The Infrastructure Services Committee of Aberdeenshire Council met on Thursday, 20 August 2026. The committee reviewed the Q1 financial performance for 2026-27, noting that services were forecasting to remain within budget despite identified risks. They also received a bi-annual review of the Economic Development Service Strategy, highlighting significant achievements and positive economic impacts.

Q1 Financial Performance 2026-27

The committee received an update on the Q1 financial performance for the 2026-27 financial year. The report indicated that all major services were forecasting to remain within budget at this stage. However, Alan Wood, Director of Environment and Infrastructure Services, highlighted several financial risks that would require close monitoring and active management throughout the year. These risks included income volatility from planning applications, car parks, and quarry sales; cost pressures in roads maintenance, winter landscape, and quarries due to inflation and rising material costs; reliance on external funding which may be confirmed later in the year; infrastructure and legislative pressures from aging assets and new duties under the Circular Economy Act and Emissions Trading Scheme; and the use of one-off funding to manage pressures.

Councillor Stephen Smith raised a point regarding the proposed switching off of lighting on private roads, asking for topography and geography to be taken into account, particularly if a path provides a direct route for active travel. Mr Wood confirmed that the decision to stop lighting on private roads was agreed by the council in February, and landowners would be notified. He added that landowners could take ownership of the lighting if they wished.

Councillor Jim Gifford questioned the balanced financial position, particularly the £1 million underspend on staffing costs, suggesting that such a significant figure should be reflected somewhere in the report. Mr Wood explained that this was a judgment call, noting that while there was an underspend on permanent staff, there were also increased costs from overtime payments and agency staff. He also mentioned that income trends for the first quarter were below budget but expected to even out over the full financial year.

Councillor John Cox sought further information on the practicality of switching off private road lighting, especially where landowners might be the council itself, and how circuits would work if they couldn't be isolated. He also asked for clarification on the transfer from reserves regarding the regeneration priority town reserves. Mr Wood assured that further detail on the lighting would be provided and that the transfer from reserves was for spend on regeneration projects.

Councillor Anouk Kloppert inquired about the benefits of a circular economy, noting it was listed as a risk. Ewan Wallace, Head of Environment and Sustainability, explained that while there were risks associated with new duties, there were also opportunities for reduced waste, reuse of materials, and potential financial benefits.

Councillor George Carr asked for an update on the Energy from Waste plant, noting concerns about potential revenue loss if the plant was down and the impact of having to transport waste to landfill. Mr Wood confirmed that the council no longer landfills waste as a primary activity and predominantly uses the Energy from Waste plant. He acknowledged challenges with the technology and market conditions but stated the plant was currently running as planned.

Councillor Paul Johnston raised a question about the contracted tonnage and gate fee for the Energy from Waste plant, seeking confirmation that the fee was not a movable object. Mr Wood clarified that the contract allowed for 150,000 tons of waste per year from the three councils, and any unused capacity could be used for additional waste, potentially offsetting gate fees and generating income.

Councillor Derek Ritchie praised the report, noting an article stating Aberdeenshire had the best roads in Scotland, attributing this to Mr Wood and his team. Mr Wood accepted the praise, highlighting the work of Mr McKay and his team.

Councillor Ritchie also asked for assurance on how work had progressed on the additional money allocated for surface defects and how the spend had been on that additional money. Philip McKay, Head of Roads and Infrastructure, provided a detailed update on the use of the £1.8 million allocated for road maintenance. He explained that an external provider had been contracted to supplement their own jet patcher and injection machines, and that the council was also investing in new equipment like the pothole pro. He noted that while significant progress had been made, the scale of the road network meant that the investment, while welcome, was still relatively modest compared to the overall backlog.

Councillor Mel Sullivan asked about the possibility of a stitch in time approach for roads maintenance, similar to the bridges budget, to fix small defects before they become larger issues. Mr McKay confirmed that this principle was considered, but higher priorities, particularly safety-critical issues, meant they couldn't always adopt this approach.

The committee agreed to accept the recommendations to approve the committee budget virements and to receive regular performance reports and updates on actions taken to mitigate potential pressures.

Economic Development Service Strategy - Bi-Annual Review

Kelly Wiltshire, Service Manager, presented the bi-annual review of the Economic Development Service Strategy. Appendix 1 detailed the ongoing work and achievements of the team, while Appendix 2 provided an economic impact assessment of the Business Gateway service.

Key highlights included the Invest Aberdeen team's engagement at UKREiiF in Leeds, attracting leads for inward investment. The creative industries team had facilitated filming, including the movie Odyssey, and was working to capitalize on the tourism and economic impact. The food and drink sector had seen significant promotion through events like the Royal Highland Show and the Global Agri-tourism Conference. The employability team had supported individuals into work, apprenticeships, and training, and was working to reduce barriers to employment, including increasing childcare availability. The place economy team was involved in upcoming events like Restaurant Week and the Heart of the High Street Awards. The investments and projects team had expanded to include the Programme Management Office for the North East Scotland Investment Zone and was trialing grant finder software.

The Business Gateway service, now in-house for two years, had supported 4,627 unique clients in 2025-26, with 2,394 based in Aberdeenshire. The economic impact assessment showed strong value for money, with a Benefit Cost Ratio (BCR) of 6.1 in 2024-25 and 6.6 in 2025-26.

Councillor John Cox welcomed the comprehensive report and suggested further discussion at area level. He also highlighted the potential around attracting filming and asked for more detail on how to maximize these opportunities. Kelly Wiltshire confirmed that a separate briefing on capitalizing on the Odyssey film could be prepared.

Councillor Isobel Davidson thanked the team for the report, finding it exciting to see the work being done and expressing a desire for it to continue. She also suggested that information could be shared at area committees to ensure local awareness of opportunities.

Councillor George Carr echoed the positive sentiment, emphasizing the importance of Aberdeenshire being an attractive place to invest and learn lessons from other areas. He also highlighted the success of the Edzell Woods Hub as an example of external funding driving positive outcomes.

Councillor Paul Johnston inquired about the availability of the GrantFinder service, seeking clarification on who could use it and ensuring it wasn't duplicating existing services. Kelly Wiltshire explained that the council had a few licenses for Business Gateway and the external funding team, and they could pull reports for community groups.

Councillor Stephen Smith asked for access details for the Aberdeenshire Towns Forum and the town centre dashboards, and whether there was interaction between the Towns Forum and the Peterhead Neighbourhood Board. Kelly Wiltshire stated that a new town centre executive would lead on the Towns Forum and that she would find out about councillor access to the dashboard. She also confirmed good relationships and communication with the Peterhead Neighbourhood Board.

The committee agreed to note the contents of the report and to continue receiving bi-annual reports on the Economic Development Service Strategy.

Minute of Meeting of North East Scotland Agriculture Advisory Group

The committee noted the minute of the meeting of the North East Scotland Agriculture Advisory Group from 26 November 2025.