East Dunbartonshire Council needs to make “significant” improvements if it is to achieve £27.6 million in savings over the next three years, the Accounts Commission has warned.

In a report published today, the public spending watchdog for local government said the council has made some improvements but said it remains “concerned” that the council does not demonstrate adequate capability to deliver its transformation programme and meet the budget shortfall.

East Dunbartonshire has agreed a transformation programme outlining projects to deliver savings and changes in the way it provides services. But much of this programme remains behind schedule and the watchdog said it remains concerned that significant issues identified in two previous reports had not been adequately addressed.

The report says improvements have been made in financial management but there are concerns about the range of skills and experience in the financial team to sustain them. East Dunbartonshire is now looking at sharing services with neighbouring councils but it is not yet clear what savings will result.

In its findings, the Commission said the council had failed to meet targets and there is a lack of clarity about savings to be achieved.

Accounts Commission chair, Douglas Sinclair, said: “All councils face future funding gaps and are having to make radical changes in how services are provided. East Dunbartonshire needs to significantly up its game to deliver on its ambitions.”

Council leader Rhondda Geekie acknowledged that there are areas for further improvement but highlighted the areas of progress identified in the Accounts Commission report.

She said: “We have worked closely with the Commission and Audit Scotland throughout all of our Best Value Audit reviews and will continue to do so.

“East Dunbartonshire Council will consider this Best Value Report in the New Year, but in advance of that, I would highlight that the Report concludes:

The council leader added: “While the Commission acknowledges this, it goes on to challenge our capacity to deliver our ambitious transformation programme. However, in East Dunbartonshire we have successfully delivered savings of £40m in the eight years to 2015/16, delivering balanced budgets every year. And whilst we face a further deficit for this current year and the next two years, totalling £27m over the three years, I make no apologies for our ambitious transformation programme. Local government has faced unprecedented and relentless budget cuts in recent years and no one can deny the challenging financial environment we all face.

“Our Transformation Programme was agreed by this council to ensure that we identified and delivered every possible saving. Our approach has been to continuously review our organisational structure and transform how our services are delivered, before we consider cutting services. We have said from the outset that maintaining services, particularly to the most vulnerable in our communities, is our absolute priority.

“Of course our ambition is not without risk, but as we have previously advised the Accounts Commission, we have every intention of managing that risk.

“Whilst cutting services might be a more obvious and immediate way to demonstrate the delivery of savings, we firmly believe there is an alternative. Our ambitious transformational approach is the only way to achieve the unprecedented further savings we face whilst maintaining maximum service delivery to our residents.

“We acknowledge that there are areas for further improvement across our organisation and whilst I look forward to our meeting with the Accounts Commission to discuss the Best Value Audit findings, I think it is important that we consider the wider findings and not focus only on the more negative highlights.”