Scottish councils facing over half a billion pounds of funding deficit, Accounts Commission warns

Scottish councils could face a combined funding gap of £553 million by 2018, according to a new report from the Accounts Commission.

The Commission has said that, based on figures from 2015-16, local authorities are currently in good financial health, but have found that there could be “significant challenges” in the future.

Forecasting for the next three years, the report’s analysis found that the deficit between the money that councils raise and what they spend could rise from £87 million in 2016-17 to £553 million in 2018-19.

The figures would mean that a large proportion of local authorities would face a gap in funding higher than the amount currently held in reserves.

The Commission acknowledged that councils face, “increasing pressure from a long-term decline in funding, rising demand for services and increasing costs such as pensions.”

More to follow later.

Scottish Council worries about the impact on front line services funding.

Scottish Council worries about the impact on front line services funding.

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