TranslateExecutive overview
The total income for 2025 to 2026 was £165,102.00. Applying the 2025 to 2026 expenditure of £174,863.31 produces a deficit of £9,761.31. Income increased by 2.1%; expenditure increased by only 0.5%. Cost recovery improved from 92.97% to 94.42%.
| Relevant income | Recorded expenditure | Deficit | Cost recovery |
|---|---|---|---|
| £165,102.00 | £174,863.31 | £9,761.31 | 94.42% |
Key findings
- Relevant income was £165,102.00, up £3,397.00 (2.1%) on 2024 to 2025.
- Recorded expenditure was £174,863.31, up £925.53 (0.5%).
- The deficit decreased by £2,471.47, from £12,232.78 to £9,761.31.
- Staffing and member costs represented 85.7% of recorded expenditure and fell by £3,599.18 (2.3%). That net reduction occurred despite a 4% uplift to SJC salary rates from 1 April 2025; other costs represented 14.3%.
- Premises-licence income, including annual fees, remains the dominant income stream. Personal-licence income fell by 29.1%; occasional and extended-hours income rose by 21.7%. World Cup extended-hours applications account for £3,360.00, or 32.0%, of that £10,500.00 combined line.
Recommended Board route
The Board is invited to approve the final report and authorise its publication. The report records income of £165,102.00, expenditure of £174,863.31, a deficit of £9,761.31 and cost recovery of 94.42%.
Year-on-year bridge
The year-on-year movement reconciles cleanly. Income rose by £3,397.00. Within expenditure, the £3,599.18 reduction in staffing and member costs was more than offset by a £4,524.71 increase in other costs, leaving total expenditure only £925.53 higher. The combination reduced the deficit by £2,471.47 and lifted recovery by 1.45%.
Service context
The staffing movement sits within a year of organisational change and a national pay settlement. The 2025 to 2026 SJC award increased salary rates by 4% from 1 April 2025. Against that upward pressure, resources were reallocated in response to service demand, Board membership reduced from 10 to 9, and a new Licensing Standards Officer took up post in June 2025. The final staffing and member figure therefore reflects the interaction of pay rates, cost bases, timing and allocation rather than a simple change in headcount or salary.
1. Purpose and statutory framework
1.1 Purpose
This report explains the financial position associated with North Ayrshire Licensing Board’s functions under the Licensing (Scotland) Act 2005 for the year ended 31 March 2026. It is designed to provide transparency by the Board for licence holders and the public. It is separate from the Board’s annual functions report under section 9A.
1.2 Statutory duty
Section 9B of the 2005 Act requires each Licensing Board to prepare and publish, no later than three months after the end of the financial year, a report containing:
- the amount of relevant income received during the year;
- the amount of relevant expenditure incurred in respect of the Board’s area; and
- an explanation of how those amounts were calculated.
Relevant income is income connected with the Board’s 2005 Act functions. Relevant expenditure is expenditure attributable to those functions and incurred by the Board, North Ayrshire Council or the Licensing Standards Officer.
1.3 Board and Council
The Licensing Board is a separate legal entity from North Ayrshire Council. The Council provides the staff, systems, accommodation, legal, finance and administrative support required for the Board to discharge its functions and must provide information reasonably required for the annual report. The statutory statement is therefore about Board-related licensing activity, even where the underlying cost is incurred through Council systems.
1.4 Fee-setting context
The Licensing (Fees) (Scotland) Regulations 2007 prescribe fixed fees and maxima and permit the Board to determine certain fees within that framework. The statutory policy is broad equivalence between fee income and the expense of administering the 2005 Act over a period. It does not require every licence type, or every individual year, to break even exactly. A deficit is therefore a material management signal, but it is not by itself proof that the Board has acted unlawfully or inefficiently.
2. Reporting basis and source controls
The figures set out in this statement have been compiled using data from the Council’s licensing database and financial management systems. Staffing and support costs have been apportioned to licensing on the basis of time commitment and the Council’s established corporate cost allocation model. This ensures consistency and comparability with financial reports produced by other Licensing Boards across Scotland.
2.1 Calculation method
- Income is the sum of the fee totals and is grouped into premises, personal, and occasional/extended-hours income.
- The allocated staffing and member amounts are divided by their original percentages to recover the implied full-year cost bases.
- Recorded expenditure is the final staffing and member total of £149,831.12 plus other expenditure of £25,032.19, producing £174,863.31.
- The deficit is recorded expenditure less relevant income.
- The cost-recovery rate is relevant income divided by recorded expenditure, expressed as a percentage.
