In a new report, the watchdog highlighted improvements in how the council works together, in setting a clear vision and driving forward progress in educational attainment and reducing inequalities.

The Accounts Commission warns, however, that services could be put at risk if the council fails to significantly change how it works and delivers services. With a budget gap of £62m, it is not sustainable to continue relying on one-off savings. The council must deliver on its ambitions to transform how it operates and provides local services, realising longer-term financial savings and efficiencies.

Councillors and officers have greatly improved how they work together. This must continue, as they will have to make and communicate difficult decisions about what services the council can afford to continue delivering. Talking to communities, ensuring they feel involved and listened to, is vital. This ensures the council continues to focus on the needs of local people.

Jo Armstrong, chair of the Accounts Commission, said: “Falkirk Council, like all other councils in Scotland, faces significant financial challenges. Delivering services in the same way with less money won’t work. Given the scale of financial savings needed, it must make real transformations in how it works and delivers services.

“The council has an excellent approach to reporting how services are performing. Now it must harness this information to drive improvements and address services that are underperforming, particularly delivering stronger, healthier communities. Falkirk Council must take note of the Accounts Commission’s findings which are there to encourage and provide momentum to support the council to make changes that are increasingly urgent.”

Kenneth Lawrie, chief executive of Falkirk Council, said: “While the findings are a positive acknowledgement of our commitment to ongoing improvement, they also highlight the massive financial and operational challenges that lie ahead of us. There is no denying the fact we still have a financial mountain to climb and must find savings to close a £62 million budget gap. That is not going to be easy, and tough decisions will need to be made.

“It is clear, however, that the collaborative efforts of our elected members and officers have been fundamental in driving positive change over the past two years. As we move forward, maintaining and strengthening that collaborative spirit will be more vital than ever. It will be key in navigating the difficult choices that lie ahead and in ensuring the successful delivery of our strategic priorities.”

Councillor Cecil Meiklejohn, leader of Falkirk Council, added: “The findings act as a guide for the council, highlighting areas of success to build upon and pinpointing areas needing more attention. We will use the commission’s findings to help deliver further change, including prioritising the development of our community engagement strategy.

“Our goal is to ensure local people not only feel heard and valued but also part of the decision-making process. By strengthening community engagement, we aim to build deeper trust and more effectively address the needs of residents. This will be crucial as we work together to navigate current and future challenges and improve services.”