Scotland’s local councils are being stretched like never before, and the pressure is starting to show in every corner of the country.
The latest report from the Accounts Commission paints a clear picture of the growing gap between what communities expect and what councils can afford to deliver.
In the upcoming financial year, councils across Scotland will receive more than £15 billion in funding from the Scottish Government.
On top of that, many will raise additional money through increased council tax and higher charges for local services.
But the demands placed on local government are growing faster than the money coming in.
Soaring inflation, rising wage costs and higher National Insurance contributions are just the start.
Councils are also facing mounting pressure to meet the needs of an ageing population, especially in social care.
Taken together, these challenges have left councils facing a staggering £647 million shortfall for 2025/26.
Some of that gap is being plugged by squeezing budgets, hiking charges and dipping into financial reserves.
But the Accounts Commission warns this approach is not sustainable.
Using up reserves and relying on one-off savings only postpones the pain, placing even more pressure on future budgets.
The need for deep, long-term reform is clear.
Councils are starting to change how they deliver services, but that transformation must now pick up pace.
There’s also growing concern about how cuts and changes affect those who rely most on council services.
The Commission is calling for better understanding of the impact on vulnerable communities.
Investing in public infrastructure like schools, libraries and roads is another growing concern.
This kind of capital investment is critical if councils are to modernise how services are delivered.
Although capital funding from the Scottish Government is rising, it’s still not back to the levels seen in the past.
As a result, councils are turning to borrowing to fund an ambitious £4.7 billion capital investment programme for the year ahead.
Derek Yule of the Accounts Commission summed up the situation starkly.
He warned that councils simply don’t have enough money to meet current demand at a time when communities are being asked to pay more.
He stressed the need for honest conversations about what services can be delivered in the years ahead, and how.
The road ahead will involve tough decisions, local solutions and a clear-eyed look at the financial challenges that lie before us.
But the message is clear.
Communities, councils and the country must prepare for change.
