Aberdeenshire Council facing £81m budget gap with urgent transformation needed

Aberdeenshire Council is facing a £81m budget gap over the coming years.

The Accounts Commission has described the local authority as “well-run” but is facing challenges created by its geography and ageing population.

The council’s projected gap is among the largest in Scotland, with undelivered savings in previous years making it “vital” to set out how future budget gaps will be bridged.

The watchdog report outlines significant demographic challenges with the pension-age population expected to increase by 28% by 2030, compared to 24% across Scotland.

It has been warned that the ageing population will put further demand on key services, with the council “urgently” needing to progress its transformation and savings plans to build resilience.

The Accounts Commission has projected a £81.4m funding gap between 2025/26 and 2029/30.

Aberdeenshire Council previously confirmed a 10% council tax rise from April, with resources described as “stretched thinner than ever”.

Aberdeenshire Council chief executive Jim Savege said: “We are pleased that our strong connections with our communities and partnership working have been highlighted in the Account Commission’s report and that we are seen as a well-run council.

“The report recognises the significant financial challenges we are navigating, and that a clear plan of savings and transformation is critical for us to achieve financial stability over the coming years.

“With that in mind, we look forward to discussing the findings in more detail and using the recommendations that follow to underpin our activities over the months ahead.”

Jo Armstrong, chair of the Accounts Commission, added: “Whilst this is a well-run council, there is a clear need to set out how it will plan and deliver savings through transformation. The council’s projected budget gap is amongst the largest in Scotland.

“The importance of the council meeting its own June deadline to deliver its plans for savings and transformation is critical.”

The report has said that the council should build on its strong community engagement to deliver the significant changes needed to ensure services are sustainable into the future.

They say this will require strong collaborative leadership between councillors and senior officers.