By Bill Heaney
Scotland’s 32 councils, including West Dunbartonshire and Argyll and Bute, continue to face severe financial pressures.
The need to consult with communities, clearly communicate the impact on local services, whilst working together to shape and deliver urgently needed transformation, is more important than ever.
Silence such as that which operates in West Dunbartonshire where the Council refuse to speak to The Dumbarton Democrat because we disagree with some of their policies and comment as we see it entirely within the law is not recognised as a form of good communications.
Councils closed a budget gap of £759 million during 2023/24, but this required them to make further and deeper savings.
Reflecting on the state of council finances in that financial year, the Accounts Commission reports many councils made savings or used reserves to deliver services within budget and offset a 3.3% real-terms reduction in revenue and income.
Using reserves to routinely balance budgets isn’t sustainable and risks financial sustainability.
Despite an overall increase in funding in 2024/25 and a further funding increase announced for the year ahead, intensifying demand for services, greater borrowing and depleting reserves pose ongoing challenges.
In 2023/24 councils borrowed more to invest in buildings and infrastructure, whilst Scottish Government money to support capital investment continued to decline.
Council borrowing increased by over £400 million and almost all councils now face higher levels of debt and annual interest costs.
This investment is vital, however, in supporting spending on key areas including new schools and housing projects, whilst reducing the risk of buildings becoming unusable and impacting services still further.
Jo Armstrong, left, Chair of the Accounts Commission, said: “Scotland’s councils face a challenging future, with significant financial risks and uncertainties.
“This has been compounded by pressures outwith their control, including ever-increasing demand on services and inflation.
“An expected increase in funding for the year ahead doesn’t cancel out the urgent need for transformation, at a pace and depth we’ve not yet seen.
“With services already being impacted, councils must be clear with communities the scale of financial challenge being faced. Working with communities to deliver differently is vital.”
Commenting on the Accounts Commission report on Local Government Finances, Scottish Labour Local Government spokesperson Mark Griffin, right, said “The SNP cannot ignore this stark warning and continue to bury its head in the sand about the timebomb in local government finances.
“Years of brutal budget cuts by the SNP and growing demands has left councils across Scotland at breaking point.
“Now there is a real risk that Scots are going to pay the price for the SNP’s incompetence through Council Tax hikes.
“Labour has put an end to the era of Tory austerity so the SNP has no excuses left – it must provide a fair funding deal and work with councils and communities to deliver the long-term reforms needed.”
Top of page picture: West Dunbartonshire Council headquarters in Church Street where the council spent more than £16 million renovating the premises while leaving former offices lying empty for years.