Revenue Budget 2024-25 - Financial Performance to 31 March 2025
North Ayrshire Council · 3 June 2025
Back to Cabinet — 3 June 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
NORTH AYRSHIRE COUNCIL 3 June 2025 Cabinet Title: Revenue Budget 2024/25: Financial Performance to 31 March 2025 Purpose: To advise Cabinet of the financial performance for the Council for 2024/25. Recommendation: That Cabinet agrees to: (a) note the information and financial outturn position outlined in the report; (b) approve the earmarking of £3.764m identified at 2.4 to meet future year commitments; (c) note the financial performance of the Health and Social Care Partnership highlighted at 2.5; (d) approve a non-recurring budget transfer of £2.036m to the Health and Social Care Partnership to offset the in-year overspend on Council services; and (e) approve the virements detailed in Appendix 8. 1. Executive Summary 1.1 The General Services Revenue Estimates for 2024/25 were approved by Council on 28 February 2024. The Housing Revenue Account (HRA) Revenue Budget for 2024/25 was approved by Council on 14 February 2024. 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 final report for 2024/25 and covers the period to the end of March 2025 (Period 12). 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 (£0.736m), 0.2%, after transferring resources to/from earmarked reserves. This is an improvement of (£1.056m) from that reported at Period 10 and is primarily related to lower than anticipated employee costs within the Education Service linked to staff turnover levels and lower than previously anticipated teacher cover costs, influenced by the ongoing focus on absence management across the service, maximisation of external grant funding within the Place directorate, additional Scottish Government grant income and lower than anticipated utilisation of inflationary provisions during the year, recognising that there continues to be volatility across certain areas of spend.
Page 2
This has been partially offset by the reported overspend on Council services within the HSCP. The underspend will be added to the General Fund Unearmarked Reserves to maintain the available balance at the recommended 2% of the revised General Services Revenue Budget. 1.4 The Housing Revenue Account is reporting a net in-year underspend of (£1.816m) (2.9%). This is a movement of (£1.816m) from the breakeven position projected at Period 10. The movement is primarily related to reduced expenditure on internal contributions and revised capital financing charges reflecting the profile of the HRA capital programme. 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 outturn 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 overspend of £2.036m, this is an improvement of (£1.144m) from the previously reported position. 1.6 It is proposed that a non-recurring budget transfer of £2.036m to the IJB is approved to offset the overspend position in 2024/25. 2. Background General Fund 2.1 The Council set a breakeven budget for 2024/25. In addition to the budget approved on 28 February 2024, earmarked funds of £84.940m were carried forward from 2023/24 for service expenditure in 2024/25 and beyond. These funds are reflected in the figures within the 2024/25 financial performance reports as they are drawn down. 2.2 A net in-year underspend of £0.736m is reported, net of transfers to/from reserves. The following table details the final position on a service by service basis. Service Expenditure App No. Annual Budget £ million Actual Expenditure to 31 March 2025 £ million Variance for year (Fav)/Adv £ million Requests for Carry Forwards £ million Variance after Carry Forward (Fav)/Adv £ million Note Corporate Services 1 20.730 19.936 (0.794) 0.314 (0.480) (i) Education 2 175.111 175.998 0.887 0.000 0.887 (ii) Place 3 56.516 57.127 0.611 0.230 0.841 (iii) Communities & Housing 4 15.678 15.231 (0.447) 0.112 (0.335) (iv) Other Corporate Items 5 16.466 10.212 (6.254) 3.108 (3.146) (v) Sub Total 284.501 278.504 (5.997) 3.764 (2.233) Health and Social Care Partnership 133.207 135.243 2.036 0.000 2.036 Balance for Services 417.708 413.747 (3.961) 3.764 (0.197) Financing Charges 6 26.909 26.909 0.000 0.000 0.000 Contribution to Loans Fund Reserve 6 11.174 11.174 0.000 0.000 0.000 Total Planned Expenditure 455.791 451.830 (3.961) 3.764 (0.197)
Page 3
Service Expenditure App No. Annual Budget £ million Actual Expenditure to 31 March 2025 £ million Variance for year (Fav)/Adv £ million Requests for Carry Forwards £ million Variance after Carry Forward (Fav)/Adv £ million Note Aggregate External Finance 6 (374.368) (374.375) (0.007) 0.000 (0.007) Council Tax 6 (65.607) (66.139) (0.532) 0.000 (0.532) (vi) Use of Earmarked Funds 6 (15.816) (15.816) 0.000 0.000 0.000 Total Planned Income (455.791) (456.330) (0.539) 0.000 (0.539) Net Expenditure/ (Income) 0.000 (4.500) (4.500) 3.764 (0.736) 2.3 The reported Aggregate External Finance within Planned Income includes a number of 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 (325.584) (41.313) (7.166) (374.063) Educational Psychologist (0.016) 0.000 0.000 (0.016) DHP Accrual (0.730) 0.000 0.000 (0.730) PEF Adjustments / Accrual 0.000 0.000 0.507 0.507 NDR Empty Property Realignment 0.000 (0.066) 0.000 (0.066) Revised Planned Income (326.330) (41.379) (6.659) (374.368) 2.4 Commentary on Significant Movements from Period 10 The Council's overall financial forecast against the revised budget is an improvement of (£1.056m) from the previously reported position. A brief explanation of the significant movements, together with information on funding to be carried forward to support expenditure during 25/26, are provided in appendices 1 to 6 to this report. A full list of the proposed carry forward of earmarked funds is included at Appendix 6. (i) Corporate Services – underspend of (£0.794m), an improvement of (£0.143m) from the previously reported underspend The movements are primarily related to: • Vacancy management within Democratic Services, (£0.079m); and • Lower than anticipated expenditure on software licences and support costs within ICT, (£0.075m). It is requested that £0.314m of the underspend is earmarked to support anticipated additional expenditure during 2025/26 in relation to:
Page 4
• Inflationary pressures in ICT contracts, £0.245m; • Occupational Health contracts backlogs, £0.038m; and • Inflationary pressures on the Customer Services’ telephony infrastructure contract, £0.031m. (ii) Education – overspend of £0.887m, an improvement of (£1.296m) from the previously reported overspend The movements are primarily related to: • Lower than anticipated employee costs within Education Services linked to staff turnover levels and lower than previously anticipated teacher cover costs, influenced by the ongoing focus on absence management across the service, (£0.817m); • Increase income across the service, including school meals income and PPP rebates, (£0.275m); and • Reduced expenditure on employees and supplies related to the next phase of the universal free school meal roll out, (£0.058m). (iii) Place – overspend of £0.611m, an improvement of (£0.719m) from the previously reported overspend The movement is primarily related to: • Maximisation of available external grant funding following late notification of some awards in the year, (£0.526m); • Additional income across Roads, Transport and Waste services, (£0.374m); • Reprogramming of RAAC works at Mid Dykes depot and condition surveys, (£0.296m); • Reduced expenditure on Winter Maintenance supplies, (£0.087m); and • Reduced expenditure on transport provision, (£0.087m). These have been partly offset by: • Reduced property rental income during the year which will be addressed as part of the non-operational property review, £0.357m; • Additional costs arising from Storm Eowyn, £0.204m; • Increased expenditure on Roads contractors, £0.159m; • Additional property running costs associated with service charges and non domestic rates, £0.125m; and • Increased transport costs within Waste Services, £0.071m. It is requested that £0.230m is earmarked to support anticipated additional expenditure during 2025/26 in relation to: • RAAC works at Mid Dykes depot, £0.120m; • Local Heat and Energy Efficiency Strategies, £0.045m; • Making Waves festival 2027, £0.035m; • Roads Infrastructure investment to maximise annual budget provision, £0.027m; and • Contribution to the Largs Car Park Fund, £0.003m.
