Tag: Accounts Commission

‘The stark reality is that some council services won’t restart’

Accounts Commission: Councils and communities worked well together but impacts of Covid are unequal

Scotland’s councils reacted quickly, working alongside communities and partners to address the unprecedented challenges created by Covid-19, says a new report from the Accounts Commission. Many challenges remain significant, however, made more urgent by the multiple impacts of Covid-19 on communities and services.

Councils have a critical role in providing vital services which communities depend on. In its Local Government Overview 2021 report, the Accounts Commission, who report to the public on the performance of local government, make clear that councils, alongside their partners, quickly provided innovative and sustained support to vulnerable people.

This included supporting those who were shielding or self-isolating, switching to delivering services digitally and managing significant funding to support local businesses. 

With many council services disrupted, stopped or reduced, in particular education, social care and culture and leisure, the impact on some service users was severe and unequal. This included carers who lacked access to respite care, people with learning disabilities who were unable to access critical services and support, those receiving care at home and school children whose education was disrupted.

Covid-19 has also exacerbated and laid bare fundamental issues that need to be addressed to ensure services are maintained and that councils can tackle the multiple challenges ahead.

To help achieve this, longer-term financial certainty for councils will be vital. Whilst the Scottish Government has provided significant financial support to councils to assist in managing the net cost of Covid-19 in 2020/21, considerable amounts of funding took the form of one-off payments.

Furthermore, funding for councils beyond 2021/22 remains uncertain. Addressing this issue is vital.

Elma Murray, Interim Chair of the Accounts Commission, says: “Councils, communities and their partners have worked incredibly hard to continue to deliver vital services to local people. The stark reality is that some council services won’t restart, and some services will have to be delivered differently. 

“Underpinning this is the increasingly urgent need to address inequalities throughout Scotland’s communities. And for councils this is made more challenging because they continue to operate in a climate of significant financial uncertainty, which must now be addressed.”

Education attainment gap remains wide, says Audit Scotland

Progress on closing the poverty-related attainment gap between the most and least deprived school pupils has been limited. And more evidence is needed to understand educational achievement beyond exams.

A joint report by the Auditor General for Scotland and the Accounts Commission found that exam performance and other attainment measures at the national level have improved.

However, progress since 2013-14 has been inconsistent. And there are large variations in local authority performance, with some councils’ performance getting worse on some measures.

The poverty-related attainment gap remains wide and existing inequalities have been exacerbated by the Covid-19 pandemic. The national curriculum recognises that school is about more than exams.

And there has been an increase in the types of pathways, awards and qualifications available to young people. But better data is needed to understand if other important broad outcomes, like wellbeing and self-confidence, are improving.

The Scottish Government, councils, schools and the other bodies responsible for planning and delivering education were working well together before Covid-19.

That allowed them to respond rapidly in exceptionally difficult circumstances. Funding for education has remained largely static – rising from £4.1 billion in 2013/14 to £4.3 billion in 2018/19.

However, most of that real-terms increase was due to the Attainment Scotland Fund, which the Scottish Government set up to close the attainment gap.

Stephen Boyle, Auditor General for Scotland, said: “Significantly reducing the attainment gap is complex. But the pace of improvement has to increase as part of the Scottish Government’s Covid-19 recovery planning.

“That process needs to particularly focus on the pandemic’s impact on the most disadvantaged children and young people.”

Elma Murray, Interim Chair of the Accounts Commission, said: “There is variation in educational performance across Scotland, but this is not solely about exam performance.

“Education also supports and improves the health and wellbeing of children and young people, which has been impacted by the Covid-19 pandemic.

“It is vital that councils, schools and their partners work to reduce the wide variation in outcomes as well as understanding and tackling the short and longer-term impact of Covid-19 on learning and wellbeing.”

EIS General Secretary Larry Flanagan said: “The impact of poverty on children’s life chances remains a matter of huge concern, and much more needs to be done to support young people living in poverty to overcome the barriers that they continue to face.

