The move, which was agreed at a meeting of Full Council yesterday, will happen in the next financial year, 2026 to 2027.

Aberdeen City Council co-leader Councillor Ian Yuill said: “Having this key social care provider and its staff back under the council’s direct control is the best option for the people from whom it provides vital care services 365 days of the year.

“This change will lead to savings and efficiencies in governance and systems. It will improve the overall financial resilience of these key care services.”

Council co-leader Councillor Christian Allard said: “Staff will also benefit from bringing Bon Accord Care back into the council.

“They will have greater career progression opportunities and workforce planning will be easier.”

A report to the committee said Bon Accord Care is a key provider of statutory social care in Aberdeen, responsible for delivering contracted health and social care across Aberdeen City, commissioned via the Aberdeen City Health and Social Care Partnership.

The Aberdeen City Integrated Joint Board Strategic Plan is committed to supporting people to stay at home or in a homely setting (eg sheltered/very sheltered housing, in a community residence, or a care home), with maximum independence for as long as possible.

There is a significant focus on how people can be supported to remain at home and be supported to live within the community, which is also in line with the Integrated Joint Board’s market position statement, Bon Accord Care’s strategic objectives, and the ACC’s recently-approved Local Housing strategy.

In addition, there has been a substantial rise in the number of people Bon Accord Care is supporting, often with the complexity of their needs increasing, whilst decreasing funding and increasing cost pressures.

Forecasting based on recently agreed pay awards, the current model of delivery, and increasing need among service users, indicates that Bon Accord Care’s costs could rise by a further £2 million in 2026/27. Further cost increases are anticipated year-on-year. In its medium-term financial plan, the Integrated Joint Board has identified a funding gap of £14.2m for 2026/27, increasing further in future years.

If it were to continue as an Arms’ Length Organisation (ALEO) as at present, the report said Bon Accord Care would have faced significant savings targets for 2026/27 and future years, with limited options available to make those savings.

However, transferring back to the council means the advantages would be financial resilience, immediate savings through governance and systems consolidation, and efficiency gains. There will be immediate savings as there will not be a requirement for separate governance boards as the business will be transferred to the existing Integrated Joint Board governance structures including delivery, clinical care, audit, and finance.

A unified governance and accountability structure would further enhance streamlined decision-making and resource allocation. There would be opportunities for closer cross-organisational alignment and cost-sharing, enhanced partnership working arrangements, and improved digital transformation.