Page 5
(iv) Communities & Housing – underspend of (£0.447m), an improvement of (£0.288m) from the previously reported underspend The movement is primarily related to: • Vacancy management across services, (£0.207m); • Additional income across various services, (£0.099m); and • Lower than anticipated expenditure during the year on the Rapid Rehousing Transition Plan, (£0.065m). These have been partly offset by: • Additional costs arising from Storm Eowyn, £0.087m; and • Increased level of reactive works within Building Services, £0.077m. It is requested that £0.112m of the underspend is earmarked to support anticipated additional expenditure during 2025/26 in relation to: • Rapid Rehousing Transition Plan linked to the 5 year RRTP delivery programme, £0.065m; • CCTV programme, £0.023m; • Information & Culture ICT equipment, £0.017m; and • VE Day commemorative events, £0.007m. (v) Other Corporate Items – underspend of (£6.254m), an increase of (£4.237m) from the previously reported underspend The movement is primarily related to: • Additional Scottish Government Grants not utilised in year, (£1.999m); • Centrally held provisions held in relation to Storm Eowyn, (£0.786m), with actual expenditure recorded against each Directorate; • Centrally held inflationary provisions not drawndown during the year, including energy cost provisions which have been subject to ongoing volatility, even after allowing for a proportion of advanced purchasing arrangements, (£0.715m); • Late insurance recoveries received during the year, (£0.150m); • Additional central support income following completion of the year end recharge process, (£0.366m); and • Additional net income from salary sacrifice schemes, reflecting high staff uptake levels, (£0.059m). It is requested that £3.108m of the underspend is earmarked to support anticipated additional expenditure during 2025/26 in relation to: • Additional workforce planning costs to support pay negotiations for 2025/26, £1.575m; • Council property investment from insurance recoveries received during the year, £0.150m; • Contribution to the Change and Service Redesign Fund to support the ongoing programme, £0.097m; • To support the completion of the CCTV Review, £0.050m;
Page 6
• Carry forward of Scottish Government grant funding required in 2025/26: Scottish Welfare Fund, £0.705m; Islands Cost Crisis Emergency, £0.228m; Ukrainian resettlement, £0.075m; No-one Left Behind, £0.059m; Island Cost of Living, £0.058m; DWP Funding, £0.050m; Educational Psychologists, £0.026m; Child Poverty Coordinators, £0.020m; and Temp Accommodation Pressures, £0.015m. (vi) Council Tax Income – overrecovery of (£0.532m), an increase of £0.166m from the previously reported overrecovery The movement is primarily related to recent updated data on Council Tax Reduction claims and prior year collection forecasts. 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 19 June 2025 and will outline the 2024/25 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 overspend of £2.036m, this is an improvement of (£1.144m) from the previously reported position. Request for Additional Financial Support 2.6 Following the receipt of a written request from the IJB for additional financial support to address their 2024/25 overspend position, on 18 March 2025 Cabinet approved interim funding to be made available to support the anticipated overspend on Council services at the end of the financial year. It was anticipated that, in accordance with the Integration Scheme, the offer of additional financial support would be supported by repayment in future years on the basis of a revised recovery plan and agreed by Council and the IJB. In view of the Council’s final outturn position, which includes areas of non-recurring underspends, it is now proposed that a non-recurring budget transfer to the IJB equivalent to the level of overspend on Council services, £2.036m, is approved. Housing Revenue Account 2.7 The Housing Revenue Account budgeted for a breakeven position in 2024/25. An underspend of (£1.816m), net of transfers to/from reserves, has been reported. This is a movement of (£1.816m) from the previously reported breakeven position and is summarised in the following table with further details provided in Appendix 7. The underspend will be added to the HRA earmarked balances to support delivery of the HRA Business Plan.
Page 7
Housing Revenue Account Annual Budget £ million Actual Expenditure to 31 March 2025 £ million Variance for year (Fav)/Adv £ million Projected Variance at P10 (Fav)/Adv £ million Movement Note Employee Costs 5.241 5.014 (0.227) (0.231) 0.004 Property Costs 21.684 23.121 1.437 1.848 (0.411) (i) Supplies and Services 2.297 1.862 (0.435) (0.263) (0.172) (ii) Transport and Plant Costs 0.021 0.016 (0.005) 0.000 (0.005) Administration Costs 1.756 1.915 0.159 0.029 0.130 (iii) Third Party Payments 3.847 3.439 (0.408) 0.065 (0.473) (iv) Transfer Payments 0.163 0.144 (0.019) 0.000 (0.019) Other Expenditure 0.490 0.266 (0.224) 0.000 (0.224) (v) Capital Financing 26.719 23.972 (2.747) (1.917) (0.830) (vi) Gross Expenditure 62.218 59.749 (2.469) (0.469) (2.000) Income (62.218) (61.565) 0.653 0.469 0.184 (vii) Net Expenditure 0.000 (1.816) (1.816) 0.000 (1.816) 2.8 Commentary on Significant Movements from Period 10 Detailed explanations of the significant variances in expenditure compared to the approved budgets are provided in appendix 6 to this report. A brief explanation of the significant movements for each service since Period 10 is outlined as follows: (i) Property Costs – overspend of £1.437m, a reduction of (£0.411m) from the previously reported overspend The movement reflects reductions in Responsive Repairs, (£0.275m), and Planned and Cyclical Maintenance, (£0.261m), partly offset by increased expenditure in other property costs. (ii) Supplies and Services – underspend of (£0.435m), an increase of (£0.172m) from the previously reported underspend The movement is primarily related to reduced expenditure on software licences, (£0.134m). (iii) Administration Costs – overspend of £0.159m, an increase of £0.130m from the previously reported overspend The movement reflects year end central support recharges. (iv) Third Party Payments – underspend of (£0.408m), a movement of (£0.473m) from the previously reported overspend The movement reflects a reduction in internal contributions.
Page 8
(v) Other Expenditure – underspend of (£0.224m), a movement of (£0.224m) from the previously reported breakeven position The movement is primarily related to reduced bad debt provision, (£0.185m). (vi) Capital Financing Costs – underspend of (£2.747m), an increase of (£0.830m) from the previously reported underspend 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. The capital investment requirements, however, still remain in place with the expectation that financing costs will increase in line with the delivery of the overall capital programme and the associated increased borrowing requirements in subsequent years. (vii) Income – under recovery of £0.653m, an increase of £0.184m from the previously reported under recovery The movement is primarily related to a reduction in the planned use of reserves, £0.286m, partly offset by increased income from Council House Rents, (£0.195m). 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 £3.764m identified at 2.4 to meet future year commitments; (c) note the financial performance of the Health and Social Care Partnership highlighted at 2.5; (d) approve a non-recurring budget transfer of £2.036m to the Health and Social Care Partnership to offset the in-year overspend on Council services; and (e) 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 (£0.736m) after transfers to and from earmarked reserves. Housing Revenue Account The final outturn position for the year is a net underspend of (£1.816m). Human Resources 4.2 None.
