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The report cautioned that although North Ayrshire currently has reserves to cover immediate budget gaps forecast, "its service cost base is not sustainable" and cash reserves could be depleted in the long-term without further recurring savings. Health and social care activities remain under pressure, with £3.7m of savings identified for 2025/26 falling in this area. North Ayrshire Integration Joint Board - the governing body of the area's Health and Social Care Partnership - forecast a "best case" budget gap of £8.1m and a "worst case" of £21.4m for the 2025/26 financial year. Budget gaps are the difference between what a local authority intends to spend in a year, and how much money they have coming in. Auditors added that "the overall outlook for the council remains challenging", citing budget gaps of £3.6 million in 2026/27, and a further £7.4 million for 2027/28 in the general funds remaining category. However, the Accounts Commission wrote that oversight and scrutiny arrangements are robust, while the local authority has in place good community relationships that should help with difficult decisions. A voluntary redundancy programme resulted in 85 employees leaving the council and creating £2.4 million of savings. A further 45 employees are expected to leave in the coming year through what the report called "vacancy management".
