The future of key public services is at risk unless vital cost-cutting reforms happen more quickly, a new spending watchdog report has warned.
The Accounts Commission is critical of the Scottish Government and local authorities for the slow progress of promised reforms as councils face a £585 million funding black hole next year, rising to £780 million by 2026/27.
It warned that essential reform must happen ‘at greater pace and scale’ – and said not doing so ‘puts the sustainability of vital public services at risk’.
It also condemned ministers for imposing the council tax freeze, teacher numbers and learning hours on under-pressure local authorities.
Stalled council reforms put vital services at risk
Critics said councils have faced years of ‘neglect and savage cuts’ as a result of decisions made by SNP ministers.
The Accounts Commission report, published on Tuesday, said: ‘Transformation in local government has been happening for decades, but a step change is now urgently required.
‘Councils face barriers to transformation and progress has been slow, but reform is vital and must happen at greater pace and scale. Not doing so puts the sustainability of vital public services at risk.’
The report said it expects councils, the Scottish Government and partners to make ‘significant progress’ in the next 12 months on agreeing a ‘future operating model’ and setting out how services can be sustainably delivered.
It highlights Dundee City Council as one authority which has made ‘good progress’, following £147 million of savings which included rationalisation of offices and other buildings, sharing services and increasing payments and income generation.
It criticises ‘several actions, decisions and behaviours’ by the Scottish Government which have undermined the Verity House Agreement, which set out a new relationship with councils, including former First Minister Humza Yousaf announcing a council tax freeze and the imposition of teacher numbers and learning hours requirements.
The report concludes: ‘While transformation is a long-term ambition, the need for change, innovation and action is urgent.
‘The longer it takes to create solutions to the financial sustainability challenges facing the sector, the tougher those challenges will become and the more difficult it will be to find solutions.’
Scottish Conservative finance spokesman Liz Smith said: ‘This report shows just how much strain councils are under, thanks to years of SNP underfunding.
‘Change will be essential to provide the basic services people rely on, but that will only be possible if the SNP government finally starts to deliver support and funding.
‘For years, councils have had to contend with the SNP’s neglect and savage cuts, and Scottish households have seen services slashed while living costs and income tax have risen. They are paying more and getting less.
‘The SNP government must now honour their commitments and deliver the funding and support necessary for council reform that will tackle people’s real priorities.’
Scottish Labour local government spokesman Mark Griffin said: ‘For years the SNP has hollowed out Council budgets and lifeline services across the country have been cut to the bone as a result.
‘We need real leadership from the Scottish Government to help councils deliver the reforms needed to make sure local services are fit for the future.
‘The SNP must stop inflicting brutal cuts on local government and instead support councils in reforming and modernising these vital services.’
Finance Secretary Shona Robison said: ‘The report from the Accounts Commission recognises collaboration and transformation is vital to protect public services.
‘This aligns with this Government’s core priorities of ensuring the delivery of effective public services, eradicating child poverty, growing the economy, and prioritising net zero.
‘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 £14 billion to local councils this year – a real-terms increase of 2.5 per cent compared with the previous year.
We will also continue to work with (council umbrella body) Cosla to empower councils through a new fiscal framework.’
