Scottish councils have been urged to accelerate their reform efforts to safeguard services amid severe financial pressures, a public finance watchdog has said.
The Accounts Commission has said local government is facing a funding gap of £585million next year, rising to £780million by 2026-27, and the watchdog has urged the Scottish Government to increase the pace of change to save public services.
In a new report released on Tuesday, it said: “The unprecedented financial and service demand pressures mean there is an urgent need for the local government sector to transform how it operates if it is to sustainably maintain services.”
The Scottish Government said it has made record funding available to councils and was working on a new agreement to empower local government. However the watchdog has said much more is needed to decrease financial pressure.
Accounts Commission member Jennifer Henderson said: "Councils must now move with an ambition and pace we've not yet seen if they're going to successfully address the financial sustainability, workforce and service challenges.
“To protect vital services, to pivot to prevention and increase the pace of collaboration, councils must commit to and sustain their own transformation programmes, whilst collaborating with sector-led work.”
“Successful delivery of transformation programmes is essential to achieve financial sustainability and improve the lives of individuals and communities."
Responding to the report, Finance Secretary Shona Robison agreed that transformation was needed to deliver priorities.
“Despite the decision of the previous UK government leaving the country in a challenging financial situation, the Scottish government has made available record funding of over £14billion to local councils this year – a real-terms increase of 2.5% compared with the previous year," she said.
"We will also continue to work with [local government body] Cosla to empower councils through a new fiscal framework.”