“Schools do all that they can with insufficient resources to support young people from all backgrounds but cannot, in isolation, overcome such serious societal issues as inequality and poverty.”

“We have long known of the devastating impact that poverty can have on young people, and this has been made worse during the pandemic when young people from less affluent backgrounds have been far more likely to have had their in-school learning disrupted and to face barriers in accessing education outwith the school environment.”

“It is clear that much greater and sustained investment is needed to tackle the impact of poverty on young people’s education, and all of Scotland’s political parties must fully commit to tackling this issue in the context of education recovery during the next Parliament.”

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City Council ‘must do better’

Over the last four years many services provided by the City of Edinburgh Council have improved, its finances have been well-managed and ambitious strategies to improve the lives of local people and the economy have been agreed.

In a report published today the Accounts Commission says, however, that since 2016 there has been mixed progress at a strategic level, across community engagement and continuous improvement.

The council must now put in place a long-term financial strategy and a more effective workforce plan.

Both are essential for the council to address the additional pressures the impact of Covid-19 has placed on the council, and support how it will fund and manage its vision for the future. Strong leadership and clear, collaborative working with local partners are vital to realise these ambitions.

Across Scotland, Covid-19 has exacerbated existing inequalities, an issue of significant concern to the Accounts Commission.

Whilst Edinburgh is, overall, a prosperous city, the Commission urge the council to continue to lead and progress its commitment to reducing poverty and inequality across the city.

The council should also do more to embed community empowerment throughout the council’s culture, enabling local people to improve public services and their communities.

Elma Murray, Interim Chair of the Accounts Commission said, “The City of Edinburgh Council can do more to maximise its potential to improve the city and the lives of local people.

“Whilst the ambition of the council and its partners is impressive, the detail of how it will deliver, monitor and report on its key strategic goals must be in one accessible and coherent plan. It is the responsibility of all local councillors, working together, to ensure the city and its services continue to improve.

“It is important for the council to focus on continuous improvement and the creation of long-term financial and workforce plans. I expect the council to act swiftly on our report. Doing so will support the council’s ambitions to improve the lives of its residents.”

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Responding to the report, Council Leader Adam McVey said: “We welcome the Accounts Commission’s constructive feedback in response to the Best Value Assurance Report carried out by the Controller of Audit and we are pleased to note their positive comments about the levels of ambition we have shown in addressing our key priorities of poverty, sustainability and wellbeing.

“The Controller of Audit acknowledged the improving picture of our core services, while our bold strategies to put people at the heart of how we design public space, our proven ability to take difficult decisions like taking trams to Newhaven, and extensive consultations with residents and stakeholders to put communities at the heart of our decision-making are all cited as strengths.

“Of course, we’re always striving to improve wherever we can so that we deliver the best possible services and achieve what we’ve set out to achieve on behalf of the people of Edinburgh. We are now carefully reviewing the full report and will work hard to address areas in need of our attention going forward.”

Depute Leader, Labour’s Cammy Day said: “The Council delivers more than 700 services for Scotland’s Capital, from care for the most vulnerable in our communities and maintaining several hundred miles of roads and pavements to educating our children and putting roofs over people’s heads, and much more besides.

“Our frontline colleagues continue to pull out all the stops to keep vital services going during hugely challenging circumstances right now and I want to thank each and every one of them for their hard work and dedication. 

“These are especially testing times for all local authorities given the ongoing global pandemic and straitened public finances so it’s vital we are equipped with as much information as possible when making decisions affecting our communities.

“What we’re doing now is reviewing the Best Value Assurance report and the Accounts Commission’s findings in full with elected members. We’ll then draw up our detailed response setting out how we plan to use the findings in the best interests of the whole city.”

The Best Value Assurance Audit report and Accounts Commission findings will be considered and scrutinised by the Policy and Sustainability Committee on 1 December, by the Governance, Risk and Best Value Committee on 8 December and by Full Council on 10 December. 

