Scotland's councils need to significantly increase the pace and scale of their service transformation or risk facing harder decisions and greater costs in future years, according to a new report by the Accounts Commission.
The watchdog's analysis of 22 Scottish councils found a mixed picture, with half yet to clearly set out how transformation activity will support their long-term financial sustainability.
Over a third have not sufficiently determined the financial impacts of their transformation plans, and most need to improve how they identify, monitor and report on wider benefits.
The report highlights particular concerns around community engagement, with limited evidence that consultation has influenced project design and delivery.
Around a quarter of councils also need to develop a more consistent approach to Equality Impact Assessments for vulnerable and protected groups.
Accounts Commission member Jennifer Henderson said a ‘shift in pace, scale and ambition is needed’ and warned that failing to engage communities risked councils having to withdraw plans or face legal challenges.
The Commission is calling on councils to ensure transformation plans are sufficiently ambitious, clearly linked to strategic priorities, and transparent about planned savings.
Commenting on the report, Cllr Steven Heddle, COSLA Vice President said: 'As the report recognises, there is strong innovation happening across local government. This can be seen both locally and nationally. However, councils continue to be constrained in what they can achieve while budgets remain under sustained pressure and demand for services continues to rise.
'Councils are the part of the public sector closest to communities, bringing a high degree of transparency, accountability and public expectation. At the same time, local government budgets have faced disproportionate pressure compared to other areas of the public sector.
'COSLA and Local Government partners will continue to work with the Scottish Government to drive transformation through the Public Service Reform agenda. Delivering efficiencies through reform will also require all parts of the public sector to work together and look beyond council services, where significant savings have already been made.'
