Local authorities in Scotland must transform the way they deliver services to close a budget shortfall of £647m, spending watchdog says.
Scottish councils received a £15bn cash boost from Holyrood in 2025/26, an investment set to be supplemented by council tax rises and service charges.
However, wage increases, higher employer National Insurance contributions and rising service demand means they need to find £647m of savings in 2025/26, says the Accounts Commission.
Derek Yule, a member of the Accounts Commission, warned that not all cost increases faced by local authorities can be met by Government funding.
‘Local action is needed now to find solutions to immediate and future financial challenges. This means difficult decisions on what services can be delivered and making major changes in how they are delivered,’ he said.
