable of subdivision, proposed Phase 3 Design 642 6,910 Terraced units (3B), capable of subdivision, proposed Phase 3 Design 426 4,585 Remaining floorspace to be achieved to meet current floorspace target, by serviced plots or additional unit Design 1,655 17,825 Total estimated floorspace 6,103 65,680 1.1.4 Structure and content This Full Business Case (FBC) sets out details related to Phase 2 of the project. The format used is the Five Case Model and follows the AGD Project Management Office (PMO) template. Subsequent updates to this FBC will be submitted for future phases of the project. 1.2 Strategic case 1.2.1 The strategic context The following table summarises the strategic drivers for this investment with the associated national, regional and local strategy, plan or policy listed below: Table 5: Strategic Drivers for Investment in Advanced Manufacturing Space at i3 UK Policy Agenda Scottish Government Policy Ayrshire Regional Policy The UK’s Modern Industrial Strategy 2025 Scotland’s National Strategy for Economic Transformation, 2022-2032 Ayrshire Regional Economic Strategy 2023- 2033 UK Life Sciences Sector Plan 2025 A Manufacturing Future for Scotland, 2016 North Ayrshire Council, Council Plan 2023-2028 Levelling Up the UK: Executive Summary Making Scotland’s Future: a recovery plan for manufacturing & subsequent programme Sustainable North Ayrshire Strategy 2024-2027 Scotland’s 2018 – 2032 Climate Change Plan, Updated 2020 North Ayrshire Council Community Wealth Building Strategy 2024-2027 Life and Chemical Sciences Manufacturing Strategy for Scotland Skills and Investment Plan for Scotland’s Life and Chemical Sciences LOIP – Irvine Locality Action Plan 2023/24 Life Sciences Strategy for Scotland 2025 Vision Ayrshire Growth Deal Agreement Chemical Sciences Scotland Strategic Plan 2025 North Ayrshire Council Local Development Plan 2 and emerging LDP3 Green Data Centres and Digital Connectivity Vision and Action Plan, 2021 Shortlist for Data Centre Site Selection in Scotland 2021 A changing nation: how Scotland will thrive in a digital world Shaping Scotland’s Economy: Inward Investment Plan 2020 Programme for Government, 2024 to 2025 Serving Scotland National Planning Framework 4, 2023 360
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NAC Growth and Investment AGD Business Case 19 National Innovation Strategy, 2023-33 This £15M project is part of an overall investment of £22.225M that is being sought for i3 through the Ayrshire Growth Deal, with committed funding secured from UK Government (£6.225M), Scottish Government (£11M) and North Ayrshire Council (£5M). £7.225M is focussed on investment in the Digital Process Manufacturing Centre (DPMC) which is now operational as a pilot with partners and is assisting in driving demand for space at i3 and raising the profile of i3. It provides a unique facility and hub for businesses within process manufacturing sectors (including Pharmaceutical Products, Oil & Gas, Chemicals and Chemical Products, Agrichemicals (under life sciences), Food & Drink, Fast moving consumer goods (FMCG) and Water (collection, treatment, supply) that are seeking to improve their productivity and modernise their processes through digital automation. If the pilot is successful, Phase 2 will be progressed which can expand on opportunities to provide events and meeting space, R&D space, bio-manufacturing facilities and sector support. The UK Government’s £6.225M contribution and a £1M contribution from North Ayrshire Council are supporting the DPMC project. Previously a separate AGD Digital Programme Business Case led by South Ayrshire Council, had included investment towards a subsea fibre optic cable and associated infrastructure that may have had opportunities for Irvine as a potential landing point and investment linked to data centres. However, a commercial case could not be advanced for the project and the funds for the project have since been reallocated toward the Building Digital Capital Programme across the three Ayrshire authorities, with North Ayrshire receiving c £4.631M which could bring further investment to the i3 area. This would complement investment being made by UK Government as part of the 5G Innovation Regions in partnership with NMIS at i3, to provide a private 5G network with investment of £0.7M and the ambitions for AI campus status focussed on the large Strategic Investment Campus. The Heat Map at Appendix A illustrates the strengths of relationships between the AGD projects and the i3 project. The AGD Project Links Table at Appendix B, provides further detail on particular AGD projects where there are strong links. I3 is also the focus of a number of improvements related to active travel to improve connections to and from i3. Overall, the capital investment spent or planned at i3 through UK & Scottish Government funds, amounts to approximately £33.5M. Figure 8: active travel path connections to Riverside Way i3, delivered 2021/22 Figure 9: current active travel improvements in proximity to Phase 1 Flex Space (shown in green) Figure 10: Recent Active Travel Improvements on Long Drive 361
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NAC Growth and Investment AGD Business Case 20 1.2.2 The case for change AGD funding is required in order to meet demand for modern industrial accommodation in the face of acute market failure. This is preventing private sector investment in speculative industrial development across Ayrshire and most non-prime locations in Scotland. Recent research commissioned by NAC has identified the following issues that demonstrate the requirement for investment: • High demand for industrial space; • Low vacancy rates for industrial space of less than 1% for Irvine, 2.4% for North Ayrshire and 4.4% for West Central Scotland (among the lowest in the UK); (These figures were previously 4.5% for Irvine, 4.5% for North Ayrshire and 3.4% for West of Scotland at Phase 1 FBC stage and 4%, 6% and 4% respectively at OBC stage) • Insufficient rental values to support financially viable, new-build speculative development; • Very limited funding sources available for the public sector to intervene; • Constraints on indigenous companies seeking to grow and expand within North Ayrshire; • Constraints on attracting inward investment through lack of modern premises; • Ageing building stock of existing industrial premises that is facing obsolescence; • Constraints due to companies being less accessible to disabled or mobility impaired job seekers / trainees; and • Growing pressure through changes in legislation and customer demand, to create better configured, more energy efficient building stock and eliminate hazardous building materials. The overall i3 proposal has included engagement with the following partners and local stakeholders through discussions and through commissioned research. • AGD PMO Team • Key Advisors (Scottish Enterprise) • Local businesses • Irvine Locality Planning Partnership • Local industry leaders • Academia – NMIS, University of Strathclyde, CPI and Ayrshire College • Other Council teams 362
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NAC Growth and Investment AGD Business Case 21 1.3 Economic case 1.3.1 OBC long list and short list In terms of the best option for delivery of the overall programme for this project to meet demand, a wide range of potential options were considered at OBC stage, in terms of location, interventions and scale of interventions, funding sources and timescales, shown in the table below. A preferred option was identified for each category and three options were then considered in greater detail within the Economic Case: • Do Nothing – the Counterfactual Option; • The Preferred Option: Flexible Space, Phased; and • The Ambitious Option: Flexible Space, Accelerated. The Critical Success Factors used when evaluating the long list of options below included: • How does the option satisfy the AGD Vision & key themes? • How does the option provide a holistic fit and synergy with other national, regional and local strategies? • How does the option optimise value for money? • Is the option viable and can it be delivered? • Will the option meet an identified market demand, remove a constraint and how will it affect existing supply? • Can the option be funded by both the up-front capital and future revenue? The long list for the original OBC stage and the overall programme, is shown in the table below: Table 6: Assessment of Options at i3 – Long List at OBC Stage OPTIONS 1. LOCATION 1.1 i3 Enterprise Area (EA) 1.2 Other North Ayrshire Site 1.3 Other Ayrshire Sites i3 is one of two locations in Scotland marketed by SDI for manufacturing linked to life sciences & related sectors. It has key locational benefits for investors, with existing established businesses. Preferred Option A limited number of other North Ayrshire sites have capacity to accommodate new development but are unable to offer the locational advantages of i3, installed infrastructure capacity and existing business base. Discounted Option Irvine has key sector and cluster strengths in life sciences, and is therefore an attractive proposition for investors in comparison to other Ayrshire sites. Discounted Option 2.1 Site Preparation Only 2.2 Flexible Space on all Sites 2.3 Flexible Space 1. INTERVENTION Create prepared site platforms at i3, ready for immediate development. This would offer a low-cost option but would fail to meet the needs of life sciences and related manu-facturing businesses for premises. Discounted Option Flexible space across the whole i3 area, including the large Strategic Investment Campus could mean the space would be too dispersed, reducing its impact and chance to create a central cluster of activity. Potential Future Option Delivering flexible space on a phased basis linked to the DPMC proposal, and that addresses market need for business space with the opportunity to review the specification after Phase 1. Preferred Option 3. SCALE 3.1 Small-Scale / Cautious 3.2 Mid-Scale Market Ready 3.3 Large-Scale / Ambitious Developing 1 or 2 shell buildings to test market Similar to Option 2.3, a market-ready proposition that Similar to Option 2.2, cost savings could be made if 363
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NAC Growth and Investment AGD Business Case 22 interest but discounted due to value for money factors i.e. there is clear demand for the units proposed but developing in smaller phases will ultimately increase costs. Discounted Option balances forecast demand, level of risk, cost efficiencies and future flexibility. Preferred Option large-scale flexible space was delivered. This could significantly increase costs and risks, overstep the known level of demand and is likely to be in advance of need. Discounted Option 4. FUNDING SOURCES 4.1 Seek AGD Funding 4.2 Seek Other Public Funds 4.3 Seek Private Partner AGD funding through the public sector allows business space to be provided in the face of market failure as development is not viable for the private sector. Consider- ation to be given to a rolling development programme utilising development income. Preferred Option There are no alternative public sector funding sources identified to deliver this scale of intervention. We will continue to scan the market to identify other funding sources and respond accordingly. Potential Future Option Attracting private investment to develop new business space was considered but has been discounted due to its lack of viability in Ayrshire. This option will be reviewed as a future option. Discounted Option 5. TIMESCALES 5.1 Immediate 5.2 Phased Approach 5.3 Postpone Similar to 2.2 and 3.3, there is potential to develop the whole of the i3 site immediately. This would deliver cost savings to the public sector but would also increase risk and remove the option to adapt the size/ layout of proposed space on demand. Discounted Option Delivering the AGD investment through a phased approach minimises risk – this creates flexible manufacturing space, alongside the DPMC project, to meet immediate demand and allows further phases of flexible space, based on take-up of Phase 1. Preferred Option The project could be planned, designed, costed, approved and all relevant permissions secured but construction postponed til occupier interest is secured. This option fails to meet the current market need for good quality business units that are ready for occupation Discounted Option The short-list for the OBC stage is shown in the table below: Table 7: Assessment of Options for i3 - Short List OBC Stage Option 1 Do Nothing Option 2 (Preferred) Flexible Space, Phased Option 3 (Ambitious) Flexible Space, Accelerated Delivers no additional floorspace Attracts 0 occupiers Delivers 0 gross jobs Delivers 8,830 sqm floorspace (NIA) Attracts 8 to 16 occupiers Delivers 162 net jobs Delivers 8,830 sqm floorspace (NIA) Attracts 8 to 16 occupiers Delivers 162 net jobs Investment Level AGD NAC & SG £0 Other Funding £0 Investment Level AGD NAC £4M AGD SG £11M Investment Level AGD NAC £4M AGD SG £11M Delivery Timescale N/A Delivery Timescale (21/22) to (27/28) Delivery Timescale (21/22) to (24/25) The conclusion of the Economic Appraisal for the OBC was that a phased delivery of the floorspace was the preferred approach. Phase 1 was progressed as a first unit to accelerate the programme as much as possible and was developed during the challenges of COVID. Whilst Option 2 - Phased Delivery was the preferred option for the OBC, Section 3 provides an analysis of options specifically for delivering Phase 2, which is the subject of this FBC and Appendix D provides detail on the economic modelling. The table below provides a summary of the options considered for Phase 2 and a comparison of the options previously considered for Phase 1. 364
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NAC Growth and Investment AGD Business Case 23 Table 8: Phase 2 and Phase 1 Options considered Options Comparison across phases Options for Phase 1 Options for Phase 2 Option 1 Do nothing Option 1 Do Nothing Option 2: Preferred Option Preferred Option, Deliver 18,180 sq ft Phase 1 unit with occupancy achieved half-way through 24/25 Option 2 Preferred Option Deliver 18,180 sq ft Phase 2 unit by June 2027, with occupancy achieved by April 2028. Preferred Option Sensitivity Check – Negative Impact – assumes unit subdivided into 4 with 100% occupancy achieved in 2027/28 Preferred Option Sensitivity Check – Negative Impact – assumes unit subdivided into 4 with 100% occupancy achieved by March 2029. Preferred Option Sensitivity Check – Positive Impact – assumes unit fully occupied at the start of 24/25 Preferred Option Sensitivity Check – Positive Impact – assumes unit fully occupied by June 2027. Option 3 Deliver Phase 2 instead – comprised of two sets of terraced units and one modular unit Option 3 Subdivided Unit Deliver 17,544 sq ft unit subdivided into 4 lettable units by 30 June 2027 with 100% occupancy by April 2029. Option 4 Terraced Units Deliver two sets of terraced units totaling 11,495 sq ft with 100% occupancy by April 2029 Option 5 Smaller Unit, Local Regen Fund only Deliver smaller single unit within Local Regeneration Fund cost envelope (c13,788 sq ft) by April 2027 with occupancy by Jan 2028. 1.3.2 The procurement The procurement for the Phase 2 of the project involves North Ayrshire Council procuring a contract for the build of the industrial unit and surrounding grounds. The Council is seeking tenders through the Public Contracts Scotland (PCS) Portal for contractors to undertake the works Riverside Way, i3 in Irvine. The Council has an available budget of £6.775M for the project. The following paragraph will be updated following the tender process: A total of xx suppliers submitted tenders and were assessed at the pre-qualification stage by the NAC’s Corporate Procurement Team, in terms of initial pass / fail criteria and by the service team, following which the xx suppliers proceeded to the quality evaluation stage. At the evaluation stage the assessment was made based on 80% cost and 20% quality. Suppliers were assessed against a number of criterion for quality. The xx suppliers then proceeded to the commercial envelope stage where they were scored overall and a competent bid was identified from the highest scoring contractor. 1.3.3 Key findings and the preferred option The findings from the procurement for Phase 2 of the project will relate to the quality and cost assessment of bids related to capital expenditure. The quality and commercial assessments will identify a preferred bidder for the works and in accordance with the tender process this supplier should be the preferred bidder based on their combined scores. 365
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NAC Growth and Investment AGD Business Case 24 1.4 Commercial case 1.4.1 Agreed products and services Goods and services are being sought as part of one fixed price contract for Phase 2 of the Advanced Manufacturing Space project. This relates to the construction of an industrial unit, its associated grounds and suds and roads infrastructure for the wider site. Tenderers will be invited to submit tenders on a fixed price basis and will then be evaluated by North Ayrshire Council. It should be noted that the tender remains open for a period of 150 days from the tender return date (xx xxxxx 2026). The tender will expire on xx xxxx 2026. For the overall project commissioned services are likely to include the following: • Quantity surveying • Architecture • Geotechnical • Cost consultants • M&E • Site investigation work • Land based engineering works • Industrial building construction company 1.4.2 Agreed risk allocation and charging mechanism Risks that could affect the successful implementation of the project have been identified and are set out in detail in the risk register attached as Appendix E. This includes details of risk owners, risk evaluation and mitigation measures. A key risk at the moment is the uncertain length of time to endorse and approve the FBC prior to the award of the contract within the required timescale. The payment mechanism agreed with the service provider with respect to the planned construction works will involve submission of invoices by the contractor at agreed stages of the works, which will be certified for payment by NAC. 1.4.3 Key contractual arrangements The Form of Contract for the project is the SBCC Design and Build Contract for use in Scotland (DB/Scot), 2016 edition incorporating Amendment 1 February 2018. The key contractual clauses are as follows: • Clause 4.18.1 Retention Percentage – 3% • Clause 6.4.1 Contractors Insurance – injury to persons or property - £10,000,000 • Clause 6.5.1 Insurance – Liability of Employer - £10,000,000 • Clause 6.7 Insurance of the works – Option A applies (By Contractor) • Clause 6.15 Contractors Designed Portion Professional Indemnity Insurance - £10M There are no personnel implications and TUPE does not apply. It would be inappropriate to incorporate contract clauses for occupiers of the completed units. However, there is an opportunity to work with tenants to maximise impacts and benefits for local people and local businesses through supply chains and local procurement mechanisms. 1.4.4 Agreed implementation timescales The key milestones and delivery dates for the overall Phase 2 project are shown in detail in the table below. A Delivery Assurance Implementation Plan (DAIP) was produced by the AGD PMO in early 2026. The milestones vary slightly from the detail in the DAIP that has been shared with Governments, following the finalisation of the tender and FBC and this is illustrated below the first table. 366
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NAC Growth and Investment AGD Business Case 25 Table 9: Flexible Space Phase 2, Project Milestones (working version) and comparisons to DAIP FLEXIBLE SPACE, PHASE 2: Key Milestones Estimated date Quarter (financial year) Status Flexible Space Outline Business Case Approved Phase 1, Full Business Case granted Approved Planning approval granted for Phase 2 Complete NAC Gate 3, Project Board, Investment Decision to tender 23 Jan 26 Q4, 25/26 Complete NAC publish Invitation to Tender (ITT) (estimate) 06 May 26 Q1, 26/27 Not started NAC receive tenders (estimate) 01 Jul 26 Q2, 26/27 Not started NAC tender evaluation period ends 14 Aug 26 Q2, 26/27 Not started Government endorse Phase 2 FBC 21 Aug 26 Q2, 26/27 Not started NAC report FBC to Cabinet 01 Sept 26 Q2, 26/27 Not started AEPB & AEJC approve Phase 2 FBC 11 Sept 26 Q2, 26/27 Not started NAC award Phase 2 contract, D&B contract commences 16 Sept 26 Q2, 26/27 Not started NAC commences marketing of the building Sept 26 Q2, 26/27 Not started Contractor completes construction works 22 Sept 27 Q2, 27/28 Not started Contractor handover to NAC 22 Oct 27 Q3, 27/28 Not started NAC sets closing date for interest and selection of tenant tbc tbc Not started Current deadline for claiming all Local Regeneration Fund 31 Mar 28 Q4, 27/28 In progress NAC reports Outputs/Outcomes/CWB tbc tbc Not started NAC delivers subsequent Phases and related FBCs. tbc tbc Not started FLEXIBLE SPACE PHASE 2, ESTIMATED TIMELINES Y7 (2026/27) Y8 (2027/28) Y9 (2028/29) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Current Delivery Assurance Imp Plan dates FBC FBC approval by June 26, Q1 Contract award/delivery phase from Jul 26, Q2, to contract completion in Jul 27, Q2. Updated FBC milestone dates FBC FBC approval during Sept 26 in Q2 Contract award/delivery phase from Sept 26, Q2, to contract completion in Sept 27, Q2. 1.4.5 Accountancy treatment It is envisaged that the assets underpinning the delivery of the service will be on the balance sheet of the organisation should the development remain in the ownership of NAC. 1.5 Financial case The financial implication of this procurement is a commitment by North Ayrshire Council, to a contract with a maximum value within the budget available for the delivery of the Phase 2 over the course of 2026, into 2027. The capital funds comprise of the following, within the table below including the Local Regeneration Fund (formerly Levelling Up Funding (LUF) 3). Table 10: Flexible Advanced Manufacturing Space, Phase 2 - Source of Capital Funds Source Amount North Ayrshire Council AGD contribution £355,650 Scottish Government AGD contribution £1,713,091 Local Regeneration Fund (Levelling Up Funding (LUF) 3) £4,706,259 Total £6,775,000 367
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NAC Growth and Investment AGD Business Case 26 1.5.1 Financial expenditure The majority of the financial expenditure for this procurement will take place across financial year 2026/27 (excluding retention) and the contract is expected to be complete by mid to late 2027. 1.5.2 Overall affordability and balance sheet treatment The proposed works have been the subject of a best value procurement exercise. The award of the tender will require to be signed off by the Ayrshire Economic Joint Committee, following endorsement from NAC’s own Cabinet. The Council has ensured there are sufficient funds in place to cover the project and will confirm following the process if the tender cost is below the budget available. The table below is a current summary of the project’s financial appraisal. Proposed investment is in phases. NAC will be responsible for ongoing maintenance and management of the buildings through an appointed agent, until let. Anticipated rental income for Phase 2 is £127,400 per annum. The project budget includes for clawback costs from Scottish Enterprise, related to the original sale of land and change in delineation of the defined developable area, following the decision to focus all AGD investment at Riverside Way. Table 11a: Flexible Space Financial Profile – Capital Expenditure £'000 Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 Phase 1 5,147 34 140 217 403 2,912 1,387 53 0 0 0 0 Phase 2 6,775 0 0 0 0 51 305 132 2,068 4,220 0 0 Phase 3 8,751 0 0 0 0 0 0 0 230 3,655 4,866 0 Total 20,673 34 140 217 403 2,963 1,692 185 2,298 7,875 4,866 0 Table 11b: Flexible Space Financial Profile – Capital Funding £’000 Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 Scottish Government 11,000 307 2,195 1,383 0 0 2,372 2,372 2,372 NAC 4,000 34 83 122 0 51 308 53 230 2,996 2,494 (2,372) AGD Total 15,000 34 83 122 307 2,246 1,692 53 230 5,368 4,866 0 VDLF 967 56 95 97 718 LRF (Prev LUF3) 4,706 132 2,068 2,507 Project Total 20,673 34 140 217 403 2,963 1,692 185 2,298 7,875 4,866 0 It is anticipated that the completed project will generate income from the following: • Ongoing rental income through the lease of completed units; and • Longer term, One-off capital receipts from the sale of buildings and/or development plots. A draft Risk Register is included at Appendix E. The main financial risks are expected to be: • Design and technical studies result in additional costs beyond the contingencies and optimism bias allowed for; • Slippage / delay in the programme that incurs additional costs; • Unforeseen project complexities that require additional funding; • Insufficient availability of non-financial resources for the delivery of the project; • Risks that the key milestones are not achieved; and • Risk that the project does not proceed as an AGD project. 368
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NAC Growth and Investment AGD Business Case 27 1.6 Management case 1.6.1 Project management arrangements Phase 2 of the Flex Space Programme, which is the subject of this FBC, will be managed by the Council’s PMI (Property Management and Investment) team and will follow the PRINCE2 methodology as much as possible. This was the approach taken for Phase 1. Project Management responsibilities sit with PMI who have led on the development of the design on behalf of the Growth and Investment Team who have acted as client. PMI will continue this role as part of the delivery stage and will report to the Council’s internal Project Board for the contract. Overall responsibility will rest with Executive Director, Place, reporting to the Chief Executive. All personnel will be experienced and professionally qualified in their respective roles. NAC has established internal governance arrangements for the management of its AGD project(s) organised through a Project Board, which comprises of officers from Growth and Investment, PMI, Legal and Finance. The NAC Project Board has overall authority and responsibility for Project Delivery including the Business Case, prior to submission to the NAC Executive Leadership Group for approval and prior to submission to the AGD Programme Management Office (PMO). The Board has a Project Management responsibility but no decision-making powers. The Project Board provides a mechanism for accountable project management delivered by regular progress reporting and updates and coordination of any aspects of the project associated with infrastructure, employability, business and innovation strands. 1.6.2 Benefits Realisation and Risk Management The AGD PMO has produced a Benefits Realisation Plan for the AGD projects. The purpose of the Plan is to demonstrate, to local, regional and national stakeholders, how the AGD will capture the outputs, outcomes, impacts and community benefits resulting from Deal investments including the Flexible Advanced Manufacturing Floorspace project at i3. It sets out approaches to project monitoring and reporting, including definitions guidance and deal programme and project evaluation. The NAC Project Board will be responsible for managing the risks and benefits realisation for Phase 2 of the project and the remainder of the Flex Space Programme, through reporting to the PMO and Government. Day to day management will be the responsibility of the Project Lead and the Council’s PMI Team as Project Manager. 1.6.3 Post project evaluation arrangements Project monitoring and evaluation will be managed through AGD governance arrangements to monitor the projects outputs and outcomes. The project will be subject to regular review meetings to discuss progress, programme, financial and technical matters. 1.7 Recommendation It is recommended that the Full Business Case for Phase 2 of the Flexible Advanced Manufacturing Space project at i3 in Irvine is approved. As the project includes Local Regeneration Funding (formerly Levelling Up Fund Three), the Council intends to invest its remaining AGD project funds in the third and final phase of the project programme that will be subject to the submission of an updated version of the Full Business Case. 369
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NAC Growth and Investment AGD Business Case 28 I hereby recommend the approval of the scheme as set out in this Full Business Case to proceed to the delivery of the scheme. Signed: XX Date: Date / May / 2026 Senior Responsible Owner Louise Kirk, Head of Economic Development, Growth & Regeneration, NAC 370
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NAC Growth and Investment AGD Business Case 29 2. THE STRATEGIC CASE 2.0 Introduction This Full Business Case is for the approval of investment in Phase 2 of the Advanced Manufacturing Flexible Space project at i3 in Irvine. It is focussed on appointing a contractor to construct an 18,191ft2 (1,690m2) GIFA industrial unit with yard space and supporting infrastructure for the wider site. Structure and content of the document This FBC has been prepared using the agreed standards and formats for business cases. The approved format is the Five Case Model, which comprises the following key components: • strategic case section. This sets out the case for change, together with the supporting investment objectives for the project. • economic case section. This demonstrates that the organisation has selected the most economically advantageous offer which best meets the existing and future needs of the service and is likely to optimise value for money (VFM) • commercial case section. This sets out the content of the proposed deal • financial case section which confirms funding arrangements, affordability and the effect on the balance sheet of the organisation • management case section which details the plans for the successful delivery of the scheme to cost, time and quality. The purpose of the strategic case is to explain and revisit how the scope of the proposed project or scheme fits within the existing business strategies of the organisation and provides a compelling case for change, in terms of existing and future operational needs. In this respect, there is a growing case for the project to provide new energy efficient industrial building stock in North Ayrshire to support the local Ayrshire economy. In addition, the project has the potential to support the i3 DPMC Phase 2 project with complementary, supporting advanced manufacturing space within the DPMC facility. The project at i3 is part of a wider strategy to modernise the Council’s commercial estate, which has also benefited from Local Regeneration Funds from UK Government. To note, the Strategic Case remains the same, as set out previously within the approved Outline Business Case of June 2021 and Full Business Case for Phase 1 of December 2022. Key scope changes were made in relation to the scale of floorspace estimated to be delivered. At SOC and included in the Heads of Terms, this was estimated as 150,000 square feet, at OBC stage 97,000 square feet (approx. 9,000 square metres) was estimated and at Phase 1 FBC stage, 65,000 square feet (approx. 6,000 square metres). As part of the development of the Phase 1 scheme, a draft masterplan was prepared, showing where the overall programme of space could be located at i3 and a Benefits Realisation Plan was also prepared. Since then, the masterplan has been updated to focus flexible space investment within a central area or cluster and around the DPMC project, as it was felt that the original masterplan may not be achieved and the development would be fragmented with less impact. A draft Strategic Framework was prepared to support this work. Ayrshire Growth Deal The Ayrshire Growth Deal Agreement (November 2020) commits the Scottish Government and UK Government to work collaboratively with the Ayrshire Councils and regional partners to deliver the Ayrshire Growth Deal that will help transform the Ayrshire economy. The AGD 371
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NAC Growth and Investment AGD Business Case 30 Agreement advises the following regarding i3 projects including the Flexible Space programme: Both Governments and North Ayrshire Council, will support new developments at the i3 Irvine Enterprise Area Advanced Manufacturing Space in Irvine, which will create a National Digital Processing Industry Hub and advanced manufacturing flexible space. This will serve digital processing industries, building on current Life Science Clustering at the site, and facilitate R&D activity, start up, spin out, and growth of Life Science businesses and other advanced manufacturing opportunities. This will see investment of up to £11 million from the Scottish Government, £6.225 million from the UK Government, and £5 million from North Ayrshire Council. The National Digital Processing Industry Hub will be developed at i3 with links to the National Manufacturing Institute Scotland in partnership with Strathclyde University and industry. The project also includes construction of flexible business space capable of meeting the requirements of Chemical and Life Sciences manufacturing, Digital Automation and other advanced manufacturing opportunities. The combined offer at i3, centred round the National Digital Processing Industry Hub, will attract a range of supply chain and digital technology SMEs and start-ups and offer strategic capacity to secure major digital process sector investment at i3. Part A: the strategic context 2.1 Organisational overview North Ayrshire Council is delivering Phase 2 of the project and a final third phase and is seeking other funding support to help deliver as much advanced manufacturing floorspace as possible, including the Local Regeneration Fund (formerly LUF3). The Council has led on the following areas of work to progress the project: • Masterplanning for i3, including planning, masterplanning and conceptual development of future i3 flexible space and DPMC; • Targeting Vacant and Derelict Land funding allocations to help support the project; • Funding bids to improve the Council’s commercial space for businesses e.g. Local Regeneration Fund (formerly LUF3); • Land assembly in conjunction with Scottish Enterprise to create a cluster of development within a central area of i3; • Project management of the design and development of Phase 1 and Phase 2 of the project and an updated masterplan for the site, by NAC’s architects and surveyors; • Active travel proposals to improve connections between i3 and Irvine; • Securing community benefits outcomes from the Growth Deal projects, aligning with the Council’s Community Wealth Building Strategy; and • Working with East and South Ayrshire teams to develop a collaborative approach to regional working in Ayrshire in relation to commercial space. This will work will complement the DPMC i3 project which is in partnership with University of Strathclyde, NMIS and CPI. NAC is acting as an enabler and facilitator for the project, using the Ayrshire Growth Deal investment as a catalyst. 2.2 Business strategies The purpose of the project aligns across a breadth of local, regional, national and UK policies. Summaries of relevant plans, policies and strategies have been outlined in the tables below. 372
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NAC Growth and Investment AGD Business Case 31 2.2.1 Strategic policy context The broad policy framework is summarised with additional supporting information on specific policies. The following table provides an overview of relevant policies and strategies. Table 12: National Policy and Strategies National Policy and Strategies Policy Objectives Relevance for i3 Project The UK’s Modern Industrial Strategy 2025 • Position the UK as a leading destination for investment and innovation • Increase business investment and provide stability for long-term investment decisions • Focus on eight High-Growth Sectors including Advanced Manufacturing, Digital & Technologies and Life Sciences with individual sector plans. • Using innovation to drive productivity and high-quality employment • A focus on supporting sectors with high-growth potential, with Advanced Manufacturing identified as a key sector. UK Life Sciences Sector Plan 2025 • To support world-class research and development, attract investment, grow advanced manufacturing, and accelerate health innovation • To position the UK as the leading life sciences economy in Europe by 2030 • Creation of Life Sciences Innovative Manufacturing Fund (LSIMF) to bring globally mobile manufacturing investments to the UK • A commitment to partnering with industry to drive growth and innovation. • The project supports the Life Sciences Sector Plan by providing flexible business space capable of meeting manufacturing requirements for chemical and life sciences Levelling Up the UK: Executive Summary • Providing a catalyst for delivering a long-term programme of change to unlock the potential of people and places in every part of the UK - creating jobs, driving productivity, improving people’s quality of life and helping restore pride in places. • i3 benefiting from £4.706M towards commercial space and funding towards low carbon infrastructure through the Local Regeneration Fund (formerly LUF3). Scotland’s National Strategy for Economic Transformation, 2022 to 2032 • Identifies five programmes to drive improvements in Scotland’s economy over the next 10 years – stimulating entrepreneurship, opening new markets, increasing productivity, developing skills required for the next decade and ensuring fairer and more equal economic opportunities • The project will support improvements in the local economy by providing modern business space to attract inward investment and help local companies grow and expand. Programme for Government, 2024 to 2025 Serving Scotland • 4 Key Priorities including Growing the Economy • The Flexible Space Programme will provide a source of employment to communities. National Planning Framework 4, 2023 • Supporting business and industrial development whilst safeguarding and enhancing the natural and built environment. • The project supports the creation of high quality, modern, energy efficient, well-designed business space as part of a new industrial cluster. National Innovation Strategy, 2023-33 • Sets out a vision and road map to transform Scotland’s economy over the next decade by placing innovation at the heart of economic growth, societal prosperity and wellbeing with four key priorities including growing the economy. • The project will seek to supported economic growth by providing modern space for businesses to expand and grow. Shaping Scotland’s Economy: Inward Investment Plan 2020 • The Plan focuses efforts on nine areas of opportunity where Scotland has global strengths. • The Plan acknowledges that the Covid-19 crisis has placed digital at the forefront of the response and subsequent recovery steps across the private, public and third sectors • Key role to grow Scotland’s manufacturing sector, strengthen supply chain linkages and increase productivity using advanced manufacturing • Giving priority to investors who can build local supply chains, provide new skills and invest in research. • Nine priorities and three themes underpin Inward Investment. 3 themes all applicable to i3 are: Digital / High Value Manufacturing / Net Zero. 373
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NAC Growth and Investment AGD Business Case 32 National Policy and Strategies Policy Objectives Relevance for i3 Project technologies such as automation, AI and digital manufacturing techniques A Manufacturing Future for Scotland, 2016 • Innovative manufacturing and utilisation of leading edge technologies, driving competitive advantage • Co-ordinating national innovation resources and assets to be appropriate for manufacturing base • Creating an environment where businesses of all sizes, in all manufacturing sectors can innovate and adopt new novel technologies • Linking up with NMIS and other centres of excellence • Enabling collaboration between businesses, RTOs & academia by providing a focal point and promoting an open innovation ethos Making Scotland's Future – A Recovery Plan for Manufacturing & related Programme, 21 • Co-ordinating national innovation resources and assets to be appropriate for the manufacturing base • Creating an environment where businesses of all sizes and in all manufacturing sectors can innovate and adopt new novel technologies • Encouraging and supporting our manufacturing businesses to put investment in the best available technologies at the core of their business going forward. • Work with Innovate UK to align interventions and promote opportunities around digital for manufacturing, driving manufacturing readiness and stimulating innovation to uncover new sources of revenue from manufacturing. • Linking up with NMIS and other centres of excellence • Enabling collaboration between businesses, RTOs and academia by providing a focal point and promoting an open innovation ethos • Co-ordinating national innovation resources and assets to be appropriate for the manufacturing base. In particular, interaction with both new and existing centres of excellence will provide an environment where innovation and demonstration opportunities can be developed. Scotland’s 2018 to 2032 Climate Change Plan, Updated 2020 • Sets out Scotland’s Ambitions to reduce carbon emissions and achieve net zero emissions by 2045, set by the Climate Change Act 2019 • The project will contribute through the provision of modern and energy efficient commercial space built on vacant and derelict land at i3. Life and Chemical Sciences Manufacturing Strategy for Scotland • Establishing a strong platform for manufacturing growth through strong communication between the Life and Chemical Sciences sectors • Improving the translation of research into application • Strengthening UK’s case (including supply chains) for manufacturing businesses • Enabling commercialisation of research by providing a focal point between academia and industry • Building up service offering at i3 to attract businesses Skills & Investment Plan for Scotland’s Life and Chemical Sciences • Four priority areas: addressing specific skill shortages, ensuring national coverage of skills and training provision, increasing exposure to, and understanding of, industry, enhancing practical experience • Developing Scotland’s life and chemical sciences capability • Encouraging engagement between HE/FE and industry Life Sciences Strategy for Scotland 2025, Vision • Making Scotland the location of choice for Life Sciences businesses, researchers, healthcare professionals and investors while increasing Life Sciences contribution to Scotland’s economic growth • Four key priority areas: business environment, innovation & commercialisation, internationalisation, and sustainable production • Developing Scotland’s life sciences capability • Linking with the Life Sciences Innovation Centres. Chemical Sciences Scotland Strategic Plan 2025 • Establishing Scotland as a world class centre of high value manufacturing as well as delivering a skill investment plan to provide easy access to training and education to support the growth of the chemical sciences sector • The project will provide opportunities for the sector to locate to i3, in close proximity to the DPMC project. A changing nation: how Scotland will thrive in a digital world • To create a strong digital economy for Scotland which supports businesses to adapt and be successful • Create conditions for technology businesses to grow, thrive, create jobs and attract investment • Support for focus on digital automation at i3 as part of wider AGD project 374
