The Executive Committee of Scottish Borders Council met on Tuesday 09 June 2026 to discuss the council's financial performance, housing strategies, and operational updates. Key decisions included agreeing to recommendations regarding the final unaudited outturn for the Capital Financial Plan 2025/26 and the 2025/26 unaudited revenue outturn, alongside noting the council's balances at 31 March 2026 and corporate debt write-offs for the same period. The committee also reviewed progress on the Local Housing Strategy and the Strategic Housing Investment Plan.

Capital Financial Plan 2025/26 - Final Unaudited Outturn

The committee received a report detailing the council's capital expenditure for the 2025/26 financial year. The final unaudited outturn showed a capital spend of £82.3 million against a budget of £98.2 million, resulting in a net variance of £15.9 million. The majority of this variance (£15.4 million) was attributed to timing movements into future years, including significant amounts for the new schools programme (£4.7 million), Chambers Institution Accessibility Upgrades (£3.5 million), the Community Regeneration Programme (£1.6 million), and Digital Transformation (£1.4 million).

Notable investments during 2025/26 included the opening of the new Galashiels Academy and Peebles High School, significant progress at Hawick High School, and the completion of enabling works for the Tweedbank Care Village. Additional costs related to asbestos removal from old school buildings are being investigated and will be reported in 2026/27.

The committee agreed to the recommendations concerning the final outturn statement and the necessary virements and reallocations of funds.

2025/26 Unaudited Revenue Outturn

The committee reviewed the unaudited revenue outturn for the 2025/26 financial year, which achieved a balanced position despite significant pressures, particularly in out-of-area placements for children and young people and adult social care. This balanced outturn was achieved through strict spend controls and reductions in non-statutory services.

A forecast overspend of £3.8 million reported at quarter three was balanced by year-end through a combination of spend control measures (£700,000 benefit), additional interest received on cash balances (£1 million), and additional income from NHS Borders (£2.1 million) related to social care provision and inflationary cost pressures.

The council delivered £4.1 million (46%) of its required £8.9 million savings permanently, with the remaining £4.7 million delivered temporarily through alternative means. These temporary savings will be rolled forward into 2026/27 for permanent delivery. The committee agreed to the recommendations regarding the proposed virements.

Balances at 31 March 2026

The report on balances as at 31 March 2026 indicated that the council's general fund balance remained at £7.56 million, in line with the recommended level approved in the financial strategy. The total of all usable balances, excluding development contributions, stood at £43.5 million. The report detailed movements in earmarked balances, including an increase of £3.2 million for second homes council tax to support the council's housing strategy. A drawdown of £1.2 million from the Change Fund was agreed as part of the 2026/27 financial plan to fund additional support to Live Borders. The committee agreed to the recommendations concerning the revenue balances and the balance in the Capital Fund.

Corporate Debts - Write Offs In 2025/26

The committee was informed that the total value of debts written off during 2025/26 decreased from £488,000 in 2024/25 to £434,000. Council Tax write-offs increased by £69,000, largely due to insolvencies and untraceable debtors. Non-Domestic Rates write-offs decreased by £50,000, with a reduction in insolvency cases. Housing Benefit overpayments written off also decreased due to staff focusing on other priorities. Sundry debt write-offs decreased by £20,000, although £1.08 million of sundry debt is currently deemed at risk. The council maintained a bad debt provision of £1.02 million, with an additional £125,000 to be added in 2026/27. The committee agreed to the recommendations regarding the debtor balances written off.

Scottish Borders Council's Quarter 4 and Annual 2025/26 Performance Report

Clair Hepburn, Director of People, Performance and Change, presented the council's performance report for the fourth quarter and the full year 2025/26. The report indicated that 58 out of 60 Council Plan milestones were achieved or partially completed, with work ongoing. For the annual performance, 71 out of 73 milestones were met or partially met. Of the 106 performance indicators reviewed in quarter four, 74 were in a good position, with 13 highlighted as areas for improvement. The report also detailed comparisons against previous years and other local authorities, with 68 indicators progressing as expected and 26 highlighted as a focus for improvement when compared to other local authorities. The committee agreed to the recommendations concerning the report.

Local Housing Strategy (LHS) Summary Report 2025/26 (Year 3)

Eula McKinley, Director of Corporate Governance, presented the third annual progress report on the Local Housing Strategy (LHS) 2023-2028. The report highlighted the delivery of 94 affordable homes in 2025/26, although this was below the target of 141. Challenges such as construction inflation and complex sector-wide issues were noted. The current LHS runs until 2028, and a new Strategic Investment Plan for 2026-2031 outlines a pipeline of over a thousand homes with an investment of up to £258 million. Initiatives such as the empty homes programme, key worker housing, and energy efficiency measures were also detailed. The committee agreed to the recommendations concerning the progress made and the submission of the annual progress report to the Scottish Government.

Strategic Housing Investment Plan Progress For 2025/26

Lindsay Rennick provided an update on the Strategic Housing Investment Plan (SHIP) progress for 2025/26. The report detailed the delivery of 94 affordable homes, with 69 being new supply. While this figure was below the target of 141, it was noted that this was anticipated due to lower site approvals and starts in previous years. The report also highlighted the ongoing challenges in the construction sector and the impact of economic climate. A four-year resource planning assumption for the Affordable Housing Supply Programme, totalling £74.229 million, was noted as providing greater certainty for future planning. The committee agreed to the recommendations concerning the progress made.

Corporate Debts Write Offs in 2025/26

The committee noted the report detailing corporate debts written off during the 2025/26 financial year. The total net amount written off decreased from £488,000 in 2024/25 to £434,000 in 2025/26. The report outlined the reasons for write-offs, including insolvency, untraceable debtors, and uneconomical pursuit. The council maintained a bad debt provision of £1.02 million, with an additional £125,000 to be added in 2026/27. The committee agreed to the recommendations regarding the debtor balances written off.

The meeting concluded with the noting of any other items previously circulated and any urgent items, of which there were none. The Chair then concluded the executive meeting.