A report presented to elected members noted that the improved position demonstrates the significant work undertaken by services to manage the challenging financial position faced by the council and recognises that work is taking place to further improve the position.

At a meeting of cabinet, officers outlined the interventions that were put in place at the end of the summer to return the budget to balance. Members also heard about the additional financial monitoring measures that have been put in place and the Recovery Plans that are being developed by services to bring budgets back into balance.

According to the report, it is anticipated that Housing & Communities will outturn £0.411m greater than budget. This mainly relates to additional expenditure within Cleaner Communities in relation to waste of £2.915m, as agreed by the council on 29 August 2024 as part of the Review of Cleaner Communities: Waste Management Service Provision a draw of £1.4m from the council’s Uncommitted General Fund Balances will be made to provide short term support. The remaining overspend within Cleaner Communities is offset by underspends within Greener Communities (£0.495m), Vibrant Communities (£0.238m) and General Fund Housing (£0.258m).

Elsewhere, it is anticipated that the Housing Revenue Account will outturn at £0.408m less than budget. Housing Management is expected to outturn £0.668m greater than budget. This variance reflects increased CFCR due to additional HIP expenditure (£2.200m), this is offset by reduced debt charges (£1.050m) and staff turnover (£0.460m). Housing Asset Services is expected to outturn £1.077m less than budget. This variance reflects increased HIP income (£1.700m) and staff turnover savings (£1.318 m), these are partly offset by overspends in Voids (£0.800m) and supplies & subcontractor expenditure (£1.094m).

Councillor Douglas Reid, leader of East Ayrshire Council, said: “The fiscal challenges facing the public sector have been well documented in recent weeks and East Ayrshire Council is not immune to these.

“It’s very reassuring to learn today that the measures cabinet put in place are being effective in reducing the anticipated overspend which has predominantly been caused by higher costs and increased demand for our services. We’ve always been proud of our sound and rigorous financial management arrangements and we will continue to manage these effectively.”