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NAC Growth and Investment AGD Business Case 33 National Policy and Strategies Policy Objectives Relevance for i3 Project Green Data Centres and Digital Connectivity Vision and Action Plan, 2021 • attract new investors that require high-speed data transit to locate in Scotland and take advantage of enhanced terrestrial and international fibre connectivity • build on its capacity to generate energy from renewable sources • ensure that the full economic and social potential of technologies, such as 5G, Internet of Things (IoT) and Artificial Intelligence (AI), are realised across all parts of Scotland • improve Scottish competitiveness and internet resilience providing direct links to other countries and markets • Potential for i3 to accommodate such development and build on opportunities arising from the subsea cable AGD project Shortlist for Data Centre Site Selection in Scotland, 2021 • Joint study by Scottish Futures Trust/Host in Scotland, Crown Estate Scotland and Scottish Enterprise, emerging from Green Data Centres and Digital Connectivity Vision and Action Plan. Providing an overview of potential data centre locations in Scotland. • Identifies i3, Irvine as one of 10 sites in Scotland where such development could be accommodated Of specific relevance is the overall project’s relationship to the UK Industrial Strategy 2025 and Scotland’s National Strategy for Economic Transformation, which are mapped out below. Table 13: Project’s Relationship to UK’s Modern Industrial Strategy The UK’s MODERN INDUSTRIAL STRATEGY 2025 Relationship to i3 Advanced Manufacturing Space Project Key Related Objectives Prioritise Business Investment Focus on High-Growth Sectors Infrastructure and Energy Skills and Talent Innovation and R&D Net zero Transition Regional Economic Growth Providing certainty and stability for long-term decisions. Sectors include Advance Manufacturing, Digital & Technologies and Life Sciences Reduce energy costs and grid connection times Reform skills & employment support system and increase technology training for engineering, digital and defence Targeted investment into R&D, leveraging private investment Support decarbonisation and a transition to net zero Increased support for regional innovation and creation of high quality employment Table 14: Project’s Relationship to Scotland’s National Strategy for Economic Transformation SCOTLAND’S NATIONAL STRATEGY FOR ECONOMIC TRANSFORMATION 2022-2032 Relationship to i3 Advanced Manufacturing Space Project Key Related Objectives Entrepreneurial People and Culture New Market Opportunities Productive Businesses and Regions Skilled Workforce A Fairer and More Equal Society Supporting business start-ups and building a culture of innovation Attract inward investment, generating good quality jobs from a just transition to net zero Improving business efficiency and productivity and supporting digital innovation Upskill the workforce to meet emerging economic needs Promoting fair work and increasing employment and wage growth to reduce poverty and improve outcomes for disadvantaged people and places 375
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NAC Growth and Investment AGD Business Case 34 2.3 Other organisational strategies 2.3.1 AGD Programme The AGD programme links to Governments’ objectives of increased growth and prosperity. Post the development of NAC’s Strategic Outline Case, NAC has been working closely with the other Ayrshire Councils regarding the complementarity of projects and has coordinated activity though the Ayrshire Growth Deal Leadership Group and Project Management Office (PMO). Appendix F provides an initial analysis of inclusive growth objectives for the project. The key themes identified as being critical to economic recovery and renewal are: Advanced Manufacturing Aerospace/space Clean Growth Community Wealth Building Food & Drink Life Sciences Visitor Economy Business Connectivity Digital Innovation Skills The development of detailed actions and subsequent delivery of themes is framed through a Community Wealth Building approach that seeks to harness assets, resources, community strength and relationships within Ayrshire to deliver improved outcomes for our communities. 2.3.2 Regional Policy Context The Flexible Space Advanced Manufacturing project has the potential to support two of North Ayrshire’s economic development objectives: creating employment opportunities and positioning the area as a leading location for business within the Glasgow city region. The project has the potential to deliver against the policy objectives of key strategies set out at both the Scottish and regional levels. The Ayrshire Regional Economic Strategy was developed in 2023 and outlines a ten-year economic vision for Ayrshire, providing regional context for this project. The proposition is also in line with the Scottish Government’s inclusive growth agenda, targeting regional imbalances in economic activity. The key messages from these strategies are outlined below. Most recently North and East Ayrshire Councils have taken the decision to progress with the development of a shared Economic Development Service commencing during 2026/27 which will include the Ayrshire Growth Deal delivery teams from both Councils. The overall aim is to deliver greatly enhanced outcomes through: enhanced strategic leadership, shared resources, enhanced collaborative arrangements, economies of scale, greater access to specialist skills and expertise, enhanced capacity, and strengthened service resilience, together with simplification, standardisation, upskilling and best practice sharing. Table 15: Regional & Local Policy & Strategies Regional and Local Policy and Strategies Policy Objectives Relevance for i3 Project Ayrshire Growth Deal Heads of Terms and Agreement • Focus on aerospace, space and life sciences, as well as building on Ayrshire’s existing strengths in food and drink, tourism, manufacturing and engineering • Driving inclusive economic growth through creation of new high-quality jobs and opportunities • Building Digital Capital – replacing the Digital Infrastructure and Subsea Cable projects to provide modern digital infrastructure across Ayrshire, including over £4M for North Ayrshire. • Linking in with the digital infrastructure agenda • Possible links with the sustainability agenda • In partnership with Strathclyde University and industry, a Digital Hub facility will be developed at i3 to incorporate relevant testing/ R&D equipment and specialist staff 376
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NAC Growth and Investment AGD Business Case 35 Regional and Local Policy and Strategies Policy Objectives Relevance for i3 Project NAC Local Development Plan 2 and emerging LDP3 • Safeguards key business & industrial sites • Identifies ways to support areas for specific new residential development to cross fund new or improved employment space • i3 is identified as a strategic business location, including opportunities for a large single user or major multiple investments, as well as a high amenity business park NAC Council Plan –2023-2028 • A key priority of the Council Plan is a transition to a wellbeing economy which delivers inclusive economic opportunities, prosperity and enhanced wellbeing for North Ayrshire. This includes developing infrastructure to support business growth. • The i3 project would strongly support these priority outcomes. Sustainable North Ayrshire Strategy 2024-2027 • Setting out targets and priorities to achieve net zero carbon emissions, halt biodiversity loss and be Nature Positive by 2030 • i3 has the potential to support the strategy by ensuring this project seeks to provide developments that generate minimum carbon. North Ayrshire Community Wealth Building Strategy 2024- 2027 • To create an inclusive and wellbeing economy for North Ayrshire that delivers social, economic and environmental justice for all • Working in partnership with communities and businesses, the economic levers of Anchor Institutions are used to support and improve the local economy and create more benefits for the area. • Working within localities to facilitate place-based Community Wealth Building activities on procurement, employment, assets and ownership. • Promote Fair Work practices and position Ayrshire as a Fair Work region. LOIP – Irvine Locality Action Plan 2023/24 The Irvine Locality Partnership has identified their key priorities as: • Supporting Skills and Work Opportunities • Enhancing our Mental Health and Wellbeing • Alleviating Poverty • Championing Green Health and the Natural Environment • The i3 project will support the Partnerships priority of Supporting Skills and Work Opportunities Ayrshire Regional Economic Strategy 2023-2033 The Regional Economic Strategy for Ayrshire outlines a ten- year economic vision for Ayrshire, identifying six priority themes: • Support for enterprise • Fair work • Innovation • Good health and wellbeing • Stronger places and communities • Enhancing natural capital • i3 is identified within the strategy as a site with significant growth opportunity The i3 Advanced Manufacturing Space project fits with these strategies through: • supporting the growth of key sectors to build competitive advantage & economic contribution; • enabling sector growth by addressing a critical market failure in the provision of high quality modern business sites and premises to attract and retain business activity; • creating quality jobs and economic value (GVA), and supporting Community Wealth Building by filtering through the rest of the economy via sector supply-chain activity; • enhancing Scotland’s reputation as a key location for life sciences, and attracting manufacturing activity based on embedded skills and expertise of Ayrshire’s workforce; • making best use of existing embedded infrastructure assets and investments at i3; • positioning i3 as a key strategic location within the Glasgow City Region, providing opportunities for major investment; • providing high quality development space and opportunities, set within a highly competitive infrastructure and quality environment; • supporting the two overarching goals for economic development in North Ayrshire – becoming a leading location for doing business – and creating quality, inclusive 377
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NAC Growth and Investment AGD Business Case 36 employment opportunities (and multiplier benefits) that will help to reduce worklessness and inequality; • delivering economic impacts and outcomes spread across Ayrshire (and beyond) and contributing to business and job growth targets, through direct and indirect/induced supply chain linkages; and • delivering a completed development that meets the LDP site designation for business and industrial use. In summary, as demonstrated, there is a good strategic rationale for the i3 project. It contributes to the aims, objectives and aspirations of the AGD, and of key Government strategies linked to industry and achieving a low carbon, inclusive economy. The successful marketing and letting of Phase 1 of the project (4A Riverside Way), has demonstrated demand for the project. Part B: the case for change 2.4 Investment objectives Investment objectives for the i3 Flexible Advanced Manufacturing Space project were set out within the OBC and Phase 1 FBC as follows: Table 16: Flexible Space Investment Objectives Investment Objective 1 To create flexible business space capable of meeting manufacturing requirements for chemical and life sciences, but also for a wide range of other high value sectors. AGD investment will overcome market failure barriers and deliver 65,000 square feet of high-quality business by 2030. Investment Objective 2 To complement planned AGD investment in a Digital Hub and related services at i3 and the proposed new National Manufacturing Institute Scotland (NMIS) development. AGD investment will provide a new focus for modern industry at i3 and for Ayrshire. In particular, the proposed Digital Hub has the potential to operate as a satellite of NMIS, focussing on specialised sectors. Investment Objective 3 To create serviced industrial land capable of immediate development. AGD investment will make best value use of a key asset by enabling prime industrial land to be developed by 2030. Investment Objective 4 To attract mobile investment both from abroad and from indigenous companies. AGD investment will meet identified market opportunities for mobile investment and could accommodate between 8 to 16 companies at i3 by 2030. Investment Objective 5 To create opportunities for employment and inclusive growth with particular emphasis on making connections to local communities, schools and colleges in preparation for employment. AGD investment will create floorspace that will accommodate 162 net jobs by 2031. Through the wider AGD project activity, businesses will be engaged in activities that seek to 378
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NAC Growth and Investment AGD Business Case 37 maximise opportunities for local people and local people will be engaged to ensure they have the skills, qualifications and aspirations to take advantage of these opportunities. Investment Objective 5 To create a sustainable, high quality business location capable of meeting and keeping pace with the changing demands of high value manufacturing sectors. AGD Investment will remove a market constraint and create modern and flexible business accommodation that will be attractive to occupiers long into the future. Since the approval of the OBC it has been identified that the project will now deliver approximately 65,000 square feet of business space and the pilot of the Digital Process Manufacturing Centre (DPMC) referred to in Objective 2, is now delivered and operated by National Manufacturing Institute Scotland (NMIS), at i3, hosted by engineering company Booth Welsh. 2.4.1 Strategic need A number of studies were commissioned to inform the development of the i3 AGD projects. These studies highlighted the key strengths of the local economy in terms of manufacturing activity (particularly around life sciences and engineering), industrial heritage, the role of international businesses, key infrastructure assets and proximity to Glasgow. However, it is well recognised that the area is underperforming economically and has some serious challenges around depopulation, productivity, economic growth rates, skills levels and lack of fit for purpose modern business space. The priority for the i3 project is to build on the area’s key strengths and help to address these longer-term challenges. Through the Growth Deal, partners are looking to support ‘transformational’ and ‘catalytic’ projects that can change perceptions and turn around the long-term economic performance of the area. The advanced manufacturing space proposed will complement the DPMC and provide modern space in a number of phases. While separate business cases, the two are linked, as the DPMC project is helping to raise the profile of i3 and to encourage business investment and growth, with a focus on Industry 4.0. The proposed investments are part of a strategy for i3 that allows: • The central Riverside Way area to be developed as a central area for i3, including the proposed flexible space and DPMC pilot, with the potential for a second, permanent DPMC Phase 2, enable through the AGD and subject to Full Business Case development and approval; • The large Strategic Investment Campus (SIC) which was marketed for major inward investment as a separate development and is currently in the process of being sold. The previously referred to Digital Outline Business Case which considered investment towards a subsea fibre optic cable and associated infrastructure, with opportunities for Irvine as a potential landing point, could not progress as the commercial case was not viable. A new programme and related business case – Building Digital Capital, is now being taken forward with workstreams across the three Ayrshire authorities. North Ayrshire holds a budget of £4.631M with initial focus on progressing the delivery of infrastructure, adoption, skills and intelligence. This will include consideration of digital infrastructure that can support development at i3. The project is currently in development. This would build on the separately funded UK Government 5G Innovation Regions investment. Whilst it had been anticipated that the proposed subsea fibre optic cable would help attract 379
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NAC Growth and Investment AGD Business Case 38 global businesses and enable the potential creation of a datacentre cluster of national significance there has been significant interest in data centre development at i3 in relation to the large Strategic Investment Campus. The Heat Map at Appendix A illustrates the strengths of relationships between the AGD projects and the i3 project. 2.5 Existing arrangements Presently there are no existing arrangements in place to support the supply of new industrial property in North Ayrshire and Ayrshire, in order to meet the demand from local companies and potential inward investment companies. This is due to prolonged market failure within the area making it unviable for the private sector to deliver such development. Our strategic objective is to create jobs and bring economic activity to Ayrshire. In order to do this, we need to improve the offer that we can make to investors by providing well-serviced development sites and business space that is ready for occupation. 2.6 Business needs AGD funding is required in order to meet demand for modern industrial accommodation in the face of acute market failure. This is preventing private sector investment in speculative industrial development across Ayrshire and most non-prime locations in Scotland. Studies commissioned by NAC have identified the following issues that demonstrate the requirement for investment and the creation of new modern business space as a priority for the Council. This was set out within the project’s Outline Business Case and Phase 1 Full Business Case and has been reaffirmed by more recent reviews by property consultant Ryden. • High demand for industrial space; • Low vacancy rates for industrial space of less than 1% for Irvine, 2.4% for North Ayrshire and 4.4% for West Central Scotland (among the lowest in the UK); (These figures were previously 4.5% for Irvine, 4.5% for North Ayrshire and 3.4% for West of Scotland at Phase 1 FBC stage and 4%, 6% and 4% respectively at OBC stage) • Insufficient rental values to support financially viable, new-build speculative development; • Very limited funding sources available for the public sector to intervene; • Constraints on indigenous companies seeking to grow and expand within North Ayrshire; • Constraints on attracting inward investment through lack of modern premises; • Ageing building stock of existing industrial premises that is facing obsolescence; • Constraints due to companies being less accessible to disabled or mobility impaired job seekers / trainees; and • Growing pressure through changes in legislation and customer demand, to create better configured, more energy efficient building stock and eliminate hazardous building materials. A more recent update by Ryden in February 2026 has confirmed this as an ongoing issue for the area. 380
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NAC Growth and Investment AGD Business Case 39 Figure 11: Phase 1, Flex Space (4A Riverside Way, front & rear elevations 2.6.1 Property market assessment Property market consultants assessed and reviewed the potential to invest in new industrial and office property at i3 through the AGD funds for the OBC and FBC. This included assessment of supply and demand in North Ayrshire. An updated survey was done in February 2026 which re-confirmed this as an ongoing significant issue for the local industrial property market with vacancy levels being even lower for Irvine and North Ayrshire, with a slight 1% increase for West Central Scotland. However, whilst there is significant demand, the report highlights that rental values are insufficient to support financially viable, new build speculative industrial and office development. 2.7 Potential business scope and key service requirements The project will seek to address the business needs set out in section 2.6 by providing a range of types of industrial space across the Flexible Space Programme. The proposed units will be as flexible as possible in their design. Phase 1 was designed with the potential to be subdivided to a maximum of four units, to easily accommodate a rear extension and the installation of a mezzanine level. The new tenant has recently taken occupation and has submitted a planning application for an extension and plans to instal a mezzanine level, taking full advantage of the flexible features of the building and its plot. It has already been highlighted at Phase 1 FBC stage, that the project scope has been impacted upon by increased costs, affecting the amount of floorspace that can be delivered, reducing from 9,000 square metres to around 6,000 square metres. Additional funds secured from the Local Regeneration Fund (formerly LUF 3) will help maintain this revised cost in the face of further cost increases. The project is seeking to attract a wide variety of occupiers, including local SMEs and inward investors including opportunities through the location of the Digital Processing Manufacturing Centre (DPMC) in close proximity at i3. Phase 1 has enabled the adjoining business Barony, to extend their production line and create approximately 50 new jobs as a result of them securing the lease for the building. A refreshed masterplan has been developed to show the proposed location and scale of development within a central area of i3 with Riverside Way to the south, Long Drive to the east, A71 to the north and industrial premises to the west. This will create a cluster area with the proposed DPMC. Previously, it was anticipated that a small number of units could also be 381
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NAC Growth and Investment AGD Business Case 40 located at the large Strategic Investment Campus (major inward investment site), however given the increase in construction costs and reduction in floorspace that could be achieved, it was decided that the focus of investment should be within a central area. Figure 6: Proposed Phases of Flexible Space Programme 2.8 Main benefits criteria This section describes the main outcomes and benefits associated with the implementation of the potential scope in relation to business needs. These are set out in the table below. In addition, a Benefits Realisation Plan was prepared for the project, and a Benefits Realisation Logic Chain is included in Appendix C. Table 17: Investment Objectives and Stakeholder Benefits Objectives Benefits for Stakeholder Groups 1. To create flexible business space capable of meeting manufacturing requirements for chemical and life sciences, but also for a wide range of other high value sectors. • New business units will be occupied by Ayrshire/ Scottish/ UK/ overseas businesses • Created/safeguarded jobs will generate economic value – jobs, GVA, turnover for Ayrshire and Scotland • Supply chain outcomes will be created for other Ayrshire and Scottish businesses • Design and construction contracts will generate turnover for Ayrshire and Scottish contractors • Construction jobs and training outcomes will be created ,primarily for Ayrshire people and particularly drawn from disadvantaged or Protected Characteristic groups. 2. Create a centre of digital innovation which offers digital tools, support and innovation scaled to a national market • University and College presence at i3 offering training and business development opportunities. • Cluster of R&D and spin off opportunities • Providing employment, skills development, community wealth building 382
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NAC Growth and Investment AGD Business Case 41 Objectives Benefits for Stakeholder Groups supporting a restructure of the regional economy to deliver advanced manufacturing. and supply chain growth opportunities • Providing the private sector with opportunities for upskilling, business transformation and increased productivity 3. To create serviced industrial land and capable of immediate development. • Development plot will be available for indigenous Ayrshire/ Scottish, UK- owned and foreign investors • Design and construction contracts will generate turnover and jobs for Ayrshire and Scotland 4. To create opportunities for employment and inclusive growth with particular emphasis on making connections to local communities, schools and colleges in preparation for employment, particularly in areas of deprivation. • New employment outcomes – direct and indirect through supply chains • Work experience and training places for school and college students • Job market entrants and low skilled workers increasing soft and basic skills through provision of local jobs. • Residents of deprived areas gaining access to opportunities • University presence enabling additional educational and training opportunities • Delivery of enhanced public transport connection that opens up employment opportunities 5. To attract mobile and private sector investment both from abroad and from indigenous companies. • New employment and training outcomes • Demonstrate attractiveness of Scotland as excellent location for life sciences manufacturing • Increased investment confidence 6. To create a sustainable, high quality business location and R&D cluster, capable of meeting and keeping pace with the changing demands of high value manufacturing sectors and complementing national initiatives including NMIS. • Enhancement and maintenance of attractiveness of Ayrshire as a location, meeting modern business needs and promoting Industry 4.0 services. • Large, visible and modern development that clearly shows Ayrshire is Open for Business • Recognised as part of a national strategy for improving digital technology 2.9 Main risks The main business and service risks associated with the potential scope for this project are shown in the table below together with their counter measures. A number of these risks are included as main risks in the most recent Ayrshire Growth Deal Implementation Plan, and these have been highlighted in the Risk Ref column as (IP). The risk register is included in Appendix E and listed in Table 18 below. The likely increase in costs from the indicative costs included in the approved OBC were reported to the PMO and Scottish Government at Phase 1 FBC stage, on the basis that that project was unlikely to deliver the amount of business space set out in the OBC. It was agreed that Phase 1 of the project should progress to tender stage to test the construction market, with the outcome that Phase 1 could proceed. In addition, the Council sought Levelling Up Funding to help mitigate this issue for Phase 2. The tender opportunity for Phase 2 will be published in May and an updated version of the FBC will report whether the tenders have come in within the budget available which will enable Phase 2 to progress. The risks are based on the following assessment / scores: Green 0 - 3 Amber / Green 4 - 9 Amber / Red 10 - 14 Red 15 - 25 383
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NAC Growth and Investment AGD Business Case 42 Table 18: Flexible Advanced Manufacturing Space – Project Risks, Updated Ref Category Risk Description Impact Likeli- hood RAG Mitigating Actions I3FL-R01 (IP) SCOPE Outputs & Outcomes Anticipated outputs and outcomes are not delivered. 3 3 9 Ensure BC addresses sensitivity of outcomes Clear Evaluation & Monitoring Framework Maximise outcomes through project suppliers. I3FL-R02 QUALITY Outputs & Outcomes The project fails to achieve more inclusive growth and/or reduce poverty by increasing the income of people in deprived areas or protected characteristic groups 3 5 15 Benefits Realisation Plan prepared to identify targets. I3FL-R03 SCHEDULE Timescales / Programme Delays to overall project programme and key milestones 3 3 9 Prepare a detailed project programme with considered time allowances and review regularly. I3FL-R04 (IP) SCHEDULE Timescales / Procurement Delays to the submission or approval of business cases or the progress of tender procurement, causes delays to the award of contracts for flex space and the progress or claiming AGD spend or the Local Regeneration Fund. 4 3 12 Seek early agreement on appropriate procurement routes Include anticipated tender packages within the Council’s Procurement Wave Plan Spend aligned against related funding source deadlines Ensure sufficient timeline allocated to evaluation tender Ensure response, evaluation and governance process programme to enable swift progress to award I3FL-R05 Timescales / Environment Delays caused by environmental considerations 3 5 15 Protected Species/Habitat risk has been assessed at an early stage. Review of site studies required at key stages. Ensure seasonal work/study requirements are accounted for in programme. I3FL-R06 Timescales / Environment Delays caused by site investigation work and findings 3 5 15 Instruct SI work at early stage of project I3FL-R07 Timescales / Regulatory Delays caused by objections 2 4 8 Advance programme of local & stakeholder engagement. I3FL-R08 (IP) SCHEDULE Timescales / Regulatory Delays caused by statutory consent processes 3 2 6 Zoned & allocated site 384
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NAC Growth and Investment AGD Business Case 43 Ref Category Risk Description Impact Likeli- hood RAG Mitigating Actions Pre-App discussion with NAC Planning Assess protected species/habitat risk at early stage Review planning challenge/appeals Agree programme for consents Advance programme of local stakeholder engagement I3FL-R09 (IP) SCHEDULE Timescales / Regulatory Delays caused by land assembly / lease agreement processes. 2 2 4 Early engagement with owners. Ensure programme allows for third party approvals. Phase 3 layout has been developed to reduce requirement for private land. I3FL-R10 (IP) SCHEDULE Timescale / Contractor Delays during project construction phases. 3 3 9 Regular monitoring through site meetings and reports Ensure emphasis through programme analysis and approach included in tender documentation and evaluation. I3FL-R11 (IP) INTERNAL RESOURCES Timescale / Business / Professional Staff resources not sufficient to manage projects as they develop. 3 2 6 Risk has reduced as vacant post has been filled, although impact has been significant on pushing out delivery timelines for projects. I3FL-R12 Regulatory Planning/building warrants are not granted. 2 5 10 LDP supports development of site for this use. Ensure local members briefed/updated on project. Hold pre-app discussion with NAC Planning Assess Protected Species/Habitat risk Formally agree programme for consents Advance programme of stakeholder engagement I3FL-R13 (IP) EXTERNAL Regulatory Compliance with Subsidy regulations. 1 2 3 Regular monitoring and if required, contact with Subsidy Unit to ensure no specific risks arising related to subsidy, due to nature of the project. I3FL-R14 Financial Design and technical studies result in additional costs beyond the contingencies and optimism bias allowed for. 3 4 12 Develop and validate project briefs and specifications for each phase Benchmark costs. Ensure early infrastructure cost tested and informed by SI work. Provide Optimism Bias allowances compliant with Green Book Provide for contingency & inflation. I3FL-R15 Financial Slippage / delay in the programme incurs additional costs. 3 5 15 Instruct appointed project team to address this within Risk Register. Selected procurement route will seek to ensure contract type has less risk for client. 385
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NAC Growth and Investment AGD Business Case 44 Ref Category Risk Description Impact Likeli- hood RAG Mitigating Actions I3FL-R16 Financial There are unforeseen project complexities that require additional funding. 2 4 8 Provide for contingency Provide Green Book compliant Optimism Bias allowances. Similar project has been delivered previously. I3FL-R17 Financial Rental income lower than forecast 2 3 6 Market review and comparator analysis to identify appropriate rent but ultimately down to actual market demand on completion I3FL-R18 Financial Lack of budget to support interested tenants to fit out shell of building 4 3 12 Identify at an early stage and with Business Growth Team, how this can be supported. I3FL-R19 Financial Lack of budget to support maintenance of buildings until tenants take occupancy, if buildings are classified and non - operational. 2 2 4 Identify at an early stage with Finance and Estates, how this can be supported. I3FL-R20 Professional Lack of project management experience. 2 3 6 Ensure experience project management team, both in-house and any external support. Budget allows for appointment of required expertise. I3FL-R21 Professional Poor change management procedures. 3 3 6 Clear and agreed procedures set in place for internal change management and for external processes with design team and contractor. I3FL-R22 Professional Specification – design issues on- site 2 4 8 Adopt best practice design and ensure flexibility for subsequent division/ alteration of premises. I3FL-R23 Contractual / Political Failure to deliver community benefits – training, employment 3 4 12 Incorporate appropriate community benefits into contract terms and resource appropriately I3FL-R24 Contractual Issues with co- ordination on-site - contracts, visitors 2 4 8 Ensure main contractor has appropriate procedures for site management I3FL-R25 (IP) QUALITY Reputational / Political The Flexible Space Programme’s Full Business Cases fail. 3 2 6 Development of OBC/FBC in accordance with Green Book Flex Space OBC approved June 21 Flex Space Ph1 FBC approved Dec 22 Review capex and opex costs Partner/stakeholder risk assessment Early market input / partner & commercial input Review governance arrangements. 386
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NAC Growth and Investment AGD Business Case 45 Ref Category Risk Description Impact Likeli- hood RAG Mitigating Actions I3FL-R26 (IP) QUALITY Reputational Demand for the Flex Space Programme diminishes and there is no interest from occupiers. 3 2 6 Flexible design to maximise potential interest from occupiers. Marketing and promotion of floorspace Continue to establish relationships with national sectors (incl NMIS) Interest in Phase 1 has confirmed market interest and reduced risk Review of Ph2&3 prepared by property agents. I3FL-R27 Reputational Market expectations are not met. 2 5 10 Scale/ quality/ design based on identified market needs Recent research has established demand. Continue to review demand and business needs with Partners including SE and SDI. Involve relevant business engagement partners. I3FL-R28 Reputational Businesses interested in units decide not to progress 3 5 15 Ensure ongoing engagement with businesses to prepare suitable Heads of Terms. I3FL-R29 (IP) EXTERNAL Project delays due to external economic impacts such as COVID-19 and recovery. 4 2 8 Early analysis has identified that the need for this project is unlikely to be diminished and in fact may be even greater. Analysis of external factors will be monitored that area likely to impact on the project. I3FL -R30 (IP) SPEND Proposals become unaffordable and there are cost overruns. 4 3 12 Regular review of design vs budget, value engineering and impact of market conditions on costs Benchmark costs Ensure early infrastructure cost tested /informed SI Provide for contingency and Green Book compliant optimism bias allowances Ensure project approval processes are in place to control budget compliance Pursue additional funding sources. I3FL-R33 (IP) SCHEDULE Timescales / Financial Existing and proposed utilities cause issues or delays e.g. surface water drainage connections, sub- station requirements. 3 3 9 Ensure exact locations of existing infrastructure identified Early engagement with SPEN, Scottish Water, BT etc. Testing to be carried out and capacity to be confirmed for water supply 387
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NAC Growth and Investment AGD Business Case 46 2.10 Constraints There are no significant internal constraints to the delivery of the project. North Ayrshire Council will bring together an experienced delivery team supported by internal or external design, project management and contract skills as required. The completed units will be owned and managed by NAC in line with existing estates management and will be marketed via a number of appropriate sources. 2.11 Dependencies Phase 2 of the project is subject to the following dependencies that will be carefully monitored and managed throughout this phase of the project: • A successful tender process that produces a valid tender outcome within the project’s cost envelope. • FBC endorsement by Government • FBC Approval by Ayrshire Economic Joint Committee • Award of contract by NAC following Joint Committee approval • Demand from businesses for the space and commitment to a lease • Input from local schools and colleges for work placements and training outcomes • Availability of skilled workforce to take up job opportunities In addition, the success of the main project is dependent on a number of factors including: • Input from local schools and college (s) for work placements and training outcomes; and • Longer term - seeking the support from a public transport provider for a new bus route to ensure the location and the job opportunities can be accessible to and affordable for local people, including people with disabilities. 388
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NAC Growth and Investment AGD Business Case 47 3. THE ECONOMIC CASE 3.1 Introduction In accordance with the Capital Investment Manual and requirements of HM Treasury’s Green Book (A Guide to Investment Appraisal in the Public Sector), this section of the FBC documents the procurement process and provides evidence to show that we have selected the most economically advantageous offer, which best meets our service needs and optimises value for money. It should be noted that this process relates specifically to Phase 2 of the Programme, which is for one 18,191ft2 (1,690m2) GIFA industrial unit. The level of information provided regarding the procurement process has been informed by discussions with NAC’s Corporate Procurement Unit and is in accordance with the Council’s Standing Order. The Council’s Corporate Procurement Unit has advised that once the tender process is complete, details of the bidders, their final costs and the evaluation scores, must be kept confidential prior to the award of the tender, as this would be a breach of the Council’s Standing Orders. Details of the contract award will be published on Public Contracts Scotland and North Ayrshire Council’s contract register when the successful bidder is awarded. 3.2 Critical success factors The AGD has a regional economic vision for Ayrshire that focuses on unlocking local potential for the wider benefit of the Scottish and UK economies. The AGD programme links to Governments’ objectives for increased growth and prosperity. The programme is based on the achievement of inclusive economic growth with a clear focus on addressing the issues of relatively poor levels of innovation and productivity, and inequality across the regional economy. Under the Regional Vision, assessed projects are grouped together into five programmes which have been developed from the Prospectuses ‘Framework for Growth’ and ‘Connecting Communities to Growth’ with the infrastructure proposals developed from ‘Connections for Growth’ prospectus. These programmes focus on high growth, high value sectors that Ayrshire has real opportunities in and are linked to Ayrshire’s general manufacturing strength, distinctive coastal opportunities and to its communities. The AGD aim is to marry business growth opportunities to employment progression, to developing the future workforce and to community development whereby all communities benefit from economic growth. The AGD programmes reflect the strengths and opportunities of the Ayrshire economy. The critical success factors (CSFs) shown within the OBC for the Flexible Space Programme were as follows in the table below: 389
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NAC Growth and Investment AGD Business Case 48 Table 19: Critical Success Factors Critical Success Factors Measures to Address Critical Success Factors BUSINESS NEEDS: How does the option satisfy the AGD Vision & key themes? • Supporting economic growth for Ayrshire and Scotland by attracting next generation manufacturing businesses. STRATEGIC FIT: How does the option provide a holistic fit and synergy with other national, regional and local strategies? • Supporting growth of the life sciences sector • Delivering net additional economic outcomes BENEFITS OPTIMISATION: How does the option optimise value for money? • Cost per job for public sector POTENTIAL ACHIEVABILITY: Is the option viable and can it be delivered? • Site capacity to accommodate floorspace MARKET CAPACITY: Will the option meet an identified market demand, remove a constraint and how will it affect existing supply? • Level of market demand to take the completed units / development plots POTENTIAL AFFORDABILITY: Can the option be funded both the up-front capital and future revenue? • Availability of AGD or other public / private funding 3.3 The long-listed options, Flexible Space Programme The longlisted, shortlisted, and preferred options set out in the OBC remain valid, and their original rankings are unchanged. Since completion of the OBC, no material changes have arisen that would affect the options appraisal process, the value-for-money assessment of shortlisted options, or the selection of the preferred option. For clarity, the appraisal work documented within the OBC has been re-stated in this FBC, while updated economic modelling has been undertaken to assess the delivery models required to progress Phase Two. The information presented on procurement reflects advice received from North Ayrshire Council’s Procurement team and is fully aligned with Council policy. In line with Standing Orders, details relating to bidders, final costs, and evaluation scores must remain confidential until the tender award is confirmed. Following award, details of the successful contractor will be published on Public Contracts Scotland and the North Ayrshire Council contract register. 390
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NAC Growth and Investment AGD Business Case 49 Table 6: Assessment of Options for i3 Flexible Space Programme at OBC Stage – Long List OPTIONS 1. LOCATION 1.1 i3 Enterprise Area (EA) 1.2 Other North Ayrshire Site 1.3 Other Ayrshire Sites i3 is one of two locations in Scotland marketed by SDI for manufacturing linked to life sciences & related sectors. It has key locational benefits for investors, with existing established businesses. Preferred Option A limited number of other North Ayrshire sites have capacity to accommodate new development but are unable to offer the locational advantages of i3, installed infrastructure capacity and existing business base. Discounted Option Irvine has key sector and cluster strengths in life sciences and is therefore an attractive proposition for investors in comparison to other Ayrshire sites. Discounted Option 2.1 Site Preparation Only 2.2 Flexible Space on all Sites 2.3 Flexible Space 3 INTERVENTION Create prepared site platforms at i3, ready for immediate development. This would offer a low-cost option but would fail to meet the needs of life sciences and related manu-facturing businesses for premises. Discounted Option Flexible space across the whole i3 area, including the large Strategic Investment Campus could mean the space would be too dispersed, reducing its impact and chance to create a central cluster of activity. Potential Future Option Delivering flexible space on a phased basis linked to the DOMC proposal, and that addresses market need for business space with the opportunity to review the specification after Phase 1. Preferred Option 3. SCALE 3.1 Small-Scale / Cautious 3.2 Mid-Scale Market Ready 3.3 Large-Scale / Ambitious Developing 1 or 2 shell buildings to test market interest but discounted due to value for money factors i.e. there is clear demand for the units proposed but developing in smaller phases will ultimately increase costs. Discounted Option Similar to Option 2.3, a market-ready proposition that balances forecast demand, level of risk, cost efficiencies and future flexibility. Preferred Option Similar to Option 2.2, cost savings could be made if large-scale flexible space was delivered. This could significantly increase costs and risks, overstep the known level of demand and is likely to be in advance of need. Discounted Option 4. FUNDING SOURCES 4.1 Seek AGD Funding 4.2 Seek Other Public Funds 4.3 Seek Private Partner AGD funding through the public sector allows business space to be provided in the face of market failure as development is not viable for the private sector. Consider- ation to be given to a rolling development programme utilising development income. Preferred Option There are no alternative public sector funding sources identified to deliver this scale of intervention. We will continue to scan the market to identify other funding sources and respond accordingly. Potential Future Option Attracting private investment to develop new business space was considered but has been discounted due to its lack of viability in Ayrshire. This option will be reviewed as a future option. Discounted Option 5. TIMESCALES 5.1 Immediate 5.2 Phased Approach 5.3 Postpone Similar to 2.2 and 3.3, there is potential to develop the whole of the i3 site immediately. This would deliver cost savings to the public sector but would also increase risk and remove the option to adapt the size/ layout of proposed space on demand. Discounted Option Delivering the AGD investment through a phased approach minimises risk – this creates flexible manufacturing space, alongside the DPMC project, to meet immediate demand and allows further phases of flexible space, based on take-up of Phase 1. Preferred Option The project could be planned, designed, costed, approved and all relevant permissions secured but construction postponed til occupier interest is secured. This option fails to meet the current market need for good quality business units that are ready for occupation Discounted Option 391