Page 9
Legal 4.3 None. Equality/Socio-economic 4.4 None. Environmental and Sustainability 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. 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 David Forbes, Senior Manager (Strategic Business Partner), on 01294 324551. Background Papers Revenue Budget 2024/25: Financial Performance to 31 January 2025 – Cabinet 18 March 2025
Page 10
OFFICIAL INFORMATION# Appendix 1 CHIEF EXECUTIVES BUDGETARY CONTROL 2024/25 REPORT FOR THE YEAR TO 31 MARCH 2025 Objective Summary Annual Budget Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Chief Executive Chief Executive 189 201 12 6% Total for Chief Executive 189 201 12 6% Financial Services Change Programme 330 330 - 0% Audit, Fraud, Safety & Insurance 670 644 (26) (4%) Corporate Procurement 890 758 (132) (15%) 1 Financial Services 1,522 1,486 (36) (2%) Revenues (555) (490) 65 (12%) 2 Transformation 722 697 (25) (3%) Total for Financial Services 3,579 3,425 (154) (4%) People & ICT Employee Services 872 874 2 0% HR & Organisational Development 1,122 996 (126) (11%) 3 ICT 5,260 4,986 (274) (5%) 4 Business Support 1,320 1,347 27 2% Customer Services 4,276 4,220 (56) (1%) 5 Total for People & ICT 12,850 12,423 (427) (3%) Democratic Services Legal & Licensing 690 646 (44) (6%) 6 Policy, Performance & Elections 520 428 (92) (18%) 7 Communications 471 481 10 2% Civil Contingencies 60 57 (3) (5%) Committee Services 459 451 (8) (2%) Member Services 1,335 1,285 (50) (4%) Ayrshire Support Service 521 502 (19) (4%) Information Governance 56 37 (19) (34%) Total for Democratic Services 4,112 3,887 (225) (5%) Totals 20,730 19,936 (794) (4%) Less Proposed Carry Forwards 314 314 Net Total 20,730 20,250 (480) (2%) # OFFICIAL INFORMATION
Page 11
OFFICIAL INFORMATION# Appendix 1 Subjective Summary Annual Budget Outturn Annual Variance Adverse or (Favourable) % Variance £000 £000 £000 Employee Costs 16,959 16,636 (323) (2%) Property Costs 84 111 27 32% Supplies and Services 3,193 2,746 (447) (14%) Transport and Plant Costs 21 10 (11) (52%) Administration Costs 1,410 1,404 (6) (0%) Other Agencies & Bodies 2,092 1,908 (184) (9%) Transfer Payments 897 891 (6) (1%) Other Expenditure - 46 46 - Capital Financing - - - - Gross Expenditure 24,656 23,752 (904) (4%) Income (3,926) (3,816) 110 (3%) Net Expenditure 20,730 19,936 (794) (4%) # OFFICIAL INFORMATION
Page 12
OFFICIAL INFORMATION# Appendix 1a CHIEF EXECUTIVES BUDGETARY CONTROL 2024/25 REPORT FOR THE YEAR TO 31 MARCH 2025 Budget £000 Variance £000 Variance as % of budget Section Note 1 Finance - Corporate Procurement Movement - There has been no movement since P10. 862 (92) -11% Employee costs - There is an underspend of £0.092m due to vacancy management. (40) Other minor movements (132) Note 2 Finance - Revenues Movement - There has been an adverse movement of £0.095m since P10 largely due to revisions to statutory additions. (1,376) 105 -8% Income - There is an increase in Bad Debt Provisions related to Council Tax and NDR statutory additions of £0.110m. (40) Other minor movements 65 Note 3 People & ICT - HR & Organisational Development Movement - There has been a favourable movement of (£0.017m) since P10 mainly due to underspends in third party payments relating to the new Occupational Health online portal. 413 (148) -36% Third Party Payments - There is an underspend of £0.148m due to a delay in the roll out of the Occupational Health online portal for Managers. It is anticipated that this underspend will be a one-off occurrence in 2024/25 as the volume of referrals are expected to increase when this happens, as will the costs. 22 Other minor movements It is requested to earmark £0.038m from the underspend in the Occupational Health contract for anticipated increased cost in service due to backlog. (126) Note 4 People & ICT - ICT Movement - There has been a favourable movement of (£0.075m) mainly due to a £0.045m reduction in software licenses & support costs not as high as expected as well as other minor underspends. 2,156 (245) -11% Supplies & Services - There is an overall underspend of £0.245m. This is due to a £0.135m underspend in software licenses and support due to costs not as high as expected. Further underspends of £0.039m in LAN, £0.043m in WAN and £0.028m in server support, all due to costs less than anticipated.(29) Other minor movements The service is proposing to earmark the £0.245m underspend to address several key pressures expected. £0.150m funding will be reserved to support the ongoing costs of the recently procured Managed Cyber SOC service which is currently being funded from earmarking. This further earmarking will allow an additional year of service before a pressure bid becomes necessary. £0.030m for anticipated 2.5 times increase in annual costs for both VMWare and FME software and support. £0.065m for known 10% increase in Microsoft 365 and Microsoft Azure under UK Public Sector SPA24 contract pricing. A future pressure bid is highly likely to cover ongoing Microsoft licensing costs. (274) Note 5 People & ICT - Customer Services Movement - There has been an unfavourable movement of £0.016m since P10 due to Benefit postage costs previously anticipated to be covered by system admin. 2,800 (58) -2% Employee Costs - There is an underspend of £0.058m due to vacancy management. 284 (30) -11% Supplies & Services - There is an underspend of £0.030m due to Netcall set up costs being funded through ICT Capital. 51 20 39% Admin Costs - There is an overspend of £0.020m in Benefits postages. This was due to an error in the first run resulting in claims requiring to be rerun. This is a non recurring overspend. 12 Other minor movements It is requested to earmark £0.031m to cover the already agreed increase in Netcall software cost in 25/26. Ongoing this increased cost will be covered by deleting a post within the Contact Centre. (56) Note 6 Democratic Services - Legal & Licensing Movement - There has been a favourable movement of (£0.079m) since P10 due to underspends in employee costs due to management vacancy, and additional license income. 1,113 (47) -4% Employee Costs - There is an underspend of £0.047m due to vacancy management. 3 Other minor movements (44) Note 7 Democratic Services - Policy, Performance & Elections Movement - There has been a small favourable movement of (£0.004m) since P10. 480 (79) -16% Employee costs - There is an underspend of £0.079m due to vacancy management. (13) Other minor movements (92) # OFFICIAL INFORMATION
Page 13
OFFICIAL INFORMATION# Appendix 2 EDUCATION BUDGETARY CONTROL 2024/25 REPORT FOR THE YEAR TO 31 MARCH 2025 Objective Summary Annual Budget Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Early Years Education 22,863 22,434 (429) (2%) 1 Primary Education 51,541 52,061 520 1% 2 Secondary Education 59,276 58,896 (380) (1%) 3 Additional Support Needs 15,460 16,856 1,396 9% 4 Central Education 3,074 4,444 1,370 45% 5 Scottish Equity Fund 121 121 - 0% Pupil Equity Fund 3,861 3,861 - 0% Facilities Management 18,915 17,325 (1,590) (8%) 6 Net Total 175,111 175,998 887 1% Subjective Summary Annual Budget Outturn Annual Variance Adverse or (Favourable) % variance £000 £000 £000 Employee Costs - Teachers 102,850 104,215 1,365 1% Employee Costs - Non Teachers 51,441 50,738 (703) (1%) Property Costs 1,387 1,465 78 6% Supplies and Services 25,753 24,586 (1,167) (5%) Transport and Plant Costs 132 152 20 15% Administration Costs 831 856 25 3% Other Agencies & Bodies 854 2,851 1,997 234% Transfer Payments 580 441 (139) (24%) Other Expenditure - - - Capital Financing 71 64 (7) (10%) Gross Expenditure 183,899 185,368 1,469 1% Income (8,788) (9,370) (582) Net Expenditure 175,111 175,998 887 1% # OFFICIAL INFORMATION