- Year-on-year movement is 2025 to 2026 less 2024 to 2025; percentage movement uses 2024 to 2025 as the base.
2.2 Precision and presentation
Financial statement amounts are shown to the penny. Percentages are calculated from unrounded source values and then rounded for presentation.
2.3 Allocation and operating context
Allocation percentages express the share of a full cost attributed to Licensing Board functions; they are not a direct measure of salary movement or headcount. Year-on-year differences can arise from the mix of staff time, redistribution of work, changes in service demand, the composition of the Board and changes in the underlying salary cost bases, including the 2025 to 2026 local government pay award.
For 2025 to 2026, Board membership reduced from 10 to 9 and the elected-member allocation applied in the expenditure calculation is 2%. The new LSO was in post from June 2025, covering approximately ten months of the reporting year. The report retains the cost basis supplied by Finance while recognising that the service was operating through a transition in staffing and Board composition.
3. Financial statement
| Financial measure | 2024/25 | 2025/26 | Movement | Movement % |
|---|---|---|---|---|
| Relevant income | £161,705.00 | £165,102.00 | +£3,397.00 | +2.1% |
| Staffing and member costs | £153,430.30 | £149,831.12 | −£3,599.18 | −2.3% |
| Other costs | £20,507.48 | £25,032.19 | +£4,524.71 | +22.1% |
| Total expenditure | £173,937.78 | £174,863.31 | +£925.53 | +0.5% |
| Deficit | £12,232.78 | £9,761.31 | −£2,471.47 | −20.2% |
| Cost-recovery rate | 92.97% | 94.42% | Not applicable | +1.45 pp |
2024 to 2025 comparatives come from the prior annual financial report. The 2025 to 2026 figures are the final figures used for this report.
3.1 Analysis
Income increased by 2.1%, while recorded expenditure increased by 0.5%. The deficit decreased by 20.2% after the revised allocations.
Fee income funded 94.42% of recorded expenditure. This is 1.45% above 2024 to 2025.
3.2 Expenditure bridge
The £4,524.71 rise in other costs exceeded the £3,599.18 reduction in staffing and member costs by £925.53. That £925.53 is exactly the year-on-year increase in total expenditure. The result is principally a change in cost mix: other costs represented 14.3% of expenditure, compared with 11.8% in 2024 to 2025, while the staffing and member share moved from 88.2% to 85.7%.
3.3 Recovery bridge
Income grew £2,471.47 more than expenditure (£3,397.00 against £925.53). That difference is exactly the reduction in the deficit. The cost-recovery rate therefore rose from 92.97% to 94.42%, an improvement of 1.45%.
4. Income analysis
| Income stream | 2024 to 2025 | 2025 to 2026 | Movement | Movement % |
|---|---|---|---|---|
| Premises licences, including annual fees | £143,275.00 | £147,652.00 | +£4,377.00 | +3.1% |
| Personal licences | £9,800.00 | £6,950.00 | −£2,850.00 | −29.1% |
| Occasional licences / extended hours | £8,630.00 | £10,500.00 | +£1,870.00 | +21.7% |
| Total relevant income | £161,705.00 | £165,102.00 | +£3,397.00 | +2.1% |
Income groupings and both years are taken solely from Financial Report Information.
4.1 Composition
Premises-licence income was £147,652.00 and represented 89.4% of total income. Personal-licence income represented 4.2%, and occasional/extended-hours income 6.4%. Annual premises fees alone contributed £125,295.00.
4.2 Movement
The £3,397.00 net increase is fully reconciled by income group: premises-licence income rose by £4,377.00 and occasional/extended-hours income rose by £1,870.00, partly offset by a £2,850.00 reduction in personal-licence income.
4.3 World Cup 2026 application income
Agenda item 4 at the Board meeting on 16 February 2026 was ‘FIFA World Cup 2026 — Extended Hours’. The Clerk’s report examined three routes: a general extension under section 67 of the 2005 Act; individual extended-hours applications under section 68, with occasional licences under section 56 for venues without a premises licence; or no special action. It identified the £10 statutory fee for each individual application, the officer workload created by a concentrated application exercise, and the need to address public safety, crime and disorder, nuisance, health, children and young persons, and orderly dispersal.
The Board did not make a general extension. Its published policy used individual applications determined through the usual procedures and widened eligibility from the Scotland fixtures discussed in the agenda paper to any World Cup fixture. Applications were due by 31 March 2026. Successful extended hours could run until 30 minutes after the final whistle, subject to event-specific safeguards, including no admission or re-admission one hour before kick-off.
