Financial challenges spark call for collaboration

Council chiefs in Argyll and Bute have called for a collaborative working relationship with the Scottish Government after a report laid bare the financial challenges facing councils.

Officials were reacting to a document by the Accounts Commission which said councils must change how they operate to continue and to improve key services.

Argyll and Bute Council recently forecast a total budget gap for the next five years of nearly £23.8 million, with a gap of £6.7m currently forecast for the 2024/25 financial year.

The Accounts Commission identified four areas across Scotland where performance was “at risk or declining”: adult social care, housing and homelessness, environmental services and culture and leisure.

Tim McKay, the Accounts Commission’s acting chairperson, said: “The new deal for local government is long overdue.

“Putting this give councils in place will longer-term financial stability, supporting them to make decisions and make the fundamental changes that are urgently needed.

“Councils have gone beyond the point where making savings is enough. If the change doesn’t happen now, some services will get worse, which will impact communities and individuals that are already at crisis point. Councils need to have open and honest conversations with their communities and staff about the future of council services.”

An Argyll and Bute Council spokesperson said: “This council along with many others has already made significant efficiencies due to ongoing budget cuts. It’s reassuring the report recognises the huge challenges we continue to face due to budget constraints and increased cost pressures.

“It is essential the new local government deal sets out a collaborative working relationship with the Scottish Government, with fair funding so we can continue to deliver critical public services for our residents.”