Page 14
OFFICIAL INFORMATION# Appendix 2a EDUCATION BUDGETARY CONTROL 2024/25 REPORT FOR THE YEAR TO 31 MARCH 2025 Budget £000 Variance £000 Variance as % of budget Section Note 1 Early Years Education Movement: There has been a favourable movement of (£0.096m) compared to P10 mainly due increased underspends of (£0.064m) in employee costs and an over recovery of other local authority income of (£0.034m). 17,388 (372) -2% Employee Costs: Overall an underspend of £0.372m. - Teachers:- no variance. - Non Teachers:- final underspend of £0.372m as a result of staff turnover and cover arrangements (269) (34) 13% Income: over recovery primarily due to income from other Local Authorities. (23) Other minor movements. A reduction to the budget of £1.198m in 23/24 necessitated a drawdown from Education earmarked funds of £0.507m pending the permanent savings being implemented for 24/25. The Service redesign has been developed and was implemented by August 2024. (429) Note 2 Primary Education Movement: There has been an unfavourable movement of £0.082m compared to P10 due to increased employee costs 49,884 490 1% Employee Costs : Overall an overspend of £0.490m. This is mainly due to a lower level of turnover being achieved against the set budget targets. The internal allocation of turnover budgets will be reviewed for 25/26. 30 Other minor movements 520 Note 3 Secondary Education Movement: There has been an favourable movement of (£0.473m) compared to P10 due to increased teacher turnover and a reduced cover requirement within employee costs 50,199 (369) -1% Employee Costs : Overall an underspend of £0.369m. This is mainly due to a higher level of turnover being achieved against the set budget targets. The internal allocation of turnover budgets will be reviewed for 25/26. (11) Other minor movements (380) Note 4 ASN Movement: There has been a favourable movement of (£0.180m) compared to P10. This is due to a (£0.112m) increase in employee underspends, a (£0.022m) increase in Other Local Authority section 23 income, a (£0.024m) decrease in external placement fees, and small underspends across various other budgets. 14,133 (334) -2% Employee Costs : Overall an underspend of £0.334m. This is mainly due to a higher level of turnover being achieved against the set budget targets. The internal allocation of turnover budgets will be reviewed for 25/26. 430 (128) -30% There is an underspend of £0.128m on payments to Other Local Authorities, due to a reduction in the number of NAC children accessing placements in their establishments. 1,010 465 46% There is an overspend of £0.465m on external day placements, as a result of additional children requiring this level of support and an increase in rates from these establishments. Currently there are 29 children in day placement provision. A review of the process has taken place. 543 1,578 291% There is an overspend of £1.578m on external specialist residential placements. Currently there are 14 children in accommodation with an Education provision. 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 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. (657) (167) 25% There is an over recovery of £0.167m in Other Local Authorities income, due to the number of other authority children accessing a place in NAC establishments, which is currently 11 pupils. (18) Other minor movements. 1,396 # OFFICIAL INFORMATION
Page 15
OFFICIAL INFORMATION# Appendix 2a Budget £000 Variance £000 Variance as % of budget Section Note 5 Central Education Movement: There has been a favourable movement of (£0.485m) compared to P10 mainly due to increased PPP deduction income (£0.094m), a further reduction across HQ employee costs (£0.252m), and underspends across various other budget lines amounting to (£0.139) 1,914 1,730 90% Employee costs: A lower than expected overspend of £1.952m in Teachers HQ cover as a result of costs associated with mandatory cover for teacher maternity cover and sickness absence. There are currently 32 Teachers (27.3 FTE) on maternity leave as well as 13 Early Years Practitioners (9.2 FTE) and 5 PSA/EBAs (4.27 FTE). Absence levels are subject to regular review across the service and appropriate actions are taken to maximise attendance. This is offset by an underspend in Leadership & Music services of £0.222m - 108 There is a projected under recovery of teacher induction grant funding linked to a reduction in the number of probationary teachers allocated to North Ayrshire by the Scottish Government. Core placement allocations have been reduced from 51 FTE to 34 FTE resulting in a £0.108m reduction in grant funding. 465 (62) -13% Supplies & Services: underspends across various budget lines 1,468 (51) -3% Third Party Payments: underspend across various budget lines (1,744) (329) 19% Income: PPP insurance rebate £0.042m and PPP deductions of £0.287m in excess of budget (26) Other minor movements. 1,370 Note 6 Facilities Management Movement: There has been a favourable movement of (£0.142m) compared to P10 mainly due to further increased employee cost underspends and increased recovery of income 14,910 (842) -6% Employee Costs: A final underspend of £0.842m primarily due to staff turnover, holding vacancies for approved service restructures, and a targeted reduction of overtime and casual costs. £0.300m is related to newly created posts for the next phase of UFSM roll out, which are in the process of being recruited. 1,232 68 6% Property Costs: There is a £0.068m overspend in cleaning materials/washroom supplies due to increased costs 5,317 (421) -8% Supplies and services: There is a £0.421m underspend in food/equipment budgets allocated for the next phase of universal free school meals which went live in February 2025. 97 41 42% Admin: There is a £0.041m overspend mainly due to incurred legal costs (2,715) (452) 17% Income: There is an over-recovery of cleaning and janitorial income of £0.116m, £0.181m in commercial catering income and school meals income of £0.155m. 16 Other minor movements (1,590) Note 7 General 10 Contained within the above are costs of £0.010m relating to Storm Eowyn which will be offset against a centrally held budget. # OFFICIAL INFORMATION
Page 16
OFFICIAL INFORMATION# Appendix 3 PLACE BUDGETARY CONTROL 2024/25 REPORT FOR THE YEAR TO 31 MARCH 2025 Objective Summary Annual Budget Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Directorate and Support 24 - (24) (100%) Neighbourhood Services Roads 8,318 8,291 (27) (0%) 1 Streetscene 5,500 5,687 187 3% 2 Waste Resources 9,031 9,931 900 10% 3 Municipalisation Advertising (123) (14) 109 (89%) 4 Total for Neighbourhood Services 22,726 23,895 1,169 5% Economic Development, Growth and Investment Economic Policy 323 313 (10) (3%) Employability & Skills 1,849 911 (938) (51%) 5 Regeneration 1,574 1,578 4 0% Business 1,221 1,201 (20) (2%) Growth & Investment 346 307 (39) (11%) 6 Total for Economic Development, Growth and Investment 5,313 4,310 (1,003) (19%) Sustainability, Transport and Corporate Property Property Management & Investment 1,918 1,810 (108) (6%) 7 Housing Assets & Investment 21 - (21) 0% Property Maintenance 79 96 17 22% 8 Property Running Costs 6,238 6,724 486 8% 9 Energy and Sustainability 8,917 8,872 (45) (1%) 10 Internal Transport 11,280 11,420 140 1% 11 Total for Sustainability, Transport and Corporate Property 28,453 28,922 469 2% Net Total 56,516 57,127 611 1% Transfer to Earmarked Reserves 230 230 Net Total 56,516 57,357 841 # OFFICIAL INFORMATION