By the 31 March 2026 deadline, 57 premises submitted extended-hours applications covering 336 dates and no World Cup occasional-licence applications were received. This averages 5.9 dates per premises. At the statutory fee of £10 per date/application, the extended-hours applications generated £3,360.00.
| Measure | 2025/26 result | Financial reading |
|---|---|---|
| Premises submitting extended-hours applications | 57 | 336 dates; 5.9 dates per premises |
| World Cup occasional-licence applications | 0 | £0.00 from the section 56 route |
| World Cup extended-hours dates | 336 | £10 per date/application |
| World Cup extended-hours fee income | £3,360.00 | 32.0% of the £10,500.00 combined line |
| Other occasional/extended-hours income | £7,140.00 | £1,490.00 (17.3%) below the prior combined line |
4.4 Financial and operational interpretation
The £3,360.00 World Cup income represented 2.0% of total relevant income and 1.9% of total expenditure. Across the 57 participating premises, the average fee yield was £58.95. Those figures show the scale of the receipt, but they are not unit-cost or cost-recovery measures: the £10 fee is statutory and does not factor the officer time associated with this exercise.
The individual-application route retained premises-specific scrutiny and the ability to impose proportionate conditions, but converted demand into 336 date applications requiring processing within a short period. The agenda paper anticipated consultation, licensing and LSO input, liaison with Police Scotland, communication and possible monitoring. Without time-recording or a specific expenditure code, the supplied data do not establish whether the £3,360.00 exceeded or fell short of the additional cost of the exercise.
The zero occasional-licence figure relates only to the World Cup exercise; it is not the annual occasional-licence total. Equally, 336 is the number of extended-hours dates applied for, not the number granted. For cross-year reporting, this financial report records fees received by 31 March 2026; the 2025 to 2026 functions report can record the February policy decision and applications received, while any individual determinations made after 31 March belong in the 2026 to 2027 decision data.
4.5 Movement within premises income
Within the premises group, the positive movements were major variations (£4,110.00), confirmations of provisional licences (£1,200.00), provisional premises licences (£600.00), section 33 transfers and variations (£350.00), and minor variations (£240.00). These were partly offset by annual premises fees (£1,118.00), new premises manager fees (£465.00), full grants (£300.00) and section 34 transfers and variations (£240.00). The component movements reconcile exactly to the £4,377.00 increase in premises income.
Annual premises fees remained the single largest line at £125,295.00, equivalent to 75.9% of total relevant income. The year's improvement therefore came from the mix of transactional fees rather than growth in the annual-fee line.
4.6 Income boundary
No gambling, civic licensing or other non-2005 Act income has been included. No social responsibility levy income appears in the supplied schedule. Appendix A provides the full line-by-line reconciliation.
5. Expenditure analysis
| Expenditure category | 2024 to 2025 | 2025 to 2026 | 2025 to 2026 share | Movement |
|---|---|---|---|---|
| Staffing and member costs | £153,430.30 | £149,831.12 | 85.7% | −£3,599.18 |
| Other costs | £20,507.48 | £25,032.19 | 14.3% | +£4,524.71 |
| Total recorded expenditure | £173,937.78 | £174,863.31 | 100.0% | +£925.53 |
The 2025 to 2026 staffing cost bases and other-expenditure total are taken from information provided by Finance. Income and the 2024 to 2025 comparatives are taken from Financial Report Information.
5.1 Staffing and member allocation
This particular cost applies time or responsibility percentages to salary-related and member costs. For this report, each allocated amount was first returned to its implied 100% full-year cost base, then the final percentages were applied. Individual staff names and salary values are not reproduced in the public report.
Staffing and member costs decreased by £3,599.18 (2.3%). Relevant contextual factors are the reallocation of resources to match service demand, the Board's reduction from 10 to 9 members, and the new LSO taking up post in June 2025. The 2% elected-member allocation and the staff percentages in the table express cost attribution rather than a simple movement in employee or member numbers.
Board membership reduced by 10%, while the aggregate staffing and member cost reduced by 2.3%. The difference confirms that elected-member numbers are one contributor, alongside the wider staff allocation and service-demand factors, rather than the sole explanation for the movement.
5.2 Local government pay award
The Scottish local government pay settlement increased all Scottish Joint Council spinal-column points by 4% for the period 1 April 2025 to 31 March 2026, effective from 1 April 2025. This created an underlying upward pressure on salary-related cost bases for staff covered by the settlement. The separate 3.5% uplift from 1 April 2026 falls outside this report and belongs to the 2026 to 2027 comparison.
