Edinburgh services have improved but council should prioritise delivering savings

The City of Edinburgh Council has improved services and the way it works but is facing a particularly challenging financial situation, says the Accounts Commission.

In its findings on the Best Value audit report on the council, the Commission welcomes improved performance in a number of areas including partnership working, children’s services, economic development and aspects of reducing inequalities. However, it says the council should give absolute priority to making sure planned savings are delivered.

The council’s four-year budget sets out the need for recurring annual savings of £107 million by 2017/18. There is a range of annual savings planned to address this including £41 million by 2017/18 from improved procurement. Even if all these planned savings are achieved the council has calculated that it will still need to identify savings of £7m in 2015/16, £19m in 2016/17 and £17m in 2017/18.

Chair of the Accounts Commission, John Baillie, said:

“We welcome the improvements the council has made in areas such as partnership working, economic development and children’s services but the scale of the financial challenge is substantial.

“The council does have plans for the next four years but there are significant risks and uncertainties around whether these targets are achievable. Its prospects for future improvement depend heavily on it achieving planned savings and addressing the funding gaps that remain. The council should give absolute priority to making sure the savings are delivered.

“The council shows a good understanding of the challenges it faces and the need to restore public confidence which has been damaged by the problems with the tram project and its statutory repairs service.”

The Commission says the council also needs to:

• develop a comprehensive workforce strategy
• improve its information communication technology (ICT)
• ensure it has effective risk management and internal audit arrangements
• improve a range of services including: adult social work; waste management; and meeting housing need
• ensure it has the capacity and skills needed to deliver its ambitious improvement programme
• ensure that staff have an understanding of and commitment to its change programme.

The Commission has asked the Controller of Audit to report on the council’s progress in around eighteen months’ time.