A local authority has been warned it faces ‘significant financial pressures’  - but has been praised for improvement in key areas.

An audit of Clackmannanshire Council highlighted key areas of improvement including community engagement, addressing climate change and setting priorities.

But watchdogs at Audit Scotland are concerned about the council’s financial situation.

Councils across the country have been struggling financially and Clackmannanshire has been told it must make £22 million worth of saving by 2026/27.

According to the report, the council projected a funding gap of £11.6 million for 2024/25, increasing to 21.9 million in 2026/27 but they addressed the first of those through £5.4 million in savings and £6.3 million from reserves.

Since 2010, the council has already made £70 million worth of savings while having a revenue budget of £161m, but they say the drive for financial sustainable is a key part of their Be the Future programme which was agreed in 2018.

The commission from Audit Scotland urges the council to develop a medium-term financial strategy, clearly linked to its other strategic plans for transformation, workforce and investment in buildings and infrastructure. Importantly, financial plans must also show how current funding challenges with the local Health and Social Care Partnership will be addressed.

It’s also been pointed out that some services for local people have deteriorated in recent years, with staffing level challenges causing issues and the council have been told they must be clearer in their actions taken to tackle the situation.

Jo Armstrong, Chair of the Accounts Commission, said: “Today’s report highlights the progress made by Clackmannanshire Council. The council should rightly be proud of these achievements.

“There are positive working relationships between councillors and staff and across political parties, with evidence of collaborative working to agree priorities and budgets.

“But we cannot ignore the fact that the council faces a particular combination of challenges, including strain across recruitment, staff capacity and high sickness absence.

“This is alongside the financial challenges faced by all local authorities in Scotland. The council must develop in more detail and deliver on its plans to transform how it works and the services it will deliver in the future. This is critical to ensure it can operate within budget. We look forward to reviewing the progress made in the 2023/24 annual audit report.”

Council leader Ellen Forson insists Clackmannanshire continues to punch above its weight, being the smallest mainland authority in the country.

She is delighted that the accounts commission say it is one of the best reports they’ve ever seen as its public meeting, but she did also admit the council were aware of what needed done to sort out the financial issues that are ongoing – although she was keen to point out that some of it was outwith their control.

She said: “It was great to hear the Accounts Commission say that our report is probably one of the best reports they've seen at its public meeting on 12th September.

“For Scotland’s smallest mainland authority to show we continue to punch above our weight on so many fronts was really good to hear. It’s fantastic to have our hard work and all the progress we have made acknowledged by our watchdog.

“I’m also keen to point out that, while we have made significant progress, we are not complacent. We absolutely realise the significant challenges ahead, particularly in respect of financial sustainability as the Accounts Commission has highlighted.

“We also recognise that many of these challenges lie outwith our control. That is why we have prioritised transformation and collaborative working, with the aim of achieving financial stability, for the past six years, and will continue to do so in the future.”

Chief Executive Nikki Bridle echoed the leader’s comments and added: “My thanks go to our staff, our communities, our partners and our collaborators for their hard work and support in helping us to get to where we are.

“I very much look forward to continuing to work together on our shared ambitions and priorities for Clackmannanshire. There is no doubt we are working in a very challenging context and we remain resolute in seeking to address these challenges together.”