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NAC Growth and Investment AGD Business Case 50 Preferred way forward – Flexible Space Programme at OBC The preferred way forward at SOC and OBC stages was AGD funding (4.1) to deliver flexible space (2.3) at i3 Enterprise Area (1.1) through a mid-scale intervention (3.2) within a phased timescale (5.2), as follows: Table 20: Preferred Way Forward, Flexible Space Programme – OBC Stage 4.1 Seek AGD Funding 2.3 Flexible Space 1.1 i3 Enterprise Area 3.2 Mid-Scale Market Ready 5.2 Phased Approach AGD funding through the public sector allows business premises to be provided in the face of market failure as development is not viable for the private sector. Consideration will be given to a rolling development programme utilising development income. Delivering flexible space on a phased basis that complements the DPMC proposal, and that addresses market need for business space with the opportunity to review the specification after Phase 1. i3 is one of two locations in Scotland marketed by SDI for manufacturing linked to life sciences & related sectors. It has key locational benefits for investors, with existing established businesses. Similar to Option 2.3, a market-ready proposition that balances forecast demand, level of risk, cost efficiencies and future flexibility. Delivering the AGD investment through a phased approach minimises risk – this creates flexible manufacturing space and the Digital Hub to meet immediate demand and allows further phases of flexible space, based on take-up of Phase 1. 3.4 Short-listed options, Flexible Space Programme The short-listed options shown within the OBC were as follows and are summarised in the tables below for the overall i3 Flexible Space Programme. • Option 1 – do nothing • Option 2 – the preferred option – flexible space, phased • Option 3 – ambitious option – flexible space, accelerated Table 7: Assessment of Options for i3 Flexible Space Programme at OBC Stage - Short List Option 1 Do Nothing Option 2 (Preferred) Flexible Space, Phased Option 3 (Ambitious) Flexible Space, Accelerated Delivers no additional floorspace Attracts 0 occupiers Delivers 0 gross jobs Delivers 8,830 sqm floorspace (NIA) Attracts 8 to 16 occupiers Delivers 162 net jobs Delivers 8,830 sqm floorspace (NIA) Attracts 8 to 16 occupiers Delivers 162 net jobs Investment Level AGD NAC & SG £0 Other Funding £0 Investment Level AGD NAC £4M AGD SG £11M Investment Level AGD NAC £4M AGD SG £11M Delivery Timescale N/A Delivery Timescale (21/22) to (27/28) Delivery Timescale (21/22) to (24/25) In addition, the following table provided a review of each of the short-listed options, considering how each performed against the Critical Success Factors for the i3 project. 392
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NAC Growth and Investment AGD Business Case 51 Table 21: Review of Critical Success Factors for Shortlisted Options for Overall Flexible Space Programme at OBC Stage 1. Do Nothing 2. Preferred 3. Accelerated BUSINESS NEEDS: How does the option satisfy the AGD Vision & key themes? • Delivers no additional floorspace • Delivers 8,830 sq metres (NIA) of advanced manufacturing floorspace that will support economic growth • Delivers 8,830 sq metres of advanced manufacturing floorspace in one phase. STRATEGIC FIT: How does the option provide a holistic fit and synergy with other national, regional and local strategies? • Attracts no business occupiers • Delivers no jobs • Attracts approx. 8 to 16 occupiers • Delivers 162 net jobs (Direct & Indirect) • Strong synergy with national Advanced Manufacturing and Chemical and Life Science Strategies. • Attracts 8 to 16 occupiers • Delivers 162 net jobs (Direct & Indirect) • Strong synergy with national Advanced Manufacturing and Chemical and Life Science Strategies. BENEFITS OPTIMISATION: How does the option optimise value for money? • There is no value for money as the project is not delivered. • The option delivers floorspace on a phased basis allowing time for review and ensuring the accommodation meets market requirements. • The option delivers all floorspace within one phase but at risk and with possible financial liabilities. POTENTIAL ACHIEVABILITY: Is the option viable and can it be delivered? • N/A • This development option can be accommodated at i3. • This development option can be accommodated at i3. MARKET CAPACITY: Will the option meet an identified market demand, remove a constraint and how will it affect existing supply? • Market demand not met. • This development option has been profiled against detailed market knowledge. • This development option is likely to be in advance of market need. POTENTIAL AFFORDABILITY: Can the option be funded both the up-front capital and future revenue? • N/A • £15m AGD funding is required. Future revenue costs will be met from revenue returns (rent and plot sales). • £15m AGD funding is required. Future revenue costs will be met from revenue returns (rent and plot sales). It should be noted that the total floorspace stated at OBC was updated at the Phase 1 FBC, with assumptions that due to cost increases the scale of floorspace was now likely to be reduced and that the estimated floorspace may be in the region of 6,000m2. (para 1.1.3, Phase 1 FBC). Key Findings from OBC Analysis The table below shows the estimated high level economic outcomes at OBC stage. 393
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NAC Growth and Investment AGD Business Case 52 Table 22: High-level Economic Outcomes at OBC Stage STAGE 1 - Scotland Impacts - Standard Analysis as calculated before (traditional) Outcome Short Listed Options Option 1 Do nothing Option 2 Preferred Preferred (sensitivity check - negative impact) Preferred (sensitivity check - positive impact) Option 3 (accelerated) Business space created (NIA) 0 8672 sq m 8672 sq m 8672 sq m 8672 sq m Capital Expenditure n/a £15,000,000 £15,000,000 £14,000,000 £15,000,000 Net Present Cost £12,764,649 £12,764,649 £11,978,658 £13,545,157 Optimism bias 5% 5% 5% 5% Direct Jobs 0 111 100 111 111 Indirect Jobs 0 51 26 51 51 Total Jobs 0 162 126 162 162 Construction jobs 0 150 150 140 150 Construction GVA £000 £0 £5,008,507 £5,008,507 £4,700,105 £5,314,757 Direct GVA (Present Value of Benefits) 25 year NPV £0 £54,552,693 £50,233,326 £55,882,327 £56,223,953 Indirect GVA 25 year NPV £0 £25,428,207 £13,338,450 £26,045,489 £26,184,461 Total GVA 25 year NPV £0 £79,980,900 £63,571,776 £81,927,816 £82,408,414 Present Value of Costs to Government n/a £12,764,649 £12,764,649 £11,978,658 £13,545,157 NPV £41,788,044 £37,468,676 £43,903,669 £42,678,796 BCR 4.27 3.94 4.67 4.15 Rank based on BCR 1 n/a n/a 2 STAGE 2- Scotland Impacts - Spatially Adjusted Analysis to align 'traditional' results with Inclusive Growth approach within Scottish Government's Economic Strategy Spatial Adjustment factor n/a 1.11 1.11 1.11 1.11 NPV £60,376,266 £55,595,800 £61,847,840 £62,225,935 BCR 4.73 4.36 5.16 4.59 STAGE 3- UK Impacts - calculate extent of UK level impacts by taking Scotland level impacts and calculating proportion of them which remain after applying UKG guidance Spatial Adjustment factor (d) n/a 1.22 1.22 1.22 1.22 STAGE 4- UK Impacts - A high employment area can be thought of as drawing labour from UK whereas low employment area will draw from the local area Steady State Direct Employment - Jobs 0 111 100 111 111 Steady State GVA £0 £9,377,900 £8,440,110 £9,377,900 £9,377,900 GVA per head for project £0 £84,486 £84,401 £84,486 £84,486 Productivity Adjustment factor (r) n/a 2.03 2.03 2.03 2.03 Overall UKG Adjustment Factor (UKAF) (g) 2.48 2.48 2.48 2.48 Scottish BCR Factor (b) 1.23 1.25 1.21 1.24 Rank based on Overall UKG Adjustment Factor 1 n/a n/a 2 The key appraisal assumptions made in the OBC Economic Analysis were as follows: • Appraisal period – 25 years • Discount rate – 3.5% • Spatially adjusted analysis, using Green Book techniques, to account for the local income distribution, compared with the country as a whole • Employment multipliers – taken from the Scottish Government’s Supply, Use and Input -Output Tables: 1998-2021 394
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NAC Growth and Investment AGD Business Case 53 The original short list options appraisal from the OBC resulted in the following overall findings with the preferred option as flexible space, delivered on a phased basis. Table 23: OBC Investment Appraisal Ranking Evaluation Results Option 1 Do Nothing Option 2 Preferred (Phased) Option 3 Ambitious (Accelerated) Economic Appraisal 3 1 2 Benefits Appraisal 3 1 2 Risk Appraisal 3 1 2 Overall Ranking 3 1 2 Preferred Option – Phase 1 The preferred and agreed option at OBC stage was a phased approach to flexible space as shown in the table above. In considering moving forward to deliver the first phase, it was agreed that the Council would progress an initial unit at i3 that was originally part of the first Phase, with assistance from internal resources and making use of the Council’s AGD £4M allocation if required. In scoping out options for delivery of Phase 1, the following options were considered in the table below with the preferred option in bold. Table 24: Flexible Space, Phase 1 - Options Flexible Space, Phase 1 – Options Business as usual Do Nothing (Counterfactual) Preferred Option Deliver 18,180 sq ft (1,690 m2) unit with occupancy achieved half-way through 24/25 Deliver Phase 2 instead Deliver two sets of terraced units and one modular unit (2,504 sq m) Preferred Option Sensitivity Check – Negative Impact Unit subdivided into 4 with 100% occupancy achieved in 2027/28 Sensitivity Check – Positive Impact Assumes unit fully occupied at the start of 24/25 Flexible Space Phase 2 Options Appraisal Following approval from the UK and Scottish Governments of the Outline Business Case (OBC), approved in June 2021, the i3 Flexible Space Programme is being delivered in three phases, The first phase Full Business Case (FBC) was approved in November 2022 and constructed in 2025-26. This Phase 2 FBC seeks approval for an estimated investment of £6.775M in a single 18,191 sq ft (1,690 sq m) industrial unit with related yard space and parking, and wider suds and roads infrastructure, funded by the Local Regeneration Fund (formerly Levelling Up Fund 3) (£4.7M) and Ayrshire Growth Deal (£2.075M). To assess the economic impact of this phase, updated modelling has been undertaken to compare the delivery of this phase against a ‘do nothing’ baseline scenario. The Glasgow City Region (GCR) Intelligence Hub’s Business Case Economic Model (BCEM) has been utilised to assess the value for money of the Flex Space Phase 2 project. BCEM follows the methodology outlined within the GCR’s Programme Management Toolkit – quantifying Benefit-Cost Ratios (BCRs) using a HM Treasury Green Book approved methodology. The modelling has assessed five options and these are shown in the table below. 395
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NAC Growth and Investment AGD Business Case 54 Table 25: Flexible Space Phase 2 Options Option Title Description 1 Do Nothing. 2 Single Unit Deliver one 1,690 sqm (18,191 sqft) GIFA unit by 30 June 2027, with occupancy starting 01 April 2028. – total value £7.65M 3 Subdivided Unit Deliver 1,630 sqm (17,544 sq ft) GIFA of space subdivided into 4 lettable units by 30 June 2027 with 100% occupancy by 01 April 2029.projects as funded by external match-funding – total value £7.67M 4 Terraced Units Deliver Flex Space Phase 3 earlier by 31 March 2028, which includes two sets of terraced units totalling 1,068 sqm (11,496 sq ft) with 100% occupancy by 1 April 2029. – total value £7.02M 5 Smaller unit, LUF 3 Deliver a smaller single unit within the LUF 3 budget cost envelope (estimated at 1,281 m2) by 30 April 2027 with full occupancy by 01 January 2028. Total value £5.38M Table 26 and Table 27 below show the impacts of each option, Table 27 with the construction impacts removed. Note cost figures inputted into the model are expressed as Present Value terms, where a 3.5% discount Rate is used as set by the Green Book. Table 26: Benefits-Cost Ratio Timeframe - 25 Year Appraisal Project Start Date: Benefit-Cost Ratio Timeframe: 2025 25 Years 2050 Option 1 Single Unit Sub divided Unit Terraced Unit Small Unit + LUF PV of Capital Costs All Geographies £0 £6,806,267 £6,817,997 £6,204,841 £4,754,090 PV of Revenue Costs All Geographies £0 £847,851 £859,795 £823,880 £632,261 PV of Total Costs All Geographies £0 £7,654,118 £7,677,791 £7,028,721 £5,386,350 Local Authority £0 39 41 39 28 Ayrshire Growth Deal £0 49 53 49 36 Scotland £0 79 84 79 58 Local Authority - £2,102,108 £2,250,353 £2,064,459 £1,561,971 Ayrshire Growth Deal - £2,669,343 £2,857,591 £2,621,535 £1,983,455 Scotland - £4,279,291 £4,581,076 £4,202,648 £3,179,726 Local Authority £0 19 19 12 15 Ayrshire Growth Deal £0 26 25 16 20 Scotland £0 34 33 22 26 Local Authority - £50,628,932 £48,878,624 £29,253,376 £40,832,926 Ayrshire Growth Deal - £67,318,248 £64,990,968 £38,896,456 £54,293,087 Scotland - £88,822,688 £85,751,972 £51,321,713 £71,636,712 Actual 0 £39,735 £38,001 £8,963 £30,329 Net Impact - £39,735 £38,001 £8,963 £30,329 Local Authority - £6.91 £6.69 £4.49 £7.90 Ayrshire Growth Deal - £9.18 £8.88 £5.96 £10.49 Scotland - £12.22 £11.84 £7.97 £13.96 Person Years of Construction Employment Present Value of Net Additional Construction GVA Benefit Cost Ratio Full-time Equivalent Jobs Present Value of Net Additional Operational GVA PV of GHG Carbon Accounting 396
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NAC Growth and Investment AGD Business Case 55 Table 27: Benefits-Cost Ratio Timeframe - 25 Year Appraisal (Construction Impacts Removed) Key Findings The key findings for the options that have been modelled for Phase 2 are as follows: Option 1: Do nothing/minimum status quo Do Nothing Option 2: Single Unit: • Creates 49 person years of employment in the Construction sector. (Ayrshire Growth Deal Region) • Creates 79 person years of employment in the Construction sector (Scotland) • Supports 26 full-time equivalent jobs through commercial development. (Ayrshire Growth Deal Region) • Generates £67.318m in net additional GVA over 25 years, £2.669m when construction impacts removed. (Ayrshire Growth Deal Region) • Demonstrates a of £9.18:£1 Benefit-Cost Ratio (Ayrshire Growth Deal Region) Option 3: Sub Divided Unit: • Creates 53 person years of employment in the Construction sector. (Ayrshire Growth Deal Region) • Creates 84 person years of employment in the Construction sector (Scotland) • Supports 25 full-time equivalent jobs through commercial development. (Ayrshire Growth Deal Region) • Generates £64.990m in net additional GVA over 25 years, £2.857m when construction impacts removed. (Ayrshire Growth Deal Region) • Demonstrates a of £8.88:£1 Benefit-Cost Ratio (Ayrshire Growth Deal Region) Option 4: Terraced Unit: • Creates 39 person years of employment in the Construction sector. (Ayrshire Growth Deal Region) • Creates 49 person years of employment in the Construction sector (Scotland) • Supports 16 full-time equivalent jobs through commercial development. (Ayrshire Growth Deal Region) • Generates £38.896m in net additional GVA over 25 years, £2.621m when construction impacts removed. (Ayrshire Growth Deal Region) • Demonstrates a positive rate of return through a £5.96:£1 Benefit-Cost Ratio (Ayrshire Growth Deal Region) Project Start Date: Benefit-Cost Ratio Timeframe: 2025 25 Years 2050 Option 1 Single Unit Sub divided Unit Terraced Unit Small Unit + LUF PV of Total Costs All Geographies £0 £7,654,118 £7,677,791 £7,028,721 £5,386,350 Local Authority £0 £52,889,911 £51,374,336 £31,575,564 £42,551,916 Ayrshire Growth Deal £0 £70,246,516 £68,211,833 £41,856,541 £56,515,423 Scotland £0 £93,547,670 £90,916,429 £56,013,778 £75,208,127 Local Authority - £50,787,804 £49,123,984 £29,511,105 £40,989,946 Ayrshire Growth Deal - £67,577,173 £65,354,242 £39,235,006 £54,531,968 Scotland - £89,268,380 £86,335,353 £51,811,130 £72,028,400 Actual 0 £39,735 £38,001 £8,963 £30,329 Net Impact - £39,735 £38,001 £8,963 £30,329 Local Authority - £6.64 £6.40 £4.20 £7.61 Ayrshire Growth Deal - £8.83 £8.51 £5.58 £10.12 Scotland - £11.66 £11.24 £7.37 £13.37 Present Value of Net Direct GVA Present Value of Net Additional GVA PV of GHG Carbon Accounting Benefit Cost Ratio 397
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NAC Growth and Investment AGD Business Case 56 Option 5: Small Unit funded by Local Regeneration Fund (formerly LUF3) • Creates 36 person years of employment in the Construction sector. (Ayrshire Growth Deal Region) • Creates 58 person years of employment in the Construction sector (Scotland) • Supports 20 full-time equivalent jobs through commercial development. (Ayrshire Growth Deal Region) • Generates £54.293m in net additional GVA over 25 years, £1.983m when construction impacts removed. (Ayrshire Growth Deal Region) • Demonstrates a positive rate of return through a £10.49: £1 Benefit-Cost Ratio (Ayrshire Growth Deal Region) Economic Modelling Conclusion In conclusion, Option 2, the delivery of a Single Unit approach provides overall the greatest economic benefits. Benefit Cost Ratio Analysis North Ayrshire Council acknowledges that the Benefit Cost Ratio (BCR) for Option 5 the delivery of a small unit with Local Regeneration Funds provides the best return at £10.49:£1 invested. This reflects the combination of funding e.g. AGD and Local Regeneration Funds, and the reduced footprint generated e.g. 1,281m2 at a reduced budget of £5.38M. However, considering the broader gains Option 2 provides a good financial investment return for the AGD, which includes the creation of a larger footprint of 1,690m2. In response, the sensitivity of this preferred option was tested to establish if additional benefits could be generated when amending variables in the delivery and operation of the project. Through negative adaptations (e.g. full occupation delayed until 01 October 2028) the BCR for the Single Unit dropped marginally to £9.25:£1. However, when positive changes are made (e.g. full occupation brought forward to 01 October 2027) the BCR increased to £9.92:£1, thus generating an uplift to £71.627m in net additional GVA over 25 years. A projected increase of £4.309m compared to the unadjusted projection for a Single Unit. 3.5 The procurement process 3.5.1 The Long List Criteria The Phase 2 Flex Space project is being procured through the Public Contracts Scotland portal as an open tender for a one-off contract to construct an advanced factory unit within a total project budget value of £6.775M (including fees, construction cost estimate and other costs). The tender is expected to be published in May 2026 with returns expected in early July 2026. The bids will be assessed on pass / fail question, following which bids will be progressed to the quality assessment stage and then to the commercial stage. As mentioned in paragraph 3.1, the Council’s Corporate Procurement Unit has advised that details of the bidders, their final costs and the evaluation scores, must be kept confidential prior to the award of the tender, as this would be a breach of the Council’s Standing Orders. Details of the contract award will be published on Public Contracts Scotland and North Ayrshire Council’s contract register when the tender is awarded to the successful bidder. 3.5.2 Long list The number of bids received will be assessed on their response to pass/fail questions and as a result of this assessment, bids will then be assessed in terms of the quality evaluation. 398
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NAC Growth and Investment AGD Business Case 57 3.5.3 Short list criteria The quality evaluation stage will account for 20% of the score. Following the completion of the quality evaluation, bidders will proceed to the commercial evaluation stage which accounts for 80% of the score. The commercial evaluation involves a review of the bids, including an arithmetic check, rate analysis and a review of tender qualifications, with any clarifications sought from bidders where necessary. 3.5.4 Short list Following the commercial evaluation bidders will be assessed and scored and ranked according to the quality and cost assessments. A preferred bidder will be selected that is within the available budget. 3.6 Economic appraisal 3.6.1 Introduction This section provides an overview of the costs and benefits associated with the main Advanced Manufacturing Flexible Space project generally, including the focus of this Phase 2 FBC, the delivery of construction contract for an advanced factory unit of 18,191 sq ft (1690 sq m) and on a total site of 4.59 acres. 3.6.2 Estimating benefits Methodology The Outline Business Case (OBC) set out the benefits associated with each option for the main Flexible Space project and the AGD PMO undertook economic modelling for the overall project. The key findings from this analysis were presented in the OBC. As part of this Full Business Case, economic modelling has been undertaken for Phase 2 only, the outcome of which is contained in Appendix D. In addition, a Benefits Realisation Plan has been developed to add to this work, which is detailed in the paragraphs below. Description, sources and assumptions The benefits identified fell into the following main categories. In each case, the sources and assumptions underlying their use is explained. • Quantitative – cash releasing benefits: financial benefits that the project will help generate. These include direct benefits such as rental income and indirect benefits - such as business rate receipts; • Quantitative – non-cash releasing benefits: societal benefits which can be monetised and expressed in Gross Value Added (GVA) terms. • Qualitative – non-cash releasing benefits: these are assessed separately in paragraph 3.7.2 Table 28: Main Benefits Type Direct to Organisation(s) Indirect to Organisation(s) To society Quantitative (or quantifiable) • Rental income • Business rates receipts • Provision of additional new space for businesses • Reduction in area of vacant and derelict land Cash releasing • Reduction in grounds maintenance costs once tenant moves in • Accelerated/enabled construction activity • Carbon efficiency savings for tenant. Non-cash releasing • Productivity gains to existing businesses Qualitative (or non-quantifiable) • Improvement in appearance of part of business park. 399
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NAC Growth and Investment AGD Business Case 58 The estimated benefits arising from Phase 2 of the project, in relation to this procurement exercise, relate mostly to the potential for benefits through rental income, the provision of new space for businesses, the appointment of contractors and enabled construction activity with the potential to support training places, maintain jobs and support SMEs through the contract. The economic modelling for Phase 2 in Appendix D for the Preferred Option, would in summary deliver the following: • Creates 49 person years of employment in the Construction sector. (Ayrshire Growth Deal Region) • Creates 79 person years of employment in the Construction sector (Scotland) • Supports 26 full-time equivalent jobs through commercial development. (Ayrshire Growth Deal Region) • Generates £67.318m in net additional GVA over 25 years, £2.669m when construction impacts removed. (Ayrshire Growth Deal Region) • Demonstrates a of £9.18:£1 Benefit-Cost Ratio (Ayrshire Growth Deal Region) A Benefits Realisation Plan has been developed for the Ayrshire Growth Deal projects and has identified the outcomes, outputs and impacts that could be measured for the overall Flexible Space project. These are listed below, and it’s anticipated that Phase 2, similar to Phase1, will provide those benefits at a smaller scale. Table 29: i3 Flexible Advanced Manufacturing Space - Outputs, Outcomes and Impacts, Benefits Realisation Plan Ref Indicator Outputs AGD/O/1 Direct/Indirect jobs AGD/O/2 Construction jobs AGD/O/3 Safeguarded jobs AGD/O/4 Community Benefits AGD/O/5 Jobs retained AGD/O/6 Jobs secured AGD/O/7 New or upgraded roads/junctions/cycle pathways AGD/O/8 Journey time savings/modal shifts AGD/O/9 Development space unlocked AGD/O/10 Reduced vacant & derelict land AGD/O/11 Digital Infrastructure AGD/O/12 New Residential Energy Supply AGD/O/13 Visitors AGD/O/14 Start-Ups AGD/O/15 Private sector investment AGD/O/16 Leverage: (including LA, HE/FE, Private Sector and any other leverage AGD/O/17 Income Levels AGD/CB/O/1 Training places / Weeks AGD/CB/O/2 Training places / accredited qualification main-contractor AGD/CB/O/3 Training places / accredited qualification sub-contractor AGD/CB/O/4 Schools Outreach AGD/CB/O/5 CWB Support Places AGD/CB/O/6 Fair Work Accreditation AGD/CB/O/7 SME’s supported AGD/CB/O/8 Regional Supplier Spend AGD/CB/O/9 Work Experience AGD/CB/O/10 Total jobs created by NSAfC projects (Apprentices) 400
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NAC Growth and Investment AGD Business Case 59 AGD/CB/O/11 Total jobs created by NSAfC projects (Graduates) AGD/CB/O/12 Total jobs created by NSAfC projects (New Entrants) AGD/CB/O/13 Construction Careers Information, Advice & Guidance (CCIAG) Events AGD/CB/O/14 Number of learners receiving an Industry certification – main contractor AGD/CB/O/15 Number of learners receiving an Industry certification – sub-contractor AGD/CB/O/16 Number of Training Plans for sub-contractors AGD/CB/O/17 Site visits by Colleges AGD/CB/O/18 Supply Chain Briefings to sub-contractors AGD/CB/O/19 Business Skills Supports for sub-contractors AGD/CB/O/20 Support for the Third Sector AGD/CB/O/21 Softer community benefits delivered to Ayrshire as part of the project Outcomes AGD/OT/1 Job Levels (new and maintained) AGD/OT/2 Development Space uptake AGD/OT/3 Digital usage patterns AGD/OT/4 Reduced (net) Fuel Poverty AGD/OT/5 Increase in visitor spend AGD/OT/6 Start-up performance/survival AGD/OT/7 Additional investment (including FDI) AGD/OT/8 Improved business productivity AGD/CB/OT/1 CWB participant well-being uplifts AGD/CB/OT/2 Fair Work implementation Impacts AGD/I/1 Net additional jobs created/ maintained AGD/I/2 Net additional returns on investment AGD/I/3 Net changes in Fuel Poverty AGD/I/4 Net additional user productivity AGD/I/5 Follow on investment AGD/I/6 Reduced levels of deprivation within the region AGD/I/7 Increased income levels AGD/CB/I/1 Wider uptake of Well Being/Fair work AGD/CB/I/2 Net uplifts in regional supplier spend AGD/CB/1/3 Case Studies – qualitative community impacts In addition, the selected preferred bidder will be asked to commit to a number of Community Benefits. 3.6.3 Estimating costs In terms of Phase 2 of the Flexible Space Programme, a pre-tender estimate was undertaken by the project that was within the available budget of for the delivery of Phase 2. 3.6.4 Cost appraisal conclusions For the project to proceed, the supplier selected as a result of the cost assessment of the bidders, will require to have a tender value which is below the overall budget for the contract tender which is within the overall project budget of £6.775M (excluding consultancy and other fees). 3.7 Qualitative benefits appraisal The qualitative benefits associated with the Flexible Space Programme generally, were set out within the Outline Business Case. 3.7.1 Methodology The appraisal of the qualitative benefits was undertaken via the following process for the OBC: • Identifying the benefits criteria relating to each of the investment objectives 401
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NAC Growth and Investment AGD Business Case 60 • Weighting the relative importance (in percentage terms) of each benefit criterion in relation to each investment objective • Scoring each of the short-listed options against the benefit criteria on a scale of 0-9 • Deriving a weighted benefit score for each option 3.7.2 Qualitative benefits criteria The benefits criteria were weighted as follows for each investment objective, as part of the OBC. Specific qualitative benefits were added for Phase 1 of the Flexible Space but maintaining the original percentages and the same has been done for Phase 2 which will also contribute to achieving these benefits. Table 30: Qualitative Benefits Criteria Objectives Qualitative Benefits, Flex Space Programme Flex Space Weight 1 2 % 1. To create flexible business space capable of meeting manufacturing requirements for chemical and life sciences, but also for a wide range of other high value sectors. • New business units will be occupied by Ayrshire/ Scottish/ UK/ overseas businesses 20 • Created/safeguarded jobs will generate economic value – jobs, GVA, turnover for Ayrshire and Scotland • Supply chain outcomes will be created for other Ayrshire and Scottish businesses • Design and construction contracts will generate turnover for Ayrshire and Scottish contractors • Construction jobs and training outcomes will be created, primarily for Ayrshire people and particularly drawn from disadvantaged or Protected Characteristic groups. 2. Create a centre of digital innovation which offers digital tools, support and innovation scaled to a national market supporting a restructure of the regional economy to deliver advanced manufacturing. • University and College presence at i3 offering training and business development opportunities. 20 • Cluster of R&D and spin off opportunities • Providing employment, skills development, community wealth building and supply chain growth opportunities • Providing the private sector with opportunities for upskilling, business transformation and increased productivity 3. To create serviced industrial land and capable of immediate development. • Development plot will be available for indigenous Ayrshire/ Scottish, UK-owned and foreign investors 10 • Design and construction contracts will generate turnover and jobs for Ayrshire and Scotland 4. To create opportunities for employment and inclusive growth with particular emphasis on making connections to local communities, schools and colleges in preparation for employment, particularly in areas of deprivation. • New employment outcomes – direct and indirect through supply chains 20 • Work experience and training places for school and college student. • Job market entrants and low skilled workers increasing soft and basic skills through provision of local jobs. • Residents of deprived areas gaining access to opportunities • University presence enabling additional educational and training opportunities • Delivery of enhanced public transport connection that opens up employment opportunities 5. To attract mobile and private sector investment both from abroad and from indigenous companies. • New employment and training outcomes 15 • Demonstrate attractiveness of Scotland as excellent location for life sciences manufacturing • Increased investment confidence 402
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NAC Growth and Investment AGD Business Case 61 6. To create a sustainable, high quality business location and R&D cluster, capable of meeting and keeping pace with the changing demands of high value manufacturing sectors and complementing national initiatives including NMIS • Enhancement and maintenance of attractiveness of Ayrshire as a location, meeting modern business needs and promoting Industry 4.0 services. 15 • Large, visible and modern development that clearly shows Ayrshire is Open for Business • Recognised as part of a national strategy for improving digital technology 3.7.3 Qualitative benefits scoring The tender assessment for the refurbishment contract will include a quality assessment of the bids based on a 20% quality / 80% cost ratio. NAC is anticipating receiving competent submissions in relation to this aspect and to be able to score bidders against a set of agreed criterion. 3.7.4 Analysis of key results NAC’s Corporate Procurement Unit will provide a completed tender score sheet for the bidders, providing scores related to the quality and cost aspects, identifying a preferred bidder. 3.7.5 Carbon Emissions Impact Cost Initial carbon analysis has been done for the overall project and is shown in Appendix I. The project has been categorised as Control (3, then zero) and Influence (B). Further information is contained in section 3.12 and 3.13. 3.8 Risk appraisal – unquantifiables The tender for Phase 2 poses a number of risks which are contained in the main risk register for the project. In summary, the main risks related to this project are considered to be: • Failure to obtain approval for the project’s Full Business Case. • All sources of capital and revenue funding for the project are insufficient to deliver and operate the project. • Delays to the project timescales caused by issues such as protected species, statutory consents, procurement or construction. • Delays to the tender award period due to the requirement for various FBC approvals which takes the timescale beyond the acceptance period, after which the preferred supplier may increase their costs • The project fails to attract enough of its target audience to generate sufficient income. Key project mitigations included the progress of Phase 1 of the project which is now completed and has a tenant, therefore confirming demand for new space. For Phase 2, the market has been tested at tender stage and additional sources of funding (Local Regeneration Fund) have been sought to address the increases in costs since the estimates were prepared for the OBC. Any additional risks will be highlighted following the tender process, regarding the selection of a preferred bidder. 3.9 The preferred option – selected supplier The procurement process to select a supplier to undertake the construction of a second industrial unit, surrounding yard and infrastructure for the wider site at Riverside Way in i3, Irvine, will commence in April 2026. It is hoped that a preferred supplier will be selected to be 403
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NAC Growth and Investment AGD Business Case 62 appointed, who will have submitted a competent bid and will be appointed following the FBC approval process. 3.10 Sensitivity analysis General Sensitivity analysis has been undertaken as part of the economic modelling for Phase 2 and is set out in Appendix D. This included the full occupation delayed or brought forward. However generally, the Preferred Option for Phase 2 provided a positive result. 3.11 The preferred option The preferred option for the overall Flexible Space Programme was to deliver the project on a phased basis. For this FBC, the preferred option is to select a recommended supplier in accordance with the future tender assessment for the construction of a second industrial unit at i3. It is anticipated that this option will offer value for money and will be within the available budget for the project. 3.12 Sustainability and carbon Like the Phase 1 unit, Phase 2 has been designed to be a robust and sustainable building that is capable of being easily adapted if required, through for example the creation of a platform to facilitate space for expansion, the ability to subdivide the building into a maximum of four units or to install a mezzanine level. This approach seeks to reduce potential additional whole life carbon emissions that could be created through any future adaptations required to the building. The new occupier of Phase 1 is already proposing to construct an extension and install a mezzanine level. 3.13 Economic / Financial The Whole Life Carbon Emissions impact associated with the project, including embodied carbon from construction, has been estimated in tonnes CO2e over the economic appraisal period of 25 years. This is shown in the tables below in terms of embodied carbon and operational carbon. 3.13.1 Embodied Carbon No embodied carbon targets were set for the building at the design stage and therefore, the measurement of embodied carbon has been estimated based on a similar calculation to the units being constructed at AEP and within the AEP approved OBC of <970kgCO2/m2 referenced from the RIBA 2030 Climate Challenge target. Prior to the construction stage the contractor will require to investigate and make allowances for the usage of recycled materials where possible. Table 31: Estimated Embodied Carbon, Flexible Space Phase 2 Embodied Carbon Unit Area Embodied Carbon Target kgCO2/m2 Estimated Embodied Energy (whole Life) Embodied Energy per year (/60) *** Phase 2 Flex Space 1,690 m2 969.0 1,638,579 27,310 404
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NAC Growth and Investment AGD Business Case 63 Figure 12: RIBA 2030 Climate Change Target Metrics 3.13.2 Operational Carbon Operational energy use is not currently known, given the speculative nature of the development. In this respect, energy demand has been estimated. Table 32: Estimated Operational Carbon, Flexible Space Phase 2 Operational Carbon No. Building Use Calculated Annual Demand (kWh) Area (m2) Demand / m2 Phase 2, Flexible Space Light Industrial 204,842* 1,690 m2 121.0 *Sourced from modelling input spreadsheet for preferred option Table 33: Estimated Whole Life Carbon, Flexible Space Phase 2 Whole Life Carbon Building Area Estimated Energy Use / m2 (based on mean precedented use) Estimated Annual Energy Use UK Grid Carbon Factor from Carbon Trust ‘Conversion Factors’ 2023 Update kgCO2e / year Whole Life (60 years)* Phase 2, Flexible Space 1,690 121 204,490 0.20707* 42,344 2,540,640 *Sourced from AEP table 405
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NAC Growth and Investment AGD Business Case 64 4. THE COMMERCIAL CASE 4.1 Introduction The overall Advanced Manufacturing Flexible Space Programme is seeking delivery of floorspace and related works, over a series of phases. This was identified as the preferred option in the approved Outline Business Case. This FBC is for the second phase of the programme which is for one 18,191 sqft (1,690m2) GIFA industrial unit. This section of the FBC sets out the negotiated arrangements for the provision of an industrial unit and related yard space and infrastructure, under a contract with the selected bidder. The drawings below show the proposed layout and elevations of the unit which have received planning permission (25/0299/PP). Figure13: Phase2 Unit drawings 406
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NAC Growth and Investment AGD Business Case 65 4.2 Required services The products and services under contract are as follows: • the design and construction of a new 18,191 ft2 (1,690m2) industrial unit suitable for class 4,5 & 6 outlined within, The Town and Country Planning (Use Classes) (Scotland) Order 1997, to be presented to the market with core fitted out to a Category A level. The remaining space will be subject to subsequent fit out by future tenants. The proposed Flex Space Phase 2 unit includes the following specifications and will be situated immediately adjacent to the recently completed Flex Space Phase1 unit and the established Digital Process Manufacturing Centre (DPMC) which has been operational since February 2025. The unit will incorporate sustainable and low carbon components and offers an impressive specification including secure yardage; dedicated parking including EV charging; Low energy LED lighting; office heating via air source heat pump; roof mounted PV panels and FTTP fibre connection. Modifications or complete bespoke solutions have been considered for the unit, to be easily subdivided into a maximum of 4 no. separately lettable units and expansion of the unit is possible by a minimum of 50% to the north of the industrial unit. The quantity of office and ancillary accommodation will generally be around 10% of the total floor area. Further details are set out within the table below: Table 1: Phase 2 Flex Space Specification ITEM PROVISION GENERAL • Unit specification suitable for immediate occupation • GIFA 18,191 ft2 (1690m2) • Site Area 74,023ft2 (6877m2) • Steel portal frame • Profiled and microrib cladding panels to Building Standards Class 1 Storage/Factory Use • Cat A office fit out • Fully serviced with water and electricity (metered) • BT Openreach FTTP fibre connection 407
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NAC Growth and Investment AGD Business Case 66 • Storage areas for waste collection and provision of infrastructure to facilitate future installation of sprinkler system tank provided POWER • 100kVA 3-phase supply to each unit • additional ducts to each sub-divided unit will be installed to allow future Tenants to apply for individual LV connections based upon their anticipated design load requirements. • all apparatus and wiring connected to the low voltage systems shall be suitable for use with a 3 Phase, 4 Wire, 400 Volt or 230 Volt, Single Phase, 50 Hertz earthed neutral system. WAREHOUSE/ FACTORY • 8m haunch height (9.28m to ridge) • Concrete floors with 50kN/m2 floor loading • 10% roof lights • Powered 4.4m (H) x 4.76m (W) level loading doors • High bay LED lighting (330 lux) OFFICE & CONVENIENCE • Suspended ceilings with recessed LED lighting • Kitchen • Unisex and accessible WCs EXTERNAL • Secure 31.5m deep concrete service yard with gates will be formed to the rear of the property accessed from a road constructed to adoptable standards and suitable for RCC (Roads Construction Consent) • Dedicated car parking to NRDG Standards • Covered Bicycle storage to NRDG Standards SUSTAINABILITY • EPC rating "B" • EV charging points • Water saving sanitaryware • Low energy PIR controlled LED lighting • Air source heat pump for office heating and cooling • Roof mounted solar PV installed with scope to increase this as required. SECURITY • gated access, • intruder alarm • internal & external security lighting • 2.4m high open mesh steel panel Security Fencing to the boundary VEHICLE PARKING • 35 spaces for General Industrial (Class 5) use in accordance with minimum NRDG Standards DISABLED PARKING • 4 spaces EV PARKING PROVISION • 4 active spaces / 8 passive spaces CYCLE PARKING PROVISION • 12 spaces or 6 cycle stands The Council’s Property Management and Investment (PMI) Team have led on developing the design of the unit. This has involved mainly architecture and quantity surveying services and they also procured the following external services: • Geotechnical • Cost consultants • M&E • Site investigation work • Land based engineering works • Ecologists • Transport specialists 408
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NAC Growth and Investment AGD Business Case 67 4.3 Potential for risk transfer Risks that could affect the successful implementation of the project have been identified and are set out in detail in the Risk Register attached as Appendix E. This includes details of risk owners, risk evaluation and mitigation measures. In terms of this FBC, the general principle of ‘risk passed to the party best able to manage them’ subject to value for money, has been applied. For this project it is anticipated that the associated risks may be apportioned between the Council, design team, contractor and occupier. This is shown in the table below, where we have agreed that we will apportion service risks in the design build and operational phases as follows: Table 34: FBC Flex Space Phase 2, Risk Transfer Analysis Risk Category Potential Allocation Comments Public Private Shared 1. Design Risk Depends on contract type and conditions. 2. Construction & Development Risk Depends on contract type and conditions. 3. Transition & Implementation Risk Both parties will establish and agree change management procedures if not dictated by contract type. 4. Availability & Performance Risk Performance of design team and contractor will be monitored by NAC. 5. Operating Risk NAC will manage the completed units. 6. Variability of Revenue Risks Rental income profiled at market rate but NAC will retain risk of variance. 7. Termination Risks NAC will hold risk if contractor or tenant terminates their agreements. 8. Technology & Obsolescence Risks NAC and occupier carry risks relating to obsolescence of property and equipment. 9. Control Risks NAC holds overall control for the delivery and ongoing management of the project. 10. Residual Value Risks The completed floorspace will hold a residual value for which NAC is responsible for maintaining the value. 11. Financing Risks Limited – major costs relate to up-front capital construction and potentially empty rates obligation. Tenants will be responsible for property maintenance. Issues related to Local Regeneration Fund (LUF3) grant criteria. 12. Legislative Risks N/A. Likely only to apply to initial planning and building warrant – risks will be off-set by securing permissions in advance of construction. 13. Other Project Risks Cost inflation. Supply of materials. 4.4 Agreed charging mechanism The payment mechanism agreed with the service provider with respect to the construction of the industrial unit will involve submission of invoices by the contractor at agreed stages of the works, which will be certified by the consultant’s team to NAC for payment. In addition, this 409
