Councils need to take urgent and radical action to deal with the financial challenges ahead, according to the Accounts Commission.
The call comes in the Commission's annual report, An overview of local government in Scotland 2009. In the report, the Commission welcomes the improvements in councils and services over 2008-2009 but says that budget cuts combined with increasing demand for services will require a "fresh approach to the way in which they prepare budgets and plan services so they are best placed to generate the efficiencies and savings required."
Chair of the Accounts Commission, John Baillie, said, "It is encouraging to see a significant number of councils now giving serious consideration to developing shared services. With budgets set to tighten even further and demand for services set to increase, councils need to continue to think radically about service design – looking at what they are delivering, how they are meeting the needs of communities and how they get best value for money."More effective workforce planning and management and further progress on asset management and procurement are also essential. And the Commission is again emphasising the need for significant improvements in performance management and reporting".
COSLA President, Councillor Pat Watters, responded by saying that councils are already well ahead of this report in their thinking and planning. "Councils are well aware that the financial picture is becoming more and more challenging and that demand for services is increasing and that this combination will be extremely difficult. Demands for council services have always outweighed the ability to pay for them but we have officers and elected members managing that process to protect frontline services which is the main concern of us all.
"One final point, particularly from those one step removed from the delivery of front-line services, there seems to be a real misconception that shared services are the panacea - they are not. Yes they are important and yes they have a part to play along with efficiencies but they are not the be all and end all. The financial reality facing councils is that with forecast reductions of 12% over the next few years what councils will need to look at is re-prioritising policy commitments - shared services and efficiencies cannot meet this shortfall on their own."
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