Midlothian Council needs to deal with a significant budget shortfall as it faces further pressures as the fastest-growing local authority in Scotland.

In a report out today, the Accounts Commission says the council urgently needs a medium-term financial strategy to address a £14.5 million budget shortfall by 2022/23 and ensure it can plan funding for services in the future. At the same time, Midlothian is also experiencing a projected 13 per cent rise in its population by 2026, the fastest rise in the country.

In the past 12 months Clackmannanshire Council has significantly improved how it works, but its finances remain an issue of serious concern says the Accounts Commission.

The Commission, Scotland’s local authority watchdog, has praised the work the council has done so far, and recognises the increased pace of change during the past year. This follows serious concerns raised by the Commission about the council's financial position in a 2018 review.

An IT project that ran into difficulties has cost Scotland's public sector pension body millions and set its planning back significantly, says the spending watchdog.

The Scottish Public Pensions Agency (SPPA) runs retirement plans for over 500,000 people, including NHS employees, teachers, firefighters and the police.

The Scottish Government needs to show greater strategic leadership across the public sector to achieve its digital ambitions, says the spending watchdog.

There has been some good early progress towards putting digital at the heart of everything government does. Guidance has been introduced to ensure new services are designed around the needs of citizens. And initiatives like Civtech have made it easier for public bodies to develop innovative products in partnership with UK tech companies.

Audit Scotland has published its annual report for 2018/19.

Caroline Gardner, Auditor General for Scotland and Accountable Officer for Audit Scotland, says: