Scottish councils to take a battering in spending cuts

Published on 28/11/2010 16:43

NEARLY a quarter of Scotland's local authorities are likely to be among the hardest hit in the UK by spending cuts, according to a new study.

The research by the Ernst & Young ITEM Club highlights seven areas that will feel the biggest impact - Midlothian, East Ayrshire, Dundee, Inverclyde, Clackmannanshire, Western Isles and West Dunbartonshire.

Dougie Adams, senior economic advisor to the Club, said: "Our data, which examines local characteristics, shows the most vulnerable areas are spread across the whole of the UK and not focused in any particular geographic area.

"Nonetheless, the top seven in the Scottish ranking fall into the quartile of most vulnerable local authority areas in the UK."

The risk factor is calculated in terms of the number of public jobs in the areas, the levels of unemployment, and the degree to which their local economies are dependent on public sector procurement, together with how well adapted their economies are in terms of their ability to respond to the downturn, given their exporting potential and the skill-base of their populations.

Dundee, Inverclyde, and Clackmannanshire feature in the top ten of local authorities most at risk throughout the UK, placed fourth, sixth, and tenth respectively out of 434 councils.

Elsewhere, Edinburgh was found to be the 12th most "at risk" zone in Scotland. Glasgow took eighth place, while Aberdeen, in 27th position, was thought to face less of a threat.

Mr Adams pointed out that there was no west versus east divide, with some of the most unguarded areas sitting side by side with "safe" councils. He added: "The analysis throws up some surprises. For example, some of the areas most at risk sit side by side with those least under threat."

The report also highlights those council areas best-placed to ride out the retrenchment. Aberdeenshire was found to face the least risk, followed by Shetland, Perth and Kinross, and West Lothian.

Paula Speirs, local public services director at Ernst & Young, said: "It's crucial that local authorities demonstrate leadership, a willingness to engage the problems facing their areas at ground level and an ability to effectively react to a rapidly-changing environment."