Aberdeenshire Council is grappling with a projected budget shortfall of £81 million over the coming years, a figure highlighted in a new report by the Accounts Commission.
While the independent public spending watchdog lauded the local authority as “well-run,” it issued a stark warning regarding the necessity to confront its current and future financial challenges, including unfulfilled savings targets.
The Accounts Commission, an executive non-departmental public body of the Scottish Government tasked with scrutinising the financial governance and performance of local councils, noted that many of Aberdeenshire’s services are showing improvement. The council’s strategic plans have integrated the unique challenges posed by its geographical characteristics and an expanding older demographic within the region.
However, the Commission underscored the urgent need for the council to leverage its robust community engagement to implement substantial changes vital for ensuring the long-term sustainability of its services. This, the report suggests, will necessitate strong collaborative leadership from both councillors and senior officers.
In a recent move to address financial pressures, Aberdeenshire Council approved a 10% council tax increase for the 2026/27 financial year, one of the most significant rises across Scotland. In contrast, neighbouring Aberdeen City Council opted for a lower increase of 6.8% for the same period.
The council is actively working alongside its local partners to tackle the substantial financial and service demands affecting local health and social care provisions. Nevertheless, with a continuously growing older population, the imperative to drive forward considerable change to ensure the affordable delivery of local services remains critical.
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Jo Armstrong, Chair of the Accounts Commission, articulated the severity of the situation, stating: “Whilst this is a well-run council, there is a clear need to set out how it will plan and deliver savings through transformation.”
Ms Armstrong, an internationally recognised economist and finance expert who assumed the chair in February 2024, further emphasised, “The council’s projected budget gap is amongst the largest in Scotland.”
She concluded with a definitive call to action: “The importance of the council meeting its own June deadline to deliver its plans for savings and transformation is critical.”
