The Scottish council told to take 'urgent action' to make £22m in savings
A Scottish council has been told to take “urgent action” to balance the books as it looks to make £22 million of savings.
The Accounts Commission said Clackmannanshire Council must urgently address its financial situation. The body said there had previously been a reliance on one-off budget flexibilities and reserves, but warned this approach cannot continue.
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Hide Ad“This is not financially sustainable in the medium to longer term and the council needs to take urgent action to address this,” the commision said.
Tory MSP Alexander Stewart said the report made clear Clackmannanshire “remains in dire financial straits, as a result of the SNP council’s poor decisions and the SNP Government’s underfunding and neglect of local authorities and services”.
Clackmannanshire needs to make £22m of savings by 2026/27.
The Accounts Commission said the council had demonstrated continuous improvement on key areas over the past five years, including community engagement, addressing climate change and setting priorities. However, it urged the local authority to develop a medium-term financial strategy.
A spokesman for Cosla, the council umbrella body, said: “Local government in Scotland faces severe financial challenges – and Cosla has been raising concerns about the sustainability of that situation, nationally, for a number of years.”
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Hide AdIn recent years several councils in England, such as Birmingham, have effectively declared themselves bankrupt, but a different process exists in Scotland.
If a local authority is unable to set a balanced budget, a report would be sent to the chief executive and submitted to the full council within 21 days, with new spending frozen. This could lead to an emergency budget and cuts to services. There is no suggestion Clackmannanshire is in this position.
Jo Armstrong, chair of the Accounts Commission, said its report “highlights the progress made by Clackmannanshire Council”, adding: “The council should rightly be proud of these achievements.”
She added: “But we cannot ignore the fact that the council faces a particular combination of challenges, including strain across recruitment, staff capacity and high sickness absence. This is alongside the financial challenges faced by all local authorities in Scotland.
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Hide Ad“The council must develop in more detail and deliver on its plans to transform how it works and the services it will deliver in the future. This is critical to ensure it can operate within budget.”
Council leader Ellen Forson said: “It was great to hear the Accounts Commission say that our report is probably one of the best reports they've seen at its public meeting on September 12.
“For Scotland’s smallest mainland authority to show we continue to punch above our weight on so many fronts was really good to hear. It’s fantastic to have our hard work and all the progress we have made acknowledged by our watchdog.
“I’m also keen to point out that, while we have made significant progress, we are not complacent. We absolutely realise the significant challenges ahead, particularly in respect of financial sustainability as the Accounts Commission has highlighted. We also recognise that many of these challenges lie outwith our control.
“That is why we have prioritised transformation and collaborative working, with the aim of achieving financial stability, for the past six years, and will continue to do so in the future.”
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