Page 17
OFFICIAL INFORMATION# Appendix 3 Subjective Summary Annual Budget Outturn Annual Variance Adverse or (Favourable) % variance £000 £000 £000 Employee Costs 29,804 30,094 290 1% Property Costs 26,384 26,571 187 1% Supplies and Services 4,614 4,706 92 2% Transport and Plant Costs 10,269 11,152 883 9% Administration Costs 1,576 1,585 9 1% Other Agencies & Bodies 15,585 15,968 383 2% Transfer Payments - - - 0% Other Expenditure 78 67 (11) (14%) Capital Financing 26 11 (15) Gross Expenditure 88,336 90,154 1,818 2% Income (31,820) (33,027) (1,207) 4% Net Expenditure 56,516 57,127 611 1% # OFFICIAL INFORMATION
Page 18
OFFICIAL INFORMATION# Appendix 3a PLACE BUDGETARY CONTROL 2024/25 REPORT FOR THE YEAR TO 31 MARCH 2025 Budget £000 Variance £000 Variance as % of budget Section Note 1 Roads Movement: There has been a favourable movement of (£0.012m) since P10, due to a movement in the over recovery in income of (£0.144m) and decreased costs in supplies and services of (£0.047m), partially offset by increased third party payments expenditure of £0.159m and transport costs of £0.020m. 4,660 (47) (1%) Employee Costs: underspend of £0.047m due to vacancy management. 33 71 215% Transport Costs: £0.071m overspend mainly due to hire of a gully unit. 3,137 (36) (1%) Supplies & Services: £0.113m underspend in Winter Maintenance mainly due to a £0.100m underspend in salt/grit costs, which has been partially offset by £0.022m additional costs in Asset Management due to redevelopment of the minor works framework, £0.013m increase in Decriminalised Parking Enforcement costs due to the number of tickets issued, and £0.040m of works following Storm Eowyn. 2,773 116 4% Third Party Payments: an overall overspend of £0.067m in Network third party payments came from overspends of £0.105m in payments to contractors which were partially offset by a £0.038m underspend in contractors road markings. An overspend of £0.040m in Winter Maintenance costs was due to the A760 weather station works and winter weather forecast costs. (2,659) (137) 5% Income: over recovery due to £0.066m over recovery in Decriminalised Parking Enforcement income and an additional £0.059m and £0.046m from salaries recharged to capital and sales, fees and charges respectively, this was partially offset by an under recovery of £0.042m in income from other NAC departments. 6 Other minor movements. It is requested to earmark this full underspend of £0.027m for investment in the roads infrastructure. (27) Note 2 Streetscene Movement: There has been an adverse movement of £0.101m since P10. This is mainly due to £0.105m of additional costs for essential work on storm damaged trees following Storm Eowyn. 306 45 15% Supplies and Services: £0.070m overspend on contractor costs for urgent work to make public areas and travel routes safe following Storm Eowyn and £0.019m overspend on materials. This is partly offset with underspends of £0.016m on tools and implements, £0.015m on uniforms and £0.013m on weedkiller. (2,819) 123 (4%) Income: £0.042m under recovery of Interment income and £0.047m under recovery of Memorial Permit income. £0.052m under recovery of income from other departments. This is partly offset with a £0.018m over recovery from other income streams. 19 Other minor movements Included within the Streetscene outturn there is a £0.003m underspend in Largs Car Park that will be transferred to earmarked funds. 187 # OFFICIAL INFORMATION
Page 19
OFFICIAL INFORMATION# Appendix 3a Budget £000 Variance £000 Variance as % of budget Section Note 3 Waste Services Movement: There has been a favourable movement of (£0.107m) since P10 due to additional income of (£0.178m) and reduced costs within supplies and services of (£0.070m), these were partially offset by an increase in transport costs of £0.071m and third party payments of £0.049m. 5,179 693 13% Employee costs: There remains a challenging cumulative sickness absence rate of 30.42 days per employee from April 2024 to March 2025. 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. 272 196 72% Transport Costs: Additional vehicles were 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. 608 (59) (10%) Supplies & Services: Underspends in materials costs of £0.077m and Leachate £0.059m, partially offset by overspends in Tools and Implements £0.056m and Employee Clothing £0.019m. 6,508 (27) (0%) Third Party Payments: Underspends from the kerbside recyclate contracts of £0.138m and £0.031m from organics contract, partially offset by overspends in diverted waste of £0.124m and £0.026m in the Clyde Valley Contract. (3,857) 123 (3%) Income: An under-recovery in purple bin contract income of £0.300m due to reductions in recyclate market prices and increased contamination levels resulting in a lower rate per tonne. To counter this the Waste Awareness Team are promoting a Right Stuff Right Bin comms campaign, putting new stickers on bins to remind residents what each bin should be used for and operational staff are removing contaminants where possible to try and reduce contamination levels. This under-recovery is partially offset by over-recovery in sale of vouchers of £0.093m, the sale of other recyclates £0.049m and sale of bins £0.024m. (26) Other minor movements 900 Note 4 Municipalisation Advertising Movement: There has been an adverse movement of £0.010m since P10, due to a downturn in vehicle advertising as a result of challenging economic market conditions. (123) 109 (89%) Income: An under recovery of £0.109m primarily due to vehicle advertising and the unfavourable market conditions. 109 Note 5 Employability & Skills Movement: There has been a favourable movement of (£0.526m) since P10. This is mainly due to a decrease in the planned grant funded expenditure, resulting in the reprofiling of expenditure from the core budget in order to maximise the drawdown of external funding available. This will be a one-off occurrence due to reduced grant funding in 2025/26. 3,147 (630) (20%) Employee Costs: Underspend of £0.630m in employee costs due to maximising available external funding. This is in part due to late notification of funding awards and will be a one-off occurrence in 2024/25 due to earlier confirmation of funding awards and reduced funding allocations in 2025/26. 4,359 (262) (6%) Third Party Payments: Underspend of £0.262m as Employability are using all external funding available, resulting in an underspend in the core budget. This underspend will likely to be a one-off occurrence in 2024/25 due to work to maximise third party delivery and reduced funding allocations in 2026/27. (46) Other minor movements. (938) Note 6 Growth & Investment Movement: There has been a favourable movement of (£0.039m) since P10, primarily due to an underspend in the events budget. 184 (35) (19%) Third Party Payments: Underspend of £0.035m in budget for Events. (4) Other minor movements. 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. (39) Note 7 Property Management and Investment Movement: There has been favourable movement of (£0.067m) since P10 due to improved income recovery of (£0.026m), lower third party payments (£0.022m) and lower employee costs due to vacancy management of (£0.017m). 906 (170) (19%) Employee Costs: Underspend of £0.170m primarily due to vacancy management. (1,263) 64 (5%) Income: Under-recovery of fee income of £0.064m. (2) Other minor movements (108) # OFFICIAL INFORMATION
