The Executive Committee of Scottish Borders Council met on Tuesday 11 August 2026 to discuss the council's financial performance and housing initiatives. Key discussions included the monitoring of the Capital Financial Plan 2026/27, the General Fund Revenue Budget 2026/27, and balances at 31 March 2027, alongside an update on progress in addressing the housing emergency.

Monitoring of the Capital Financial Plan 2026/27

The committee received an update on the 2026/27 Capital Financial Plan. The projected outturn was £111.3 million against a budget of £120.3 million, resulting in a net budget variance of £9 million. This variance was attributed to new funding of £4.4 million and a net reprofiling of £13.5 million into future years for projects such as the Borders Innovation Park and New Hawick High School. Pressures of £5.6 million were identified, partly due to asbestos removal costs at former school buildings. A proposal was made to use £900,000 from emergency funds to partially offset this, while further funding options for the remaining £4.7 million are being explored. The committee was asked to agree to the projected outturn as the revised capital budget and approve virements as set out in Appendix 4 of the report.

Monitoring of the General Fund Revenue Budget 2026/27

A projected unfunded pressure of £2.8 million was forecast for the 2026/27 financial year, requiring management action to balance the budget. The most significant pressures were identified within Education and Children's Services (£2.4 million) due to out-of-area placements, and within Adult Services (£0.4 million) related to joint learning disability and adult social care costs. Despite these pressures, the report highlighted strong signs of financial discipline, with over 70% of the required £12.9 million savings already delivered on a permanent basis. The committee was asked to note the projected position, the identified pressures, and the management actions to mitigate them, and approve the virements attached at Appendix 3.

Balances at 31 March 2027

The committee was informed that the council's general fund usable reserve was £7.56 million at 31 March 2026. The projected total of all usable balances, excluding development contributions, at 31 March 2027 was £39.749 million. The report detailed planned movements in earmarked funds and the application of the Change Fund to support investments in Live Borders, building energy management systems, property rationalisation, and technology for service transformation. The committee was asked to note the unaudited 2025/26 revenue balances and the projected revenue and capital fund balances for 31 March 2027.

Scottish Borders Housing Emergency Action Plan - Progress

An update was provided on the progress of the Housing Emergency Action Plan, which was approved in April 2025. Of the 51 actions within the plan, 22% are complete, 75% are ongoing, and 4% have yet to start. Key achievements in increasing housing supply include progressing plans for 400-550 mixed-tenure homes at Tweedbank, extending the Empty Homes Programme grant scheme, and funding local housing needs assessments through Second Homes Council Tax. Challenges remain in addressing homelessness pressures and the lack of suitable move-on accommodation, with demand continuing to exceed available supply. The committee was asked to endorse the progress made in the Housing Emergency Action Plan.

The meeting also included the consideration of the minutes from the previous meeting held on 9 June 2026.