The Executive Committee of Scottish Borders Council met on Tuesday, 9 June 2026, to discuss the council's financial performance and housing strategies. Key decisions included the approval of the final unaudited capital financial plan for 2025/26, noting the balanced revenue outturn for the same period, and approving recommendations related to corporate debt write-offs. 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 council delivered £82.3 million in capital investment across its assets during the 2025/26 financial year. This included the opening of the new Galashiels Academy and Peebles High Schools, significant progress at Hawick High School, and the completion of enabling works for the Tweedbank Care Village. A net budget variance of £15.9 million was noted, primarily due to timing movements of £15.4 million into future years, affecting projects such as the new schools programme, Chambers Institution accessibility upgrades, and the community regeneration programme. Significant additional costs relating to asbestos removal at old school sites are being investigated and will be reported in 2026/27. The committee agreed to the final outturn statement and approved the necessary virements and reallocations of funds.

2025/26 Unaudited Revenue Outturn

A balanced outturn position was achieved for the 2025/26 revenue budget, despite significant pressures in areas such as out-of-area placements for children and young people, and adult social care. This balanced position was achieved through strict spend controls, reduction of expenditure on non-statutory services, additional interest received on cash balances, and increased income from NHS Borders for social care support. The council delivered £8.9 million in savings, with 46% delivered permanently and 54% on a temporary basis, which will be rolled forward into 2026/27 for permanent delivery. The committee agreed to note the balanced outturn position and approved the proposed virements.

Balances at 31 March 2026

The council's general fund balance remained at £7.56 million as at 31 March 2026, in line with the approved financial strategy. The total of all usable balances, excluding development contributions, was £43.5 million. The report detailed movements in the general fund balance, including an increase in earmarked balances due to Second Homes Council Tax being carried forward to support future affordable housing investment. A new reserve for IT Equipment Replacement has been established. The committee noted the revenue balances and the balance in the Capital Fund.

Corporate Debts - Write Offs In 2025/26

The total value of debts written off in 2025/26 decreased to £434,000, compared to £488,000 in 2024/25. Council Tax write-offs increased by £69,000, largely due to a marked increase in insolvencies. Non-Domestic Rates write-offs decreased by £50,000, with a reduction in the insolvency category. Housing Benefit overpayments written off decreased due to staff focusing on other priorities, but an increase is expected in the coming year. Sundry debt write-offs decreased by £20,000, although £1.08 million of sundry debt is currently deemed at risk. The committee noted the debtor balances written off during 2025/26.

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

The report presented a summary of the council's performance against its Council Plan milestones and performance indicators for the fourth quarter and the full year 2025/26. Of the 60 milestones reported in Q4, 58 were met or partially met. For the annual report, 71 out of 73 milestones were met or partially met. Out of 106 performance indicators reviewed in Q4, 74 were in a good position, with 13 highlighted as areas for focus. The report also detailed comparisons against previous years and other local authorities, with 68 indicators progressing as expected and 25 highlighted as areas for improvement. The committee noted the Quarter 4 and Annual Performance Reports.

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

The third annual progress report on the Local Housing Strategy (LHS) 2023-2028 was presented. Despite declaring a Housing Emergency in 2024, achievements in 2025/26 included the delivery of 94 affordable homes (69 new build), the submission of an ambitious Strategic Housing Investment Plan (SHIP) for 2026-2031 with an estimated investment of £258 million, the launch of the Missing Shares Scheme, and ongoing investment in energy efficiency and private sector adaptations. The report noted a shortfall in new build affordable homes against the target of 141, attributed to lower site approvals and starts in previous years. The committee noted the progress made and approved the submission of the annual progress report to the Scottish Government.

Strategic Housing Investment Plan Progress For 2025/26

This report detailed the progress made in delivering the Strategic Housing Investment Plan (SHIP) projects for 2025/26. In total, 94 affordable homes were delivered, comprising 69 new build homes and 25 through other mechanisms such as open market purchases and the Empty Homes Grant. The report highlighted the challenges faced by the construction sector and the impact of economic climate on affordable housing delivery. It also noted the confirmed funding allocation of £17.743 million for the Borders for 2026/27 and the ongoing work on the SHIP 2027-2032. The committee endorsed the progress made in the delivery of affordable housing.

The meeting concluded with the noting of no other urgent items and the conclusion of the executive meeting.