The latest Accounts Commission financial bulletin on local government says Scotland’s councils are at risk of becoming financially unsustainable and face a budget gap of £1 billion by 2027.
The report says Scottish councils made significant savings in 2024/2025, but the cost of delivering services is rising faster than available funding.
Scottish Government funding and income generated through fees and charges is not keeping pace with rising costs and demand, services are being impacted – improvement is slowing, communities are less satisfied, and some services are being cut or are harder to access.