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NAC Growth and Investment AGD Business Case 68 phase will generate ongoing rental income from the lease of the completed unit with rent charged at appropriate rates in line with market conditions. A valuation prepared in December 2024 for the project suggested a market rent of £7.00 per sq ft. Based on a total development Gross Internal Area (GIA) of 18,200 sq ft, this would be a total rent of £127,400 per annum. The valuation is based on the unit, extending to a total of 18,191 sq ft (1,690 sq m) consisting of an industrial processing packaging/ laboratory/ warehouse area of approximately 16,361 sq ft (1,520 sq m) and provision for office, reception and meeting areas of approximately 1,830 sq ft (170 sq m), suitable for Class 4, 5 & 6 uses is to be situated on 16,355 sq m of vacant land. It's anticipated that NAC will not consider selling buildings initially, to ensure NAC benefits from income generated. NAC will also be responsible for any Non-Domestic Rates charges accruing against any vacant units following handover from the contractor. For the Local Regeneration Fund (Levelling Up 3 funding) its anticipated that the Council would pay the invoices and claim the funds from the UK Government. 4.5 Agreed contract length Building contracts are envisaged to endure for a period of construction only. Occupier contracts are envisaged to be leases to occupiers on terms that are appropriate to secure the investment i.e. at the maximum term that the occupier will accept. This is expected to enhance financial and economic returns to the public sector and provide a return on capital investment. 4.6 Key contractual clauses The Form of Contract for the project is the SBCC Design and Build Contract for use in Scotland (DB/Scot), 2016 edition incorporating Amendment 1 February 2018. The key contractual clauses are as follows: • Clause 4.18.1 Retention Percentage – 3% • Clause 6.4.1 Contractors Insurance – injury to persons or property - £10,000,000 • Clause 6.5.1 Insurance – Liability of Employer - £10,000,000 • Clause 6.7 Insurance of the works – Option A applies (By Contractor) • Clause 6.15 Contractors Designed Portion Professional Indemnity Insurance - £10M In addition, the preferred supplier has stated that they will deliver a number of community benefits. It would be inappropriate to incorporate contract clauses for occupiers of the completed units. However, there is an opportunity to work with tenants to maximise impacts and benefits for local people and local businesses through supply chains and local procurement mechanisms. 4.7 Personnel implications (including TUPE) It is anticipated that the TUPE – Transfer of Undertakings (Protection of Employment) Regulations 1981, will not apply to any aspect of this project. 4.8 Procurement route and implementation timescales The procurement of this Phase was through a tender advertised on Public Contracts Scotland. The implementation milestones for the scheme are to be discussed with the selected service provider. The dates shown below are critical in terms of how quickly the FBC can be endorsed and approved, in order to award the contract before the tender acceptance period expires, to 410
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NAC Growth and Investment AGD Business Case 69 enable the works to commence. Indicative Project Milestones are shown at 6.3.3, including information regarding Levelling Up Fund 3 (LUF2) which is partly funding this project. Table 35: Key timescales for progress of Phase 2 Unit Stage Estimated Date Full Business Case submitted to AGD PMO 10 April 2026 Tender published 06 May 2026 Tender returns 01 July 2026 Tender evaluation ends 31 July 2026 Final feedback / endorsement from Govt on FBC 21 Aug 2026 Cabinet endorse FBC 01 Sept 2026 AEPB & AEJC approval (special meeting to be set) 11 Sept 2026 Contract award 16 Sept 2026 Contract completion 22 Sept 2027 Deadline for drawing down Local Regeneration Funds 31 March 2028 4.9 FRS 5 accountancy treatment It is envisaged that the assets underpinning the delivery of the service will be on the balance sheet of the organisation should the development remain in the ownership of NAC. 411
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NAC Growth and Investment AGD Business Case 70 5.0 THE FINANCIAL CASE 5.1 Introduction The purpose of this section is to set out firm financial implications of this contracted solution. At FBC stage for Phase 1, it was noted that there had been changes to the financial implications, following on from the approval of the Outline Business Case in June 2021. Adjustments were made to the estimated overall level of floorspace that the Programme was anticipated to achieve, from 9,000 square metres (97,000 sq ft) to just over 6,000 square metres (65,000 sq ft). The difference in floorspace estimated was due to a combination of the OBC costs being early indicative estimates, prepared prior to the development of QS cost reports for the project, and significant construction cost increases. The overall cost of Phase 1, now delivered, is £5.147M, which delivered 1,690m2 of flexible floorspace. This included support of £0.967M from the Scottish Government’s Vacant and Derelict Land Fund for the Phase 1 plot and early development work for the overall Flexible Space Programme. The unit is now let (from mid-March 2026) and will begin to generate rental income for the Council from June 2026. The estimated cost of Phase 2 is £6.775M, including consultants fees, construction estimate and other costs. This includes not only a unit of a similar size to Phase 1 and related yard space but also a level of fit out to enable tenants to occupy the unit immediately and suds and roads infrastructure for Phase 2 and the wider site, to enable future phases. The overall area for the Phase 2 unit and yard space is 7,322m2. The wider area of the site included in Phase 2 is 18,568m2 (4.59 acres) which is 39% of the area of the Phase 2 site. The projected spend profile for Phase 2 is shown below, including estimated revenue costs for the Council, prior to the unit being occupied. It’s anticipated that revenue costs will include the following costs listed below until the unit is occupied. However, these costs will eventually be offset by the additional rental income to the Council. • Maintenance, repair and management • Rates & utility bills • Marketing and promotion • Legal fees • Building insurance • Statutory compliance certificates and any associated works • EPC costs Table 36: Flexible Space Phase 2, Project Spend Profile Construction Spend Total Spend Year 4 Year 5 24/25 Year 6 25/26 Year 7 26/27 Year 8 27/28 Capital spend £6.775M £0.051m £0.305M £0.132M £2.068M £4.220M Revenue spend £0.0675M £0 £0 £0 £0.0675M Total £6.8425M £0.051M £0.305M £0.132M £2.068M £4.2875M To mitigate the risk of increased costs and the volatility of the construction market, Phase 2 is being supported with £4.706M of funding leveraged from the Local Regeneration Fund (see 5.3 below). 412
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NAC Growth and Investment AGD Business Case 71 5.2 Impact on the organisation’s income and expenditure account The anticipated payment stream for the project over its intended life span is set out in the following table which shows the overall Flexible Space Programme. The payment stream in relation to Phase 2 is also shown in the Table below. It is anticipated that the tender for the works will come back within the budget available, enabling the works to progress. It should be noted that increased project costs have been mitigated for Phase 2 through the UK Government’s Local Regeneration Fund, to support this particular phase. Table 11a: Flexible Space Financial Profile – Capital Expenditure £'000 Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 Phase 1 5,147 34 140 217 403 2,912 1,387 53 0 0 0 0 Phase 2 6,775 0 0 0 0 51 305 132 2,068 4,220 0 0 Phase 3 8,751 0 0 0 0 0 0 0 230 3,655 4,866 0 Total 20,673 34 140 217 403 2,963 1,692 185 2,298 7,875 4,866 0 Table 11b: Flexible Space Financial Profile – Capital Funding £’000 Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 Scottish Government 11,000 307 2,195 1,38 0 0 2,372 2,372 2,372 NAC 4,000 34 83 122 0 51 308 53 230 2,996 2,494 (2,372) AGD Total 15,000 34 83 122 307 2,246 1,692 53 230 5,368 4,866 0 VDLF 967 56 95 97 718 LRF (Prev LUF3) 4,706 132 2,068 2,507 Project Total 20,673 34 140 217 403 2,963 1,692 185 2,298 7,875 4,866 0 5.3 Local Regeneration Fund (formerly Levelling Up Fund, 3) Phase 2 of the project benefits from an award of £4.706M as part of the UK Government’s Local Regeneration Fund (formerly LUF 3). The approved Phase 1 FBC had advised of an application for Levelling Up Funding being considered by the UK Government which, if successful, could have contributed to Phase 1, however this fund was postponed. As a result, Phase 2 is now benefitting from the fund, providing crucial leverage for the flexible space programme, helping to address budget challenges and replacing the majority (69%) of the AGD funding for Phase 2. This is part of an overall £17.5M allocation to North Ayrshire, aiming to address market failure, through the delivery of new energy efficient commercial property alongside the provision of low carbon infrastructure at key employment sites including i3. 5.4 Impact on the balance sheet An updated version of this FBC will advise on the outcome of the tender process and whether the tender costs of the preferred bidder are affordable to deliver Phase 2 and are within the capital expenditure available within the budget. 413
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NAC Growth and Investment AGD Business Case 72 5.5 Overall affordability The capital cost of the overall project is £15M from the AGD. Early spend has been supported by the Vacant and Derelict Land Fund, prior to any draw down of AGD spend. It should be noted that the capital costs for Phase 2 have not factored in any additional cost for private sector tenants to fit out a completed unit for their specific purposes but a level of fit out is being provided to enable immediate occupancy. It is anticipated that a tender can be received for Phase 2 which is competent, affordable and within the available budget. NAC will be responsible for ongoing maintenance, marketing and management of the buildings and any surrounding curtilage, until they are let, and will cover any related costs. This will be offset by income generated from the completed project from the following: • Ongoing rental income through the lease of completed units; and • One-off capital receipts from the sale of buildings and/or development plots. The approved OBC had estimated overall rental income for the Programme to be in the region of £400,000 by 2032. However, this is figure is likely to be significantly higher, based on the known rental income due to be received for the Phase 1 unit from June 2026 onwards, which will be higher than the rental valuation provided by Colliers of £127,500. In addition, a valuation for the Phase 2 unit by Ryden in December 2024 estimates rental income of £127,400 per annum for Phase 2. ASSURANCE STATEMENT This is to confirm that the financial profile for the project outlined in Section 5.2 above reflects the position of North Ayrshire Council as at the date stated below. Name of Council’s S95 Officer in block capitals: MARK BOYD Signed: Date: xx May 2026 414
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NAC Growth and Investment AGD Business Case 73 6.0 THE MANAGEMENT CASE 6.1 Introduction This section of the FBC addresses how the scheme will be delivered successfully. 6.2 Programme management arrangements The three Ayrshire Councils (East, North and South) have agreed to implement a new governance structure to oversee the delivery of the Ayrshire Growth Deal and to promote the main drivers for the Regional Economic Partnership, namely: • to promote and deliver regional economic and inclusive growth on an Ayrshire-wide basis, in line with the Scottish Government’s aim of having a Regional Economic Partnership for every region of Scotland; • to provide the robust shared governance which will enable the Scottish and UK Governments and other funding sources to dispense monies on an Ayrshire basis; • To encourage the meaningful involvement of private sector partners as well as the public sector; • The structure should be as simple as possible, but be capable of adaptation as required; and • To recognise that the funding element is being delivered through Councils, and consequently democratic accountability will be required for key investment decision. The governance for the AGD programme includes the following: • The Ayrshire Economic Joint Committee (AEJC) – comprising Elected Members, representatives from Scottish Enterprise, Skills Development Scotland, business and education. • The Ayrshire Regional Economic Partnership Board (AEPB) – comprising Elected Members, representatives from public sector partners including SE, SDS, HIE, VisitScotland, HE, FE, the third sector and the business community. These committees have oversight of the AGD both at a programme level and in terms of approval of detailed business cases for individual projects, as well as continued monitoring and evaluation of the AGD programme post Deal document sign off. Please see Figure 14 below, showing the standard AGD Governance approach. The projects also have internal Gateway Review Boards to monitor and review progress and reach agreement on key aspects of the project. It is anticipated that over time the 3 Councils will develop more regional responses to the needs of our businesses and communities to complement the AGD investment. This is currently being developed through an agreed proposal between NAC and EAC for an Economic Development service that includes AGD delivery teams from both Councils. The i3 Flexible Space programme including Phase 2, is an integral part of the Ayrshire Growth Deal Programme of Economic Infrastructure. The Programme will be managed by North Ayrshire Council in conjunction with the AGD PMO and related Governance structure. 415
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NAC Growth and Investment AGD Business Case 74 Figure 14: Standard AGD Governance approach 6.3 Project management arrangements Phase 2 of the Flex Space Programme, which is the subject of this FBC, will be managed by the Council’s PMI team and will follow the PRINCE2 methodology as much as possible. 6.3.1 Project reporting structure NAC has established internal governance arrangements for the management of its AGD project(s) organised through a Project Board. The NAC Project Board has overall authority and responsibility for project delivery including the Business Case, prior to submission to the NAC Executive Leadership Group for approval and prior to submission to the Programme Management Office (PMO). The Board has a project management responsibility but no decision-making powers. The Project Board provides a mechanism for accountable project management delivered by regular progress reporting and updates and coordination of all design teams and initiatives associated with infrastructure, employability, business and innovation strands. The Project Board will co-ordinate the overall delivery of the Phase 2 Flexible Space project. Project Management responsibilities for Phase 2 sit with the Council’s Property Management and Investment (PMI) Team who have led on the development of the design on behalf of the Growth and Investment Team who have acted as client. PMI will continue this role as part of the delivery stage. Overall responsibility will rest with Director of Growth and Investment reporting to the Chief Executive. All personnel will be experienced and professionally qualified in their respective roles. The project will be managed in accordance with NAC project management procedures. The Senior Responsible Officer for the project in NAC is the Senior Manager, Growth and Investment, with support from a Growth and Investment Manager as project lead. A full multi-disciplinary team will advance the project to completion. Regular monthly updates will also be provided to the PMO and to Governments in accordance with the required reporting for all Ayrshire Growth Deal projects as defined by the AGD Governance document. 416
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NAC Growth and Investment AGD Business Case 75 As a large percentage of the project is funded by the Local Regeneration Fund, the project is also subject to providing quarterly progress and programme updates to Government through an online portal reporting system. Figure 15: Organisational chart, showing governance of the project 6.3.2 Project Roles and Responsibilities Phase 2 of the Flex Space Programme is being managed by the Council’s PMI team. For the purposes of the Ayrshire Growth Deal processes, the SRO is Louise Kirk, Head of Service, Economic Development, Growth and Regeneration, North Ayrshire Council and Project Lead is Marnie Ritchie, Regeneration Manager, North Ayrshire Council. The overall Project Team includes the Council’s Growth and Investment, PMI and Finance teams. The appointed contractor’s role will be for the completion of the design and build of the Phase 2 unit. The table below sets out roles and responsibilities for Phase 2 of the project which is the focus of this FBC: Table 37: Roles & Responsibilities Senior Responsible Officer Louise Kirk, Head of Service, Economic Development, Growth and Regeneration, NAC Chief Financial Officer Mark Boyd, Head of Finance, NAC Project Manager Alan Martin, Team Leader, PMI, NAC Senior Manager Bruce McClure, Snr Manager, Growth & Investment, NAC Project Lead (client) Marnie Ritchie, Manager, Growth & Investment Specialist advisors See para 6.4 Project Contractor Preferred supplier 6.3.3 Project Plan The Project Plan is set out in the table below with a status update for each milestone. Additional milestones have been added for Phase 2, in particular to reflect the current approval processes for the FBC and Gateway milestones. A project plan will also be required from bidders for the construction tender to demonstrate how they can meet the required timelines. A Delivery Assurance Implementation Plan (DAIP) was produced by the AGD PMO in early 2026. The milestones vary slightly from the detail in the DAIP that has been shared with Governments, following the finalisation of the tender and FBC and this is illustrated below the first table. 417
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NAC Growth and Investment AGD Business Case 76 Table 9: Flexible Space Phase 2, Project Milestones (working version) and comparisons to DAIP FLEXIBLE SPACE, PHASE 2: Key Milestones Estimated date Quarter (financial year) Status Flexible Space Outline Business Case Approved Phase 1, Full Business Case granted Approved Planning approval granted for Phase 2 Complete NAC Gate 3, Project Board, Investment Decision to tender 23 Jan 26 Q4, 25/26 Complete NAC publish Invitation to Tender (ITT) (estimate) 06 May 26 Q1, 26/27 Not started NAC receive tenders (estimate) 01 Jul 26 Q2, 26/27 Not started NAC tender evaluation period ends 14 Aug 26 Q2, 26/27 Not started Government endorse Phase 2 FBC 21 Aug 26 Q2, 26/27 Not started NAC report FBC to Cabinet 01 Sept 26 Q2, 26/27 Not started AEPB & AEJC approve Phase 2 FBC 11 Sept 26 Q2, 26/27 Not started NAC award Phase 2 contract, D&B contract commences 16 Sept 26 Q2, 26/27 Not started NAC commences marketing of the building Sept 26 Q2, 26/27 Not started Contractor completes construction works 22 Sept 27 Q2, 27/28 Not started Contractor handover to NAC 22 Oct 27 Q3, 27/28 Not started NAC sets closing date for interest and selection of tenant tbc tbc Not started Current deadline for claiming all Local Regeneration Fund 31 Mar 28 Q4, 27/28 In progress NAC reports Outputs/Outcomes/CWB tbc tbc Not started NAC delivers subsequent Phases and related FBCs. tbc tbc Not started FLEXIBLE SPACE PHASE 2, ESTIMATED TIMELINES Y7 (2026/27) Y8 (2027/28) Y9 (2028/29) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Current Delivery Assurance Imp Plan dates FBC FBC approval by June 26, Q1 Contract award/delivery phase from Jul 26, Q2, to contract completion in Jul 27, Q2. Updated FBC milestone dates FBC FBC approval during Sept 26 in Q2 Contract award/delivery phase from Sept 26, Q2, to contract completion in Sept 27, Q2. 6.4 Use of Special Advisers Special advisers are being used for Phase 2 of the project as follows: Table 38: Special Advisers Specialist Area Adviser Detail Financial N/A Technical Clancy Structural Engineers & Civils consultants Hulley & Kirkwood Mechanical & Electrical Engineering Consultants NAC Property Management & Investment (PMI) Team Architect, Quantity Surveyor, Project Management Services Applied Ecology Ecologists, ongoing input Colliers Land & proposed building valuation Stantec Local Transport Strategy Procurement & Legal N/A Business Assurance Ryden Property consultants Other N/A 418
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NAC Growth and Investment AGD Business Case 77 6.5 Arrangements for change management The change control process will be managed by NAC. Arrangements for change management are set out within the Ayrshire Growth Deal Governance Document (v16) and are summarised in the flow chart in Appendix J. 6.6 Arrangements for benefits realisation A Benefits Realisation Logic Chain is shown in Appendix C. In addition, a Benefits Realisation Plan for the Ayrshire Growth has been prepared and has identified the outcomes, outputs and impacts that could be measured for this project as set out below. This will also ensure alignment of information across the AGD documentation of the Implementation Plan and Benefits Realisation Plan. Table: i3 Flexible Advanced Manufacturing Space - Outputs, Outcomes and Impacts, Benefits Realisation Plan Ref Indicator Outputs AGD/O/1 Direct/Indirect jobs AGD/O/2 Construction jobs AGD/O/3 Safeguarded jobs AGD/O/4 Community Benefits AGD/O/5 Jobs retained AGD/O/6 Jobs secured AGD/O/7 New or upgraded roads/junctions/cycle pathways AGD/O/8 Journey time savings/modal shifts AGD/O/9 Development space unlocked AGD/O/10 Reduced vacant & derelict land AGD/O/11 Digital Infrastructure AGD/O/12 New Residential Energy Supply AGD/O/13 Visitors AGD/O/14 Start-Ups AGD/O/15 Private sector investment AGD/O/16 Leverage: (including LA, HE/FE, Private Sector and any other leverage AGD/O/17 Income Levels AGD/CB/O/1 Training places / Weeks AGD/CB/O/2 Training places / accredited qualification main-contractor AGD/CB/O/3 Training places / accredited qualification sub-contractor AGD/CB/O/4 Schools Outreach AGD/CB/O/5 CWB Support Places AGD/CB/O/6 Fair Work Accreditation AGD/CB/O/7 SME’s supported AGD/CB/O/8 Regional Supplier Spend AGD/CB/O/9 Work Experience AGD/CB/O/10 Total jobs created by NSAfC projects (Apprentices) AGD/CB/O/11 Total jobs created by NSAfC projects (Graduates) AGD/CB/O/12 Total jobs created by NSAfC projects (New Entrants) AGD/CB/O/13 Construction Careers Information, Advice & Guidance (CCIAG) Events AGD/CB/O/14 Number of learners receiving an Industry certification – main contractor AGD/CB/O/15 Number of learners receiving an Industry certification – sub-contractor AGD/CB/O/16 Number of Training Plans for sub-contractors AGD/CB/O/17 Site visits by Colleges AGD/CB/O/18 Supply Chain Briefings to sub-contractors 419
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NAC Growth and Investment AGD Business Case 78 AGD/CB/O/19 Business Skills Supports for sub-contractors AGD/CB/O/20 Support for the Third Sector AGD/CB/O/21 Softer community benefits delivered to Ayrshire as part of the project Outcomes AGD/OT/1 Job Levels (new and maintained) AGD/OT/2 Development Space uptake AGD/OT/3 Digital usage patterns AGD/OT/4 Reduced (net) Fuel Poverty AGD/OT/5 Increase in visitor spend AGD/OT/6 Start-up performance/survival AGD/OT/7 Additional investment (including FDI) AGD/OT/8 Improved business productivity AGD/CB/OT/1 CWB participant well-being uplifts AGD/CB/OT/2 Fair Work implementation Impacts AGD/I/1 Net additional jobs created/ maintained AGD/I/2 Net additional returns on investment AGD/I/3 Net changes in Fuel Poverty AGD/I/4 Net additional user productivity AGD/I/5 Follow on investment AGD/I/6 Reduced levels of deprivation within the region AGD/I/7 Increased income levels AGD/CB/I/1 Wider uptake of Well Being/Fair work AGD/CB/I/2 Net uplifts in regional supplier spend AGD/CB/1/3 Case Studies – qualitative community impacts 6.7 Carbon management For all AGD projects, procedures will be developed across that apply best practice carbon management techniques, notably PAS 2080: Carbon Management in Infrastructure, to ensure that potential carbon emissions resulting from the project will be minimised from the outset. For planned buildings, the RICS Whole Life Carbon Assessment for the Built Environment approach will also be applied. These compatible approaches represent the highest standard in whole life buildings and infrastructure carbon management and will ensure that the potential carbon emissions impact of the project is demonstrably minimised. Embodied carbon (i.e., carbon particularly associated with construction materials and processes) will be minimised utilising the above carbon management approaches, including the use of innovative materials, construction techniques and supply chain procurement mechanisms to reduce carbon emissions, minimise waste and contribute towards a circular economy, Design and construction of the project will target net zero operational emissions, including no use of fossil fuels, at lease in accordance with the Scottish Government’s climate change plan. Initial carbon analysis has been done for the overall project and is shown in Appendix I. The project has been categorised as Control (3, then zero) and Influence (B). 6.8 Arrangements for risk management The strategy, framework and plan for dealing with the management of risk will be through the contract with monitoring by the Project Manager within the Council’s PMI Team. 420
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NAC Growth and Investment AGD Business Case 79 A copy of the project Risk Register is attached at Appendix E. This sets out who is responsible for the management of risks and the required counter measures. 6.9 Arrangements for contract management The Phase 2 Flex Space project will be managed by the Council’s PMI team and construction phase will be delivered by the preferred bidder. Management will include regular progress meetings and reports by the contractor. The Council’s PMI team will project manage and oversee the works on behalf of North Ayrshire Council and will be responsible for resolving any issues that arise with the contractor. 6.10 Arrangements for post project evaluation Project monitoring and evaluation will be managed through AGD governance arrangements, as established and through the reporting requirements related to the Local Regeneration Fund. The project will be subject to regular review meetings to discuss progress, programme, financial and technical matters. It will be necessary to monitor the impact of the AGD, including at individual project level. The flexible space project will be monitored through the various Green Book Business Case Stages by North Ayrshire Council’s Growth and Investment Team. The Project Lead will report progress at key stages through a series of Gateway Boards and bi-monthly updates to the Council’s Executive Leadership Team. Project spend will be monitored on a monthly basis with the Council’s Finance Team. A monitoring and evaluation framework will be developed to monitor the project’s outputs and outcomes and ensure that those are included, where possible, within the procurement process. 6.11 OCG Gateway review arrangements The Office of Government Commerce (OGC) Gateway Process is designed to provide independent guidance to Senior Responsible Owners (SROs), programme and project teams and to the departments who commission their work, on how best to ensure that their programmes and projects are successful. This process examines programmes and projects at key decision points in their lifecycle. It looks ahead to provide assurance that they can progress successfully to the next stage. These key stages or ‘Gates’ are: • Gate 0 – Strategic Assessment • Gate 1 – Business Justification • Gate 2 – Delivery Strategy • Gate 3 – Investment decision • Gate 4 – Ready for Service • Gate 5 – Benefits Realisation and Operational Review In terms of Phase 2 and this specific FBC, the internal project board will discuss the aspects of the outcome of the tender process at a meeting in due course, and will require to be satisfied with the outcome of the process outlined to them at the meeting in order for the proposed contract award to progress through the next governance stages. 421
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NAC Growth and Investment AGD Business Case 80 6.12 Contingency plans In the event that this project fails, governance arrangements are in place to allow the Council to agree an appropriate way forward with the PMO and Governments to ensure that there is limited impact on the Ayrshire Growth Deal and the main funder for the Phase which is UK Government, through the Local Regeneration Fund (formerly LUF3 fund). Signed: XX Date: Date / April / 2026 Senior Responsible Owner Louise Kirk, Head of Economic Development, Growth & Regeneration, NAC 422
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NAC Growth and Investment AGD Business Case 81 PART C: APPENDICES Appendices Table 1: List of appendices Ref. Appendices Referenced A Heat Map and Inclusive Growth Drivers 1.2.1, 2.4.1 B Flexible Space Links to AGD Projects 1.2.1 C Benefits Realisation Logic Chain 2.8, 6.6 D Economic Modelling & Technical Detail 1.3.1, 3.6.2, 3.10 E Risk Register 1.4.2, 1.5.2, 2.9, 4.3, 6.8 F Inclusive Growth & Community Wealth Building 1.1.1, 2.3.1 G Community Benefit Statement For information H Equality Impact Assessment For information I Carbon Management 3.7.5, 6.7 J Ayrshire Growth Deal Change Management Process 6.5 423
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NAC Growth and Investment AGD Business Case 82 APPENDIX A: INCLUSIVE GROWTH HEAT MAP 424
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NAC Growth and Investment AGD Business Case 83 APPENDIX B: AGD PROJECT LINKS Project Link What is the Link? Key Actions to Maximise Link Expected benefits of the link Digital Process Manufacturing Centre (DPMC), i3 The DPMC pilot at i3 is operational and provides a unique facility for processing manufacturing sector companies to improve their productivity and modernise their processes through digital automation. This is linked to the i3 Flexible space to create a cluster and accommodate business opportunities arising from the DPMC project eg business incubation units. • Dialogue required across AGD projects to established differentiation between projects, complementarity opportunities and wider understanding of partner roles in each project (eg NMIS, University of Strathclyde, CPI, Ayrshire College) • Creation of cluster area at i3 with DPMC and business space that complements each other and accommodates spin off opportunities from the DPMC facility being located at Irvine. • Opportunities for referral from DPMC to more specialised F&D facility at AMIC Project Link What is the Link? Key Actions to Maximise Link Expected benefits of the link Building Digital Capital (BDC) This project replaces the Digital Infrastructure (£3M) and Subsea Cable (£11M) projects supporting digital infrastructure across Ayrshire with an allocation of £4.6M for North Ayrshire to support digital infrastructure, critical to the region’s future growth. This will still seek to improve connectivity for local businesses including fibre, mobile, 5G and smart poles infrastructure, building on the recent benefits of the 5GIR private network pilot delivered at DPMC. • Develop specific digital infrastructure improvement proposals for i3 with BDC project lead, Flex Space design team and NMIS. • Information sharing and opportunities for joint working. • Ensuring i3 connectivity requirements, including that of DPMC partner NMIS, have high visibility as part of the Digital Infrastructure project. Project Link What is the Link? Key Actions to Maximise Link Expected benefits of the link Ayrshire Engineering Park (AEP) With potential links to NMIS (National Manufacturing Institute Scotland) which are still being explored, the Engineering Park will provide businesses the opportunity to explore how to improve process and improve engineering/manufacturing excellence to be the best in their field. i3 will provide a unique facility and hub for businesses seeking to improve their productivity and modernise their processes through digital automation for the chemical and Life Sciences sectors which is very much aligned • Set up referral routes from the project • Working group oversees both projects and responsible for integration. • Sharing of information and joint discussions with NMIS to ensure a collaborative approach and avoid duplication. • Sharing of learnings and studies which would benefit or transfer across sub sectors to benefit the wider manufacturing sector in Ayrshire. • Sharing of information and resource. • Collaboration on projects which can be developed with mass benefit to the wider manufacturing sector in Ayrshire. • Provision of flexible space in both North and East Ayrshire which will drive inward investment to the area providing greater choice to investors and collaborative working across the councils. 425
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NAC Growth and Investment AGD Business Case 84 with the Engineering Park vision. I3 and the Engineering Park will complement the manufacturing industry in general across Ayrshire and the south-west of Scotland while focusing on different areas of industry. The development of advanced manufacturing space in both North and East Ayrshire will attract inward investment to the Ayrshire Region. Project Link What is the Link? Key Actions to Maximise the Link Expected Benefits of the Link Ayrshire Skills Investment Fund Ayrshire Skills Investment Fund has established a responsive skills fund to drive Inclusive Growth. The fund can help support people on the programme to develop skills. The Ayrshire Skills Investment Fund will add flexibility and responsiveness to the skills system to address related i3/DPMC industry needs. It can also ensure that disadvantaged sectors of the community have access to career opportunities through the i3/DPMC AGD projects • Ensure attendance of Officer representing Flex Space/DPMC at relevant working group meetings • Set up referral routes from project. • Joint discussions with local Colleges to ensure a collaborative approach • Sharing of information regarding skills gaps identified through business engagement • Direct link to skills training • Support to prepare those out of labour market to new jobs • Achievement of key outcome to raise skills levels within the local area Project Link What is the Link? Key Actions to Maximise the Link Expected Benefits of the Link AMIC (Ayrshire Manufacturing Investment Corridor) With links to NMIS the AMIC centre will provide pilot plant facilities to allow F&D manufactures to test and development new production and manufacturing practices. While the DPMC at i3 provides a unique facility for process manufacturing sector companies to improve their productivity and modernise their processes through digital automation. AMIC and DPMC will complement the manufacturing industry in general across Ayrshire and the south-west of Scotland while focusing on different areas of industry. The development of advanced manufacturing space as part of AMIC, will attract inward investment to the Ayrshire Region. • Set up referral routes from the project • Working group oversees both projects and responsible for integration. • Sharing of information and joint discussions with NMIS to ensure a collaborative approach and avoid duplication. • Sharing of learnings and studies which would benefit or transfer across sub sectors to benefit the wider manufacturing sector in Ayrshire. • Sharing of information and resource. • Collaboration on projects which can be developed with mass benefit to the wider manufacturing sector in Ayrshire. • Provision of flexible space in both North and East Ayrshire which will drive inward investment to the area providing greater choice to investors and collaborative working across the councils. 426
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NAC Growth and Investment AGD Business Case 85 APPENDIX C: BENEFITS REALISATION LOGIC CHAIN Project Inputs (resources) Project Activities (what you do) Project Outputs (what is produced) Project Outcomes (change expected as result of outputs/activities) Programme Objective AGD £15million Scot Govt £11M NAC £4M Local Regeneration Fund (formerly LUF3) £4.706M Vacant & Derelict Land Fund (VDLF) £0.967M • Planning applications submitted • Site remediation work • New link/access roads developed • Construction of SUDS/sewerage systems • Improved junctions to enhance access to sites • New junctions to open up access to sites • Construction of flexible business space in phases. • Total Area reclaimed, (re)developed or assembled (20 Ha) as a result of the project • Total Area of Opportunity Sites (20 Ha) • New Industrial & Business Space (6,000sq m) • Individuals supported into work • Private businesses supported • Jobs safeguarded • Wide range of employment opportunities • Improved pedestrian linkages • Vacant and Derelict Land brought back into use/removed from SVDL Register (20 ha) • Flexible business space for start-up or needs • Well-connected flexible business space within close proximity to central belt region supply chains and workforce • Altered perception and market sentiment in regard to Ayrshire’s advance manufacturing and digital offer • Improved market sentiment • 20 Ha land unlocked for development • Increased levels of investment, including FDI • Uplift in commercial rental/sales values (£) • Increased supply of commercial space • Strengthening key business clusters • Increased employment and development of skills in local workforce • Increased GVA • Reduced levels of deprivation in local areas • Enhanced accessibility - employment/ business locations • Widening of labour market • Improved business productivity • Strengthening key business clusters • Businesses attracted to the locality and increase in inward investment • Reduction in level of vacant and derelict land • 18-35 People from Employability & Skills Programme Accessing Jobs • Sustainable work location with services and amenities to support employees (e.g. child care/creche facility/café/retail) • Increase employment opportunities • Increase in GVA across region • Lever in private sector investment • Spread the benefits of economic growth across region, ensuring deprived areas benefit from this growth. • Job market entrants and low skilled workers increasing soft and basic skills through provision of local jobs • Attract skilled workers to the region and support local people entering skilled employment opportunities 427
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NAC Growth and Investment AGD Business Case 86 APPENDIX D: ECONOMIC MODELLING, i3 FLEXIBLE SPACE PHASE 2 The following tables and information set out the approach to and findings of economic modelling for the Flexible Space Phase 2 project. Flexible Space, Phase 2 – Options Summary Option Description Narrative Option 1 Business as usual Do Nothing (Counterfactual) DISCOUNTED It is estimated that the percentage of economic activity generated within the project area without any investment i.e. Deadweight, would be 0%. Option 2: Single Unit Deliver one 1,690 sqm (18,191 sqft) GIFA unit by 30 June 2027, with occupancy starting 01 April 2028. PREFERRED OPTION. Delivers additional space with a realistic timeline for occupation. In addition, Options for positive and negative sensitivity are provided. Option 2a: Single Unit Preferred Option Positive Sensitivity DISCOUNTED • Fully occupied earlier – 01 October 2027 • Increased rateable rate from £75 per sqm to £85 per sqm • Decrease Leakage and Displacement additionality operational factors. Leakage Current Leakage Decrease Displace- ment Current Displace- ment Decrease LA 40% 30% 5% 0% GCR 20% 15% 10% 5% Scotland 0% 0% 0% 0% Option 2b: Single Unit Preferred Option Negative Sensitivity DISCOUNTED • Fully occupied later – 01 October 2028 • Decreased rateable rate from £75 per sqm to £65 per sqm • Increased Leakage and Displacement additionality operational factors Leakage Current Leakage Increase Displace- ment Current Displace- ment Increase LA 40% 45% 5% 10% GCR 20% 30% 10% 15% Scotland 0% 5% 0% 5% Option 3: Subdivided Unit Deliver 1,630 sqm (17,544 sq ft) GIFA of space subdivided into 4 lettable units by 30 June 2027 with 100% occupancy by 01 April 2029. DISCOUNTED OPTION. Delivers one unit subdivided into smaller units, some of which may be filled quicker but not necessarily all of them, meaning that 100% occupancy is likely to be achieved later. This option may take slightly longer to deliver due to the difference in format. There is more need for larger units and the main cost of the development is being funded through LUF 3, for which the business case and format of the unit has already been agreed and aligns with the Preferred Option. Option 4: Terraced Units Deliver Flex Space Phase 3 earlier by 31 March 2028, which DISCOUNTED OPTION. Delivers Phase 3 Flex Space earlier which are two sets of smaller terraced incubation units. This option is 428
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NAC Growth and Investment AGD Business Case 87 includes two sets of terraced units totaling 1,068 sqm (11,496 sq ft) with 100% occupancy by 1 April 2029. discounted as it would take longer to deliver as it has not yet reached the end of RIBA Stage 4, like Option 2, could take longer to achieve 100% occupation and the majority of the development is supported by LUF 3 which requires the business case and format of the unit to align with the Preferred Option. Option 5: Smaller unit, LUF 3 Deliver a smaller single unit within the LUF 3 budget cost envelope (estimated at 1,281 m2) by 30 April 2027 with full occupancy by 01 January 2028. DISCOUNTED OPTION. Delivers a smaller unit only funded by LUF3 funds, that could be delivered earlier ie 30 April and enables additional AGD funds to be reallocated from Phase 2 to Phase 3. This development could be delivered slightly earlier but would not meet the agreed floorspace level approved by LUF 3. In addition, the project is already advanced based on the preferred option and is at tender stage. Additionality Approach 2.0 Introduction This note has been prepared to explain the approach to considering additionality for the purposes of economic modelling for Phase 2 of the Ayrshire Growth Deal Flexible Advanced Manufacturing Space project at i3 Business Park in Irvine. The project proposes an estimated investment of £6.775M in a single 18,191 sq ft (1,690 sq m) industrial unit with related yard space and parking, funded by Levelling Up Fund 3 (£4.7M) and Ayrshire Growth Deal (£2.069M). In this respect, benefits are estimated in relation to construction, operational, land value uplift and carbon accounting. 2.1 Counterfactual Assessment and Deadweight It’s unlikely that any or very limited outputs/outcomes would be secured without the intervention of the project’s investment through the public sector, as there is market failure within the area. This means that there is no incentive for the market to deliver modern industrial units. New, similar developments taking place within the locality have been supported by the public sector with little or no historical development / investment from the private sector in this type of project. The significant gap between the construction costs and asset value is demonstrated in a valuation undertaken for the project by Ryden in December 2024. The valuation estimated the market value of £1,304,000 for the unit, in comparison to the estimated construction costs, which at the time were estimated to be £6,156,300. In this respect, it is estimated that the percentage of economic activity that would have been generated within the project area without any investment i.e. the Deadweight, would be 5% for North Ayrshire, Ayrshire and Scotland, given the challenges that the private sector face in delivering commercial floorspace. 2.2 Construction Benefits The project is estimated to generate nearly £6M in construction related benefits through the creation of an industrial unit and related land remediation, following investment in Phase 1. The main investment activity takes place during years 2026/27 and 2027/28, after which some revenue costs are anticipated until the unit is let. It is assumed these revenue costs will be in the region of £67,500. In this respect the project investment profile is as follows: Construction Spend Total Spend Year 4 Year 5 24/25 Year 6 25/26 Year 7 26/27 Year 8 27/28 Capital spend £6.775M £0.051m £0.305M £0.132M £2.068M £4.220M Revenue spend £0.0675M £0 £0 £0 £0.0675M Total £6.8425M £0.051M £0.305M £0.132M £2.068M £4.2875M 429
