In a new report, the watchdog said it recognises the council has delivered significant, recurring savings, at a time when all councils are facing pressures from rising demand and increasing costs. Now the council needs to take a more strategic approach to transformation and redesigning services, to help make the savings needed. 

As the council puts in place plans to both improve and change how services are delivered, it must listen to and act on the views of local communities. Many services are improving, including culture and leisure services, but some are getting worse, including those for children and adult health and social work.

The council is heavily reliant on temporary and agency staff, making up around sixteen per cent of its total workforce. The majority leave before the end of their contracts. This is expensive and presents risks to the quality of services. The council is taking proactive steps to tackle recruitment and retention, including through more apprenticeships, career development and sponsoring students.

Andrew Burns, deputy chair of the Accounts Commission, added: “Argyll and Bute Council has tackled the challenges it faces with innovation and collaboration, including embracing new technology to deliver services. In many ways this is a council that’s ahead of the game in its use of digital technology to deliver services to its rural and island communities.

“The council has plans to improve services and deliver a workforce that meets future demands.  This approach should be shared with other councils. But it now needs to rapidly build on this culture of improvement to drive forward deeper transformation and service re-design. This will be a key part of the council’s focus to deliver savings and sustainable services for the future.”

Councillor Jim Lynch, leader of Argyll and Bute Council, said: “Innovative in how we work, ahead of the game in making efficiencies – I welcome this recognition of the hard work the council is doing to meet what are significant, and on-going challenges for local government.

“With a budget gap of another £29 million forecast over the next five years, tough times are clearly here to stay.

“The findings of this report show that we are very much on the right track in the steps the council is taking to meet the challenges facing Argyll and Bute’s council services. 

“We will use its findings to keep progress going, with our focus remaining on building on what works for the benefit of our communities.”