Author: Christopher Holme
Last saved by: Shirley James

Local government in Scotland: Financial overview 2017/18 – podcast transcript
I’m here with Graham Sharp, Chair of the Accounts Commission, to talk about the financial overview of Scottish councils.  Graham, can you tell me what this report is about?
Thank you. This is the financial overview we produce every year looking back on how councils managed their budgets for the last financial year, that is 2017/18.  Next spring, we will publish another overview which looks ahead focussing on performance and challenges.
So, what did you find?
In summary, Scotland's 32 councils have managed budgets well over the last year but face a difficult time ahead. 
Looking at the balance sheet - there was a reduction of 2.3 per cent in Scottish Government funding which provides the largest part of their £17.4 billion income. However, this reduction was largely offset by increases in council tax and fees and charges. 
Councils also used savings and reserves to manage budgeted funding gaps of 4 per cent in expenditure.
24 of them increased council tax last year -  and all 32 have done so this year. 
What does this mean for the public?
Councils provide a range of vital services for people across Scotland. And over the course of last year overall rises in spending on schools and social work were accommodated by reductions in other services.
There’s no disguising councils are having to make hard choices about services. 
The position varies from council to council but overall there is clearly a continuing need to make major changes in the way services are provided.
Do councils have enough money to do their job?
At the Commission, we take the existing policy and funding framework and assess councils’ performance within that. What councils do and how they are funded are clearly policy matters.
And what’s the outlook for next year?
We hope this report will help councils in planning for next year’s budgets – and beyond. The pressure on them - and the key services on which we all rely - shows no signs of easing."
Graham, thank you very much.