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NAC Growth and Investment AGD Business Case 88 Follow on investment from the tenant is anticipated in terms of fit out costs which are assumed at £500,000 as a rough estimate. There may also be the potential for the tenant to extend the building as the format allows for this, although this is assumed to be unlikely for the moment due to the high cost of construction. 2.2.1 Construction Leakage The works involve the construction of an industrial unit for which there are probably only a few companies based locally (i.e. within Ayrshire) that could tender for this work, as it is considered to be quite specialised. If the appointed contractor for the works is not based locally, it is assumed that a very small percentage of construction activity will be delivered by local businesses that employ local labour. This was the scenario for Phase 1 Flex Space, as the contractor was based in Fife and so there were limited job opportunities for local people with the main contractor but more opportunities related to sub-contracts locally. However, if the company awarded the tender is locally based, this could make a significant difference to the level of construction activity employing local labour. 2.2.2 Construction Displacement It is assumed that there will be lower levels of displacement due to lower competition within the Ayrshire area, as there are not many local contractors within North Ayrshire and the wider Ayrshire area that specialise in constructing industrial units. 2.2.3 Construction - Economic Multipliers It is considered that local business within North Ayrshire will act as a supply chain for the construction of the industrial unit. For example, within the following trades of groundworks, fencing, plumbing & heating, joinery, roofing. In addition, community benefits will be included within the contract to encourage the successful contractor to take on for example local apprentices. 2.2.4 Construction Benefits – Additionality Factors To summarise, for the project and the preferred option, the additionality factors are set out in the table below. In addition, the same percentages have been applied to the other options. Please see overall table in Appendix 1 and comparison to AEP OBC Additionality Factor percentages in Appendix 2. Construction Benefits Additionality Factors: Leakage (%) Displacement (%) Multipliers Deadweight (%) North Ayrshire 30% 10% 1.2 5% Ayrshire 20% 20% 1.5 5% Scotland 5% 10% 1.8 5% • Leakage - the extent to which the construction benefits of the project will leak out of the target area into other areas are estimated to be 30% for North Ayrshire, 20% for Ayrshire and 5% for Scotland. • Displacement - the extent to which an increase in the intended construction benefits is offset by reductions in economic activity elsewhere in the economy is estimated to be low and 10% for North Ayrshire and Scotland and 20% for Ayrshire. • Economic Multipliers – the wider economic benefits generated through the project into the economy are likely to be 1.2, 1.5 and 1.8 respectively. • Deadweight is estimated to be 5% across North Ayrshire, Ayrshire and Scotland because a very small number, if any, of the economic construction benefits of the project would've happened without this intervention. 430
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NAC Growth and Investment AGD Business Case 89 2.3 Operational Benefits The project will create commercial floorspace which has planning permission for use classes 4, 5 and 6. The unit is speculative, so at this time it is not known what business will occupy the building and what the operational benefits could be in terms of how many people will be employed and what GVA it will generate. • Leakage - a comparison has been made with the percentages for the AEP OBC which were 40% for East Ayrshire, 15% for Ayrshire and 0% for Scotland for all options that included commercial floorspace. For this project its considered that the figures could be 40% for North Ayrshire, 20% for Ayrshire and 0% for Scotland for all options. • Displacement - the extent to which an increase in the intended operational benefits is offset by reductions in economic activity elsewhere in the economy is estimated to be low and 5% for North Ayrshire, 10% for Ayrshire and 0% for Scotland – taking a similar approach to those percentages applied to the AEP OBC. • Economic Multipliers –Reflecting other similar projects in the Ayrshire region and as a conservative estimate a multiplier of 1.1 have been applied which is the same as the AEP OBC. • Deadweight is estimated to be 5% across North Ayrshire, Ayrshire and Scotland because a very small number, if any, of the operational benefits of the project would've happened without this intervention. Operational Benefits Additionality Factors: Leakage (%) Displacement (%) Multipliers Deadweight (%) North Ayrshire 40% 5% 1.0 5% Ayrshire 20% 10% 1.0 5% Scotland 0% 0% 1.0 5% Options Narrative for Modelling Option 2: Single Unit, Preferred Option, plus Options 2a & 2b (Sensitivity) Description Narrative Deliver one 1,690 sqm (18,191 sq ft) unit by 30 June 2027, with occupancy starting 01 April 2028. PREFERRED OPTION. Delivers additional space with a realistic timeline for occupation. In addition, Options for positive and negative sensitivity are also provided below comprising of: Option 1a (positive) – fully occupied by 1 October 2027 (positive) Rateable rate at £85 per sqm Leakage and Displacement Additionality Operational factors decreased to the following: Leakage Decrease Displacement Decrease LA 30% 0% GCR 15% 5% Scotland 0% 0% Option 1b (negative) – fully occupied by 1 October 2028 (negative) Rateable rate at £65 per sqm Leakage and Displacement Additionality Operational factors decreased to the following: Leakage Increase Displacement Increase LA 45% 10% GCR 30% 15% Scotland 5% 5% 431
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NAC Growth and Investment AGD Business Case 90 • Assumes single unit, not subdivided. • Design and build contract awarded June 2026. • Unit completed by 30 June 2027. • Fully occupied starting 01 April 2028. This time period allows for approximately 9 months (July 27 to March 28 inclusive) for conclusion of marketing period, Cabinet agreement to lease disposal and subsequent conclusion of the lease agreement. • Assumes operational year of unit would start in financial year 28/29 ie April 2028 MODELLING SPREADSHEETS INFORMATION / ASSUMPTIONS Costs Capital cost estimates for design, consultancy and contract costs are grouped together. Assumes private sector fit out costs of £500,000. Revenue costs assume costs incurred by NAC from handover from contractor to occupancy by lessee, ie, costs from July 2027 to March 28 (9 months). This would comprise of the following costs per annum based on previous estimates for the project: Electricity and standing charges £60,000 Maintenance £10,000 Landscaping £10,000 Insurance £5,000 Water £5,000 Total annual charges £90,000 This equates to £7,500 per month and £67,500 for 9 months. Construction Benefits Assumes design development takes place 24/25, 25/26 and construction takes place 26/27 and part of 27/28. Assumes private sector fit out costs of £500,000. Operational Benefits Assumed light industrial, with full occupancy by April 2028. NDR Based on Ryden rental valuation from Dec 2024 of £127,400. Assumes 100% rates relief in first year of occupancy from April 2028 til March 2029. Works out at a rateable value of £75 per square metre. Additionality Factors percentages are assumed to reflect the Operational Benefits. Housing Benefits N/A Council Tax N/A Energy Consumption Assumes energy consumption of 200,000 kwh (or when building operational, based on estimates for Phase 1. Assumes energy consumption of 538 kwh per month (6,456 kwh per annum) when building unoccupied, based on average taken from invoices for Phase 1 when unoccupied. Assumes lower energy consumption between July 2027 and March 2050 which is 4,842 kwh (ie 538 kwh per month for 9 months). Assumes energy consumption 200,000 kwh per annum (or 16,667 kwh per month) from April 2028 onwards. Proposed solar PV panels will help off-set emissions. Option 2: Sensitivity Testing – Occupation – Positive & Negative Scenarios Additional modelling sheets have been provided that have considered the following variations on Option 1 related to when the unit is fully occupied. 432
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NAC Growth and Investment AGD Business Case 91 Option 2a – fully occupied by October 2027 (positive) This Positive Sensitivity Option assumes that the unit will be occupied earlier by October 2027 rather than by April 2028. This means there will be less revenue costs for the Council between the handover and letting period i.e. three months of revenue costs at an estimated £22,500. In addition, the unit will be operational within an earlier financial year 27/28, with the Council receiving rental income at an earlier stage. The rateable value of the Unit once occupied is assumed to increase to £85 per sqm, an increase of £10 per sqm when compared to the preferred option of £75 per sqm. Leakage and Displacement Additionally factors related to the operation of the Unit are adjusted downwards, with the percentage rate across all three geographical spatial defined areas when compared to the preferred option. Assumes lower energy consumption between July 2027 and Sept 2027 which is 1,614 kwh (ie 538 kwh per month for 3 months) and from Oct 27 til March 28, 100,002 kwh based on 6 months operational, providing a total of 101,616 kwh consumption for 2027/28. Option 2b – fully occupied by October 2028 (negative) This Negative Sensitivity Option assumes that the unit will be occupied later by October 2028 rather than by April 2028. This means there will be more revenue costs for the Council between the handover and letting period i.e. 15 months of revenue costs at a total of £112,500 (£67,500 in 27/28 and £45,000 in 28/29). In addition, as the unit will be operational later, the Council will begin to receive rental income at a later date. The rateable value of the Unit once occupied is assumed to decrease to £65 per sqm, a decrease of £10 per sqm when compared to the preferred option of £75 per sqm. Leakage and Displacement Additionally factors related to the operation of the Unit are adjusted upwards, with the percentage rate across all three geographical spatial defined areas when compared to the preferred option. Assumes lower energy consumption between July 2027 and Sept 2028 which is 8,070 kwh (ie 538 kwh per month for 15 months) and from Oct 28 til March 2029, 108,172 kwh based on 6 months operational, providing a total of 101,616 kwh consumption. This works out: energy consumption of 9 months during 2027/28 (Jul 27 to Mar 28) of 4,842 kwh and energy consumption during 2028/29 of 6 months of low energy consumption of 3,3228 kwh (Apr 28 to Sept 28) and 6 months of high energy consumption once the unit is occupied from October 2028 (100,002 kwh) giving a total of 103,230 kwh. Leakage Current Leakage Decrease Displacement Current Displacement Decrease Multipliers Deadweight LA 40% 30% 5% 0% 1.0 5% GCR 20% 15% 10% 5% 1.0 5% Scotland 0% 0% 0% 0% 1.0 5% Leakage Current Leakage Increase Displacement Current Displacement Increase Multipliers Deadweight LA 40% 45% 5% 10% 1.0 5% GCR 20% 30% 10% 15% 1.0 5% Scotland 0% 5% 0% 5% 1.0 5% 433
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NAC Growth and Investment AGD Business Case 92 Table 39: Benefits-Cost Ratio Timeframe - 25 Year Appraisal – Sensitivity Testing of Single Unit Table 40: Benefits-Cost Ratio Timeframe - 25 Year Appraisal (Construction Impacts Removed) - Sensitivity Testing of Single Unit The sensitivity testing of the preferred option to assess its robustness has demonstrated that through amendments of the occupation of the built unit, ratebale rates and Additionality factors during operation will change significantly the Ayrshire BCR of the proposal. An accumulation of the Negative alterations reduces the BCR to £8.62:£1, whilst accelerating occupation, increasing rateable rates and softening of Additional factors heightens the BCR to £11.02:£1. In the meantime, the number of construction and occupational jobs generated changes principally in response to the positive alterations with an uplift in Ayrshire jobs to 29. Elsewhere significant change is translated to expected operational GVA generated with a positive action uplifting the GVA potential to £80.332m when compared against benchmark preferred option of £67.318 (at an AGD level). Project Start Date: Benefit-Cost Ratio Timeframe: 2025 25 Years 2050 Option 1 Single Unit-Pref Option Pref Option Sensitive +A Pref Option Sensitive -B PV of Capital Costs All Geographies £0 £6,806,267 £6,806,267 £6,806,267 PV of Revenue Costs All Geographies £0 £847,851 £735,412 £815,476 PV of Total Costs All Geographies £0 £7,654,118 £7,541,679 £7,621,744 Local Authority £0 41 41 41 Ayrshire Growth Deal £0 53 53 53 Scotland £0 84 84 84 Local Authority - £2,247,803 £2,247,803 £2,247,803 Ayrshire Growth Deal - £2,854,353 £2,854,353 £2,854,353 Scotland - £4,575,885 £4,575,885 £4,575,885 Local Authority £0 19 24 19 Ayrshire Growth Deal £0 26 29 26 Scotland £0 34 34 34 Local Authority - £50,628,932 £66,156,308 £47,497,335 Ayrshire Growth Deal - £67,318,248 £80,332,659 £63,154,351 Scotland - £88,822,688 £94,509,011 £83,328,657 Actual 0 £491,064 £491,064 £491,064 Net Impact - £491,064 £491,064 £491,064 Local Authority - £6.90 £9.04 £6.48 Ayrshire Growth Deal - £9.16 £11.02 £8.62 Scotland - £12.19 £13.16 £11.52 Person Years of Construction Employment Present Value of Net Additional Construction GVA Benefit Cost Ratio Full-time Equivalent Jobs Present Value of Net Additional Operational GVA PV of GHG Carbon Accounting Project Start Date: Benefit-Cost Ratio Timeframe: 2025 25 Years 2050 Option 1 Single Unit-Pref OptionPref Option Sensitive +APref Option Sensitive -B PV of Total Costs All Geographies £0 £7,654,118 £7,541,679 £7,621,744 Local Authority £0 £52,810,691 £68,190,851 £49,375,641 Ayrshire Growth Deal £0 £70,106,557 £83,096,150 £65,701,606 Scotland £0 £93,332,529 £99,222,509 £87,789,321 Local Authority - £50,562,888 £65,943,047 £47,127,837 Ayrshire Growth Deal - £67,252,204 £80,241,797 £62,847,252 Scotland - £88,756,644 £94,646,624 £83,213,435 Actual 0 £491,064 £491,064 £491,064 Net Impact - £491,064 £491,064 £491,064 Local Authority - £6.61 £8.74 £6.18 Ayrshire Growth Deal - £8.79 £10.64 £8.25 Scotland - £11.60 £12.55 £10.92 Present Value of Net Direct GVA Present Value of Net Additional GVA PV of GHG Carbon Accounting Benefit Cost Ratio 434
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NAC Growth and Investment AGD Business Case 93 Option 3: Subdivided Unit Description Narrative Deliver 1,630 sqm (17,544 sq ft) of space subdivided into 4 lettable units by 30 June 2027 with 100% occupancy by 01 April 2029. DISCOUNTED OPTION. Delivers smaller units within the same timescale, some of which may be filled quicker but not necessarily all of them, meaning that 100% occupancy is likely to be achieved later. There is evidence of more need for larger units and the main cost of the development is being funded through LUF 3, for which the business case and format of the unit has already been agreed and aligns with the Preferred Option. • Assumes four units with a rateable value of £8.50 per sq ft based on previous Colliers valuation. • Estimated revenue costs based on benchmark from Annickbank proposals (3 units at 500m2, total estimated annual revenue costs whilst vacant are £45,000) works out four units just over 400m2 each with overall annual revenue vacancy costs of £48,000 (£12k per unit per annum) Unit Size sq ft (GIA) Size sq m Rental Value Occupancy Date Revenue Costs period Est Rev costs 1 4,445 413 £37,782.50 01 Oct 27 3 months £3,000 2 4,445 413 £37,782.50 01 Apr 28 9 months £9,000 3 4,327 402 £36,779.50 01 Oct 28 15 months £15,000 4 4,327 402 £36,779.50 01 Apr 29 21 months £21,000 Electricity Consumption assumptions Unit Size sq ft (G Size sq m Occupancy Date Vacant kwh 27/28 Occupied kwh 27/28 Vacant kwh 28/29 Occupied kwh 28/29 1 4,445 413 01 Oct 27 501 kwh 25,002 N/A 50,000 2 4,445 413 01 Apr 28 1,503 kwh N/A N/A 50,000 3 4,327 402 01 Oct 28 1,503 kwh N/A 1,002 25,002 4 4,327 402 01 Apr 29 1,503 kwh N/A 2,004 N/A MODELLING SPREADSHEETS INFORMATION / ASSUMPTIONS Costs Capital cost estimates for design, consultancy and contract costs are grouped together. Assumes construction costs include a level of fit out works. Private sector costs of £500,000 assumed for fit out. Revenue costs assume costs incurred by NAC from handover from contractor to occupancy by lessee, ie, costs from July 2027. Estimated revenue costs based on benchmark from Annickbank proposals (3 units at 500m2, total estimated annual revenue costs whilst vacant are £45,000). Constructions Benefits Construction costs and programme – are the same as the preferred option - design and build contract awarded June 2026 and units completed by 30 June 2027. Assumes construction costs also include a level of fit out works. Assumes private sector fit out costs of £500,000. Fully occupied, starting from 01 April 2029. This extended time period allows for a longer timescale to market all four units and for the subsequent conclusion of the lease agreements. It’s 435
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NAC Growth and Investment AGD Business Case 94 assumed that the individual rental values would below the threshold for seeking Cabinet approval as part of this process. Assumes design development takes place 24/25, 25/26 and construction takes place 26/27 and part of 27/28. Operational Benefits Assumed light industrial, with full occupancy by 01 April 2029. NDR Colliers valuation of Phase 1 from June 2022 provided a scenario for sub- division into 4 units at a total of 17,544 sq ft or 1,630 m2, with a completed development value of £2,095,000, assuming an overall market annual rent of £149,200 per annum at £8.50 per sq ft or £91.50 per sq m. Assumes value of each unit would sit below the 100k value at £37k to £38k. Additionality Factors percentages are assumed the same as for the Operational Benefits spreadsheet. Housing Benefits N/A Council Tax N/A Energy Consumption Assumes energy consumption for a light industrial unit of c410m2 would be approximately 50,000 kwh per year or 4,167 kwh per month when operational. Assumes when non-operational/vacant, the consumption would be 2,000 kwh per annum or 167 kwh per month. Please see assumptions table above. Option 4: Terraced Units Description Narrative Deliver Flex Space Phase 3 which includes two sets of terraced units totaling 1,068 sqm (11,496 sq ft) delivered by 31 March 2028 and with full occupancy by 01 April 2030. DISCOUNTED OPTION. Delivers Phase 3 Flex Space earlier which includes two sets of smaller terraced incubation units. This option is discounted as it would take longer to deliver as it has not yet reached the end of RIBA Stage 4 (like Option 2), it could take longer to achieve 100% occupation and the majority of the development is supported by LUF 3 which requires the business case and format of the unit to align with the Preferred Option and the certainty of LUF3 funds being spent within a required timeline. Assumes the following: Terrace* Size sq ft (GIA) Size sq m Rental Value Occupancy Date Revenue Costs period Est Rev costs 3A 6,907.26 641.7 £58,711.71 01 Apr 2029 12 months £12,000 3B 4,588.70 426.3 £39,003.95 01 Apr 2030 24 months £24,000 • terrace 3A – capable of subdivision into 6 units with a combined floorspace of 641.7m2 (6,907.26 sq ft) fully occupied by 01 April 2029. • terrace 3B – capable of subdivision into 4 units with a combined floorspace of 426.3m2 (4,588.70 sq ft) fully occupied by 01 April 2030. • Rateable value of £8.50 per sq ft based on previous Colliers valuation. • Estimated revenue costs based on benchmark from Annickbank proposals (3 units at 500m2, total estimated annual revenue costs whilst vacant are £45,000) works out four units just over 400m2 each with overall annual revenue vacancy costs of £48,000 (£12k per unit per annum) 436
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NAC Growth and Investment AGD Business Case 95 MODELLING SPREADSHEETS INFORMATION / ASSUMPTIONS Costs Capital cost estimates for design, consultancy and contract costs are grouped together. Revenue costs assume costs incurred by NAC from handover from contractor in March 2028 to occupancy by businesses, i.e. revenue costs as follows: Unit 3A – revenue costs from 01 Apr 2028 to March 2029 (12 months) when fully occupied Unit 3B – revenue costs from 01 Apr 2028 to March 2030 (24 months) when fully occupied Constructions Benefits Whilst overall floorspace is smaller, this option assumes construction costs are the same, as two individual terraces are being created. Assumes contract works commence later than July 2026 and starts Jan 2027, as design has not reached RIBA Stage 4, statutory consents required and tender pack not prepared. Estimate completion by 31 March 2028, full occupation of terrace 3A by 01 April 2029 and full occupation of terrace 3B by 01 April 2030. Operational Benefits Assumes: • terrace 3A –capable of subdivision into 6 units with a combined floorspace of 641.7m2 (6,907.26 sq ft) fully occupied by 01 April 2029 • terrace 3B – capable of subdivision into 4 units with a combined floorspace of 426.3m2 (4,588.70 sq ft) fully occupied by 01 April 2030. NDR Assumes 100% rates relief in year 1 Additionality Factors percentages are assumed the same as for the Operational Benefits spreadsheet. Housing Benefits N/A Council Tax N/A Energy Consumption Assumes energy consumption for unit 3A is low kwh estimate for 2028/29 (3,006 kwh per annum) when unit vacant and being marketed, with full energy consumption starting in 2029/30 (75,000 kwh per annum) when unit becomes occupied. Assumes energy consumption for unit 3B 426.3m2 is low kwh estimate for 2028/29 (2,004 kwh per annum) and 2029/30 (2,004 kwh per annum) when unit vacant and being marketed with full energy consumption starting 2030/31 (50,000 kwh per annum) when unit becomes occupied. Option 5: LUF 3 Cost Envelope Description Narrative Deliver a single unit within the LUF 3 budget cost envelope by 30 April 2027 with full occupancy achieved by 01 January 2028. DISCOUNTED OPTION. Delivers a smaller unit only funded by LUF3 levered funds, which could be delivered earlier and enables additional AGD funds to be reallocated from Phase 2 to Phase 3. This development could be delivered earlier but would not meet the agreed floorspace level approved by LUF 3. This scenario would be based on the following assumptions: • Project overall construction spend would require to be within the LUF3 funding cost envelope which is £4,706,259 rather than the preferred option which is £6,775,000. • Cost estimate: 437
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NAC Growth and Investment AGD Business Case 96 Design, PM & consultants fees £394,259 Main contractors £4,100,000 Site investigation £21,000 Utilities £125,000 Planning and Building warrant fees £20,000 Other contractors (tree clearance) £30,000 Other capital expenditure £15,000 Total £4,705,259 • Floorspace estimate of 1,281m2 (13,788 sq ft) could be achieved based on £4,100,000 available main contractors budget divided by estimate cost of £3,200 per square metre. Similar to floorspace scale being created at Kyle Road (1,200m2 based on £4.56K budget). MODELLING SPREADSHEETS INFORMATION / ASSUMPTIONS Costs Sheet Capital cost estimates for design, consultancy and contract costs are grouped together. Assumes same spend for preferred option 24/25, 25/26 with majority of spend during 26/27 and smaller allocation in 27/28 to cover retention and other potential costs. Assumes private sector costs of £300,000 for fit out. Revenue costs assume costs incurred by NAC from handover from contractor to occupancy by lessee, ie, costs from May 2027 to January 2028 (8 months). This would comprise of the following costs per annum based on preferred option estimates with some adjustments as the unit is smaller: Electricity and standing charges £50,000 (assume pay almost the same) Maintenance £7,000 Landscaping £7,000 Insurance £4,000 Water £4,000 Total annual charges £72,000 This equates to £6,000 per month and £48,000 for 8 months. Constructions Benefits Assumes design development takes place 24/25, 25/26 and construction takes place 26/27. Assumes private sector costs of £300,000 for fit out. Operational Benefits Assumed light industrial with full occupancy by January 2028. NDR Based on Ryden valuation from Dec 2024 works out at a rateable value of £75 per square metre. Assumes 100% rates relief in first year of occupancy from January 2028 til December 2028. Additionality Factors percentages are assumed the same as for the Operational Benefits spreadsheet. Housing Benefits N/A Council Tax N/A Energy Consumption Assumes energy consumption for the unit is low kwh estimate from completion date of 30 April 2027 to occupancy by 01 January 2028 ie 8 months and 3 months at full consumption from January to March 2028. Consumption estimates are based on 75% of preferred option low estimates 538 kwh per month and high estimates 16,667 kwh per month (ie 404 kwh and 12,005 kwh) 8 months at low is 3,232 kwh and 3 months at high is 36,015 kwh Total is 39,247 kwh for 2027/28 Total for 2028/29 is 144,060 kwh 438
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NAC Growth and Investment AGD Business Case 97 Background to Economic Modelling The economic modelling for the Phase 2 Flexible Space options has been quantified using the Glasgow City Region Intelligence Hub’s Business Case Economic Model (BCEM). BCEM was developed following the methodology outlined within the GCR’s Programme Management Toolkit. This approach quantifies Benefit-Cost Ratios (BCRs) using a HM Treasury Green Book approved methodology and has been used for successful Glasgow City Region City Deal business cases and Levelling Up Fund applications. The benefits that are quantified within BCEM can fall under the broad headings of Construction, Operational, Housing, and Greenhouse Gas Emissions. Each monetary benefit is then subject to HM Treasury’s preferred discount rate of 3.5%, moving to 3% after a 30-year appraisal period, to obtain Present Values (PV). As per HM Treasury Green Book compliance, a Counterfactual, otherwise known as a “do nothing”, scenario is initially established before identifying the costs and benefits of any subsequent appraised intervention. The PV of an intervention’s cumulative benefits are then re-calculated as Net Additional benefits by subtracting any economic benefits generated in the Counterfactual scenario. A Benefit-Cost Ratio is then established by dividing the PV of Net Additional Benefits by the PV of Total Costs. For the purposes of modelling for this Ayrshire Growth Deal investment, spatial adjustment analyses have not been quantified. Spatial adjustment analysis can be used to quantify the disproportionate impacts that an investment can have on communities with non-typical levels of productivity or earnings potential. Such disproportionate impacts are not anticipated to occur from this investment. Estimated Benefits and Costs METHODOLOGY This cost benefit analysis has employed appraisal techniques that are consistent with those outlined in HM Treasury Green Book (HM Treasury, 2022). It considers the range of socio- economic impacts that the project is forecast to generate at the Local Authority, Growth Deal Area, and Scotland Geographic levels within the 25-year project appraisal period. This timeframe aligns with the economic appraisal undertaken at OBC stage and ensures consistency with the approach adopted by the Glasgow Intelligence Hub for economic analysis across Ayrshire Growth Deal projects. The timeframe is consistent with estimated asset lifespans and servicing and maintenance plans. Whilst the modelling has stated a 25 year lifespan, the lifetime of the unit is expected to be longer, due to the quality of the design and construction including sustainable features. The economic outputs for each option displayed within Table 41 below are as of March 2026. As the project develops, these outputs will be updated to take account of current evidence, changes to the project scope and the associated financial case. Costs were estimated based on benchmarking with other Local Authorities and organisations, feasibility studies and high-level costings from contractor’s and consultants and evidence of past work examples. Figures have been adjusted for BCIS all in TPI (Tender Price Index). Consideration is also being given to the cost impact of the buildings meeting the Scottish Government Net Zero Buildings Standard. 439
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NAC Growth and Investment AGD Business Case 98 OPTIMISM BIAS The project budget has a significant level of contingency and continues to be given consideration. Consideration was also given to previous North Ayrshire Council Phase 1 project, now completed spring 2026. BCR CALCULATION EXPLANATION BCRs have been calculated by dividing the PV Net Additional GVA for each option (minus the PV Carbon Accounting) by the PV Total Cost. • The Single Unit at Local Authority Geography: • Net Additional GVA: £2.102m (Construction) + £50.628m (Operational) - £0.039m (Carbon) = £52.691m • Divided by the PV Total Cost of £7.654m • Equals a BCR of £6.91 over a 25-year appraisal period at the local authority level. BCR Analysis: The analysis illustrates the robustness of the project and its projected ability to generate significant economic growth at a local and regional level. This includes not only demonstrating VfM from the public sector investment but also enable the delivery of both 39 construction and 19 operational jobs. 25-Year Appraisal Table 41: Economic Outputs – Overall value for money assessment The analysis above identifies the overall value for money assessment benefits that could be achieved through investment in Flexi Space Phase 2 in and around the Ayrshire area. Project Start Date: Benefit-Cost Ratio Timeframe: 2025 25 Years 2050 Option 1 Single Unit Sub divided Unit Terraced Unit Small Unit + LUF PV of Capital Costs All Geographies £0 £6,806,267 £6,817,997 £6,204,841 £4,754,090 PV of Revenue Costs All Geographies £0 £847,851 £859,795 £823,880 £632,261 PV of Total Costs All Geographies £0 £7,654,118 £7,677,791 £7,028,721 £5,386,350 Local Authority £0 39 41 39 28 Ayrshire Growth Deal £0 49 53 49 36 Scotland £0 79 84 79 58 Local Authority - £2,102,108 £2,250,353 £2,064,459 £1,561,971 Ayrshire Growth Deal - £2,669,343 £2,857,591 £2,621,535 £1,983,455 Scotland - £4,279,291 £4,581,076 £4,202,648 £3,179,726 Local Authority £0 19 19 12 15 Ayrshire Growth Deal £0 26 25 16 20 Scotland £0 34 33 22 26 Local Authority - £50,628,932 £48,878,624 £29,253,376 £40,832,926 Ayrshire Growth Deal - £67,318,248 £64,990,968 £38,896,456 £54,293,087 Scotland - £88,822,688 £85,751,972 £51,321,713 £71,636,712 Actual 0 £39,735 £38,001 £8,963 £30,329 Net Impact - £39,735 £38,001 £8,963 £30,329 Local Authority - £6.91 £6.69 £4.49 £7.90 Ayrshire Growth Deal - £9.18 £8.88 £5.96 £10.49 Scotland - £12.22 £11.84 £7.97 £13.96 Person Years of Construction Employment Present Value of Net Additional Construction GVA Benefit Cost Ratio Full-time Equivalent Jobs Present Value of Net Additional Operational GVA PV of GHG Carbon Accounting 440
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NAC Growth and Investment AGD Business Case 99 Table 27: BCRs with Construction Impacts Removed Construction Benefits: • Construction-related benefits are temporary as they only occur during the construction period of a project. This results in person years of employment (PYE) being created for construction jobs, rather than full-time equivalent (FTE) jobs. Outputs are based solely on construction-related expenditure. • Local authority-level socioeconomic data on turnover per employee and productivity per employee (measured as gross value added per employee) are used to calculate the PYE the construction-related expenditure creates and the output (GVA) that each worker produces. • Additionality assumptions including leakage, displacement, deadweight, and type ii economic multipliers are then applied to estimate the net direct benefits of construction-related activity at three geographic levels: local authority, growth deal area, and national level. Details of these are already provided. Operational Benefits: • Operational benefits are realised through the creation of commercial floorspace and the utilisation of that floorspace in line with recently completed Phase 1 of Flexi Space. • The creation of commercial floorspace generates FTEs dependent on the final use of the floorspace. Floorspace density coefficients recommended by the Homes & Communities Agency are used to derive the number of FTEs per metre-squared (m2) of floorspace created. These vary depending on the type of floorspace created – with higher density classifications, like call centres, generating more FTEs than lower density classifications, such as warehouses. For this Phase of Flexi Space the focus is upon the creation of light industrial space. • The latest local socioeconomic data on employee productivity are then applied to the FTEs created to calculate the economic benefit of the floorspace occupied. These benefits are assumed to continue throughout the appraisal period selected and are subject to the additionality assumptions aforementioned in the construction benefits section. Present value of monetised benefits and carbon accounting across 5-year periods to watch the 25-year appraisal time period. Project Start Date: Benefit-Cost Ratio Timeframe: 2025 25 Years 2050 Option 1 Single Unit Sub divided Unit Terraced Unit Small Unit + LUF PV of Total Costs All Geographies £0 £7,654,118 £7,677,791 £7,028,721 £5,386,350 Local Authority £0 £52,889,911 £51,374,336 £31,575,564 £42,551,916 Ayrshire Growth Deal £0 £70,246,516 £68,211,833 £41,856,541 £56,515,423 Scotland £0 £93,547,670 £90,916,429 £56,013,778 £75,208,127 Local Authority - £50,787,804 £49,123,984 £29,511,105 £40,989,946 Ayrshire Growth Deal - £67,577,173 £65,354,242 £39,235,006 £54,531,968 Scotland - £89,268,380 £86,335,353 £51,811,130 £72,028,400 Actual 0 £39,735 £38,001 £8,963 £30,329 Net Impact - £39,735 £38,001 £8,963 £30,329 Local Authority - £6.64 £6.40 £4.20 £7.61 Ayrshire Growth Deal - £8.83 £8.51 £5.58 £10.12 Scotland - £11.66 £11.24 £7.37 £13.37 Present Value of Net Direct GVA Present Value of Net Additional GVA PV of GHG Carbon Accounting Benefit Cost Ratio 441
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NAC Growth and Investment AGD Business Case 100 Table 42: Profile of Benefits Accrued – 5 Year Periods Green House Gas Accounting: The table below outlines how monetised carbon savings will accumulate and increase across five-year periods following pathfinder projects delivery. This analysis reflects the decarbonisation potential of the interventions and long-term value of avoided emissions. This will provide a clear framework for tracking progress against climate targets and support evaluation of scalability of pathfinder models. Table 43: Green House Gas Accounting Inflation Level • All monetary values are expressed as a constant price i.e. expressed as “real price”. The Office of National Statistics (ONS) publishes time series data for a series of price indices, and we apply the Gross Domestic Product (GDP) deflator to present all figures in constant prices. Note that this treatment of financial values differs from the Financial Case. The financial case presents “nominal prices” with a 2% inflationary rate applied. • The Social Time Preference Rate (STPR) has been applied at 3.5% to discount monetary values. This rate decreases to 3% after 30 years as per HM Treasury guidance. • Confirmation that BCEM utilises the latest estimates of CPI and GDP deflators sourced from the ONS and Office for Budget Responsibility. At the time of the modelling exercise the latest sources for each were: GDP deflators at market prices, and money GDP September 2024 (Quarterly National Accounts) – GOV.UK Consumer price inflation, UK – Office for National Statistics Distributional Analysis • A quantitative distributional analysis (i.e. employing welfare weighting – relative value of jobs/income based on their geographic distribution) has not been carried out, though distributional impacts have been considered. This project by nature has not been designed to have specific distributional impacts on any demographic. Additionality • Additionality assumptions including Leakage, Displacement, Deadweight, and Type II Economic multipliers are applied to estimate the Net Direct benefits of each shortlisted option. Additionality assumptions have been disaggregated between both the Construction and Operational activity taking place within the project area – providing a greater assessment of the net additionality of the project than applying a blanket set of assumptions across each project element. 2030 2035 2040 2045 2050 Single Unit £2,102,108 £2,102,108 £2,102,108 £2,102,108 £2,102,108 Sub divided Unit £2,250,353 £2,250,353 £2,250,353 £2,250,353 £2,250,353 Terraced Unit £2,064,459 £2,064,459 £2,064,459 £2,064,459 £2,064,459 Small Unit + LUF £1,561,971 £1,561,971 £1,561,971 £1,561,971 £1,561,971 Present Value of Construction-related Benefits - Local Authority 2030 2035 2040 2045 2050 Single Unit £20,789 £34,261 £37,837 £39,097 £39,735 Sub divided Unit £19,055 £32,528 £36,104 £37,364 £38,001 Terraced Unit £4,227 £7,595 £8,489 £8,804 £8,963 Small Unit + LUF £16,682 £26,386 £28,962 £29,870 £30,329 Present Value of GHG Accounting - Local Authority 442
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NAC Growth and Investment AGD Business Case 101 • Leakage, Displacement, Deadweight, and Type II Economic multipliers have been informed through discussion with the project team who hold local knowledge and similar development across Scotland. List of additionality assumptions have been used which incorporates displacement, leakage, economic multipliers and deadweight at each geographic level for relevant appraisal criteria. Details of the assumptions made are included within this Appendix. Conclusion and Quantitative Benefits The key findings are as follows: Option 1: Do nothing/minimum status quo Do Nothing Option 2: Single Unit: • Creates 49 person years of employment in the Construction sector. (Ayrshire Growth Deal Region) • Creates 79 person years of employment in the Construction sector (Scotland) • Supports 26 full-time equivalent jobs through commercial development. (Ayrshire Growth Deal Region) • Generates £67.318m in net additional GVA over 25 years, £2.669m when construction impacts removed. (Ayrshire Growth Deal Region) • Demonstrates a of £9.18:£1 Benefit-Cost Ratio (Ayrshire Growth Deal Region) Option 3: Sub Divided Unit: • Creates 53 person years of employment in the Construction sector. (Ayrshire Growth Deal Region) • Creates 84 person years of employment in the Construction sector (Scotland) • Supports 25 full-time equivalent jobs through commercial development. (Ayrshire Growth Deal Region) • Generates £64.990m in net additional GVA over 25 years, £2.857m when construction impacts removed. (Ayrshire Growth Deal Region) • Demonstrates a of £8.88:£1 Benefit-Cost Ratio (Ayrshire Growth Deal Region) Option 4: Terraced Unit: • Creates 39 person years of employment in the Construction sector. (Ayrshire Growth Deal Region) • Creates 49 person years of employment in the Construction sector (Scotland) • Supports 16 full-time equivalent jobs through commercial development. (Ayrshire Growth Deal Region) • Generates £38.896m in net additional GVA over 25 years, £2.621m when construction impacts removed. (Ayrshire Growth Deal Region) • Demonstrates a positive rate of return through a £5.96:£1 Benefit-Cost Ratio (Ayrshire Growth Deal Region) 443
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NAC Growth and Investment AGD Business Case 102 Option 5: Small Unit within LUF3 Cost Envelope • Creates 36 person years of employment in the Construction sector. (Ayrshire Growth Deal Region) • Creates 58 person years of employment in the Construction sector (Scotland) • Supports 20 full-time equivalent jobs through commercial development. (Ayrshire Growth Deal Region) • Generates £54.293m in net additional GVA over 25 years, £1.983m when construction impacts removed. (Ayrshire Growth Deal Region) • Demonstrates a positive rate of return through a £10.49: £1 Benefit-Cost Ratio (Ayrshire Growth Deal Region) The BCR figures used for comparison purposes of the options are those excluding construction impacts, as set out in Table 27. This approach ensures consistency with appraisal guidance and allows for a like-for-like comparison across options. In addition to the quantitative benefits noted above, the following qualitative benefits will be achieved through investment in Phase 2: Qualitative Benefits Appraisal The qualitative benefits were considered by the project team to evaluate the benefits. Delivery of the Phase 2, will deliver the following: Table 30: Qualitative Benefits Criteria Objectives Qualitative Benefits, Flex Space Programme Flex Space Phase Weight 1 2 % 7. To create flexible business space capable of meeting manufacturing requirements for chemical and life sciences, but also for a wide range of other high value sectors. • New business units will be occupied by Ayrshire/ Scottish/ UK/ overseas businesses 20 • Created/safeguarded jobs will generate economic value – jobs, GVA, turnover for Ayrshire and Scotland • Supply chain outcomes will be created for other Ayrshire and Scottish businesses • Design and construction contracts will generate turnover for Ayrshire and Scottish contractors • Construction jobs and training outcomes will be created, primarily for Ayrshire people and particularly drawn from disadvantaged or Protected Characteristic groups. 8. Create a centre of digital innovation which offers digital tools, support and innovation scaled to a national market supporting a restructure of the regional economy to deliver advanced manufacturing. • University and College presence at i3 offering training and business development opportunities. 20 • Cluster of R&D and spin off opportunities • Providing employment, skills development, community wealth building and supply chain growth opportunities • Providing the private sector with opportunities for upskilling, business transformation and increased productivity 9. To create serviced industrial land and capable of immediate development. • Development plot will be available for indigenous Ayrshire/ Scottish, UK-owned and foreign investors ü ü 10 • Design and construction contracts will generate turnover and jobs for Ayrshire and Scotland ü ü 444
