Council must find additional savings – Accounts Commission

City of Edinburgh Council must find £67m of savings in order to balance its budget in 2017/18, according to a new report.

In May 2013 public spending watchdog, the Accounts Commission, highlighted difficulties the council faced in making additional savings of £17m to balance its budget in 2017/18. That figure has now risen to £67m.

The council has still to develop a comprehensive workforce strategy, which the Commission recommended last year.

Douglas Sinclair, chairman of the Accounts Commission, said: "The City of Edinburgh Council has made some progress and that is encouraging. But it still has a long way to go, amid increasing demands and rising levels of required savings, and the continued lack of a workforce strategy is a significant omission."

A follow-up report published today said the council has made some improvements and has financial plans in place but savings in some areas have been scaled back. It also faces financial risks over resolving the issue of statutory repairs.

The City of Edinburgh Council has made some progress and that is encouraging

In its findings, the commission said it had "growing concern" about the increased level of savings required by the council to balance its books. 

The local authority's net annual spend is £950m. Total savings required by 2017/18 have now risen to £138m, including the additional £67m yet to be identified. The council has stated it aims to achieve much through a transformation programme but the commission said it is too early to say whether the programme will deliver its objective.

The report added Edinburgh has made good progress in developing scrutiny and risk management and made improvements in services. However, it said dealing with long-running issues has absorbed a considerable amount of senior managers' time and it needs to ensure it has sufficient capacity for the future.

The watchdog has asked for a further report next year by which time it expects to see substantial improvements.

The City of Edinburgh Council's chief executive Sue Bruce said: "The commission's findings acknowledge the progress that the council has made in key areas such as stronger governance throughout the organisation.

"The report rightly highlights the financial challenges the council faces, and acknowledges that the council has already put in place the transformation plan to tackle these issues, to ensure we deliver the best services and maximum value for money for the people of Edinburgh.

"As we move forward into 2015, developing an effective workforce strategy will be a priority for the leadership team and current recommendations on a new delivery model for the council represent an important step forward in this respect.

"This is a challenging time for all local authorities. The City of Edinburgh Council faces tougher financial challenges than many others, due to the city's growing population and its demographics. Our plans recognise the challenges we face, some of which are legacy issues, and we expect to deliver significant progress over the next 12 months."