Local authorities in Scotland must transform the way they deliver services to close a budget shortfall of £647m, a spending watchdog has warned.

Scottish councils received a £15bn cash boost from Holyrood in 2025-26, but the Accounts Commission said wage increases, higher employer National Insurance Contributions and rising service demand meant they still needed to find £647m of savings in 2025-26. 

Derek Yule, a member of the Accounts Commission, said: ‘Local action is needed now to find solutions to immediate and future financial challenges. This means difficult decisions on what services can be delivered and making major changes in how they are delivered.'