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NAC Growth and Investment AGD Business Case 103 Objectives Qualitative Benefits, Flex Space Programme Flex Space Phase Weight 1 2 % 10. To create opportunities for employment and inclusive growth with particular emphasis on making connections to local communities, schools and colleges in preparation for employment, particularly in areas of deprivation. • New employment outcomes – direct and indirect through supply chains 20 • Work experience and training places for school and college student. ü ü • Job market entrants and low skilled workers increasing soft and basic skills through provision of local jobs. ü ü • Residents of deprived areas gaining access to opportunities • University presence enabling additional educational and training opportunities ü ü • Delivery of enhanced public transport connection that opens up employment opportunities 11. To attract mobile and private sector investment both from abroad and from indigenous companies. • New employment and training outcomes 15 • Demonstrate attractiveness of Scotland as excellent location for life sciences manufacturing • Increased investment confidence 12. To create a sustainable, high quality business location and R&D cluster, capable of meeting and keeping pace with the changing demands of high value manufacturing sectors and complementing national initiatives including NMIS • Enhancement and maintenance of attractiveness of Ayrshire as a location, meeting modern business needs and promoting Industry 4.0 services. ü ü 15 • Large, visible and modern development that clearly shows Ayrshire is Open for Business ü • Recognised as part of a national strategy for improving digital technology Economic Modelling Conclusion – Delivery of Phase 2 In conclusion, Option 2, the delivery of a Single Unit provides the greatest economic benefits. Beyond the economic metrics, this approach delivers transformative benefits such as the wider infrastructure provided for the site, the opportunity for training placements and engagement with local schools e.g. through the STEM curriculum and towards the completion of a cluster of modern industrial space within a central are of i3. 445
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NAC Growth and Investment AGD Business Case 104 APPENDIX E: RISK REGISTER AYRSHIRE GROWTH DEAL RISK REGISTER: i3 ADVANCED MANUFACTURING SPACE Full Business Case, Phase 2, 08 April 2026 (IP) denotes risks within Implementation Plan Risk Code Risk Type Risk Description Likeli- hood Impact Risk Score Internal Controls / Counter Measure Owner Status I3FL-R01 (IP) SCOPE Outputs & Outcomes Anticipated outputs and outcomes are not delivered. 3 3 9 Ensure BC addresses sensitivity of outcomes Clear Evaluation & Monitoring Framework Maximise outcomes through project suppliers NAC / Contractor Amber I3FL-R02 QUALITY Outputs & Outcomes The project fails to achieve more inclusive growth and/or reduce poverty by increasing the income of people in deprived areas or protected characteristic groups 3 5 15 Benefits Realisation Plan prepared to identify targets. NAC Red I3FL-R03 SCHEDULE Timescales / Programme Delays to overall project programme and key milestones 3 3 9 Prepare a detailed project programme with considered time allowances and review regularly. Delivery Team Amber I3FL-R04 (IP) SCHEDULE Timescales / Procure- ment Delays to the submission or approval of business cases or the progress of tender procurement, causes delays to the award of contracts for flex space and the progress or claiming AGD spend or the Local Regeneration Fund. 4 3 12 Seek early agreement on appropriate procurement routes Include anticipated tender packages within the Council’s Procurement Wave Plan Spend aligned against related funding source deadlines Ensure sufficient timeline allocated to evaluation tender Ensure response, evaluation and governance process programme to enable swift progress to award NAC Amber I3FL-R05 Timescales / Environmen t Delays caused by environmental considerations 3 5 15 Protected Species/Habitat risk has been assessed at an early stage. Review of site studies required at key stages. NAC Red 446
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NAC Growth and Investment AGD Business Case 105 AYRSHIRE GROWTH DEAL RISK REGISTER: i3 ADVANCED MANUFACTURING SPACE Full Business Case, Phase 2, 08 April 2026 (IP) denotes risks within Implementation Plan Risk Code Risk Type Risk Description Likeli- hood Impact Risk Score Internal Controls / Counter Measure Owner Status Ensure seasonal work/study requirements are accounted for in programme. I3FL-R06 Timescales / Environ- ment Delays caused by site investigation work and findings 3 5 15 Instruct SI work at early stage of project NAC Red I3FL-R07 Timescales / Regulatory Delays caused by objections 2 4 8 Advance programme of local & stakeholder engagement. NAC Amber I3FL-R08 (IP) SCHEDULE Timescales / Regulatory Delays caused by statutory consent processes 3 2 6 Zoned & allocated site Pre-App discussion with NAC Planning Assess protected species/habitat risk at early stage Review planning challenge/appeals Agree programme for consents Advance programme of local stakeholder engagement NAC Amber I3FL-R9 (IP) SCHEDULE Timescales / Regulatory Delays caused by land assembly / lease agreement processes. 2 2 4 Early engagement with owners. Ensure programme allows for third party approvals. Phase 3 layout has been developed to reduce requirement for private land. NAC / SE Amber I3FL-R10 (IP) SCHEDULE Timescale / Contractor Delays during project construction phases. 3 3 9 Regular monitoring through site meetings and reports Ensure emphasis through programme analysis and approach included in tender documentation and evaluation. Contractor Amber I3FL-R11 (IP) INTERNAL RESOURCES Timescale / Staff resources not sufficient to manage projects as they develop. 3 2 6 Risk has reduced as vacant post has been filled, although impact has been significant on pushing out delivery timelines for projects. NAC / Consultant s / Contractor Amber 447
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NAC Growth and Investment AGD Business Case 106 AYRSHIRE GROWTH DEAL RISK REGISTER: i3 ADVANCED MANUFACTURING SPACE Full Business Case, Phase 2, 08 April 2026 (IP) denotes risks within Implementation Plan Risk Code Risk Type Risk Description Likeli- hood Impact Risk Score Internal Controls / Counter Measure Owner Status Business / Professional I3FL-R12 Regulatory Planning/building warrants are not granted. 2 5 10 LDP supports development of site for this use. Ensure local members briefed/updated on project. Hold pre-app discussion with NAC Planning Assess Protected Species/Habitat risk Formally agree programme for consents Advance programme of stakeholder engagement NAC Amber I3FL-R13 (IP) Regulatory Compliance Subsidy regulations. 1 2 3 Regular monitoring and if required, contact with Subsidy Unit to ensure no specific risks arising related to subsidy, due to nature of the project. NAC Green I3FL-R14 Financial Design and technical studies result in additional costs beyond the contingencies and optimism bias allowed for. 3 4 12 Develop and validate project briefs and specifications for each phase Benchmark costs. Ensure early infrastructure cost tested and informed by SI work. Provide Optimism Bias allowances compliant with Green Book Provide for contingency & inflation. NAC / Design Team Amber I3FL-R15 Financial Slippage / delay in the programme incurs additional costs. 3 5 15 Instruct appointed project team to address this within Risk Register. Selected procurement route will seek to ensure contract type has less risk for client. NAC / Contractor Red 448
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NAC Growth and Investment AGD Business Case 107 AYRSHIRE GROWTH DEAL RISK REGISTER: i3 ADVANCED MANUFACTURING SPACE Full Business Case, Phase 2, 08 April 2026 (IP) denotes risks within Implementation Plan Risk Code Risk Type Risk Description Likeli- hood Impact Risk Score Internal Controls / Counter Measure Owner Status I3FL-R16 Financial There are unforeseen project complexities that require additional funding. 2 4 8 Provide for contingency Provide Green Book compliant Optimism Bias allowances. Similar project has been delivered previously. NAC Amber I3FL-R17 Financial Rental income lower than forecast 2 3 6 Market review and comparator analysis to identify appropriate rent but ultimately down to actual market demand on completion. NAC Amber I3FL-R18 Financial Lack of budget to support interested tenants to fit out shell of building 4 3 12 Identify at an early stage and with Business Growth Team, how this can be supported. NAC Amber I3FL-R19 Financial Lack of budget to support maintenance of buildings until tenants take occupancy, if buildings are classified and non -operational. 2 2 4 Identify at an early stage with Finance and Estates, how this can be supported. NAC Amber I3FL-R20 Professional Lack of project management experience. 2 3 6 Ensure experience project management team, both in-house and any external support. Budget allows for appointment of required expertise. NAC Amber I3FL-R21 Professional Poor change management procedures. 2 3 6 Clear and agreed procedures set in place for internal change management and for external processes with design team and contractor. NAC / Contractor Amber I3FL-R22 Professional Specification – design issues on-site 2 4 8 Adopt best practice design and ensure flexibility for subsequent division/ alteration of premises. NAC / Consult- ants / Contractor Amber 449
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NAC Growth and Investment AGD Business Case 108 AYRSHIRE GROWTH DEAL RISK REGISTER: i3 ADVANCED MANUFACTURING SPACE Full Business Case, Phase 2, 08 April 2026 (IP) denotes risks within Implementation Plan Risk Code Risk Type Risk Description Likeli- hood Impact Risk Score Internal Controls / Counter Measure Owner Status I3FL-R23 Contractual / Political Failure to deliver community benefits – training, employment 3 4 12 Incorporate appropriate community benefits into contract terms and resource appropriately NAC / Contractor Amber I3FL-R24 Contractual Issues with co-ordination on-site - contracts, visitors 2 4 8 Ensure main contractor has appropriate procedures for site management Contractor Amber I3FL-R25 (IP) QUALITY Reputat- ional / Political The Flexible Space Programme’s Full Business Cases fail. 3 2 6 Development of OBC/FBC in accordance with Green Book Flex Space OBC approved June 21 Flex Space Ph1 FBC approved Dec 22 Review capex and opex costs Partner/stakeholder risk assessment Early market input / partner & commercial input Review governance arrangements. NAC Amber I3FL-R26 (IP) QUALITY Reputat- ional Demand for the Flex Space Programme diminishes and there is no interest from occupiers. 3 2 6 Flexible design to maximise potential interest from occupiers. Marketing and promotion of floorspace Continue to establish relationships with national sectors (incl NMIS) Interest in Phase 1 has confirmed market interest and reduced risk Review of Ph2&3 prepared by property agents. NAC Amber I3FL-R27 Reputat- ional Market expectations are not met. 2 5 10 Scale/ quality/ design based on identified market needs Recent research has established demand. Continue to review demand and business needs with Partners including SE and SDI. NAC Amber 450
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NAC Growth and Investment AGD Business Case 109 AYRSHIRE GROWTH DEAL RISK REGISTER: i3 ADVANCED MANUFACTURING SPACE Full Business Case, Phase 2, 08 April 2026 (IP) denotes risks within Implementation Plan Risk Code Risk Type Risk Description Likeli- hood Impact Risk Score Internal Controls / Counter Measure Owner Status Involve relevant business engagement partners. I3FL-R28 Reputat ional Businesses interested in units decide not to progress 3 5 15 Ensure ongoing engagement with businesses to prepare suitable Heads of Terms. NAC Red I3FL-R29 (IP) EXTERNAL Project delays due to external economic impacts such as COVID-19 and recovery. 4 2 8 Early analysis has identified that the need for this project is unlikely to be diminished and in fact may be even greater. Analysis of external factors will be monitored that area likely to impact on the project. NAC Amber I3FL-R30 (IP) EXTERNAL Proposals become unaffordable and there are cost overruns. 4 3 12 Regular review of design vs budget, value engineering and impact of market conditions on costs Benchmark costs Ensure early infrastructure cost tested /informed SI Provide for contingency and Green Book compliant optimism bias allowances Ensure project approval processes are in place to control budget compliance Pursue additional funding sources. NAC Amber I3FL – R31 (IP) Timescales / Financial Existing and proposed utilities cause issues or delays e.g. surface water drainage connections, sub-station requirements. 3 3 9 Ensure exact locations of existing infrastructure identified Early engagement with SPEN, Scottish Water, BT etc. Testing to be carried out and capacity to be confirmed for water supply Amber 451
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NAC Growth and Investment AGD Business Case 110 APPENDIX F: INCLUSIVE GROWTH & COMMUNITY WEALTH BUILDING I3 Flexible Advanced Manufacturing Space: Inclusive Growth and Community Wealth Building Inclusive Growth Ambition/Objective How? IG Barrier IG Action Plan CWB pillar CWB theme Equalities/ Excluded Group Increase in GVA across region Deliver modern, flexible business space to provide space to market (65,000 sq ft) Intermediate & Advanced Skills, Structure of economy, Advanced digital skills, Business premises Inward investment Maximising benefits for Ayrshire’s business base. Maximising benefits for people – Fair Work. Maximising benefits for places/communities. Fair employment Land and assets Promote our investment opportunities to regional and national institutions to gain investment in our communities Expenditure in R&D per head Deliver modern business space which attracts investment from firms spending in R&D Structure of economy Advanced digital skills Business premises Maximising benefits for Ayrshire’s business base. Maximising benefits for people – Fair Work. Maximising benefits for places/communities. Fair employment Land and assets Promote our investment opportunities to regional and national institutions to gain investment in our communities Employment Opportunities Create employment opportunities for groups that most need them eg disadvantaged groups and protected characteristic groups including women and young people. Detail requirements through Community Benefits in procurement packages. Work with partner organisations to facilitate recruitment of excluded groups. Intermediate & Advanced Skills, Structure of economy, Maximising benefits for people – Fair Work. Maximising benefits for places/communities. Fair employment Procurement Promote our investment opportunities to regional and national institutions to gain investment in our communities Improving skills Creating pre-employment learning pathways for identified priority groups eg females, living in Ayrshire. Support skills needs of businesses taking space within i3. Intermediate & Advanced Skills, Structure of economy, Advanced digital skills, Maximising benefits for people – Fair Work. Maximising benefits for places/communities. Fair employment supporting in work progression, and training and skills pipeline 452
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NAC Growth and Investment AGD Business Case 111 APPENDIX G: COMMUNITY BENEFIT STATEMENT AGD Business Cases – Regional Community Benefits Statement Community Benefits Community Benefits have been a key component of public procurement policy and practice in Scotland for more than ten years. To embed best practice and drive public bodies to consider Community Benefits clauses in procurement, The Procurement Reform (Scotland) Act 2014 established a national legislative framework for sustainable public procurement that supports Scotland’s economic growth through improved procurement practice. The Reform Act requires public bodies, including Ayrshire Growth Deal (AGD) Partners, to consider how their procurement activity can improve the economic, social and environmental wellbeing of their communities. Community Benefits are one of a range of social and environmental requirements that can be included in public contracts, contributing to national outcomes on sustainability including, but not limited to, employment, learning, skills, supply chain development and community engagement. Contractors, suppliers and Service Providers appointed through AGD projects must demonstrate their organisations’ commitment to providing Community Benefits within Ayrshire, over and above their obligations to deliver on the core purpose of a contract. In accordance with guidance of the Reform Act and always in a relevant and proportionate manner, applicable appointments, through AGD projects, which require procurement activity, will be subject to Community Benefits requirements. Community Benefits Themes Through their separate procurement activities and where possible, AGD Partners are committed to assisting both young and unemployed people by encouraging access to quality sustainable employment and providing skills and training opportunities. Organisations appointed to AGD projects must therefore be able to demonstrate their commitment to integrate trainees and long-term unemployed persons into the labour market, without distinction to sex, marital status, race, ethnic origin or political or religious beliefs. AGD projects will also bring together an extensive range of experienced Professionals who, with minimal sacrifice of time, could provide useful learning and knowledge exchange opportunities for various groups of people in our Ayrshire communities and over a wide range of subject areas and 453
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NAC Growth and Investment AGD Business Case 112 expertise. Organisations appointed to AGD projects must therefore be able to demonstrate their commitment in providing learning opportunities across the wider Ayrshire community. Community Benefits pledges from AGD projects should also have a focus on supporting and developing Ayrshire’s existing business base and building on this with the aim of increasing the number of new business start-ups and growing sustainable businesses. The long-term sustainable development of Ayrshire’s SME business base is vital and AGD Partners recognise the need to support the development of the SME sector through the use of a procurement approach which maximises SME exposure to procurement opportunities. As such and through the procurement phases of any AGD project, contracting organisations will be asked to consider the following objectives when committing to the delivery of Community Benefits: • Improving Education and Skills. For example, creation of apprenticeships or delivering knowledge exchange and presentations in schools or community groups. • Improving Local Employability. For example, creation of new jobs, recruitment of the long- term unemployed, disadvantaged or young people. • Work Experience Placements/Programmes. For example, providing work experience placements to those in education. • Delivering Training and Development in the Community. For example, mentoring - private sector suppliers can offer support, normally as part of their CSR activity, where they can offer training and guidance to local organisations and individuals. • Community Consultation - giving the local community an opportunity to express an opinion and possibly influence the design and delivery of a project or service in an area. • Enhancing & Improving Local Community and Environmental Projects. For example, providing volunteers or donations to local initiatives. • Sponsorship and Charity Work • Supply Chain, Supported Business, Third Sector and Voluntary Initiatives. For example, offering Small and Medium Enterprises and Voluntary Sector organisations opportunities to provide goods, works and/or services as part of a contract. Tracking & Reporting Community Benefits Organisations who are successful in being awarded a contract through an AGD project will have their Community Benefits pledges evaluated on an ongoing basis, throughout the duration of their contract and through each of the AGD Partners’ contract management procedures, using a shared Community Benefits tracking system. Along with providing an excellent, flexible and accessible record of business information for those organisations appointed to Growth Deal projects, the AGD Partners’ shared, online Community Benefits Tracker will ensure a consistent approach is applied to the monitoring of Community Benefits pledged through AGD procurement. 454
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NAC Growth and Investment AGD Business Case 113 APPENDIX H: EQUALITY IMPACT ASSESSMENT Ayrshire Growth Deal Equality Impact Assessment including Fairer Scotland Duty Equality Impact Assessment is a legal requirement under the Public Sector Duty to promote equality of the Equality Act 2010. Separate guidance has been developed on the Equality Impact Assessment’s which will guide you through the process and is available to view here: https://www.equalityhumanrights.com/en/publication-download/assessing-impact-and-public-sector-equality-duty-guide-public-authorities/ The Fairer Scotland Duty (‘the Duty’), Part 1 of the Equality Act 2010, came into force in Scotland from 1 April 2018. It places a legal responsibility on Councils to actively consider (‘pay due regard to’) how we can reduce inequalities of outcome caused by socio-economic disadvantage, when making strategic decisions. Interim Guidance for Public Bodies in respect of the Duty was published by the Scottish Government in March 2018. Please note that the term ‘project’ is used throughout and applies to policies, strategies, provisions, criteria, functions, practices, budget savings and activities, including the delivery of services. If you require assistance please contact: North Ayrshire Council Andrew Hale andrewhale@north-ayrshire.gov.uk Section One: Project Details* Name of Project I3 Flexible Advanced Manufacturing Space Lead Officer (Name/Position) Marnie Ritchie, Manager, Growth and Investment Support Team (Names/Positions) including Critical Friend Growth and Investment Team, North Ayrshire Council What are the main aims of the project? To deliver approximately 6,000m2 of advanced manufacturing space at i3 over a number of phases, to meet market demand in an area of market failure and to complement AGD investment in the Digital Process Manufacturing Centre (DPMC) at i3, in partnership with NMIS and CPI - creating an overall cluster of research, innovation, accommodation and services for industry and business. What are the intended outcomes of the project The intended outcomes of the project are the delivery of much needed modern business space, new jobs and construction jobs, supported SMEs, additional GVA, access to related employability and skills programmes for local people and removal of sites from the vacant and derelict land register. 455
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NAC Growth and Investment AGD Business Case 114 Section Two: What are the Likely Impacts of the Project? Will the project impact upon all three Ayrshire Council areas or a specific council area and/or particular groups within the population (please specify the equality groups) The project has the potential to impact on all three Ayrshire Council areas but mostly North Ayrshire. It has the potential to positively impact on particular groups in terms of opportunities for employment and training for disadvantaged people or people within Protected Characteristic groups. Consider the ‘Three Key Needs’ of the Equality Duty Which aspects of the project eliminate unlawful discrimination, harassment and victimisation? Which aspects of the project advance equality of opportunity between people who share a relevant protected characteristic and those who do not? The project is about creating new business space, therefore due to the nature of the project, it is not considered that this key need is relevant to the project. However, the modern design of the buildings and the site will take account of people that have disabilities in a way that existing ageing business space may not. • The design of the project space will be modern and fully accessible, complying with EA 2010 standards and enabling potential employees or trainees that are mobility impaired or disabled to access the buildings and the surrounding space. • The procurement process for the buildings will require construction companies to provide opportunities for trainees and job seekers from disadvantaged or Protected Characteristic groups. For Phase 1 of the project, contractor Muir Group worked with CEIS Ayrshire to support a young person from the local area who had been unemployed for approximately 6 months, moving from a work experience placement to a full-time site labourer for the duration of the contract. • Businesses that occupy the space will be encouraged by the Council and its partners to create employment/skills development/ learning opportunities for people in disadvantaged or Protected Characteristic groups. Phase 1 has only recently been let so and update can be provided in due course. • It is intended that the project will seek to improve active travel links to the site, to make the location more accessible to people without access to a car and who may be reliant on affordable and accessible public transport services. Active travel route improvements have recently been made in close proximity to the i3 AGD investment site along Long Drive, linking to Riverside Way, providing wider shared surface footways and crossing points towards key public transport routes. 456
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NAC Growth and Investment AGD Business Case 115 Which aspect of the project foster good relations between people who share a protected characteristic and those who do not? (Does it tackle prejudice and promote a better understanding of equality issues?) Have any cross-cutting impacts been identified from other Council Services or Partner Agencies? (Multiple discrimination or accumulated effects of multiple proposals on a protected characteristic group) Island Proofing Island Proofing is about considering the particular needs and circumstances of island communities when public sector organisations exercise their functions and make decisions. This process includes a range of issues such as access to services, digital connectivity, employment and access to education; transport and access to goods and services. The project is focussed on a specific location at i3 Business Park in Irvine. It is not considered that the particular needs and circumstances of island communities would be detrimentally affected by this particular project. Considering the following Protected Characteristics and themes, what likely impacts or issues does the project have for the group or community? Please outline evidence in relation to impacts identified. List any likely positive and/or negative impacts. If negative impacts are identified, can these be mitigated or lessened? If you require further information in relation to evidence, the Equality Evidence Finder brings together the latest statistics and research for Scotland across different themes for age, disability, ethnicity, gender, religion, sexual orientation, socio-economic status and transgender status. The Equality Evidence Finder is updated monthly with a summary of the key official statistics, social research and National Performance Framework equality analysis. Links to further datasets, statistics and research are provided to help find the full range of available equality evidence for Scotland. The design of the buildings and job/skills/training opportunities for protected characteristic groups will help tackle prejudice and promote a better understanding of equality issues, through the integration of these requirements as standard practice. No cross-cutting impacts have been identified at this stage. 457
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NAC Growth and Investment AGD Business Case 116 Protected Characteristics Evidence Positive/Negative Impacts Mitigating Factors Age: Issues relating to different age groups eg older people or children and young people Young people are particularly excluded from manufacturing growth areas. Opportunities through NAC’s Employability team to sign post people seeking employment to contract opportunities. Disability: Issues relating to disabled people Limited access to employment opportunities due to limited scope to work in ageing industrial buildings and limited access to transport to i3. Modern design standards will ensure this is no longer an issue. Gender Reassignment – Trans/Transgender: Issues relating to people who have proposed, started or completed a process to change his or her sex No issues identified. Marriage and Civil Partnership: Issues relating to people who are married or are in a civil partnership No issues identified. Pregnancy and Maternity: Issues relating to woman who are pregnant and/or on maternity leave No issues identified. Race: Issues relating to people from different racial groups,(BME) ethnic minorities, including Gypsy/Travellers No issues identified. Religion or Belief: Issues relating to a person’s religion or belief (including non- belief) No issues identified. Sex: Gender identity: Issues specific to women and men/or girls and boys Women are particularly excluded from manufacturing growth areas. Opportunities through STEM Engagement with local schools to encourage more girls to consider certain careers. Sexual Orientation: Issues relating to a person’s sexual orientation i.e. LGBT+, lesbian, gay, bi-sexual, heterosexual/straight No issues identified. Children’s Rights Issues and impacts affecting children’s rights* No issues identified. 458
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NAC Growth and Investment AGD Business Case 117 Protected Characteristics Evidence Positive/Negative Impacts Mitigating Factors *for more information please email – andrewhale@north-ayrshire.gov.uk Health Issues and impacts affecting people’s health No issues identified. Wider improvements to active travel infrastructure enabling people to walk/cycle/wheel to i3. Human Rights: Issues and impacts affecting people’s human rights such as being treated with dignity and respect, the right to education, the right to respect for private and family life, and the right to free elections. No issues identified. Fairer Scotland Duty – Socio Economic Disadvantage Evidence Positive/Negative Impacts Mitigating Factors Low Income/Income Poverty: Issues: cannot afford to maintain regular payments such as bills, food and clothing. No relevant issues identified. Low and/or no wealth: Issues: enough money to meet basic living costs and pay bills but have no savings to deal with any unexpected spends and no provision for the future No relevant issues identified. Material Deprivation: Issues: being unable to access basic goods and services i.e. financial No relevant issues identified. 459
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NAC Growth and Investment AGD Business Case 118 Section Three: Evidence Used in Developing the Project Involvement and Consultation In assessing the impact(s) set out above what evidence has been collected from involvement, engagement or consultation? Who did you involve, when and how? Data and Research In assessing the impact set out above what evidence has been collected from research or other data. Please specify what research was carried out or data collected, when and how this was done. Research by Ryden property consultants on demand for commercial space across Ayrshire and within North Ayrshire. Advice from Graham and Sibbald property agents. Inward investment inquiries related to available industrial / commercial space or land to build space, including referrals from Scottish Enterprise. Inquiries from local companies seeking to move in order to expand their business premises. Partners data and research Please see above products like life insurance, repair/replace broken electrical goods, warm home, leisure/hobbies Area Deprivation: Issues: where you live (rural areas), where you work (accessibility of transport) Accessibility and affordability of transport to i3. Access to I3 Enterprise Area is currently limited by public transport. Active travel improvements (walking/cycling/wheeling) made from i3 AGD investment site to public transport routes. Action to progress discussions with public transport provider to consider improved services. Outcome of discussions with public transport provider required that improved public transport to i3 would require subsidy until there was a level of demand for the service. This will be reviewed once the i3 Flexible Space buildings are occupied. 460
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NAC Growth and Investment AGD Business Case 119 In assessing the impact(s) set out in Section 2 what evidence has been provided by partners? Please specify partners Gaps and Uncertainties Have you identified any gaps or uncertainties in your understanding of the issues or impacts that need to be explored further? No Section Four: Detailed Action Plan to address identified gaps in: a) evidence and b) to mitigate negative impacts Note: Please add more rows as required. Section Five - Performance monitoring and reporting Considering the project as a whole, including its equality and diversity implications: No. Action Responsible Officer(s) Timescale 1 Ensure the proposed build space and general project location is fully accessible and where appropriate, compliant with EA2010. Project Designers Over the course of the various phases of the project. 2 Progress discussions with public transport provider Discussions have taken place which require that there must be sufficient demand for an improved bus service, otherwise the route will require to be subsidised. It is too early in the project for there to be further demand as the Phase 1 building is not yet occupied. AGD Project Lead December 2022 Review position by December 2026 3 Develop initiatives with colleagues and other Council teams to ensure young people and women will benefit from the project. For Phase 1, Muir Group employed a young unemployed person and made links with Auchenharvie Academy for STEM engagement activities. AGD Project Lead Over the course of the various phases of the project. When is the project intended to come into effect? The project has started and will be delivered in a series of phases. When will the project be reviewed? At various Gateway Stages and at each Phase. Which Panel will have oversight of the project? The Project Board and particular Gateway Review meetings. NAC’s Executive Leadership Team. 461
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NAC Growth and Investment AGD Business Case 120 Section 6 Ayrshire Growth Deal Summary Equality Impact Assessment Implications & Mitigating Actions Name of Project: i3 Flexible Advanced Manufacturing Space project Name of Project Lead: Marnie Ritchie Email of Project Lead: marnieritchie@north-ayrshire.gov.uk Date of Assessment: original assessment for OBC in Feb 2021, reviewed 07 April 2026 This project will assist or inhibit the Council’s ability to eliminate discrimination; advance equality of opportunity; and foster good relations as follows: Please see information contained above. 1. Summary of project aims 2. Summary of how the project will eliminate discrimination 3. Summary of how the project will advance equality of opportunity 4. Summary of how the project will foster good relations 5. Summary of how the project considers Socio-Economic Disadvantage (Fairer Scotland Duty) 6. Summary of how the project considers the needs of island communities 7. Summary of Key Action to Mitigate Negative Impacts a. Actions and Timescales Project Lead: Marnie Ritchie, Manager, Growth and Investment Signed: 07 April 2026 462
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NAC Growth and Investment AGD Business Case 121 APPENDIX I: CARBON ANALYSIS Item Project Owner Response 1. Project Name i3 Flexible Advanced Manufacturing Space 2. Deal Region Ayrshire 3. Brief Description of Project The provision of flexible advanced manufacturing space to support business growth and inward investment. 4. Expected Carbon Emissions Impact CONTROL Category (1-5) 3 – Cap + then Zero 5. Expected Carbon Emissions Impact INFLUENCE Category (A-C) B (i.e. will have a negligible effect on wider carbon emissions) 6. Justification of Expected Carbon Emissions Impact Category e.g. a short narrative outlining the key carbon emission sources and their relationship to capital and operational net zero following the Deals Carbon Emissions Impact Categorisation Process. Carbon emissions through the construction process to create new industrial buildings and related access roads, parking, yard space and sustainable urban drainage areas. The first phase and phase two have considered measures at the operational stage to reduce carbon through the installation of solar roof panels, EV charging points and suds ponds. 7. Could the Carbon Emissions Impact Category be improved? e.g. from Category 4B to Category 3A It is expected that 3B will be the highest achievable rating for the project. 8. Could the carbon performance of the project be improved? e.g. reducing emissions further, achieving net zero faster. Yes. The project is being delivered in phases and its anticipated that further knowledge will be gained as the project develops, to inform adjustments or improvements to the design. 9. How will carbon be managed? e.g. through PAS 2080: Carbon Management in Infrastructure for infrastructure projects or the RICS Whole Life-Cycle Carbon Professional Statement for buildings projects PAS 2080 – check 10. What other carbon savings are expected to result from the project? e.g. wider carbon savings across the economy resulting from project output The new industrial space created through the project will provide businesses with the opportunity to benefit from solar panels and electric charging for vehicles on each site. The wider site will have a network of suds ponds and links into a separately funded active travel network of improvements which provides more sustainable transport options for travelling to and from the project site. There is also the possibility that future tenants could be involved in activities that contribute to achieving net zero. 463
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NAC Growth and Investment AGD Business Case 122 APPENDIX J: AYRSHIRE GROWTH DEAL CHANGE MANAGEMENT PROCESS 464
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NORTH AYRSHIRE COUNCIL 02 June 2026 Cabinet Title: National Islands Plan and North Ayrshire Islands Programme Update Purpose: To provide a progress update on the North Ayrshire Islands Programme and the new National Islands Plan and to outline proposed next steps. Recommendation: That Cabinet: a) Notes the progress of the North Ayrshire Islands Programme and achievements to date; b) Notes the publication of the National Islands Plan 2026 to 2031 and associated investment in 2026/27; c) Agrees to the refresh and refinement of the current Local Island Plans and associated delivery plans and their intended reporting; and d) Agrees to the finalisation and submission of the proposed funding applications to the Scottish Government’s Islands Programme. 1. Executive Summary 1.1 Established in 2021 to deliver the National Islands Plan objectives locally, the North Ayrshire Islands Programme has evolved into a mainstreamed approach driving economic, social, environmental and wider community improvements for Arran and Cumbrae. 1.2 Programme activity to date includes supporting the co-development and delivery of Local Island Plans, assisting the Council in securing over £6.6 million for island- specific projects, launching the Wee Grants for Islands pilot and contributing to regional strategies and national policy initiatives. 1.3 The new five-year National Islands Plan was launched on 24 February 2026 and is supported by a £5.75 million package of investment for island communities to create jobs, strengthen local economies, improve infrastructure, enhance community resilience and support the transition to net zero. Agenda Item 20 465
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1.4 Informed by this and the progress made to date through the North Ayrshire Islands Programme, it is proposed that a refresh and refinement of the Local Islands Plan be undertaken in partnership with communities and stakeholders. The refreshed plans will reflect the progress to date, incorporate up-to-date socio-economic data, align with the new National Islands Plan, Council Plan and wider local, national and regional priorities. 2. Background 2.1 The first National Islands Plan (NIP), under the Islands (Scotland) Act 2018, was published in December 2019. This provided a framework and thirteen strategic objectives aimed at improving outcomes for island communities and formed the foundation for local delivery approaches. 2.2 The Plan enabled new ways of working across local and national government, Highlands and Islands Enterprise (HIE), community planning partners, island communities and businesses. This promoted improved collaboration and knowledge sharing across island areas. 2.3 In February 2021, with financial support from Scottish Government, HIE and North Ayrshire Council, the North Ayrshire Islands Recovery and Renewal pilot was established. This included the recruitment of a dedicated Senior Officer (Islands) role to lead delivery and strengthen island policy development. The role works across the public sector, island communities and external stakeholders to target long-standing island challenges. 2.4 The pilot initially ran for three years between 2021 and 2024. Reflecting the progressive tripartite commitment, strengthening collaboration and North Ayrshire Council’s reinforced input and increasing impact on island policy and practice, the pilot was mainstreamed in February 2024 and rebranded as the North Ayrshire Islands Programme. The Programme continues to be supported financially by the Scottish Government and HIE are anticipated to confirm their ongoing commitment in the near future. National Islands Plan 2026 to 2030 2.5 The new five-year National Island Plan was formally launched on 23 February 2026. The Plan establishes population retention and attraction as its overarching objective with seven strategic objectives and associated targeted commitments contributing, directly or indirectly, to this overarching aim by supporting the conditions that enable people to live, work and remain in island communities. Community Wealth Building (CWB) is the key approach guiding the implementation of the Plan, which has a strengthened emphasis on locally led solutions and flexible delivery. 2.6 The Plan focuses on seven strategic objectives. It is supported by a national Implementation Route Map that sets out all commitments, identifies the organisations responsible for delivery and provides clear timescales. This gives island communities a transparent view of national activity and when key actions will take place • Connectivity – Improve transport and digital links • Housing – Increase affordable, suitable homes 466
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• Health & Social Care – Enhance local and digital services • Economy, Education & Skills – Support sustainable growth and local learning • Climate, Nature & Energy – Accelerate net zero transition with community benefits • Poverty & Social Justice – Tackle cost-of-living, fuel poverty, and inequality • Empowered Communities & Culture – Strengthen local leadership, heritage and languages. 2.7 Delivery of the Plan will be supported by an enhanced evidence framework. The Scottish Islands Data Dashboard will be updated to reflect the new Plan and will monitor real time changes in key areas such as population, economic performance, housing, transport and the cost of living. A new Scottish Islands Survey will provide direct insight from communities, helping to build a stronger understanding of local conditions and emerging trends. 2.8 Within three years, a comprehensive outcomes framework will be developed to guide decision-making at both national and local levels. This will support improved targeting of investment, ensure national resources are aligned with local needs and provide additional support for islands facing the greatest demographic pressures. It will also make clearer how national decisions impact local priorities. 2.9 Following publication of each annual report, the Government will hold public engagement sessions, including island-based events and an annual Islands Conversation webinar. These sessions will give island communities the opportunity to review progress, raise issues and influence next steps. 2.10 The Plan is supported by £5.75 million investment in 2026/27 for island communities to create jobs, strengthen local economies, improve infrastructure, enhance community resilience and support the transition to net zero. The funding also aims to address key pressures such as depopulation and rising fuel costs, which disproportionately affect island areas. This is comprised of the: • £3 million Islands Programme to support essential island infrastructure projects. Examples of previous projects include Garrison House, Cumbrae and Dyemill Bike Park, Arran. • £1 million Islands Cost Crisis Emergency Fund to assist communities in managing rising living costs. Funding is allocated across the six island local authorities including North Ayrshire Council. • £0.75 million Carbon Neutral Islands Programme to support local net zero initiatives on the six Carbon Neutral Islands including Cumbrae. • £1 million for projects linked to the new National Islands Plan for initiatives such as an island scholarship pilot, mental health support for young people and training programmes for sustainable tourism. 2.11 Our island communities contributed extensively throughout the consultation to inform the Plan, which includes a Case Study on the North Arran Community Benefit Society’s Lochranza Country Inn. Officers have worked collaboratively across Council services, with the Scottish Government’s Islands team, island communities and wider stakeholders, providing the opportunity to offer detailed feedback on the draft Plan throughout its development. 467