The pay award is not inconsistent with the reported £3,599.18 (2.3%) reduction in staffing and member costs. The reported line combines staff and elected-member amounts and applies the final attribution percentages to the relevant cost bases. Resource reallocation, changes in service demand, the Board moving from 10 members to 9, and the new LSO taking up post in June 2025 were capable of more than offsetting the salary-rate pressure.
| Cost group | Allocation | Calculated Amount |
|---|---|---|
| Licensing Standards Officer | 100% | £36,286.00 |
| Licensing and support officers | 100%, 80%, 35%, 30%, 5% | £89,295.20 |
| Elected members | 2% | £24,249.92 |
| Total staffing and member costs | Not applicable | £149,831.12 |
5.3 Other costs
Finance reported other expenditure of £25,032.19, up £4,524.71 (22.1%). The 2025 to 2026 ledger is concentrated in software licences and support (£9,168.15; 36.6%) and postage (£4,816.58; 19.2%). Together these categories account for £13,984.73, or 55.9%, of other costs. The ledger also records £800.00 of staff training, including Licensing Standards Officer training, with the balance spread across insurance, equipment and consumables, travel and mileage, legal expense, memberships, supplies, administration and other Finance-ledger categories.
5.4 Inflation benchmark
At March 2026, UK CPI inflation was 3.3% and services inflation was 4.5%. Applying those year-end benchmarks to the 2024 to 2025 other-cost base would equate to an increase of approximately £676.75 to £922.84. General inflation therefore provides a reasonable explanation for part of the movement, around 15% to 20% of the £4,524.71 increase.
The balance is consistent with the mix of costs recorded during the year, contract renewal and transaction timing, and specific items in the Finance ledger. The prior-year source provides an aggregate other-cost comparator, so the inflation calculation is used as a benchmark rather than as an allocation of every pound of movement.
6. Cost recovery and interpretation
Income grew by 2.1%, while expenditure grew by 0.5%. The resulting deficit is 5.58% of expenditure; income would need to be 5.91% higher to cover the cost in this year alone.
| Indicator | 2024 to 2025 | 2025 to 2026 | Assessment |
|---|---|---|---|
| Income growth | Not applicable | +2.10% | Modest increase |
| Expenditure growth | Not applicable | +0.53% | Broadly stable |
| Cost-recovery rate | 92.97% | 94.42% | Up 1.45 pp |
| Deficit | £12,232.78 | £9,761.31 | Down £2,471.47 |
Indicators use the final 2025 to 2026 income and expenditure figures.
6.1 Why recovery improved
Income increased by £3,397.00 while expenditure increased by £925.53, narrowing the deficit by £2,471.47. Every £100 of 2025 to 2026 expenditure was therefore supported by £94.42 of relevant income, compared with £92.97 in 2024 to 2025.
6.2 Key conclusions
- Fee income did not cover the recorded 2025 to 2026 expenditure base.
- The gap narrowed compared with 2024 to 2025 and the recovery rate improved.
- The remaining shortfall supports continued monitoring through a consistent future allocation methodology.
6.3 LSO timing and future comparison
The new LSO took up post in June 2025, so 2025 to 2026 contains a substantial but not complete year of operational experience under the appointment. The recovery improvement is explained by the income and expenditure movements above rather than attributed to one post. The 2026 to 2027 report will provide the first full-year opportunity to compare fee income, application mix, inspection and compliance activity, and the continuing cost of the role on a consistent basis.
7. Board decisions
7.1 Recommended decisions
The Board is invited to:
- note the final position of £165,102.00 income, £174,863.31 expenditure and a £9,761.31 deficit;
- approve the annual financial report for 2025 to 2026;
- authorise publication of the report following the meeting; and
- request that the 2026 to 2027 report retain a consistent allocation basis and include a full-year LSO comparison, the World Cup determination and implementation workload, licence-volume data, the effect of the 2026 to 2027 pay award and a line-by-line other-cost bridge.
7.2 Monitoring focus for 2026 to 2027
The next report should retain the same definitions and reconciliation method so movements can be separated into volume, allocation, price and timing effects. Particular attention should be given to the first full year of the LSO appointment, the 3.5% SJC pay uplift from 1 April 2026, the membership and activity of the Board, the determination and implementation workload arising from the World Cup applications received beyond March 2026, application volumes and fee yield by category, and the software/support and postage lines that account for most 2025 to 2026 other costs.
7.3 Conclusion
The final report records expenditure of £174,863.31, a deficit of £9,761.31 and cost recovery of 94.42%. It separates the income and expenditure sources, explains the allocation method and provides a transparent two-year comparison.
