Councils may have to reconsider spending cuts

COUNCILS may have to reconsider spending cuts they had previously ruled out as they try to balance budgets, experts have warned.

Most local authorities predict substantial funding gaps over the next three years, the Accounts Commission has reported in a response to the public spending scrutiny body Audit Scotland.

“It is clear that councils will need to do more with fewer resources. They have coped well with the financial pressures of recent years but these pressures are not abating,” said John Baillie, chairman of the Accounts Commission.

“They need to continue to review existing services as well as identifying fresh ways of providing them; working with their partners, sharing skills and resources and keeping close tabs on budgets to ensure every pound is spent wisely.

“This is a tall order but there is a fresh appetite now from government and councils for new ways of working such as more effective community planning. Councillors are the centre of this and they have a crucial role in making sure their councils are delivering the best services for local people.”

It is “difficult to overstate” the potential implications of welfare reform on all 32 councils, the commission warned.

Councils are taking this seriously and are responding well but there are major challenges for councils in putting the new benefits arrangements in place.

The auditor’s report warns: “Achieving savings will become progressively more challenging. Most councils are predicting substantial funding gaps over the next three years and need to consider seriously policy options which in the past may have been rejected.

“Councils and local services face significant changes. Welfare reform, the new national police and fire and rescue services and adult health and social care reform will all have a significant impact on local government.”