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2.12 Officers continue to work collaboratively with our island communities, Locality Partnerships and across Council Services on an annual basis to maximise the level of funding secured from this investment for our islands. 2.13 North Ayrshire Council currently receives an annual allocation from the Islands Cost Crisis Emergency Fund including £0.058 million in 2026/27. In line with the fund’s objectives, monies have been used in previous financial years to support crisis grants for island residents, community-based projects which address island specific cost of living issues, the additional costs of ensuring there is no educational loss for children and young people living on the islands, and other relevant projects. The use and distribution of this year’s funding will be discussed with members of the Arran Island Plan Groups, Cumbrae groups and other appropriate internal and external stakeholders and reported to Cabinet at an appropriate future date. North Ayrshire Islands Programme 2.14 The North Ayrshire Islands Programme continues to deliver against the agreed objectives, to: • Develop and monitor Local Island Plans for Arran and Cumbrae, aligning them with National Islands Plan objectives and Community Wealth Building principles. • Support the recovery and renewal of the islands from the social and economic impact of Covid-19 and reduced ferry services through maximising the support available for island communities, including targeting partner resources to address specific recovery priorities particularly in business resilience, supporting the identification and preparation of bids to access external funding by working alongside wider Council services including business development and regeneration. • Contribute to closer and more coordinated working between the island communities, community planning partners, national and local government and agencies to ensure stronger place-based partnership working and a whole systems approach to improve island wellbeing, including in areas such as housing and transportation and the implementation of the National Islands Plan. • Ensure the understanding and representation of the unique needs of islands’ communities in local and national policy development and encourage strategic island planning at all levels. 2.15 A wide range of activity, outputs and positive outcomes have been delivered since inception, informed by the ten-year Local Island Plans for Arran and Cumbrae, approved in February 2022. Achievements include securing over £6.6 million in investments; selection as a COSLA Excellence Awards finalist; leading North Ayrshire’s participation in the inaugural Cross Party Group on Islands Economy Showcase; launching the Wee Grants for Islands pilot; contributing to regional strategies; and securing funding through the Addressing Depopulation Action Plan. These are detailed in Appendix One. 2.16 The examples outlined demonstrate North Ayrshire Council’s continued and dedicated commitment, through the unique Islands Programme, to a fair and inclusive North Ayrshire, where we are working collaboratively with our island communities, stakeholders and partners to deliver immediate and longer-term 468
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improvements to island residents’ lives, strengthening the local economy and supporting sustainable social, economic and environmental progress and growth. 2.17 Governance arrangements include quarterly strategic review meetings with programme partners, quarterly Islands Heads of Service meetings and regular policy briefings for elected members and officers involved in island networks. Arran and North Coast Locality Partnerships receive quarterly updates on relevant island policy work. 2.18 The Programme is supported by the ongoing commitment and funding from the Scottish Government and HIE. The Scottish Government has committed £89,500 in 2026/27 to the continuation of the Programme and the development of the Islands Intelligence Hub Pilot. A further contribution is also anticipated from HIE in the near future to the continuation of the Programme. The Intelligence Hub project seeks to: • Address island‑level data gaps on our islands, focusing on areas such as housing, economic development, transport and climate resilience. • Create a community‑driven data dashboard that provides accessible, real‑time insights to support local planning, decision‑making and service improvement, which is scalable and replicable across other islands. • Develop and deploy a community data collection toolkit - including surveys, participatory mapping and citizen‑science approaches. • Strengthen community‑led decision‑making by enabling island residents, groups, businesses and public agencies to make faster, smarter decisions using high‑quality, locally relevant data and facilitating informed dialogue between community stakeholders and government. • Share learning across islands and national partners through policy briefings and learning packs. • Develop an evaluation report with recommendations on scaling, impact, replicability and opportunities for integration into national island data strategies. Local Islands Plans Refresh 2.19 In response to the publication of the National Islands Plan 2026 to 2031 and building on the effective and substantial work to date, it is proposed that the North Ayrshire Islands Programme progress work with island stakeholders, Elected Members and across Council teams to co-develop refreshed and refined Local Island Plans. These will be aligned with our Council Plan, Community Wealth Building Strategy, the new National Islands Plan, the Ayrshire and Highlands and Islands Regional Economic Strategies and other relevant policies, strategies and plans. 2.20 The refreshed and refined plans will reflect on the progress to date and align with the new National Islands Plan and incorporate up-to-date local socio-economic data and reflect local, regional, national and UK contexts. Consideration will be given to developing island investment plans that can be used as a framework to identify strategic island and priority capital and revenue projects seeking external funding, ensuring there is a co-produced and co-defined project pipeline to maximise investment opportunities for the islands. 2.21 Delivery continues to support the Council Plan through investment, improved services, strengthened local democracy, enhanced climate action and stronger partnership working. 469
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2.22 A future report will be submitted to Cabinet for approval of the refresh and refinement of the Local Island Plans Scottish Government Island Programme Applications 2.23 The Scottish Government’s 2026/27 Islands Programme provides a competitive capital funding opportunity to support critical infrastructure investment on inhabited Scottish islands. The Programme supports delivery of the National Islands Plan, with particular emphasis on population retention and attraction, and on projects that are community‑led, place‑based and deliver long‑term resilience. 2.24 North Ayrshire Council is eligible to submit applications as lead authority for Arran and Cumbrae. Funding may support priorities including community facilities, housing enablement, transport and connectivity, economic development infrastructure, net zero investment, and initiatives that reduce the cost of living and improve wellbeing. Projects must be capable of delivering and committing expenditure within the 2026/27 financial year. 2.25 The deadline for submissions to Scottish Futures Trust is 8 June 2026. The Economic Policy and Regeneration teams led a cross‑service process to identify and develop suitable projects to ensure alignment with Council priorities, community need, and deliverability. The following projects are proposed for submission: • Arran Heritage Museum Upgrade, Brodick; • DA Hall Site Redevelopment, Garrison House, Millport; • Island Solar Compactors Project; • Arran Outdoor Education Resource Sustainability Improvements, Lamlash; and • Cumbrae Path Upgrades, Millport. 2.26 An update will be provided to Cabinet on the outcome of the applications. 3. Proposals 3.1 That Cabinet: a) Notes the progress of the North Ayrshire Islands Programme and achievements to date; b) Notes the publication of the National Islands Plan 2026 to 2031 and associated investment in 2026/27; c) Agrees to the refresh and refinement of the current Local Island Plans and associated delivery plans and their intended reporting to Cabinet; and d) Agrees to the finalisation and submission of the proposed funding applications to the Scottish Government’s Islands Programme 470
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4. Implications/Socio-economic Duty Financial 4.1 Delivery of the Island plans will be reliant on successful external funding applications being made to support the delivery of the Plans’ ambitions, mirroring the approach taken with the initial Plans. The costs associated with refreshing and refining the Local Islands Plans will be met from existing resources, including the funding awards from Scottish Government and HIE for 2026/27. Human Resources 4.2 None arising from this report. The proposal will be delivered through existing resources which continue to be supported financially and through Officer resource by the Scottish Government and HIE in 2026/27. Legal 4.3 None. Equality/Socio-economic 4.4 The overarching purpose of the Local Island Plans is to drive sustainable economic development, build resilience, support population attraction and retention and advance the Council Plan commitment to reduce inequalities, widen democratic participation and strengthen community empowerment by encouraging greater local involvement. The refresh of the Plans will ensure these aims can be met more fully by aligning updated data, community priorities and national policy direction, enabling clearer strategic focus and improved delivery outcomes for the islands. Climate Change and Carbon 4.5 The refreshed Local Island Plans will continue to align to the Sustainable North Ayrshire Strategy and seek to continue to deliver positive environmental and sustainability outcomes through the associated action plans. Key Priorities 4.6 The North Ayrshire Islands Programme and refreshed Local Island Plans will continue to support all four of the Council Plan’s priorities and strategic aims of: • Wellbeing: To transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people by enabling island communities to identify local priorities, co-design solutions and address poverty and inequality through targeted investment and collaborative action. • Communities and Local Democracy: We will have active, inclusive and resilient communities by providing a clear and accessible mechanism for local democratic participation and strengthening community influence over local decision-making. • Climate Change: To achieve net-zero by 2030. • A Sustainable Council: A Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources on our priorities. 471
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Community Wealth Building 4.7 This proposal aligns directly with the principles of Community Wealth Building and the Council’s Community Wealth Building Strategy to build a strong, fair and sustainable local economy. This will also support the implementation of the Community Wealth Building (Scotland) Act 2026. It will ensure that the Council maintains its commitments as a Community Wealth Building Council by supporting the localised use of assets, enabling community led economic activity and ensuring Council resources and investment are focused on priorities that maximise impact for island communities. Islands Communities Impact Assessment (ICIA) 4.8 None arising from this report. The proposal seeks to maintain and strengthen support to island communities and does not introduce adverse impacts. United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None. 5. Consultation 5.1 The North Ayrshire Islands Programme was co-produced by the Council, Scottish Government and HIE. Consultation was undertaken with local stakeholders, community representatives and businesses on each island including the Arran Locality Partnership, the Arran Recovery Group and Cumbrae representatives. The Local Island Plans were developed through extensive engagement and consultation with island communities and island stakeholders and across Council Services, with the Health and Social Care Partnership, Scottish Government and HIE. The refreshed Plans will be developed through comparable extensive engagement and consultation. RUSSELL McCUTCHEON Executive Director (Place) For further information please contact Sarah Baird, Senior Officer (Islands), on sarahbaird@north-ayrshire.gov.uk Background Papers North Ayrshire Council, Cabinet Report: Islands Renewal Best Practice Pilot, 6 October 2020 North Ayrshire Council, Cabinet Report: Islands Plans, 22 February 2022 Scottish Government, National Islands Plan, 26 February 2025 472
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Appendix One: North Ayrshire Islands Programme Achievements 2022 to 2025 The Programme has delivered a wide range of activities, outputs and positive outcomes since its inception. Key to the success has been the development of 10-year Local Island Plans for Arran and Cumbrae, approved in February 2022, and the associated annual action plans. Informed by extensive engagement and consultation, these Plans have informed the delivery of the Programme, which has included: • Leading and supporting funding applications for island-specific projects, securing over £6.6 million for investment for North Ayrshire islands. The tables below highlight the broad range and scale of projects and investments across the £6.6m investment in our islands supported between 2022 and 2025. This is not an exhaustive list of projects but aims to highlight the key projects across a range of funds. The total expenditure across these sources is £6,643,281.85. • Being selected by COSLA as a finalist in the 2024 Excellence Awards in Strengthening Communities and Local Democracy category. Only fifteen projects, from over two hundred submissions across Scottish local government were chosen as finalists for the Excellence Awards, which are COSLA’s annual celebration of the very best of Scottish Local Government. • Supporting the delivery of the inaugural Scottish Parliament Cross-Party Group on Islands (CPIG) Economy Showcase promoting our islands economic opportunities, challenges and opportunities and showcasing local business innovation and products. A range of local island businesses participated in the all-day event at Holyrood in April 2025, including Auchrannie Resort, Arran Dairies and Cumbrae Community Development Company. • Launched the Wee Grants for Islands pilot in December 2025, enabling Arran and Cumbrae communities to deliver Local Island Plan priorities through small-scale projects addressing economic, social, and environmental challenges. • Contributing to the development of the inaugural Highlands & Islands Regional Economic Partnership (HIREP) strategy and draft delivery plan (2026 to 2028), with ongoing officer engagement to shape implementation. HIREP works to support inclusive and sustainable economic growth across the region by focusing on shared priorities and coordinating efforts to tackle common challenges. • Through the Government’s first Addressing Depopulation Action Plan (ADAP), securing Phase 1 funding to progress exploring the feasibility for inclusive childcare models to strengthen access to childcare provision on Arran and the Garnock Valley. • Securing ongoing funding and commitment from the Scottish Government to support the delivery of the pilot and North Ayrshire Islands Programme. • Supporting £0.46 million funding being secured through the Carbon Neutral Islands Programme. Scottish Government Project Award Project Name & Summary Millport Flood Protection Scheme £33.76M Delivery of a one in 200-year standard of protection for 2km of Millport's coastline Featuring over 950 precast units, rock armour breakwaters, and enhanced promenade spaces designed to protect island properties. 473
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Millburn Flood Protection Scheme £3.064M Design and construction of a 494 metre long overflow between the Golf Road/Kirkton Crescent junction and West Bay and a precast concrete seawall along a section of West Bay Road. Construction is underway and due to complete Summer 2026. Total £46.03M Scottish Government – Islands Programme Recipient Award Project Summary Millport Town Hall Trust £689,450 Millport Town Hall. To develop Phase 2 of a multi-funded development to use the building’s basement to provide a central community space, delivering a package of activities and attractions within a heritage building. Arran High School Mountain Bike Club £220,625 Dyemill Park To build, manage and maintain an accessible, inclusive and safe, all-weather environment to grow and develop the Islands cycling community, inspiring Arran to cycle. Cumbrae Community Development Company £730,998 Garrison House To deliver a comprehensive conservation scheme at Garrison House including a new gym accessible to all and provision of a changing places facility to address the lack of both on the island. North Ayrshire Council £540,000 Island Pit Stops programme Delivered through eight community groups across Arran & Cumbrae, to upgrade and develop their existing public toilets, into ‘visitor pit stops’ and improving the long-term viability of assets. Millport Town Hall Trust £414,425 Millport Town Hall To complete the waterproofing enabling works within the Millport Town Hall basement. North Ayrshire Council £323,925 Brodick Hall Island Hub To transform a vital and valued island community space, bringing it into the 21st century through critical investment in the building’s fabric. Arran Youth Foundation £382,299 Arran Youth Foundation Centre To install a new, bespoke replacement youth centre in Lamlash, on the site of Arran Youth Foundations' current facility. Lochranza and Catacol Sea Society £129,718 Lochranza Securing a Future in Marine Tourism To secure the future for the community brought by marine visitors through rejuvenating and extending critical marine infrastructure at Lochranza, Arran. Total £3,431,440 474
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Scottish Government - to support delivery of National Islands Plan Project Award Project Name & Summary Cumbrae Community Development Company £30,000 Garrison House To complete the conservation scheme including essential work identified as project progressed. Kildonan Hall & Improvements Committee £25,000 Kildonan Hall Project To cover increased tender costs associated with delivery on island. Cumbrae Youth Forum £30,000 Cumbrae Youth Forum Premises To allow the group to undertake capital works and accelerate the delivery of Child Care Inspectorate regulation requirements. Total £85,000 UK Shared Prosperity Fund Recipient Award Project Summary Kildonan Hall & Improvements Committee £25,000 Kildonan Hall Project To undertake preparatory works in advance of the build for the Kildonan Community Shop & Café. Arran Eco Savvy Community SCIO £9,200 Accessible e-bikes To support the purchase of two wheelchair e- bikes. North Arran Community Benefit Society £49,750 Lochranza Country Inn To support the refurbishment of the Lochranza Country Inn as a community hub. Kildonan Hall & Improvements Committee £100,000 Kildonan Hall Project To support the capital build of the community shop and café in Kildonan. Total £183,950 Scottish Government – Regeneration Capital Grant Fund Recipient Award Project Summary Millport Town Hall Trust £1,864,478 Regeneration of Millport Town Hall Total £1,864,478 Crown Estate Scotland Recipient Award Project Summary Millport Town Hall Trust £192,952 Millport Town Hall To support the regeneration of Millport Town Hall. North Ayrshire Council £25,000 Millport Marina Masterplan To advance the masterplan for Millport Pier 475
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& Harbour. North Ayrshire Council £50,000 North Ayrshire Islands Community Fund To provide support for community organisations in addressing their specific needs, achieve their aims and priorities of the Island Plans (approved March 2025). Total £267,952 Scottish Government Place Based Investment Programme Recipient Award Project Summary Arran Pioneer Project £25,000 To support the installation of a Geodome to enable food sustainability. Kildonan Hall £23,700 To support the creation of a community hub & cafe. Arran High School Mountain Bike Club £20,000 To enable delivery of a new mountain bike track and support match funding. Millport Town Hall Trust £25,000 To support the purchase and installation of Glulam Beams as part of the works undertaken at Millport Town Hall. Brodick Tennis £30,000 To support the renovation of park tennis courts and provision of gate access. Total £123,700 North Ayrshire Council – Repurposing Property Grant Fund Project Applicant Award Project Summary Whitehouse, Lamlash £18,486 Feasibility study to repurpose the Whitehouse Land, Lamlash. College of the Holy Spirit £23,940 Feasibility study to repurpose the land and buildings within the Curtilage of the Cathedral of the Isles, to support financial viability. Arran Youth Foundation £8,328 Feasibility study to identify options for a new, modern youth centre facility behind Arran High School. Trust Housing £9,977 Feasibility study to explore the conversion potential of an existing and vacant former 2- storey office located in Lamlash. Arran Development Trust £7,390 Feasibility study regarding purchase of property to renovate for ADT office, workshop for kit building and training along with use of yard to store construction equipment. Total £68,121 476
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Active Travel and Transport Funding Project Funder(s) Value Access improvements to Cumbrae Ferry Improvements to queuing facilities at Largs and developing proposals for improved queuing facilities at Cumbrae. Strathclyde Partnership for Transport £72,967.23 Cumbrae Active Travel Study Feasibility study to consider options for an active travel route from Cumbrae ferry slip to Millport. Sustrans Community Links, NAC, TS Active Travel Infrastructure Tier 1 Fund £92,705.09 Islands Connectivity Infrastructure Works Various cycle storage facilities and cycle stands. Cycling, Walking and Safer Routes Fund £47,192.84 Brodick to Corrie Cycle Path Feasibility and Detailed Design Feasibility study to consider an active travel route from Brodick to Brodick Castle/Glen Rosa and Corrie. SPT Capital Programme Active Infrastructure Tier 1 Fund £139,178.69 Islands Infrastructure Fund Electric Vehicle Charging Points and Parking Improvements on Arran and Cumbrae. Islands Infrastructure Fund £259,000 Cycle Parking at Schools Providing cycle shelters at various schools on Arran. Cycling, Walking and Safer Routes Fund Active Infrastructure Tier 1 Fund £7,597 Total £618,640.85 Carbon Neutral Islands Funding Project Funder(s) Value Millport 130 Project (Phase One) To install roof-mounted solar PV systems to 130 homes in Millport in a phased approach. Scottish Government £166,500 Millport Solar PV and Battery Project (Phase Two) To install solar PV and battery systems in up to 30 homes, targeting those with the lowest EPC ratings. Scottish Government £293,101 Total £459,601.00 477
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NORTH AYRSHIRE COUNCIL 2 June 2026 Cabinet Title: Regeneration Delivery Plan Funding Proposals Update 2026/2027 Purpose: To provide an update on progress of the Regeneration Delivery Plan and seek approval for proposed funding allocations in 2026/27. Recommendation: That Cabinet: a) Notes the progress made on the implementation of the Regeneration Delivery Plan; b) Approves the Regeneration funding proposals as detailed at Appendix One; c) Notes the update on previously secured or applied for funds provided at Appendix Two; d) Approves the proposed delegated authority changes following service restructure; and e) Provides delegated authority to the Executive Director (Housing and Communities) to agree changes to the funding allocations in Appendices One and Two in consultation with the Portfolio Lead as required. 1. Executive Summary 1.1 The Regeneration Delivery Plan sets out our priorities for delivering on the regeneration ambitions of the Council Plan and Community Wealth Building Strategy, working in partnership with communities. 1.2 The Plan focusses on the delivery of physical regeneration across North Ayrshire through an ambitious project based rolling action programme. It informs our priorities for securing and delivering against external funding sources including Scottish and UK Government funds. This report provides an update on progress to date and proposals for 2026/27. The regeneration funding landscape in 2026/27 is currently uncertain. The delivery of several of the proposals outlined in the report is therefore subject to the external funds being confirmed within appropriate timescales. 2. Background 2.1 The Council has placed the regeneration of communities at the heart of its agenda. This focus is reflected within the priorities of the Council Plan and Community Wealth Agenda Item 21 479
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Building Strategy. The Regeneration Delivery Plan sets out our priorities for delivering on these ambitions and was approved by Cabinet on 23 March 2021. 2.2 The Plan focuses on the delivery of physical regeneration in the period 2021 to 2026. Informed by stakeholder consultation, reviewing existing community priorities and the output of previous consultations, it aims to address local priorities, support changes within communities and deliver a well-being economy. 2.3 Actions in 2025/26 aimed to maximise the impact and leverage of investment, including securing external funding to support and accelerate delivery. This included: • Delivery of a £1.450m programme of active travel design and construction works through the Scottish Government’s (SG) Active Travel and Infrastructure programme. • Delivery of a £0.247m programme of bus stop shelter replacements and surface reinforcement through the SG Bus Infrastructure Fund Tier 1. • Partnership working with Strathclyde Partnership for Transport (SPT) to deliver a £0.200m programme installing Real-Time Passenger Information signs across the North Coast and Garnock Valley. • Delivery of the Travel Smart behaviour change programme in communities and workplaces, alongside cycle storage provision and route improvements, supported by £0.281m grant funding from SPT’s People and Place Programme and the SG People and Place Local Authority Direct Award. • Partnership working with Walk Wheel and Cycle Trust to deliver a £0.101m programme of active travel design and construction works. • Delivery of the Beat the Streets behaviour change programme in Irvine. • Approval of the local delivery plans for the £1.562m annual allocation for 2025/26 SG Vacant and Derelict Land Fund (VDLF). • Preparation and submission of the annual Vacant and Derelict Land Survey • Achieving a six percent decrease in VDL between 2024 and 2025. Twenty-four sites (36ha) were brought back into productive use and removed from the register. • Conclusion of the Montgomerie Park Neighbourhood Centre land sale. • Ongoing delivery and monitoring of the SG Place Based Investment Programme, including community, heritage, culture and public realm investment. • Secured £1.169m from the SG Regeneration Capital Grant Fund to support the delivery of Bourtreehill Village Regeneration. • Provision of 8 further grants to sites through Stage 1 and 2 of the Repurposing Property Grant Fund (RPGF) with a total value of £0.157m. • Ongoing delivery and monitoring of the UK Government (UKG) Local Regeneration Fund, including the contract award for 1,500m2 of new commercial space at Annickbank Innovation Campus, and detailed design development for commercial space at Kyle Rd, and i3, Irvine. • Approval of the Irvine Pride in Place Regeneration Plan which will release £19.8M of funding for the town over the next ten years. • Securing an additional Pride in Place Programme for the Three Towns which, on development and approval of their Regeneration Plan, will release £19.8M of funding over ten years. • Delivery of the UKSPF Communities and Place grant funding programme with twenty-four local groups sharing £397,000, which included £250,000 of UKSPF 480
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support. • Completion of the Ayrshire 5G Innovation Region project and establishment of a new Ayrshire Digital Economy Ecosystem to continue the legacy of the project • Completion of the Digital Infrastructure and Connectivity Plan. • Implementation of the Smart Infrastructure Pilot Project at Irvine Harbourside. 2.4 Significant levels of funding have been secured or are anticipated to support delivery in 2026/27. The details of these funds and the proposed approach to their expenditure are provided at Appendix One. These include the: • SG Active Travel Infrastructure Fund (ATIF) Tier 1 (provisional) • SPT Capital Programme (provisional) • SPT People and Place Programme (provisional) • SG Bus Infrastructure Fund Tier 1 (provisional) • SG People and Place Local Authority Direct Award (provisional) • SG Regeneration Capital Grant Fund • Crown Estates Scotland • SG Vacant and Derelict Land Fund • UKG Pride in Place Programme • SG Islands Programme Updates on previously secured and applied for funds are provided at Appendix Two including the: • UKG Smart Infrastructure Pilot Programme • UKG 5G Innovations Regions • UKG Shared Prosperity Fund (SPF) • UKG Local Regeneration Fund (previously Levelling Up Round 3) • SG Island Programme • SG Regeneration Capital Grant Fund (RCGF) • SG Place Based Investment Programme • SG ATIF Tier 1 and Tier 2 • UKG Pride in Place Programme (previously Plan for Neighbourhoods) 2.5 The current economic climate has resulted in several of the external funds that are available to support the RDP having reduced budgets or being paused in the current financial year. Combined with increased project costs, this will potentially result in smaller numbers of projects successfully securing funding and being delivered. 2.6 Many of the funding awards are single year and their formal confirmation has been delayed. This presents a significant risk to the associated project delivery. Officers have reviewed proposals informed by this and have undertaken preparatory works where possible to try and mitigate any impacts. There will however remain a risk to delivery given the limited time between approvals being received and delivery deadlines. 2.7 Further consultation and engagement will be undertaken with local communities, stakeholders and Elected Members through the detailed development of any successful projects. 481
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2.8 Following the formation of the shared Economic Development Service between North and East Ayrshire Councils, the Regeneration Team moved to the Communities and Housing Directorate from 1 June 2026. Delegated authority is therefore requested for the Executive Director (Communities & Housing) to agree changes to the funding allocations in Appendices One and Two in consultation with the Portfolio Lead as required. Delegated authority regarding previous Cabinet Regeneration approvals should also transfer over. 2.9 The current Regeneration Delivery Plan covers the period from 2021 to 2026. Officers are currently developing the next iteration of the Plan. This will be brought forward to the Policy Advisory Panel and subsequently Cabinet for consideration later in 2026. 3. Proposals 3.1 That Cabinet: a) Notes the progress made on the implementation of the Regeneration Delivery Plan b) Approves the Regeneration funding proposals as detailed at Appendix One c) Notes the update on previously secured or applied for funds at Appendix Two d) Approves the proposed delegated authority changes following service restructure e) Provides delegated authority to the Executive Director (Housing and Communities) to agree changes to the funding allocations in Appendices One and Two. 4. Implications/Socio-economic Duty Financial 4.1 The Regeneration Delivery Plan aims to build on and maximise the impact of the investment being made through a variety of sources including the Ayrshire Growth Deal, the Council’s Capital Programme, and the Strategic Housing Investment Programme (SHIP). It also seeks to leverage private funding and investment into North Ayrshire. It informs priorities for securing and delivering against external funding sources. The implementation of action programme projects aligned to competitive funding sources will be dependent on the success of the funding applications. Whilst resource costs can be capitalised to support delivery, future ongoing revenue implications need to be fully considered on a project-by-project basis. Human Resources 4.2 The Regeneration Delivery Plan projects will be delivered through the existing Regeneration Team resource. Opportunities to secure funding for additional staff resource to support delivery will be investigated on a project-by-project basis as required. Legal 4.3 The legal implications of all Regeneration Delivery Plan projects will be considered through their development. Legal agreements will be developed on a project-by- 482
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project basis as required with support from Legal Services. Negotiation will be required in relation to land and building acquisitions with support from the Council’s Legal Services and Property Management and Investment Service. Mechanisms such as Compulsory Purchase Orders will be considered on a case-by-case basis, where considered appropriate. Equality/Socio-economic 4.4 The Regeneration Delivery Plan assists in meeting our socio-economic duty as set out in the Fairer Scotland Duty. It seeks to reverse economic, social and physical decline and reduce socio-economic disadvantage. It will tackle long-term vacant and derelict land and buildings thereby reducing their levels and impact on communities. It aims to build community wealth and tackle local deprivation through the regeneration of our communities by maximising the potential of our land and assets and those of anchor institutions. The Plan also contributes to the delivery of the Isle of Cumbrae and Isle of Arran Local Island Plans, their key themes and priorities. The funding proposals will directly contribute to several of the actions identified within the annual action programme. Any proposals for the Scottish Government’s Islands Programme will be informed by the Islands Plans and identified from the Action Programmes. An initial screening will be undertaken to establish if an Equality and Children’s Rights Impact Assessment is required for projects on a case-by-case basis. Climate Change and Carbon 4.5 The Regeneration Delivery Plan aligns with the Sustainable North Ayrshire Strategy for 2024-2027. Furthermore, it aligns with the commitment to reduce carbon emissions through declaration of a Climate Emergency. Key Priorities 4.6 The Regeneration Delivery Plan has been informed by the priorities identified within the Local Outcomes Improvement Plan and Locality Partnership priorities. The implementation of the Plan will contribute to achieving the Council Plan priorities that focus on Wellbeing, Communities and Local Democracy, Climate Change, and A Sustainable Council. Community Wealth Building 4.7 The Regeneration Delivery Plan sets out our priorities for delivering on the ambitions within the 2024-2027 Community Wealth Building Strategy. Its delivery will have a significant positive impact on the Council’s ambitions across the pillars of: • Land and Assets: by supporting equitable land development and the development of underutilised assets for community and business use. • Procurement: by contributing to the development of the procurement wave plan; through the inclusion of appropriate community benefit of local supplier clauses within projects; and by creating local supply chain opportunities and support delivery by smaller scale and local contractors where appropriate. 483
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• Fair Employment: by supporting the creation of employment opportunities particularly within the construction sector. Where North Ayrshire is procuring services, through our enhanced Community Benefits approach we will seek to ensure the creation of local training and work experience opportunities. Consideration will also be given to delivery through employability programmes where appropriate. • Financial Power: by investing in localities and leveraging external national investment into North Ayrshire. Islands Communities Impact Assessment (ICIA) 4.8 An initial screening will be undertaken to establish if an Islands Communities Impact Assessment is required for projects on a case-by-case basis. United Nations Rights of the Child (UNCRC) 4.9 None. Consumer Duty 4.10 None. 5. Consultation 5.1 The Regeneration Delivery Plan was the subject of extensive consultation including workshops with Council Officers; workshops with Elected Members; reports to and feedback from North Ayrshire Ventures Trust and the Community Wealth Building Expert Panel; and public engagement via Consul. It was also informed by the Locality Partnerships’ priorities and previous public consultation exercises including Charettes. 5.2 The funding proposals outlined at Appendix One have been informed by this consultation, and subsequent Place Plans that were developed by communities in 2024/25. Further consultation and engagement will be undertaken with local communities, stakeholders and Elected Members through the detailed development of the identified projects. RUSSELL McCUTCHEON Executive Director (Place) For further information please contact insert officers name, Insert officer’s designation, on Insert author’s phone number. Background Papers Cabinet Report – Regeneration Delivery Plan, 23 March 2021 Cabinet Report – Levelling Up Fund, 15 June 2021 Cabinet Report – Levelling Up Fund – Round 2, 2 November 2021 Cabinet Report – Regeneration Delivery Plan Update, 22 February 2022 Cabinet Report – Regeneration Delivery Plan Funding Proposals, 07 June 2022 Cabinet Report – Regeneration Delivery Plan Action Programme and Funding Proposals, 30 May 2023 484
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Cabinet Report – Local Transport and Active Travel Strategy 2023-2028, 3 October 2023 Cabinet Report – Vacant and Derelict Land Strategy 2023-2028, 3 October 2023 Cabinet Report – Long-Term Plan for Towns, 5 December 2023 Cabinet Report – Levelling Up Round 3, 23 January 2024 Cabinet Report – Regeneration Delivery Plan Action Programme and Funding Proposals, 27 August 2024 Cabinet Report – UK Government Shared Prosperity Fund, 18 February 2025 Cabinet Report - Crown Estates Fund 2024/25, 18 March 2025 Council Report - Irvine: Plan for Neighbourhoods, 14 May 2025 Cabinet Report - Regeneration Delivery Plan Action Programme and Funding Proposals Update 2025/26, 3 June 2025 Cabinet Report– Pride in Place Programme, 2 December 2025 Cabinet Report – Pride in Place Impact Fund, 27 January 2026 Council Report – Pride in Place, 20 May 2026 485
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Appendix One – Regeneration Funding Proposals The following provides a summary of each of the funds and the proposed approach for 2026/27. Vacant and Derelict Land Fund The Scottish Government's Vacant and Derelict Land Fund (VDLF) aims to tackle the presence of long-term vacant, for 15 years or longer, and derelict land in Scotland. In doing so, it aims so stimulate economic growth, job creation, an improved environment and quality of life. From its inception in 2007, access to the Fund was restricted to five local authorities to focus the available financial resource and prioritise authorities most impacted by both the extent of vacant and derelict land and levels of deprivation. An allocation of £1.525m has been confirmed for 2026/27. Aligned with the actions identified in the Regeneration Delivery Plan and Vacant and Derelict Land Strategy, the following projects have been identified following an evaluation of cross-service project expressions of interest. Expressions of interest were evaluated by officers against the following criteria: • Vacant and Derelict Land Fund Eligibility • Aligned with Vacant and Derelict Land Fund Objective(s) • Strategic Fit • Match Funding • Deliverability • Sustainability • Impact Due to the associated funding timescales, delivery plans have been developed and submitted to the Scottish Government to allow Ministerial consideration. Submission to Government noted the requirement for Cabinet approval before any spend would be undertaken. Project Allocation Redevelopment of Portland Rd. Delivery of fully serviced development platforms and enabling infrastructure, ensuring the site is market‑ready for future commercial phases. In parallel, serviced plots will be actively marketed for interim uses, including yard space and self‑build opportunities. This will provide flexible, early options for businesses and responding to immediate demand. It will also unlock the redevelopment of Portland Road, Irvine, transforming underused land into a strategic extension of the established Irvine Industrial Estate. £1.300m Residential Development, Lochshore Delivery of essential pre‑development work informed by the site masterplan including refining access design from the A760, resolving drainage and utilities issues, and preparing clear technical and design information that significantly reduces risk for volume housebuilders and supports the creation of a high-quality place. This will allow the Council to bring de‑risked land to the market, attract developers and accelerate private‑sector investment. £0.225m Total £1.525m 486
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Crown Estate Scotland North Ayrshire Council is one of nineteen Local Authorities to receive a payment from the net revenue generated by the Crown Estate Scotland’s (CES) marine assets out to twelve nautical miles. Allocations should be used to deliver coastal community benefit and offer a high level of flexibility. This is the seventh tranche of payments, which are made in arrears following the finalisation of Crown Estate Scotland’s annual accounts. In December 2025, the Council was notified that the 2025/26 allocation for North Ayrshire is £300,652.85 to be committed in 2026/27. An annual report is required by CES on the benefits to the blue economy that the funding has supported. These can include: • Environmental Enhancement • Emissions Reduction or Removal of Waste • Jobs • Tourism • Skills Development • Diversification Projects • Investment For Community Purpose • Climate Change Adaptation The table below outlines the proposal for the expenditure of the allocation. The proposals aim to support the delivery of actions identified in the Regeneration Delivery Plan that align with the blue economy benefits identified in the annual report. The following projects have been identified following an evaluation of cross-service project expressions of interest. Expressions of interest were evaluated by officers against the following criteria: • Crown Estate Scotland Fund Eligibility • Aligned with Crown Estate Scotland Fund Objective(s) • Strategic Fit • Match Funding • Deliverability • Sustainability • Impact Project Proposed Allocation Solar Powered Waste Compactors for the Islands of Arran and Cumbrae Provision of two mobile solar waste compactors for Arran and Cumbrae to significantly improve the waste management system on both islands. This includes the collection, storage and transport of litter collected by the Streetscene Service on the islands, making it more sustainable and reducing the associated carbon impact of collecting and transporting waste on and from the islands. £0.160m Regeneration Officer Match funding to resource a dedicated officer, coordinating partners, communities and delivery, accelerating projects within the Three Towns £0.041m 487
