The Scrutiny & Petitions Committee of Scottish Borders Council met on Thursday 19 March 2026 to review an executive decision regarding the use of pay parking surplus funds. The committee ultimately recommended that the Executive Committee reconsider its decision, proposing that funds for committed pay parking projects be drawn from alternative sources.

Call-In of Executive Decision on Pay Parking Funds

The committee considered a call-in request concerning an executive decision made on 10 February 2026, which related to the monitoring of the General Fund Revenue Budget 2025/26. Specifically, the call-in focused on recommendation (e) of that decision, which stated that in light of this projection that the only balances being carried forward into 2026/27 are second homes Council Tax which is ringfenced to support affordable housing.

Councillor Fay Sinclair, the lead on the call-in, argued that using pay parking surpluses to cover overspends in other departments was against council policy, which stipulated that such funds should be used within the communities where they were generated. Councillor Sinclair also highlighted that this decision pre-empted the work of the ongoing Member Officer Working Group on Parking and that there was a lack of clarity regarding the figures involved. She proposed that reserves be used to cover the identified overspends instead.

Mrs. Susan Handyside, Democratic Services Manager, explained the council's call-in procedure, noting that the committee had two options: to take no further action, allowing the executive decision to stand, or to make recommendations to the Executive Committee for reconsideration.

Mrs. Suzy Douglas, Director of Finance, stated that the council was forecasting a £3.8 million overspend at year-end, which would be reduced to £2.1 million with additional NHS funding. She explained that officers were working within policy parameters and that financial regulations allowed for underspends on revenue budgets to be carried forward, provided no overall council overspend existed. Mrs. Douglas asserted that the approach approved by the Executive Committee demonstrated responsible financial management, with all underspent budgets being redirected to address the overall overspend, with the exception of Second Homes Council Tax, which is ring-fenced for affordable housing.

During the debate, concerns were raised about the legal ring-fencing of pay parking funds. Mr. David Robertson, Chief Executive, clarified that while pay parking funds were not legally ring-fenced in the same way as Second Homes Council Tax, they were to be applied to car parks, roads, and pavements as per legal advice. He confirmed that known commitments made before the Executive Committee meeting would be honoured.

Councillor Euan Robson suggested finding a practical way forward by committing to local projects in the following financial year, funded from the normal council budget, as a one-off measure due to the unique circumstances. However, Mrs. Douglas noted the practical challenges of reprioritising the already set budget for 2026-27.

Councillor Neil Mackinnon expressed concern that the decision to change the use of pay parking money should have waited for the outcome of the Member Officer Working Group. He also reiterated the principle that parking money should be spent in the communities where it was raised.

Ultimately, Councillor Neil Mackinnon proposed a motion, seconded by Councillor Annette Smart, that the Scrutiny Committee recommend to the Executive Committee that it reconsider its decision on pay parking funds. The motion further proposed that funds for committed pay parking projects from the pipeline and financial year 2026-27 be drawn down from alternate sources, and that the Chair of the Scrutiny Committee, in consultation with officers and local elected members, would provide a list of committed projects. This motion was carried, and the matter was remitted back to the Executive Committee.

Scottish Borders Foster Care Service Recruitment

The committee also received a report on the Scottish Borders Foster Care Service's approach to the recruitment and retention of foster carers. Lesley Munro, Director of Education and Children's Services, presented the report, which highlighted the national shortage of foster carers and the increasing demand for placements due to changing demographics, including unaccompanied asylum-seeking children and those with complex needs.

The report detailed the current situation in the Scottish Borders, noting a decline in recruitment since 2018, but also recent improvements in enquiries and new carer registrations. It outlined the challenges of traditional recruitment methods and the shift towards digital marketing, with the commissioning of CAN Digital Solutions and Home for Good showing positive early results in terms of increased enquiries.

The report also addressed retention strategies, including monthly supervision, 24-hour support, peer support groups, and ongoing training. It noted the costs associated with foster care placements, comparing SBC foster placements with independent fostering agencies and out-of-authority residential placements, and detailed the fee structure for foster carers.

The committee was informed of the oversight and quality assurance mechanisms in place, including regular quality assurance reports, the Fostering Panel Annual Report, and the Family Placement Team Service Development Plan. The report concluded by identifying areas for potential recommendations to strengthen future performance and monitoring. The committee noted the report and considered whether further outcome-focused reporting would be beneficial. No specific recommendations were made by the committee at this stage, but they were invited to identify any areas where they wished to make recommendations to the Executive or officers.