Childcare expansion plans on track, says Government

The expansion of funded early learning and childcare (ELC) in Scotland is on course to be delivered from August 2020, says Children’s Minister Maree Todd – but public watchdogs have concerns over the tight timescale. 

Backed by an unprecedented £2 billion investment, by the end of the expansion more than 900 nurseries will have been built, extended or refurbished since 2018. Meanwhile, 4,310 additional full-time equivalent staff have also been recruited, resulting in a record 40,000-strong workforce.

From August, all three and four-year-olds and around a quarter of two-year-olds, will be entitled to 1,140 hours a year – almost double the current entitlement of 600 hours.

In response to Audit Scotland report on early learning expansion, Children’s Minister Maree Todd said: “We are on course to deliver the most generous, high quality early learning and childcare offer in the UK, which can transform the lives of children.

“I’ve seen and heard of the way children’s confidence and communication skills have been boosted by the care and learning they’ve received, while they’re also getting access to opportunities such as outdoor learning.

“Through our strong partnership working with local government, so much has already been achieved. There are already thousands of additional staff in post, and councils will continue to grow their teams over the coming months.

“We have also been delivering a large-scale infrastructure programme to provide high quality settings. Hundreds of nurseries have been built or refurbished, with work continuing across the country.

“We are committed to delivering the roll-out from August and councils have contingency plans in place for all critical projects due to complete this summer, so we can be confident that the places will be there to deliver the expansion for Scotland’s children. The expansion also opens up more opportunities for playgroups, private and third sector nurseries, and childminders to be involved in delivering funded hours.

“The quality of ELC provided is absolutely key. That is why we are investing in the workforce and developing improved learning opportunities for them to increase their skills and share best practice.

“With a passionate and dedicated workforce across all parts of the sector, and fantastic places for children to learn and play in a nurturing environment, there has never been a more exciting time for our childcare sector.”

However while plans to boost early learning and childcare (ELC) hours have made steady progress, risks around buildings and staffing remain, say public sector watchdogs.

The watchdog says the Scottish Government and councils are working well together to increase ELC hours from 600 to 1,140 a year from August and the pace of the expansion is broadly in line with plans.

But around half of the building work required is due to be completed over the summer, and about half of the additional ELC staff still need to be recruited. Private and third sector providers – which are expected to deliver over a quarter of the hours – also continue to report significant workforce challenges that threaten their sustainability.

The Scottish Government’s evaluation plans for the expansion are well advanced but challenges remain. For example, it is not clear how the longer-term economic benefits of the policy, or its impact on family wellbeing, will be measured.

Caroline Gardner, Auditor General for Scotland, said: “The Scottish Government and councils have worked well together to increase early learning and childcare hours, and we’ve also seen improvements in how the project will be evaluated.

“But the timeline remains tight and there are big risks around infrastructure and workforce.”

Graham Sharp, Chair of the Accounts Commission said: “Given the amount of work due to be completed over summer 2020, it’s important that councils continue to work closely with the Scottish Government to manage the risks of any delays, including how best to keep parents informed.”

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Skint! Council finances ‘unsustainable’

Most of Scotland’s 32 councils are increasingly relying on money from reserves to keep up with demand for services and balance their budgets. A report from the Accounts Commission, Scotland’s national watchdog for local government, says the financial pressures are likely to get worse. Continue reading Skint! Council finances ‘unsustainable’

Decisive leadership needed as council savings “increasingly critical”

Finding savings is now “increasingly critical” for councils dealing with ongoing reductions in funding, says the Accounts Commission in a report published today. Continue reading Decisive leadership needed as council savings “increasingly critical”

Lessons must be learned following school wall collapse, says new report

Councils must learn lessons to maintain the safety of public buildings following Edinburgh school wall collapse. In a report out today, the Accounts Commission highlights important lessons for all councils following the collapse of a wall at Oxgangs Primary School in 2016. Continue reading Lessons must be learned following school wall collapse, says new report

Councils struggle to cope with funding restraints

“Our evidence tells us that councils are finding the financial pressures increasingly difficult to manage” – Ronnie Hinds, Accounts Commission

Councils are showing increasing signs of financial stress and face even tougher challenges ahead, says the Accounts Commission. In its annual financial overview published today the local authority watchdog says funding has reduced while costs and demands have increased, and more councils are using reserves to fund services.