Page 20
OFFICIAL INFORMATION# Appendix 3a Budget £000 Variance £000 Variance as % of budget Section Note 8 Property Maintenance Costs Movement: There has been favourable movement of (£0.321m) since P10 due to lower property costs of £0.296m as a result of reprogramming works on RAAC at Mid Dykes and condition surveys. 7,286 42 1% Property Costs: Overspend of £0.042m due to essential reactive maintenance. (25) Other minor movements It is requested to earmark £0.120m to carry out RAAC remedial works at Mid Dykes Depot. 17 Note 9 Property Running Costs Movement: There has been adverse movement of £0.486m since P10 due to under recovery of income of £0.357m and increased property costs £0.125m. 7,787 125 2% Property Costs: Overspend of £0.068m on service charges mostly related to ongoing discussions with NHS re shared accommodation and £0.032m charge for prior year NDR costs. (1,765) 357 (20%) Income: Under-recovery of income £0.357m largely related to rental property income linked to market pressures, units held in abeyance as part of the land and property review, and insolvency of businesses. This will be picked up as part of the commercial property review in conjunction with a review of the impact of the capital investment programme. 4 Other minor movements 486 Note 10 Energy & Sustainability Movement: There has been a favourable movement of (£0.045m) since P10 due to a £0.045m underspend in Third Party Payments. 603 (45) (7%) Third Party Payments: There is an underspend of £0.045m in LHEES due to a delay in the framework. It is requested to earmark £0.045m to contribute towards LHEES spend in 2025/26 now that the framework has been finalised. (45) Note 11 Internal Transport Movement: There has been a favourable movement of (£0.123m) since P10 which is primarily due to lower than projected Transport Provision costs of (£0.087m), an increase in over-recovery of Pool Hire Income of (£0.084m) and a decrease in Fuel costs of (£0.103m), partially offset by an increase in repairs and maintenance of £0.103m and a decrease in the over-recovery in Bus Transport Income of £0.032m. 4,860 226 5% Transport Provision Costs: There is an overspend of £0.226m due to a higher number of pupils requiring transport and an increase in tendered costs in private contracts for the provision. 1,739 (287) (17%) Fuel: There is an underspend in fuel of £0.287m due to lower usage as more electric vehicles are introduced to the fleet, HVO started being used, from November, instead of Diesel for Waste vehicles and steady fuel prices throughout the year. 1,226 314 26% Repairs & Maintenance: There is an overspend of £0.314m in repairs and maintenance due to repairs being outsourced as a result of difficulties recruiting Motor Mechanics, as well as price increases and maximising the life of assets due to replacement vehicle lead times. 562 90 16% External Hires: There is an overspend of £0.090m mainly due to the hire of additional vehicles (pending delivery of replacements) and plant hire. (316) (179) 57% Income: There is an over-recovery of £0.068m in bus transport income and an over-recovery of £0.174m 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. These are partly offset with an under-recovery of £0.062m in the staff pool car scheme. (24) Other minor movements 140 Note 12 Internal Transport 214 Contained within the above are costs of £0.214m relating to Storm Eowyn which will be offset against a centrally held budget. 214 # OFFICIAL INFORMATION
Page 21
OFFICIAL INFORMATION# Appendix 4 COMMUNITIES AND HOUSING BUDGETARY CONTROL 2024/25 REPORT FOR THE YEAR TO 31 MARCH 2025 Objective Summary Annual Budget Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Directorate and Support 257 243 (14) (5%) Housing and Public Protection Building Services (2,347) (2,270) 77 (3%) 1 Property Governance - - - Planning Services 348 148 (200) (57%) 2 Protective Services 1,784 1,621 (163) (9%) 3 Other Housing 2,151 2,018 (133) (6%) 4 Total for Housing and Public Protection 1,936 1,517 (419) (22%) Connected Communities 13,485 13,471 (14) (0%) 5 Net Total 15,678 15,231 (447) (3%) Transfer to Earmarked Reserves 112 112 Net Total 15,678 15,343 (335) Subjective Summary Annual Budget Outturn Annual Variance Adverse or (Favourable) % variance £000 £000 £000 Employee Costs 25,850 27,300 1,450 6% Property Costs 3,997 4,020 23 1% Supplies and Services 7,174 6,826 (348) (5%) Transport and Plant Costs 950 985 35 4% Administration Costs 248 384 136 55% Other Agencies & Bodies 11,394 11,508 114 1% Transfer Payments - - - 0% Other Expenditure 104 179 75 72% Capital Financing - - - Gross Expenditure 49,717 51,202 1,485 3% Income (34,039) (35,971) (1,932) 6% Net Expenditure 15,678 15,231 (447) (3%) # OFFICIAL INFORMATION
Page 22
OFFICIAL INFORMATION# Appendix 4a COMMUNITIES AND HOUSING BUDGETARY CONTROL 2024/25 REPORT FOR THE YEAR TO 31 MARCH 2025 Budget £000 Variance £000 Variance as % of budget Section Note 1 Building Services Movement: There has been an adverse movement of £0.077m since period 10. This is due to a reduction in reactive works. 10,990 (327) (3%) Employees: An underspend of £0.327m in employee costs due to vacancy management. 131 (30) (23%) Property: An underspend of £0.030m in property costs primarily due to an underspend in contract cleaning. 5,641 (427) (8%) Supplies & Services: An underspend of £0.427m primarily due to an underspend in materials as a result of a reduction in void kitchen and bathroom works. 3,194 105 3% Third Party Payments: An overspend of £0.105m which mainly relates to additional subcontractor costs for timber and damp works, storm damage and infrastructure improvements. (23,408) 803 (3%) Income: An under recovery of £0.803m. This is largely due to an under recovery in Project income of £0.955m and £0.764m in Non-Housing works. This is partially offset by an increased volumes of work within responsive repairs of £0.144m, void works of £0.299m and Planned works of £0.473m. (47) Other minor movements 77 Note 2 Planning Services Movement: There has been a favourable movement of (£0.029m) since period 10, this is mainly due to an over recovery of income for additional planning fee applications. (565) (150) 27% Income: This is due to an over recovery of £0.150m for additional planning fee application income. (50) Other minor movements (200) Note 3 Protective Services Movement: There has been a favourable movement of (£0.163m) since period 10, this is due to an underspend in Employee costs of (£0.090m) and over-recovery in Income from other Depts of (£0.070m) 2,537 (90) (4%) Employee Costs: An underspend in Employee Costs of £0.090m, this is primarily due to a delay in SoD 437 (70) (16%) Income: This is due to an over-recovery of £0.070m In relation to HRA's contribution to CCTV (3) Other minor movements It is requested to Earmark £0.023m for CCTV review. (163) Note 4 Other Housing Movement: There has been a favourable movement of (£0.083m) since period 10 mainly due to a (£0.065m) underspend in relation to the Rapid Rehousing Transition plan. A reduction in anticipated income has been offset by lower property costs and lower Bad debt provision/ Arrears write offs. 3,062 (137) (4%) Property Costs: underspend due to £0.098m in void rent loss, £0.094m in furniture & fittings and £0.052m in contract cleaning. This is partially offset by £0.053m overspends in property repairs and £0.053m in property rents. 