Appendix A - Detailed income schedule
| Fee line | 2024 to 2025 | 2025 to 2026 | Movement | Movement % |
|---|---|---|---|---|
| Extension/occasional licence | £8,630.00 | £10,500.00 | +£1,870.00 | +21.7% |
| Minor variation | £380.00 | £620.00 | +£240.00 | +63.2% |
| New premises manager (immediate effect) | £2,542.00 | £2,077.00 | −£465.00 | −18.3% |
| Personal licence | £9,800.00 | £6,950.00 | −£2,850.00 | −29.1% |
| Annual premises fees | £126,413.00 | £125,295.00 | −£1,118.00 | −0.9% |
| Provisional premises licence | £1,400.00 | £2,000.00 | +£600.00 | +42.9% |
| Full grant of premises licence | £2,400.00 | £2,100.00 | −£300.00 | −12.5% |
| Confirmation of provisional premises licence | £3,400.00 | £4,600.00 | +£1,200.00 | +35.3% |
| Major variation | £5,610.00 | £9,720.00 | +£4,110.00 | +73.3% |
| Transfer and variation — section 33 | £650.00 | £1,000.00 | +£350.00 | +53.8% |
| Transfer and variation — section 34 | £480.00 | £240.00 | −£240.00 | −50.0% |
| Total relevant income | £161,705.00 | £165,102.00 | +£3,397.00 | +2.1% |
Source: Financial Report Information.
Grouped Totals
| Group | 2025/26 amount | Share of total |
|---|---|---|
| Premises licences, including annual fees | £147,652.00 | 89.4% |
| Personal licences | £6,950.00 | 4.2% |
| Occasional licences/extended hours | £10,500.00 | 6.4% |
| Total | £165,102.00 | 100.0% |
Income movement bridge
| Income group | Movement | Reading |
|---|---|---|
| Premises licences, including annual fees | +£4,377.00 | Principal positive contribution |
| Occasional licences / extended hours | +£1,870.00 | Additional positive contribution |
| Personal licences | −£2,850.00 | Offset to growth |
| Net movement | +£3,397.00 | Reconciles to total income change |
At individual fee-line level, the five largest absolute movements - major variations, personal licences, occasional/extended hours, confirmations and annual premises fees - net to +£3,212.00. The remaining fee lines net to +£185.00, completing the £3,397.00 reconciliation.
Within the occasional/extended-hours line, £3,360.00 of World Cup extended-hours fees plus £7,140.00 of other income equals the reported £10,500.00. Compared with the prior-year combined line of £8,630.00, the £3,360.00 World Cup contribution less the £1,490.00 reduction in other activity equals the net £1,870.00 increase.
Appendix B - Legal and statistical sources
Primary authorities, official statistics and Scottish comparator material inform the report.
| Source | How it informed this report |
|---|---|
| Licensing (Scotland) Act 2005, section 9B | Statutory content, definitions and publication duty |
| Air Weapons and Licensing (Scotland) Act 2015, section 56 | Provision inserting annual-report duties |
| Licensing (Fees) (Scotland) Regulations 2007 | Fee structure, maxima and broad-equivalence context |
| Scottish Government section 142 guidance — Licensing Boards | Board status, annual reports and fee-policy context |
| North Ayrshire annual financial report 2024 to 2025 | Local comparative narrative and published baseline |
| Office for National Statistics: Consumer price inflation, UK - March 2026 | Year-end CPI and services-inflation benchmarks for other-cost analysis |
| North Ayrshire Licensing Board meeting and agenda — 16 February 2026 | Agenda item 4: legal options, licensing objectives, £10 fees and resource implications |
| North Ayrshire Council: Apply for extended World Cup opening hours — 18 February 2026 | Final Board policy, any-fixture scope, deadline, closing time and safeguards |
| North Ayrshire Council: Policy for extended hours and occasional licences over the festive period | Published £10-per-date fee and paid-receipt treatment |
| COSLA: GMB and Unite join UNISON in accepting pay offer — July 2025 | Accepted two-year settlement: 4% from 1 April 2025 and 3.5% from 1 April 2026 |
Benchmarking note
The ONS figures are used as a year-end benchmark for the change in other costs. The COSLA settlement provides the salary-rate context; the North Ayrshire agenda and public notice establish the World Cup policy and timing. North Ayrshire’s financial amounts remain the figures supplied by Finance and the service-confirmed World Cup volumes; external sources inform legal and financial interpretation only.