The Scottish Government provides around two thirds of council budgets. This fell by 5.2 per cent in 2016/17 to £9.7 billion.

2016/17 was also the last year of the council tax freeze.  Council tax provides just 14 per cent of councils’ income. The report notes that if all councils chose to raise council tax by three per cent, it would yield an estimated £68 million – broadly comparable to a one per cent pay rise for staff.

Overall council debt rose by £800 million in 2016/17 as councils took advantage of low interest rates to fund projects. While not posing an immediate problem some councils are concerned about longer term affordability.

The report highlights a number of financial pressures. A rising proportion of council funding directed towards national priorities such as educational initiatives means councils have to look at deeper cuts in other services. For example, resources for culture, planning and development, and roads have seen the sharpest falls in funding over the last three years.

The report also looks at the current financial year (2017/18) where councils have approved £317 million of savings and use of £105 million in reserves. Some councils could risk running out of general fund reserves within two or three years if they continue to draw on them at current levels.

The report aims to help councils plan ahead for setting their 2018/19 budgets.

Ronnie Hinds, deputy chair of the Accounts Commission, said: “Our evidence tells us that councils are finding the financial pressures increasingly difficult to manage. The elections in May this year brought in major changes in council administrations across Scotland. Councils that have demonstrated effective leadership and robust planning will be in a better position to deal with the challenges that lie ahead.”

Testing times ahead for new councillors

New councillors elected in May face major challenges and need to focus on improving long-term planning, says the Accounts Commission.

In its 2017 overview published today, the local government spending watchdog outlines a long-term decline in Scottish Government real terms funding which makes up around 60 per cent of council income.

At the same time, there continue to be increasing pressures on services, particularly in social care and education which together account for over 70 per cent of council spending.

The report says councils overall have maintained or improved their performance in the face of these challenges. However, public satisfaction is declining and complaints are increasing. Looking ahead, they need to better involve their communities in service design and deliver.

There are wide variations between councils. Some have grasped the nettle in finding new ways to provide services more efficiently. Others have been slower off the mark. Councils have made savings by cutting jobs but half of them still don’t have organisation-wide workforce plans.

Councils must learn more from each other and collaborate better to improve services and reduce costs.

Councillors elected in May must have the necessary training and tools to do an increasingly complex job determining local priorities, overseeing delivery of essential services and working in partnership with other public bodies to improve outcomes for communities and individuals.

Ronnie Hinds, deputy chair of the Accounts Commission, said: “New councillors will require time to settle in and develop skills to make strategic plans, consider options for service delivery and scrutinise how well this is happening in practice.

“But they have four years ahead of them, and they need to plan effectively for the longer term, work with their communities to decide key priorities and then make that plan happen.

“We hope our report is helpful to councillors and officers as they strive to maintain or improve services for the public with reduced resources.”

The report: nr_170307_local_government_performance

The Scottish Greens have commented on the report. Andy Wightman, the Scottish Greens’ local government spokesperson, said:

“Audit Scotland is right to highlight these challenges. The Scottish Greens are committed to strengthening local democracy in Scotland and that’s why we led a debate on the subject only a few months ago. We will also be publishing proposals later this week on a fiscal framework that details how the financial relationship between Holyrood and local government can be improved.

“The six Green MSPs, who were elected on a manifesto pledge to campaign to devolve decisions and budgets to a more local level, will continue to call for councils to have more powers to implement new structures for local democratic participation.”