104 74 71% Other Expenditure: overspend of £0.074m in arrears write offs and bad debt provision. 1,403 (77) (5%) Third Party Payments: underspend of £0.077m mainly due to an underspend of £0.065m in RRTP Payments to Other Bodies. 7 Other minor movements - It is requested to earmark £0.065m of underspends that relate to the Rapid Rehousing Transition Plan to enable the preparation of the service for the implementation of the Homelessness Prevention Duties aligned to the New Housing Scotland Act 2014. (133) # OFFICIAL INFORMATION
Page 23
OFFICIAL INFORMATION# Appendix 4a Budget £000 Variance £000 Variance as % of budget Section Note 5 Connected Communities Movement: There has been been a favourable movement of (£0.077m) since P10 due to a reduction in employee costs (£0.117m), underspends in third party payments (£0.023m) and over recovery of income (£0.028m) partially offset by £0.087m due to storm costs. 7,378 (50) (1%) Employee Costs: underspend of £0.050m is primarily a result of vacancy management and staff movements. 687 87 13% Property Costs: overspend of £0.087m due to Storm costs required to be incurred for repairs in Country Parks. (2,279) (28) 1% Income: over-recovery of income of £0.028m across various sectors of the service. (23) Other minor movements. It is requested to earmark £0.024m - £0.007m for I&C VE Day Commemorations grants and £0.017m for I&C equipment not delivered in year. (14) Note 6 General 87 Contained within the above are costs of £0.087m relating to Storm Eowyn which will be offset against a centrally held budget. 87 # OFFICIAL INFORMATION
Page 24
OFFICIAL INFORMATION# Appendix 5 OTHER CORPORATE ITEMS BUDGETARY CONTROL 2024/25 REPORT FOR THE YEAR TO 31 MARCH 2025 Objective Summary Annual Budget Outturn Annual Variance Adverse or (Favourable) % Variance Note No £000 £000 £000 Strathclyde Passenger Transport 2,331 2,231 (100) (4%) SPT Concessionary Fares 286 286 - 0% Ayrshire Joint Valuation Board 978 932 (46) (5%) 3,595 3,449 (146) (4%) 1 Other Corporate Costs Pension Costs 4,014 4,014 - 0% Central Telephones 152 152 - 0% Other Corporate Items (incl Transformation Costs, Bad Debt Provision, External Audit fees and other centrally held funding.) 5,815 59 (5,756) (99%) 2 Insurance Account (601) (601) - 0% Housing Benefits 3,491 3,139 (352) (10%) 3 16,466 10,212 (6,254) (38%) Less Proposed Carry Forwards 3,108 3,108 Net Total 16,466 13,320 (3,146) (19%) # OFFICIAL INFORMATION
Page 25
OFFICIAL INFORMATION# Appendix 5a OTHER CORPORATE ITEMS BUDGETARY CONTROL 2024/25 REPORT FOR THE YEAR TO 31 MARCH 2025 Budget £000 Variance £000 Variance as % of budget Section Note 1 Joint Boards There has been no significant movement since Period 10 3,595 (146) -4% Projected underspend of (£0.146m) due to confirmation of annual requisitions and applicable refunds. (146) Note 2 Other Corporate Items There has been a favourable movement of (£4.059m) since Period 10 primarily related to additional Scottish Government Grants not utilised in year (£1.999m), centrally held provisions in relation to Storm Eowyn not drawn down by services (£0.786m), centrally held inflationary provisions not drawndown (£0.715m), Insurance recoveries for Melbourne toilets (£0.150m), additional central support recharge income (£0.366m) and additional net income from salary sacrifice schemes (£0.059m). 5,815 (5,756) -99% The underspend is primarily related to additional Scottish Government grant income in relation to a range of services, including the Scottish Welfare Fund, Ukrainian Resettlement, Islands Cost Crisis, Employability and NDR reliefs, (£2.556m). The majority of the Scottish Government grant income was confirmed too late in the financial year for full utilisation and is subject to a number of earmarking requests to enable these funds to be fully applied during 2025/26. Centrally held inflationary cost provisions in relation to energy inflation and payroll related costs have not been fully drawndown in year and have been applied to offset pressures reported across other services, (£1.478m). A centrally held provision for costs arising from Storm Eowyn was set aside in year (£0.786m). However, the costs, totalling £0.401m, have been reported in each service. Additional income from employee benefit schemes (£0.435m) and additional recharges to other services of the Council, (£0.366m). Income from Insurance in respect of Melbourne toilets (£0.150m) has been received and will be required for future redevelopment work. It is proposed to earmark funds totalling £3.108m as follows: Additional workforce planning costs associated with the ongoing SJC and SNCT pay negotiations, £1.575m; Melbourne Toilets, £0.150m; Contribution to the Change and Service Redesign Fund, £0.097m; CCTV Review, £0.050m. Carry forward of Scottish Government grant funding required in 2025/26: £0.705m for Scottish Welfare Fund; £0.228m for Islands Cost Crisis Emergency; £0.075m for Ukrainian resettlement; £0.059m for No-one Left Behind; £0.058m Island Cost of Living; £0.050m for DWP Funding; £0.026m for Educational Psychologists; £0.020m Child Poverty Coordinators; and £0.015m Temp Accommodation Pressures. (5,756) Note 3 Housing Benefit There has been a (£0.173m) favourable movement since Period 10 in relation to the year end Housing Benefit submission to the DWP. 3,491 (352) -10% Underspend of (£0.352m) due to the provision of Housing Benefits, reduced Bad Debt Provisions and additional overpayment recovery (352) # OFFICIAL INFORMATION
Page 26
