Council reports an improved financial position at year end
East Ayrshire Council has realised an improved financial position for the financial year 2025/26 as reported this week to Elected Members at a meeting of East Ayrshire Cabinet.
This achievement is a further improvement on previously reported financial positions which saw control mechanisms being implemented across services to manage spending levels.
Most Council services finished the financial year in a favourable position. While there was an improved position for the Health and Social Care Partnership, achieving over £2m in savings since January 2026 following the implementation of a task force to address the financial pressures it faced, it ended in the year with a deficit of £8.598m as previously anticipated.
As part of the Council’s balances review at Cabinet in February, elected members agreed to retain £6.537m to support the Health and Social Care Partnership if required. This week Cabinet approved the transfer of this balance and so reduce the partnership’s year-end outturn to an overspend of £2.061m, as part of a previously agreed plan to help address the matter.
Leader of East Ayrshire Council, Douglas Reid welcomed this news. He said:
“We have all recognised the pressures and challenges facing public sector finances in recent years, but I’m reassured by the steps that have been taken by managers and services in general to minimise the risk.
“This year-end position was anticipated as part of our budget planning and our Task Force arrangements for the Partnership are now starting to make a real difference.
“Yes, an overspend still exists within the Partnership, it will not disappear overnight, but our recovery plan will continue to tackle this; with increased monitoring and savings trackers in place managers will receive rapid budget projections to enable them to act in a timely manner.”
However, Elected Members were clear that the £6.537m contribution from East Ayrshire Council to help steady Partnership finances is a one-off payment which will not be available in future years.
The Health and Social Care Financial Recovery Plan was approved by the Council’s governance and Scrutiny Committee on 4 June 2026.
East Ayrshire Performs 2025-26 Outturn Summary Report was approved by Cabinet on Wednesday 10 June 2026.