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Pride in Place programme, strengthening local capacity, leveraging investment, and ensuring measurable, inclusive regeneration outcomes aligned with local and regional priorities. North Ayrshire Motorhome Parking Provision Development of proposals for the redevelopment of Bowencraig East Car Park into a designated paid motorhome parking area as a pilot project. £0.100m Total £0.301m Regeneration Capital Grant Fund The Scottish Government’s Regeneration Capital Grant Fund (RCGF) has been delivered annually in partnership with COSLA and local government. It supports locally developed place-based regeneration projects that involve local communities, help to tackle inequalities and deliver inclusive growth in deprived, disadvantaged and fragile remote communities across Scotland. In March 2026, North Ayrshire successful secured £1.169m to revitalise Bourtreehill Village Centre. This follows Stage 1 and 2 submissions in 2025. The development will create three new retail units to allow business continuity in the area ensuring that tenants and local residents retain access to local services. This is alongside development of 32 new homes, and wider investment in the nearby Bourtreehill Park. New family homes include the provision of space for home working and are digital ready. The 2027/28 programme is yet to be announced, however, in anticipation of a potential call for projects, the Regeneration team have worked cross service to identify suitable priorities. The following proposal has been identified, and is currently being developed, should RCGF funding be announced. Project Proposal Irvine Beach Pavilion Targeted capital improvements to redevelop the Beach Pavilion and the wider Harbour Point area, enhancing key community assets and the quality of the coastal environment. Est. £1.400m Total Est. £1.400m Pride in Place Impact Fund The Pride in Place Impact Fund (PiPIF) was announced on 25 September 2025, with a prospectus published outlining the methodology, allocation and delivery mechanism for the funding. North Ayrshire Council was directly awarded £1.5m of capital funding to deliver on the PiPIF priorities. Funding was released across two financial years, with £0.75m received in 2025/26, and a further £0.75m in 2026/27. The PiPIF aims to support three core objectives which the proposed delivery methodology seeks to deliver across: • Community Spaces: investing in community facilities gives local people greater control over the spaces that matter to them. Refurbishing or taking ownership of underused but valued buildings. • Public Spaces: enhancing public spaces e.g. playparks, streetscape, signage, public art – encouraging people to spend time outdoors, build relationships and take part in local activities. 488
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• High Street and Town Centre Revitalisation: making town and city centres more attractive and welcoming, attracting people and supporting local businesses and economies. The following allocation was agreed at Cabinet. Total Value Population 2022 Data Location Council Led Community Grant Fund £0.514m 23,128 North Coast Locality £0.308m £0.206m £0.439m 19,697 Garnock Valley Locality £0.263m £0.176m £0.356m 15,707 Kilwinning Locality £0.214m £0.142m £0.111m 4,611 Arran Locality £0.067m £0.044m £0.015m N/A Participatory Budgeting £0 £0.015m £0.065m Project officer support – 2 Year Temporary Post £1.500m Overall Total The North Ayrshire Community Projects Fund launched in Spring 2026, with applications received across the eligible localities. An assessment panel comprising representatives from each of the locality partnerships, the local MP and a Council Officer was established. The panel scored each application and will make recommendations to the relevant Locality Partnerships for final approval. The remaining £852,000 is allocated to Council led projects. A cross-service expression of interest process was undertaken. Expressions of interest were evaluated by officers against the following criteria: • Pride in Place Impact Fund Eligibility • Pride in Place Impact Fund Objective(s) • Strategic Fit • Match Funding • Deliverability • Sustainability • Impact The shortlisted projects were shared with the Elected Members and MP for the relevant wards of Arran, Kilwinning, Garnock Valley and North Coast. Feedback from Elected Members was considered to inform the final list of projects which are now being progressed by officers, with updates to be provided to the June 2026 Locality Partnerships and an update on the outcome of the programme to Cabinet at a future date. All PiPiF spend must be legally committed by 31 March 2027. Active Transport Infrastructure Fund – Tier 1 The Active Travel Infrastructure Fund (ATIF) is managed by Transport Scotland on behalf of the Scottish Government. ATIF supports the design, development, and delivery of active travel infrastructure measures across all thirty-two local authorities in Scotland. Full details of the Tier 1 award for 2026/27 are still to be confirmed. The table below sets out the 2026/27 proposals should the funding award match 2025/26 levels. This approach aims to support a range of eligible projects across North Ayrshire and secure additional funding to maximise and accelerate delivery. 489
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Project Allocation Active Travel Route Construction: Delivery of the Local Transport and Active Travel Strategy Actions for improving Active Travel Routes on strategic corridors and local links. £369,123 Active Travel Facilities: Delivery of the Local Transport and Active Travel Strategy Actions to expand and improve facilities for cycling. £35,000 Future Years Feasibility Studies and Design Development: Support for the preparation of feasibility studies and preliminary designs for active travel projects; and finalise projects to construction ready status to enable bids to ATIF Tier 2. £431,000 Route Monitoring: Support for the network of pedestrian and cycle counters across North Ayrshire including the installation of new infrastructure. £9,604 Staff costs and resourcing: Support for the existing externally funded posts within the Active Travel and Transport Team. £117,273 Total £962,000 ATIF Tier 2 funding has also been applied for several of the projects included in the above proposals. Should the Tier 2 funding be successful then Tier 1 allocations will be directed to alternative projects. SPT Capital Programme SPT’s Capital Plan identifies the indicative programme of projects to be delivered annually by SPT and partner organisations. Investment priorities are shaped by national, regional and local transport strategies. At its meeting on 20 March 2026, the Partnership Board approved the following projects for 2026/27, subject to Scottish Government grant funding being received. Project Allocation Ardrossan Harbour £250,000 Bus Corridor Improvements £150,000 Total £400,000 SPT People and Place Programme (Revenue) The long-term success of Active Travel relies on strong alignment between infrastructure delivery and behaviour change activity. Behaviour change programmes remain central to achieving the ambitions set out in the Local Transport and Active Travel Strategy, the National Active Travel Framework and the Cycling Framework for Active Travel. The SPT People and Place Programme supports active travel behaviour change and access to bikes initiatives. In 2025/26, this programme contributed funding to the Council’s Travel Smart Behaviour Change Programme. This included workplace engagement with a range of businesses, delivery of active travel training, e bike sessions, walking programmes and step count challenges, alongside personalised travel planning. SPT are still awaiting confirmation of their revenue funding from the Scottish Government. They have advised that revenue funding this year is likely to be considerably lower than 490
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previous years. Regeneration officers are working with SPT to identify the minimum costs required to support the delivery of the programme. Project Allocation Requested Support for the Travel Smart Behaviour Change Programme – Communities and Workplaces £157,000 Total £157,000 Bus Infrastructure Fund Tier 1 The Scottish Government’s Bus Infrastructure Fund Tier 1, managed by Transport Scotland, supports the delivery of targeted bus priority and passenger infrastructure improvements that enhance the reliability, accessibility and attractiveness of bus services. The Fund focuses on measures that reduce journey times, improve passenger experience and support modal shift to sustainable transport. Allocations for 2026/27 will support investment in bus corridor improvements and key interchange locations across North Ayrshire, aligned with the Local Transport and Active Travel Strategy and regional transport priorities, and will help maximise the impact of wider investment in public transport. Full details of the award for 2026/27 are still to be confirmed. The table below sets out the 2026/27 proposals should the funding award match 2025/26 levels. This approach aims to support a range of eligible projects across North Ayrshire and secure additional funding to maximise and accelerate delivery. Project Allocation Bus stop improvements and shelter replacement – across localities £288,000 Total £288,000 People and Place Local Authority Direct Award The Scottish Government’s People and Place Local Authority Direct Award, managed by Transport Scotland, supports active and sustainable travel behaviour change activity alongside modest capital investment in supporting infrastructure. The funding focuses on building local authority capacity, delivering community and workplace interventions and providing light infrastructure that improves access to walking, wheeling, cycling and public transport. Full details of the award for 2026/27 are still to be confirmed. The table below sets out the 2026/27 proposals should the funding award match 2025/26 levels. This approach aims to support a range of eligible projects across North Ayrshire and secure additional funding to maximise and accelerate delivery. Project Revenue Allocation Capital Allocation Support for behaviour change, staffing and activities, investment in cycle parking, and delivery of light infrastructure improvements. £82,673.10 £41,336.55 Total £124,009.65 491
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Appendix Two – Project Updates Local Regeneration Fund (Formerly LUF3) Approximately £17.5 million was secured from the UK Government’s Levelling Up Fund Round 3 to deliver the Levelling Up for Ayrshire: Commercial and Low Carbon Infrastructure programme, submitted by North Ayrshire Council. The funding programme is now known as the Local Regeneration Fund. Informed by market feedback, the programme focuses on the delivery of new, energy‑efficient commercial floorspace and associated low‑carbon infrastructure at key employment locations, including Kyle Road, Annickbank and i3: • Kyle Road Phase 2: Delivery of c.1,200m² of new Class 4/5/6 business space at Irvine Industrial Estate, capable of subdivision and building on the success of Phase 1. • Annickbank Phase 4: Delivery of three 550m² Class 4/5/6 business units at Annickbank Innovation Campus, Irvine, to complement existing provision. • i3 Flex Space 02: Delivery of c.1,700m² of new industrial space, aligned with Ayrshire Growth Deal proposals. • Portland Rd. Irvine: Regeneration Services progressing proposals for the redevelopment of the remaining land at Portland Road to expand the industrial estate, delivering serviced land and flexible space to meet urgent demand, attract investment, create jobs, and support growth. • Active Travel Routes: East–west connections between commercial development areas, including investment at Heatherhouse Road, Long Drive, Riverside Way and along the River Irvine. The originally proposed Barassie–Gailes Roundabout link has been identified as undeliverable within the funding timescales and is being progressed separately. An updated Memorandum of Understanding has been agreed with the UK Government, confirming that all project expenditure must be completed by 31 March 2028. The Statement of Grant Compliance has been completed and submitted. The next monitoring report was due on 29 May 2026. The current breakdown of the funding award and match funding is detailed below: Local Regeneration Fund Allocation Value Commercial Estate: i3 Flex Space Phase 2 £4,706,259 Commercial Estate: Annickbank Phase 4 £4,588,817 Commercial Estate: Kyle Road Phase 2 £2,527,440 Commercial Estate: Portland Rd. £1,484,567 Active travel paths: Strategic Investment Route (River Irvine paths) £2,326,826 Active travel paths: Riverside Way, Irvine £849,680 Active travel paths: Long Drive, Irvine £939,120 Active travel paths: Heatherhouse Rd., Irvine £34,111 Total LRF Allocation £17,456,820 Confirmed Additional Funding Vacant and Derelict Land Fund £2,478,865 North Ayrshire Council Capital Programme £2,000,000 Vacant and Derelict Land Investment Programme £892,990 Place Based Investment Programme £160,795 492
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North Ayrshire Regeneration Services £164,112 Active Travel Infrastructure Fund Tier 1 £250,000 Ayrshire Growth Deal £1,450,000 UK Shared Prosperity Fund £55,551 Access Path Network Programme £114,763 Total Confirmed Additional Funding £7,567,076 Total £25,023,896 Place Based Investment Programme The Scottish Government established the five-year £325m Place Based Investment Programme (PBIP) in 2021/22. Underpinned by the Place Principle, this aims to support community-led regeneration, town centres and the 20-minute neighbourhood ambitions. The main objectives of the Programme are to: • Link and align place-based initiatives and establish a coherent local framework to implement the Place Principle; • Support place policy ambitions such as town centre revitalisation, community led regeneration, 20-minute neighbourhoods and Community Wealth Building; • Ensure that all place-based investments are shaped by the needs and aspirations of local communities; and • Accelerate the ambitions for tackling inequality and disadvantage, wellbeing and inclusive economic development, net zero, community involvement and ownership PBIP has supported a wide range of projects, including shopfront and public realm improvements, business and innovation space, heritage assets, climate action initiatives, and extensive community infrastructure such as sports facilities, parks, play areas, community cafés and halls. A significant strand of the programme is the Communities Project Fund, which provides smaller grants to help local organisations deliver grassroots projects and secure match funding. Outcomes to date include improved town centres, revitalised heritage buildings, new and enhanced community facilities, increased outdoor activity and wellbeing opportunities, strengthened community capacity, and progress towards net zero objectives. Many projects report increased usage, visitor numbers, volunteering and local pride, contributing to more resilient and attractive places. The following reallocations were approved during 2025/26, as per the delegated authority: Reallocation Approval 01 Reallocation of £102,500 from the Communities Project Fund allocation due to forecast underspend to the following projects. Projects were identified through original cross-service engagement that informed the 2025/26 Cabinet paper. Project Value Hayocks Hall Community Larder Upgrade of community larder provision using purpose built modular units. £32,500 Cranberry Moss Community Centre Kitchen Refurbishment Refurbishment of kitchen including the replacement of appliances, catering equipment, ventilation works and redecoration. £32,500 Shewalton Pond Access Improvements £27,500 493
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Reconstruction of the banking to both protect the flora and fauna on site, and to improve access to the pond for users. Eglinton Park Improvements Replacement of raised beds to enhance the visual impression of the courtyard area and provide opportunities for raised planting for volunteers. £10,000 Total £102,500 Reallocation Approval 02 Due to increased tender returns in relation to Dockhead Street, works, it was agreed to address the shortfall by reallocating £61,893 PBIP funding from Kyle Road Phase 2 and £20,000 from the PBIP future year project development fund. This allowed the tender award to be issued for a site start in May 2026. The current funding breakdown is outlined below: Project Budget 36 Bank Street £139,999 Annickbank Pavilion Ph3 £460,000 Annickbank Pavilion Ph4 £10,795 Beith Kirk £41,000 Communities Project Fund £469,421 Cranberry Moss Community Centre £32,500 Eglinton Park Improvements £10,000 Future Year Project Development £11,369 Future Year Project Development - AGD Great Harbour £22,625 Future Year Project Development - Forum Study £18,150 Future Year Project Development - Community Grant £18,272 Future Year Project Development - Irvine Railway £17,440 Future Year Project Development - WK Xmas £1,030 Galt House £49,444 Garnock Valley Place Framework - Beith Orr Park £15,000 Garnock Valley Place Framework - Ground in Garnock £25,000 Garnock Valley Place Framework - Play Links £73,372 Garnock Valley Place Framework - Report £89,591 Hayocks Hall Community Larder £32,500 Kilwinning Place Framework £15,000 Kilwinning Place Framework - Abbey Tower £264,560 Kilwinning Place Framework - Almswall Park £25,665 Kilwinning Place Framework – Community Grants £51,344 Kyle Road Phase 2 £88,107 Largs Place Framework - Community Grants £30,673 Largs Place Framework - Outdoor Museum £16,987 Largs Place Framework - Vikingar £37,340 Lochshore Hub Play Area £255,000 Lochshore Park £165,000 PBIP Officer Costs £139,914 Public Space Camera £50,000 Repurposing Property Grant Fund £157,942 Saltcoats Dockhead Street £331,893 Saltcoats Place Framework - Betsy Miller Statue £50,630 Saltcoats Place Framework - Community Grants £54,370 494
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Shewalton Pond £27,500 Stevenstons Climate Action Town £35,000 Three Sisters, Largs £895 Town Centre Living Pilot - Howgate, Kilwinning £53,805 West Kilbride Shopfronts £395,731 Total £3,784,863 UK Shared Prosperity Fund (UKSPF) North Ayrshire Council was awarded £2,697,397 to continue the delivery of UKSPF for an additional year. The following proposals were agreed, under the three themes: • People and Skills: continue to support the delivery of the Employability and Skills programme as in years 2 and 3 with essential skills support being delivered through the Community Learning & Development Team closely aligned with the Employability programme. • Supporting Local Business: continue to deliver support to local business as in years 2 and 3 with the addition of capital investment to complement the revenue support. • Communities and Place: continue to deliver the Communities and Place Fund as in years 2 and 3, with a smaller scale competitive grant fund, smaller scale council-led regeneration projects and 1% of the overall fund towards participatory budgeting. Communities and Place had a total budget allocation of £674,348. UKSPF supported 24 community organisations across 2025/26, through a competitive grant fund. The fund was made up of £250,000 UKSPF and levered in an additional £147,000 through the Place Based Investment Programme. Council-Led projects were identified through a cross-service expression of interest process. The following council led projects were agreed by Cabinet: Project Allocation Dockhead Street, Saltcoats Public realm improvements including full replacement of the block paving, replacement drainage full length, upgraded lighting installation, new street furniture. £80,000 Seagate Castle Additional funding to carry out essential stabilisation and conservation works at Seagate Castle and support common good contribution. £70,000 Lochshore Garden, Activity Hub and Associated Works To support works to conclude Phase 1 of the Lochshore Masterplan, including detailed design and delivery of access, green space, infrastructure, facilities and environmental improvements. £125,000 Public Space Camera Re-deployable camera to support public safety and project delivery. £30,000 Kilwinning – Development Funding To support Kilwinning Abbey Tower, which was previously identified within the Regeneration Delivery Plan, and the Kilwinning Main St public realm enhancements. £72,000 Total £377,000 UKSPF will end in September 2026, with an extension of time offered by UK Government. The Local Growth Fund will broadly replace the UKSPF through a more regional approach. 495
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Pride In Place Programme – Irvine In September 2023, the UK Government announced fifty-five towns across the UK, including Irvine, that would benefit from up to £20 million of investment through endowment style funding over a 10-year period. The programme is now known as the Pride in Place Programme (PiPP). The Irvine Neighbourhood Board was established in August 2024. NAC Officers have worked in partnership with the Board to develop a 4-year investment plan and ten-year Regeneration Plan for Irvine. The Regeneration Plan was approved by UK Government in March 2026, with delivery funding now in place. The Board are progressing with a wide range of projects, in line with the investment plan, with an initial focus on Bridgegate Enhance, Irvine railway station and the development of a community fund. Pride in Place Programme – Three Towns As with Irvine, the PiPP for the Three Towns will fund a targeted £20M investment programme over 10 years to help revitalize the communities through a series of approved interventions which includes high street regeneration, housing and transport amongst others. Funding can comprise capital contributions to infrastructure improvements or revenue support for local groups/initiatives. The programme will be driven by a dedicated Neighbourhood Board led by an appointed Chair and including local elected representatives. The Board, which is to be established by 17 July 2026, will be formed as a sub-group of the existing Three Towns Locality Partnership to represent the community and its diverse interests. The formation of the board will be led by the newly appointed Chair. The immediate priority of the Board will be the development of the Three Towns Regeneration Plan which will comprise a 10-year vision for the area and an investment plan for the first four years. The plan is to be submitted to UK Government by November 2026 and will outline the strategic aims and programme objectives. ATIF Tier 1 (25/26) Funding Update On 3 June 2025, Cabinet approved the allocation and delivery approach for the 2025/26 ATIF Tier 1 programme. The programme supported the delivery of active travel route construction, facilities improvements, and feasibility and design work to progress projects to construction ready status, alongside investment in route monitoring infrastructure. Delivery aligned with the Local Transport and Active Travel Strategy and supported the development of a strong pipeline of projects for future funding rounds. The following projects were supported by the funding: • Active Travel Route Construction/ Improvements: ‒ Active Travel Route improvements in Beith/Kilbirnie ‒ Active Travel Route improvements in Largs ‒ Additional Drop Crossing at North Crescent Coastal Path, Ardrossan ‒ Blacklands Recreation Ground Active Travel Improvements • Active Travel Facilities: ‒ Cycle parking at Eglinton Park Community Garden and Three Town Growers • Future Years Feasibility Studies and Design Development including preparing projects for Tier 2 funding applications: ‒ Pedestrian Accessibility Audit on Arran ‒ Putyan Burn Active Travel Route: submission of planning application and works to prepare for construction. 496
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‒ Barassie to Gailes Active Travel Route Feasibility Study ‒ Brodick to Glen Rosa Active Travel Route preparation for future construction application ‒ Links to Eglinton Phase 2 Active Travel Route preparation for construction The table below summarises the approved and actual funding allocations. As reported to Cabinet in June 2025, securing ATIF Tier 2 funding required elements of the original Tier 1 programme to be reallocated to other eligible projects. In addition, following a service review, a proportion of staff costs was reallocated within the programme to reflect revised resource arrangements. Project Allocation Actual Active Travel Route Construction: To support delivery of the Local Transport and Active Travel Strategy Actions for improving Active Travel Routes on strategic corridors and local links. £442,000 £566,799 Active Travel Facilities: To support delivery of the Local Transport and Active Travel Strategy Actions to expand and improve facilities for Active Travel such as eBike charging infrastructure and cycle stands. £32,000 £27,867 Future Years Feasibility Studies and Design Development: T To support the preparation of feasibility studies and preliminary designs for active travel projects; and finalise projects to construction ready status to enable bids to ATIF Tier 2. £250,000 £93,028 LUF Match Funding: To support the delivery of the LUF Active Travel Projects. £125,000 £125,000 Route Monitoring: To support the network of pedestrian and cycle counters across North Ayrshire including the installation of new infrastructure. £12,000 £12,096 Staff costs and resourcing: To support the existing externally funded posts within the Active Travel and Transport Team. £101,000 £137,210 Total £962,000 £962,000 ATIF Tier 2 (25/26) Funding Update As noted at Cabinet on 3 June 2025, applications for ATIF Tier 2 funding were submitted and, where successful, progressed accordingly. The following projects were taken forward using the Tier 2 allocation: • Links to Eglinton Phase 2 – Stage 1 Construction • Old Caledonian Railway Saltcoats Phase 2 Active Travel Route preparation for Tier 2 construction application • B777 Corridor improvements finalization of feasibility study • Cumbrae Active Travel Route detailed design • Sharphill to NCN Saltcoats Active Travel Route feasibility study • Drybridge to i3 Active Travel Route feasibility study • Girdle Toll to Irvine Active Travel Route feasibility study 497
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ATIF Tier 2 (26/27) The Scottish Government’s Active Travel Infrastructure Tier 2 Fund supports the design and construction of active travel infrastructure projects. The projects listed below were submitted for ATIF Tier 2 funding. The outcome of the bid assessments is expected to be announced in May or June 2026, and it is anticipated that not all projects will be successful. While funding is not guaranteed, submitting these applications demonstrates the Council’s ambitions to Transport Scotland and provides a clear view of the longer-term active travel project pipeline. Project Allocation Brodick to Corrie Cycle Path - Phase 1 to Glen Rosa: Construction £363,100 Cumbrae Active Travel Route: Consultation and preparation for Tier 2 Construction Application £91,850 Active Travel Links Putyan Burn, Dalry: Construction £730,904 Drybridge Active Travel Route: Detailed design and preparation for Tier 2 Construction Application £79,939 Girdle Toll to Irvine Active Travel Route: Detailed design and consultation £156,000 B777 Wider Corridor: Detailed design £179,820 Links to Eglinton Phase 2 – Stage 2 (Kilwinning Rd to Suspension Bridge): Construction £265,000 Old Caledonian Railway AT Route - Phase 2: Construction £349,500 Old Caledonian Railway AT Route - Phase 2a to Academy: Detailed design and preparation for Tier 2 Construction Application £67,552 Sharphill to NCN AT Route, Saltcoats: Consultation and preparation for Tier 2 Construction Application £83,200 Total £2,366,865 People and Place Local Authority Direct Award (25/26) Funding Update On 3 June 2025, Cabinet approved the allocation and delivery approach for the 2025/26 People and Place Local Authority Direct Award. This programme supports delivery of the Council’s Travel Smart Behaviour Change Programme, with funding applied to the following activities: • Minor active travel infrastructure improvements, including vegetation clearance to improve route accessibility • Installation of cycle parking at schools and community hubs across localities • Delivery of Beat the Streets behaviour change programme in Irvine • Delivery of a cycling festival in Saltcoats • Maintenance of Real Time Passenger Information signs • Ongoing support for the Council’s wider Travel Smart behaviour change activity Walk Wheel Cycle Trust (25/26) Funding Update Through partnership working with the Walk Wheel Cycle Trust (formerly Sustrans), the Council secured funding to support active travel projects during 2025/26. Funding was awarded to progress design and feasibility work on the following projects. Local Authority Total Award Revenue Capital North Ayrshire £124,009.65 £82,673.10 £41,336.55 498
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Project Total NCN7 – Crossing Improvements: To carry out designs for improving the NCN crossings at Meadowhead Road/Shewalton Road and at Church Street in Irvine £39,724.00 Valefield Bridge, Kilbirnie: To prepare a Ground Investigation specification and carry out an options appraisal to replace the bridge £60,959.50 499
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NORTH AYRSHIRE COUNCIL 02 June 2026 Cabinet Title: Fleet Decarbonisation Purpose: The purpose of this paper is to update Cabinet on progress made to date with decarbonisation of the Council Fleet and to provide details of the further proposed decarbonisation-first approach work going forward. Recommendation: It is recommended that Cabinet: • notes the progress made to date in decarbonising the fleet, and against the actions set out in the May 2023 Cabinet paper. • agrees the decarbonisation-first approach for fleet replacement outlined at para 2.17 • notes that the Council’s current fleet decarbonisation actions will continue to evolve to reflect the Scottish Government’s refreshed Climate Change Plan 2026-2040 and the awaited public sector fleet decarbonisation action plan. 1. Executive Summary 1.1 Significant progress has been made in decarbonising the Council Fleet which already includes 87 EVs. In addition, there are a number of further 24 Internal Combustion Engine (ICE) vehicles identified for replacement in the current financial year. 1.2 Ongoing expansion of the EV charging network has also continued and has seen additional provision for both workplace and public electric charging network points across the Authority. The imminent commencement of the Scottish Government funded charging network expansion across Ayrshire will also see an additional 307 public charge points being rolled-out across Ayrshire, 107 of which will be in North Ayrshire. 1.3 The Scottish Government’s Climate Change Plan was updated in March 2026 and during 206/27, our fleet decarbonisation actions will be refreshed to align with the updated plan. Agenda Item 22 501
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1.4 A Decarbonisation-First approach will be adopted to ensure the transition to a decarbonised fleet can be effectively managed and delivered. 2. Background 2.1 In the Programme for Government of 2019, as part of a “Mission Zero” for transport, the Scottish Government made the commitment of: “creating the conditions to phase out the need for all new petrol and diesel vehicles in Scotland’s public sector fleet by 2030, and phasing out the need for all petrol and diesel cars from the public sector fleet by 2025”. 2.2 Progress continues to be shaped by the availability of suitable Electric Vehicle alternatives and charging infrastructure at both national and local level. While these conditions are still developing, overall public fleet decarbonisation has reached 19% during this period, providing a strong foundation for further transition as technology and infrastructure continues to improve. 2.3 The challenges of decarbonising transport, and of the wider journey to net zero, are now well recognised in Government policy. This is reflected in the latest iteration of the Scottish Government’s Climate Change Plan (2026 to 2040), where earlier stretch targets have evolved into Carbon Budgets, helping to provide a more practical and sustainable framework for long-term progress. 2.4 The plan also recognises that, in 2019, the Scottish Government set ambitious staged targets for public sector fleet decarbonisation, focused on different vehicle types and supporting the phased removal of petrol and diesel vehicles, beginning with cars, followed by light vans and then heavier and more specialist vehicles. 2.5 Scottish Government has worked with the public sector to develop a draft public sector fleet decarbonisation action plan and is now consulting key stakeholders across the public and private sectors on the actions identified within that plan. Publication of the final version is awaited. In the meantime, the Council will continue to take a decarbonisation-first approach, prioritising suitable lower-emission and zero- emission vehicle options wherever these are available and practical. 2.6 The draft action plan reflects the continued commitment of Scottish Government and the wider public sector to fleet decarbonisation, helping to strengthen support for the procurement of electric and ultra-low emission vehicles and identifying actions that will further align public spending with emissions reduction. North Ayrshire Council’s Progress 2.7 In May 2023 a report was presented to Cabinet providing an update on the Fleet decarbonisation journey. A variety of recommendations and next steps were agreed in support of decarbonising the Council’s vehicle Fleet which would support the Council’s commitment to achieve net zero carbon emissions by 2030. 2.8 The actions and recommendations, which are incorporated into the Fleet Asset Management Plan, were in line with advice received from our external advisors (EVP 502
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solutions) and national commitments and ambitions within the 2019-2020 Programme for Government. Significant progress has been made in delivering on these, in summary: • Vehicle Purchase: The transition to a lower-emission fleet is well underway, with 87 vehicles already replaced by electric alternatives and further progress continuing as the market develops. • Budget Utilisation: Existing investment has supported strong early delivery, with 87 EVs now in place and at least 24 more zero-emission vehicles planned for 2026/27. • Preparatory Work: EV deployment is being supported by practical driver engagement and training, helping staff build confidence and make the most effective use of new vehicles. • Government Lobbying: The Council is making good use of national and regional partnerships to strengthen its case for support and maximise future funding opportunities. • Capital Programme Review: Additional approved investment in vehicles and charging infrastructure is providing a stronger foundation for continued fleet decarbonisation. • Heavy Fleet Research: Positive progress has also been made for the heavy fleet, with HVO successfully introduced within our refuse collection vehicles as a practical interim measure to support emission reductions. • Digital Strategy Opportunities: Telematics data is giving a clearer understanding of fleet use, supporting smarter vehicle replacement, better route planning and more targeted charging infrastructure. • Governance: Governance arrangements have been strengthened through the creation of a dedicated officer fleet decarbonisation group reporting into the already established Climate Change Steering Group partnership. • Partnership Synergies: Partnership working continues to create opportunities for collaboration, with regular reporting helping to keep fleet decarbonisation firmly on the shared agenda. • Charging Infrastructure: Completed and ongoing planned expansion of EV charging across Ayrshire will create valuable opportunities to support both public access and future fleet charging needs. 2.9 Work continues in transitioning to zero-emission fleet vehicles and progress has been made in terms of investment in both EVs (Electric Vehicles) and supporting charging infrastructure with additional/revised investment being approved in February 2024, with a further £5.430m being allocated within the capital plan to support the decarbonisation of the Council’s fleet, supplementing the main vehicle replacement programme. 2.10 A previous EV working group has now been progressed into a fleet decarbonisation group, which is being supported by the Transformation Team. The group reports to our already established Climate Change Steering Group, which although without decision making powers, was established to coordinate progress in implementing the Sustainable North Ayrshire Strategy. 2.11The fleet decarbonisation group provides a forum to consider and implement a number of fleet decarbonisation actions and priorities in a collaborative way ensuring user buy in through considering service and operational needs to be met whilst continuing 503
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progress in decarbonising the fleet. The key objectives of the group, which consists of cross directorate representatives, is to oversee and manage the ongoing implementation and development of the decarbonisation of the Council’s vehicle fleet. The activities include, refreshing, monitoring and implementation of the decarbonisation plan, co-ordination of activity across all the relevant services within the Council and reporting on progress. Current Position and Opportunities 2.12 Cabinet approval in May 2023 marked an important step forward in the transition to a more sustainable decarbonised fleet. Good progress has been made in relation to the acquisition of suitable alternative electric vehicles, where we currently operate 87 EVs, which equates to 21.9% of the initially identified number of fleet vehicles. 2.13 The Council continues to make positive progress in planning for fleet decarbonisation in the short to medium term, while recognising that not all of the remaining 344 vehicles currently have suitable zero-emission alternatives available. The greatest opportunities for transition are within vehicle types where the market is developing most quickly, while for larger vehicles, sweepers and plant, suitable electric options are still emerging. 2.14 The Transport team continues to work proactively with a range of manufacturers to arrange demonstrations and pilots of electric equivalent vehicles. This is providing valuable insight into how well different options can support service needs and is helping to identify the areas where further development in charging, payload, range and towing capability will strengthen future opportunities for transition. 2.15 Several pilots have been successful which will result in a further 24 vehicles (at a cost of £1.10m) being replaced by zero emission alternatives during 2026/27. This will increase the number of EV’s within the fleet to 111 and 27.95% of the identified fleet. 2.16 Work will continue to progress in the decarbonisation of the fleet through a decarbonisation-first approach which will ensure our net-zero journey and service delivery needs going forward. Decarbonisation First Approach 2.17 To maximise progress and outcomes, whilst still recognising operational needs and vehicle replacement availability, the Council has a clear opportunity to adopt a decarbonisation-first approach to fleet vehicle replacement. Where available, decarbonised fleet options will be progressed as first option. However, in the limited cases where suitable low-emission alternatives are not yet available, suitable vehicles with the latest Euro engine technologies for ICE vehicles will be procured. This will support a planned and practical transition, allowing time for further pilots to be completed, additional EV alternatives to be identified, and the necessary supporting infrastructure works to be progressed. The following diagram illustrates this decarbonisation-first approach. 504
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EV Charging Framework 2.18 To facilitate the position where Ultra Low Emission Vehicles (ULEVs) can be successfully deployed into the Council’s fleet, an overall charging framework, including infrastructure, policy and guidance, also needs to be in place. 2.19 The Council is already making strong progress in expanding workplace charging, with 56 workplace charge points installed to date, equating to 107 sockets. Previous assessments identified a potential need for a comprehensive charging framework. While delivering this will require a phased and coordinated approach, the key areas for development are now well understood, including: • Identifying the most suitable locations for future charge points • Working through premises ownership arrangements to support delivery • Assessing available power capacity to inform future investment • Completing pre-engagement work to support the procurement process 2.20 In addition to 56 workplace charging units, the Council has installed 62 publicly available EV charge points, adding to the 80 privately owned publicly available charge points across North Ayrshire. £2.87m of funding has been secured from Transport Scotland for North, East and South Ayrshire Councils to secure a private sector partnership to install a further 307 charge points across Ayrshire. 2.21 A procurement exercise has been undertaken, led by East Ayrshire Council, this contract will commence in June 2026. Part of this procurement activity included a specific lot for fleet EV charge point installation, supporting a more efficient roll out of workplace charge points. We will utilise this to expand the number of work-place 505
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charge points available, which will be funded through the Council’s already allocated fleet decarbonisation budget. The anticipated spend for 26/27 will be circa £600k. 3. Proposals 3.1 It is recommended that Cabinet: • notes the progress made to date in decarbonising the fleet. • agrees the decarbonisation-first approach for fleet replacement outlined at para 2.17 • notes that the Council’s current fleet decarbonisation actions will continue to evolve to reflect the Scottish Government’s refreshed Climate Change Plan 2026-2040 and the awaited public sector fleet decarbonisation action plan 4. Implications/Socio-economic Duty Financial 4.1 The Council has reprofiled its fleet decarbonisation budget to reflect a realistic pace of delivery, with £2.029m planned for 2026/27, including £1.429m for vehicles and £0.600m for charging infrastructure, and a further £2.702m in 2027/28. Alongside the wider vehicle replacement programme, which provides £2.99m in 2026/27 and £2.00m per year thereafter, this supports a coordinated decarbonisation-first approach to replacing vehicles and expanding the charging network over the coming years. The Sustainability Team continue to apply for external funding to support the roll-out of fleet decarbonisation infrastructure. Human Resources 4.2 Development of a comprehensive charging framework will require support from the workforce in order to be successfully implemented. Legal 4.3 Fleet decarbonisation is a practical legal expectation arising from statutory climate duties under the Climate Change (Scotland) Act 2009, associated reporting regulations, and statutory guidance issued in March 2026. Fleet emissions are classed as direct (Scope 1) emissions, meaning councils are legally required to take proportionate action to reduce them, report progress annually, and demonstrate alignment with Scotland’s 2045 net-zero target. Equality/Socio-economic 4.4 None Climate Change and Carbon 506
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4.5 Decarbonisation of the Council’s vehicle fleet is a critical element of the Sustainable North Ayrshire Strategy. Key Priorities 4.6 The decarbonisation of the Council fleet directly supports the Council’s net-zero priority. 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 The Cross Directorate Working Group and Climate Change Steering Group are consulted on the decarbonisation of the fleet proposals. RUSSELL McCUTCHEON Executive Director (Place) For further information please contact Laurence Cree, Head of Sustainability, Transport & Corporate Property, on 01294 323960. Background Papers 0 507
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