Councils' arms-length firms on the rise

MORE councils are using so-called arms-length external organisations (ALEOs) to provide services because of cuts to their budgets, a report has found.

The Accounts Commission, which checks public spending, said using ALEOs can save money and provide "a more flexible" service and has published a guide on how best to use them.

Scotland now has about 130 ALEOs in operation. The commission stressed that "arrangements can be complex" so "good governance arrangements are crucial".

The number and types of ALEOs are increasing.

The number set up by Scotland's councils to provide leisure services has almost doubled in ten years.

An ALEO can provide public services relating to leisure, transport, property development and personal care.