OFFICIAL INFORMATION# Appendix 6 MISCELLANEOUS ITEMS BUDGETARY CONTROL 2024/25 REPORT FOR THE YEAR TO 31 MARCH 2025 Objective Summary Annual Budget Outturn Annual Variance Adverse or (Favourable) % variance Note No £000 £000 £000 Financing Charges 26,909 26,909 - - Contribution to Loans Fund Reserve 11,174 11,174 - - Scottish Government Funding (374,368) (374,375) (7) 0% Council Tax (65,607) (66,139) (532) 1% 1 Use of Earmarked Funds (15,816) (15,816) - - Net Total (417,708) (418,247) (539) 0% Contributions to Reserves £000 £000 Previously Approved Other Commitments Planned Contribution to the Loans Fund 11,174 Renewable Energy Investment 1,360 1,575 Business Recovery and Sustainability Fund 350 Repurposing Property Fund 250 ICT Contract Pressures 245 CWB for Communities 246 Melbourne Toilets 150 School Welfare Rights Officer 105 RAAC at Mid Dykes Depot 120 Contribution to Change Fund 97 13,485 CCTV Review 73 Grants / External Funding Rapid Rehousing Transition Plan 65 Scottish Welfare Fund 705 Local Heat and Energy Efficiency Strategy 45 Islands Cost Crisis Emergency 228 Occupational Health Contract Pressures 38 Ukrainian Resettlement 75 Making Waves 2027 35 No-one Left Behind 59 Customer Services - Netcall contract 31 Island Cost of Living 58 Roads Infrastructure 27 DWP funding not fully utilised 50 Libraries ICT 17 Educational Psychologist 26 VE Day Activities 7 Child Poverty Coordinators 20 Largs Car Park Fund 3 Temp Accommodation Pressures 15 1,236 2,528 Total Previously Approved 13,485 Total Proposed Earmarking 3,764 Total Contributions to Reserves 17,249 Additional workforce planning costs associated with the ongoing SJC and SNCT pay negotiations Growth in the net billed amount (£0.169m) has been offset by an increase in the value of CTR claims, £0.153m, and increased Bad Debt Provision, £0.096m. Reported collection rates still lag behind pre pandemic levels. The over recovery is primarily related to prior year collections and adjustments. Note 1 Council Tax Movement: There has been a favourable movement of (£0.166m) since period 10, primarily related to improved prior year collections. # OFFICIAL INFORMATION
Page 27
OFFICIAL INFORMATION# Appendix 7 HOUSING REVENUE ACCOUNT BUDGETARY CONTROL 2024/25 REPORT FOR THE YEAR TO 31 MARCH 2025 Annual Budget Outturn Annual Variance Adverse or (Favourable) % Variance Note No £ £ £ Employee Costs 5,241 5,014 (227) (4%) 1 Property Costs Responsive Repairs 7,361 7,290 (71) (1%) Void Repairs 4,023 4,286 263 7% Planned and Cyclical Maintenance 5,201 5,722 521 10% Aids and Adaptions 1,517 1,538 21 1% Other property costs 3,582 4,285 703 20% Total for Property Costs 21,684 23,121 1,437 7% 2 Supplies & Services 2,297 1,862 (435) (19%) 3 Transport Costs 21 16 (5) (24%) Administration Costs 1,756 1,915 159 9% 4 Third Party Payments 3,847 3,439 (408) (11%) 5 Transfer Payments 163 144 (19) (12%) Other Expenditure 490 266 (224) (46%) 6 Capital Financing Costs 26,719 23,972 (2,747) (10%) 7 Gross Expenditure 62,218 59,749 (2,469) (4%) Income Council House Rents (60,201) (60,247) (46) 0% Other Rents (473) 174 647 (137%) Recharges (902) (976) (74) 8% Other Income (642) (516) 126 (20%) Total Income (62,218) (61,565) 653 (1%) 8 Net Expenditure - (1,816) (1,816) # OFFICIAL INFORMATION
Page 28
OFFICIAL INFORMATION# Appendix 7a HRA BUDGETARY CONTROL 2024/25 REPORT FOR THE YEAR TO 31 MARCH 2025 Budget £000 Variance £000 Variance as % of budget Note 1 5,241 (227) -4% (227) Note 2 21,684 1,437 7% 1,437 Note 3 2,297 (435) -19% (435) Note 4 1,756 159 9% 159 Note 5 3,847 (408) -11% (408) Note 6 490 (224) -46% (224) Note 7 26,719 (2,747) -10% (2,747) Note 6 (62,218) 653 -1% 653 B/fwd from 2023/24 Transfer to / from Reserves Use of Earmarked sums Earmarking of in year surplus Funding of Capital Projects Balance at 31/03/25 £m £m £m £m £m £m 11.590 - - 1.816 (0.193) 13.213 5.000 - - - - 5.000 2.000 - - - - 2.000 1.553 0.253 (0.048) - - 1.758 0.300 (0.130) - - - 0.170 0.123 (0.123) - - - - 20.566 - (0.048) 1.816 (0.193) 22.141 Other Expenditure Movement - there has been a favourable movement of £0.224m since Period 10 largely due to a reduction in bad debt provision. An underspend of £0.224m which is primarily due to a reduction in the bad debt provision of £0.185m. Administration Costs Movement - there has been an adverse movement of £0.130m since Period 10. An overspend of £0.159m primarily due to Central Support charges. HRA reserves and balances There is an underspend of £0.435m in supplies and services. This is primarily due to an underspend of £0.262m in landscaping costs, £0.134m in software licences and £0.044m in computer equipment. Property Costs Movement - there has been a favourable movement of £0.411m since Period 10. This is largely due to a reduction of £0.275m in Responsive Repairs, £0.261m in Planned and Cyclical Maintenance and £0.023m in Aids and Adaptations. This is partially offset by an increase of £0.167m in other property costs. An overspend of £1.437m in property costs. This is largely due to an overspend of £0.703m in other property costs largely due to an overspend of £0.171m in tenant recharges, £0.175m overspend on Council tax payments in relation to long term void properties, £0.347m in insurances and £0.060m in statutory testing. In addition there is a £0.521m overspend in Planned and Cyclical Maintenance largely due to £0.410m costs in relation to storm damage works resulting from adverse weather conditions early in 2024 and January 2025, and £0.386m overspend due to increased costs in relation to timber and damp works partially offset by an underspend of £0.128m in asbestos management and £0.186m in heating system maintenance and an overspend £0.263m in Void Repairs. This is partially offset by an underspend of £0.071m in Responsive Repairs. Third Party Payments Movement - there has been a favourable movement of £0.473m since Period 10. An underspend of £0.408m primarily due to a reduction in internal charges from general fund services. Section Supplies and Services Movement - there has been a favourable movement of £0.172m since Period 10 largely due to a reduction of £0.134m in software licences and £0.044m in computer equipment. Employee costs Movement - there has been no significant movements since Period 10. An underspend of £0.227m as a result of effective vacancy management. Council House Building Fund Sustainability Fund Software licences Transformation Programme Tenant led budget Unearmarked Capital Financing Costs Movement - there has been a favourable movement of £0.830m since Period 10. An underspend of £2.747m in capital financing costs reflecting a lower than anticipated level of borrowing to support the capital programme in the current year. The capital investment requirements however still remain in place with the expectation that financing costs will increase in line with the delivery of the overall capital programme and the associated increased borrowing requirements in subsequent years. Income Movement - there has been an adverse movement of £0.184m since Period primarily due to no longer requiring the utilisation of reserves. This is partially offset by an increase in Council House Rents of £0.193m and £0.095m in recharges. An under recovery in income of £0.653m. This is largely due to an under recovery of £0.647m in Other Rents and £0.127m in Other Income which is partially offset by an over-recovery of £0.047m in Council House rents and £0.074m in Recharges. # OFFICIAL INFORMATION
Page 29
OFFICIAL INFORMATION# Appendix 8 1) Budget Virements Place Employability - Employee Costs T 0.665 Employability - Transport T 0.008 Employability - Admin Costs T 0.006 Employability - Third Party Payments T -0.534 Employability - Supplies & Services T -0.026 Employability - Property Costs T -0.024 Employability - Income T -0.095 0.000 Education Additional Support Needs - Employee Costs T 0.619 Additional Support Needs - Income T -0.744 Additional Support Needs - Third Party Payments T 0.058 Additional Support Needs - Supplies & Services T 0.067 0.000 0.000 Budget Management - 31 March 2025 Virement/Budget Adjustment Requests 2024/25 Perm (P) / Temp(T) Virement £m Directorate Total £m # OFFICIAL INFORMATION