Council sets aside £6.537m to help Health and Social Care

The review of balances is produced annually following the conclusion of the external audit of the Council’s annual accounts. The process was more complex than usual this year due to the need to identify one-off funding to help deal with the current overspend of £10.6million within the Health and Social Care Partnership.

The Director of Finance and Digital conducted this review over several months during which time all service and centrally held balances were assessed. Balances have been released by most Council services with further monies released from centrally held balances that are normally used to smooth the impact of future energy prices and offset fluctuations in inflation.

Future potential financial liabilities were also considered and balances released as a result and, at the same time, the last of the funds held to support post pandemic work was also taken.

As a result, £6.537million has been transferred to a new Health and Social Care Emergency Financial Support balance, pending further work by the Partnership to reduce the overspend and in advance of discussions with colleagues at NHS Ayrshire and Arran to determine whether there is scope for a contribution from the Health Board.

Councillor Douglas Reid, Leader of East Ayrshire Council said:

“While progress has been made through the implementation of the IJB Financial Recovery Plan and the identification of further mitigation measures for this financial year, a budget gap remains.

“Our aim will always be to ensure that those most in need are provided with appropriate care and support, however, this review has seen a significant reduction in the balances held by other the Council services and the wider implications of this will be considered as part of our revenue budget that will go to Full Council on 26 February 2026.”