Leadership and clear priorities are needed if Western Isles Council is to improve public services and address significant financial and workforce challenges, according to a watchdog.
The Accounts Commission, the independent body that holds councils to account, says it is seriously concerned about the need for necessary improvements, including in finances.
While it acknowledges the council has improved education services and grown the local economy, it found that its redesign of services has resulted in fewer savings than expected, with the pace of change being too slow.
Financial findings
When comparing budgeted savings to actual savings, the authority failed to achieve its anticipated savings in each of the four years from 2018/19 to 2021/22.
Its worst result was in 2019/20, when the council was expected to make £2.5 million worth of savings but only made a total of £800,000.
In terms of budgeted capital spending, Western Isles Council underspent its capital budget every year between 2016/17 and 2020/21, with the latter seeing a predicted spend of £48.8 million, however, only £19.8 million was spent.
This leads to the recommendation in the report that the authority needs a longer-term plan to best manage its finances, however, it said it is not confident that the council can achieve this.
Complex challenges
The report also found that both the performance of and public satisfaction with some of the council’s services has dropped over the past five years, with the authority facing a number of complex challenges.
These include the largest real terms funding decrease of the 32 Scottish local authorities, depopulation, poor housing availability and the most severe fuel poverty in Scotland.
It found that the latter places significant pressures on recruiting staff, particularly in critical areas such as social care.
‘Must urgently develop a prioritised action plan’
Accounts Commission chairman, William Moyes said: “The Comhairle must urgently develop a prioritised action plan to address the serious issues it faces. It already has some of the elements it needs to make fundamental changes.
“It has an ambitious vision for the future and works well with communities and other partners.
“But without clear strategic direction and leadership from its councillors, supported effectively by officers, as well as crucial effective financial and capital planning, it remains uncertain whether the Comhairle can achieve the improvements it needs to make.”
Western Isles Council leader, Paul Steele added: “The Comhairle is committed to transparency and accountability in all we do and welcomes this report as an important contribution to that commitment.
“We note the findings of the Accounts Commission and remain committed to working for our communities in a challenging financial climate exacerbated by Covid and Brexit.”
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