In the new report, the commission noted the council has a clear vision for the future, reforming how it works to respond to many of the challenges it faces, including its geography and ageing population.

The comission says the council has an impressive approach to managing its money, and has a strong track record of planning and delivering on savings. The report encourages a shift towards recurring, rather than one-off savings, helping ensure greater financial stability.

Recognising that significant savings still need to be made, the council is taking a refreshed approach to transforming how services will be delivered – the SBC Way. This is supported by a new “self-replenishing” fund which will see savings made invested in other projects to reform services. Now this programme needs to deliver on the required payback and ongoing savings, at the pace required to meet the council’s budget shortfall. The council must improve reporting on timescales and expected benefits, whilst ensuring local communities are involved in the changes ahead.

Jo Armstrong, chair of the Accounts Commission, said: “Scottish Borders Council is tackling the challenges it faces with innovation, drive and focus.

“The council is looking externally, with a willingness to work collaboratively with other councils and organisations. It is making impressive strides to deliver differently. Other councils can learn from the approach taken to tackle workforce and recruitment challenges, as well as its strong approach to managing its finances.

“Like all councils in Scotland, the council must continue to prioritise reform to meet growing demand and ongoing financial pressures. It’s very early days for its new transformation programme and we will watch how it develops with interest. Now it’s vital that local people have a stronger voice in the changes ahead.”