Seven in 10 local authorities in Scotland have warned they will be unable to pass a balanced budget within the next five years without widespread reform.
New research from Local Government Information Unit (LGIU) Scotland found satisfaction with the Scottish Government is ‘alarmingly poor’ across the sector.
State of Local Government Finance in Scotland, which draws on responses from 84% of Scottish councils, said not one of the respondents were happy with Holyrood’s performance on delivering a sustainable funding system.
Around 70% of all councils believe they will be unable to pass a balanced budget within the next five years without widespread reform, including multi-year financial settlements, ending ring-fencing, and reform of council tax.
Jonathan Carr-West, chief executive of LGIU Scotland, said the report makes for ‘grim reading’ and ‘paints a picture of a system under continual and significant strain’.
He continued: ‘Today’s report delivers a stark warning that councils are in a precarious financial position and there is not much time until the sector starts to see potentially catastrophic consequences.
‘Change is urgently needed. Councils will soon be unable to balance their budgets, meet their statutory duties, or provide for their communities. We need to change course now before it is too late.’
