Health and care board reports £3M underspend

The area’s health and social care partnership (HSCP) is reported to have ended the 2025/26 financial year on March 31 with a £2.9m underspend.

The vast majority of the underspend was reported to have come from health services, with a smaller underspend on social work services.

However, an official described it as having been a stressful year, with a councillor forecasting more challenges to come in 2026/27.

Discussion of the HSCP’s financial position took place at a meeting of its finance and policy committee on Tuesday, May 19.

In a report ahead of the meeting, the HSCP’s head of finance James Gow said: “The social work budget assumed reliance on non-recurring pension funding totalling £2.5m to achieve balance, the outturn is that the reliance on the pension saving was used in full and there was a very small underspend of £57,000 that was allocated into the general reserve.

“The NHS underspend has resulted in an increase in the general reserves balance, this is earmarked to part fund the 2026/27 budget gap.

“The overall position is favourable against the budget and in comparison with performance in the prior year. There are variety of reasons for this including delivery of savings and the financial recovery plan.”

Mr Gow added: “The HSCP reported an underspend of £2.8m in respect of its NHS services. The position improved markedly in the final months of the year.

“The main factors which resulted in the improvement were reduced costs of national services confirmed in February and March, increased national drug rebates confirmed at year end, reduced cost per case activity with other Scottish boards than anticipated [and] reduced prescribing costs due to national price reductions (£1m saving).”

Mr Gow then told the meeting: “It has been quite a painful and stressful year to get to this place. It has been really hard for all of us in the management team.

“Overall we had a very small underspend within social work services, and a significant underspend within NHS services, so we are reporting a favourable variance against the budget.”

Councillor Dougie McFadzean (SNP, Kintyre and the Islands) said: “I want to put on record thanks for your work in putting together a balance sheet, and to [chief officer] Evan Beswick for all his work.

“The year we are in now will be even more challenging, so thank you for your supreme efforts.”