Fife Council needs 'significant' change to save over £46m amid 'deteriorating' services

Fife council needs to make “significant” changes to save more than £46m after a report showed services were deteriorating.

It comes after council tax in Fife was set to increase by 8.2% in April.

In a report, spending watchdog the Accounts Commission said the council’s service-delivering performance had been “mixed”.

It said some services perform well, but inequalities were “deepening”, including a growing gap in the life expectancy between Fife’s poorer and wealthier areas.

Key services such as social care were also found to be “deteriorating”, adding that the council’s large health and social care overspend was unsustainable.

The report found that the council has to save more £46m by 2027/28, and said it will have to significantly change how it delivers services to make the savings needed.

It also called for monitoring after the council’s money set aside for contingencies dipped below its rolling three-year target.

Deputy chair of the Accounts Commission Andrew Burns said “tough decisions lie ahead” and called for significant change immediately.

“The council has excellent engagement with local communities and strong working relationships across councillors of all parties,” he added.

“It must now build on these strengths, working with communities to develop clear plans on how significant savings and changes to the delivery of services can be made.”

Fife Council welcomed the report.

“The findings highlight a number of challenges that are not unique to Fife,” the council’s chief executive said.

Ken Gourlay said the local authority was operating in “difficult financial times” – both for public services and those that use them.

“Poverty is entrenched in parts of our society leading to widening inequality gaps, pressure on health and social care services is escalating as our population ages, and there’s an ongoing housing emergency,” he said.

“These are issues across Scotland and tackling them in Fife is at the heart of our plans as a council and with partners.

“Over the past few years, we’ve been working under the same funding constraints as other councils. However, good financial management, combined with new ways of working and service efficiencies have enabled us to avoid major cuts in services. Through last year’s budget process, councillors agreed to use some of our reserves to invest in projects that were one off in nature.”

Council Tax in Fife will increase by 8.2% after councillors approved the local authority’s 2025/26 budget last week.

The increase will cause council tax bills for band D properties in Fife to rise by about £113 a year – which is about £9.40 per month.

“The council approved a revised medium term financial strategy earlier this month and the decisions taken at last week’s budget meeting reduced significantly the challenge in 2027/8 from £46 m to £16m,” Mr Gourlay said.

“There are clear plans to reinstate general fund balances to our 2% target, and this is based on directors taking action in year. Looking forward we’re advancing work to deliver on change programmes that will lead to more efficient ways of working, while improving services at the same time.”