The Business Services Committee met to discuss financial performance, carbon reduction, treasury management, partnership working, and licensing. The committee agreed to introduce a fixed legal fee of £600 plus expenses for unopposed joint welfare and financial guardianship applications, and also approved the updated Partnership Working Policy for another five years, delegating minor amendments to the Director of Business Services. Additionally, the committee updated the remit of the Licensing Sub-Committee and noted the corporate response to the Accounts Commission consultation on future plans.

Here's a more detailed look at the key discussion points:

Financial Performance Update

The committee reviewed the Business Services financial performance as of 30 June 2025, noting that while the functions within the committee's remit were forecast to be on budget, there were risks that needed consideration, particularly in achieving transformation and efficiency savings.

The committee made the following recommendations:

• Considered the Business Services revenue and capital position for 2025/26.
• Considered the budget risks.
• Considered the progress with savings.
• Considered the Business Services reserves.
• Approved the committee budget virements as detailed in Appendix 5 - BSC Virements 202526.
• Agreed to receive regular performance reports and updates on actions taken to mitigate potential pressures.

The report highlighted that £1.076m in savings/efficiencies were proposed to offset against the Transformation and Efficiency target of £1.943m, leaving £0.867m to be identified. The committee approved a virement¹ to address this.

The committee also reviewed the BSC Budget Risk Register 202526, which identified the achievement of transformation and efficiency savings as a high risk. Other corporate risks that could have a significant financial impact across the council included pay awards for local government, energy prices, and inflation.

Appendix 4 - BSC Reserves 202526 detailed earmarked reserves to fund specific projects and initiatives related to the services under the Business Services Committee.

Carbon Budget Update 2025-26

The committee considered a progress update on the actions listed in the Carbon Budget 2025-2026. The report noted that Business Services was on track to achieve 1558 tCO2e of estimated emission reduction, more than the 1432 tCO2e reported on 27 February 2025. This increase was attributed to additional projects, including rooftop PVs, LED lighting, and lifecycle maintenance.

The committee was informed that the majority of the Business Services contribution to the Carbon Budget 2025-26 was coming from the Heating Policy, and this was the last year it could be used. It was noted that for future Carbon Budgets, there would be a real challenge for Business Services to support their delivery due to funding constraints.

The committee agreed to:

• Consider and comment on the Carbon Budget six-monthly update for Business Services as detailed in Appendix 1 - Carbon Budget Six Monthly Update.
• Note the ongoing responsibility of the Director to secure reduction targets as set out in the Carbon Budget, and to report progress at six-monthly intervals to the relevant Policy Committees.

Outturn Review of the Performance of the Treasury Management Function

The committee reviewed the performance of the treasury management function for the period 1 April 2024 to 31 March 2025. The report highlighted compliance with the Council's Investment Policy and strong financial stewardship throughout the year. The average cost of servicing Loans Fund advances came in below budget, and long term borrowing was secured.

The committee was asked to note the details of the review of performance of the treasury management function and investment activity for the period 1 April 2024 to 31 March 2025.

The report also included several appendices, including:

• Appendix 1 Investment Activity
• Appendix 2 Long Term Borrowing and Debt Rescheduling in 202425
• Appendix 3 Compliance and Performance
• Appendix 4 Prudential Indicators

Partnership Working Policy Review

The committee considered updates to the Partnership Working Policy following a review, as the policy is over 5 years old. The policy establishes governance for the council or service when developing or participating in partnerships, aiming to minimise risks to Aberdeenshire communities.

The committee agreed to:

• Approve the revised Partnership Working Policy for another 5 years until 2030.
• Note the revised accompanying Partnership Working Officer Procedure and Assessments.
• Delegate the power to continue to approve minor amendments, in their professional judgement, or updates to the policy to the Director of Business Services before the next 5 year review is due in 2030.

The updated policy defines a partnership as:

A framework for jointly delivering common goals, with shared risks and resources, which provides identifiable added value and measurable impact. This framework is based on shared accountability for outcomes that cannot be cost-effectively achieved in other ways. All partnership working arrangements involving the council must align with the Council's Strategic Priorities, ensuring that any associated risks are mitigated.

The committee was informed that there are currently 17 partnerships recorded in the Internal Partnership Register.

An Integrated Impact Assessment (IIA) indicated neutral impacts in relation to Equalities and the Fairer Scotland Duty², as each partnership will be independently assessed at the point of its establishment.

Consultation Response to the Accounts Commission Future Planning Programme

The committee noted the response submitted to the Accounts Commission consultation on their Future Plans. The Accounts Commission is seeking feedback to ensure their resources are used in a way that meets the needs of people across Scotland.

The key themes identified in the council's response included:

• The use of recent reports and recommendations to support improvement and inform the Strategic Assessment.
• The importance of climate change response and adaptation, health and social care finance and performance, and health and social care services as areas of audit work.
• The need for focused work on financial sustainability, digital transformation, and community planning partnerships.

The committee was asked to note the corporate response to the Accounts Commission Consultation attached as Appendix 1 - Accounts Commission Consultation Response.

Introduction of Legal Fee for Joint Welfare & Financial Guardianship Applications

The committee approved the introduction of a fixed legal fee of £600 plus outlays for unopposed joint welfare and financial guardianship applications, including renewal applications. Opposed cases will be dealt with on an account of expenses basis. The committee also agreed to apply inflation each year in accordance with the Corporate Charging Policy.

The Adults with Incapacity (Scotland) Act 2000 places a legal duty on local authorities to apply for a guardianship order for an adult with incapacity where it is necessary for the protection of the adult's property, financial affairs or personal welfare.

An Integrated Impact Assessment was undertaken, and it was determined that the introduction of a legal fee may negatively affect older people, disabled people and those on low incomes and low wealth, but this could be mitigated by only applying for such court orders as a last resort.

Update to the Remit of the Licensing Sub-Committee

The committee approved an amendment to the remit of the Licensing Sub-Committee to implement a decision of Full Council taken on 26 June 2025. The amendment ensures that all civic or miscellaneous licences granted in terms of the Civic Government (Scotland) Act 1982, where adverse objections have been lodged or where there is an officer recommendation to refuse the application, will be determined by the Licensing Sub-Committee.

The proposed amendment to the remit of the Licensing Sub-Committee is detailed in Appendix 1 - Proposed Amendments to the remit of the Licensing Sub-Committee.

To ensure local knowledge is considered for applications and notifications attracting substantial local interest, local ward members will be consulted for applications that attract five or more objections, and their comments will be included in the report for the Licensing Sub-Committee.

The committee also noted the minutes of the Licensing Sub-Committee meetings held on 2 May 2025 and 13 June 2025. The 2025 05 02 Licensing Sub Minutes Approved included discussion of standard conditions for street traders' licences for mobile saunas, a short-term let license for Flat 4, Balnacoil Apartments, and applications for private hire car driver's licenses and taxi driver's licenses.