Highland Council warned by Scottish local government watchdog Accounts Commission of ‘challenges’ in delivering on capital plan roads, transport, buildings and digital ambitions
A public spending watchdog says Highland Council faces “challenges” in making savings necessary to deliver ambitious infrastructure improvements in the next 20 years.
The Accounts Commission, which holds local governments in Scotland accountable for spending, also warns some services are improving more slowly than in other parts of the country.
The newly-published 16-page report, entitled ‘Best Value: The Highland Council’, commends the authority’s vision in seeking to improve transport, roads and buildings, as well as a greater shift to using digital to deliver services.
It says the plan has the potential to transform the Highland Council services over the next two decades.
Convener of the Council, councillor Bill Lobban, welcomed the report as “broadly positive”.

But the report’s authors say delivering the capital programme could prove challenging given high borrowing costs compared to the Scottish average, adding “Councillors and senior officers need to be confident these plans are affordable.”
The report says the council has worked hard to close recent budget gaps.
But it warns its reliance on using cash reserves and other flexible financial approaches in recent years is not sustainable, although it adds: “The council's recent budget recognises this and only proposes the use of earmarked reserves for 2025/26.”
The document says the council needs to focus on delivery of its new plans and strategies to address transformation ambitions and meet demand pressures, especially in areas like adult social care.
With some services “now improving at a slower rate than other councils”, the council needs to use data and insight to ensure plans deliver on the promised improvements.
This includes having a workforce with the necessary digital skills and capacity to deliver on the council’s ambitions.
Jo Armstrong, chairwoman of the Accounts Commission, said: “The Highland Council is benefitting from a culture of transformation and we’re pleased to see progress since we last reported in 2020.
“Now challenges to making savings lie ahead – it is vital that the council’s workforce, digital and IT strategies are developed, embedded and monitored.
“The pace at which some services are improving is now slower compared to other councils.
“Using robust data, the council needs to keep things moving forward and look for new ways to improve.
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“Communities and staff must continue to be an integral part of the conversation to determine the future of council priorities and services.”
Highland Council welcomed the “positive” Accounts Commission report and acknowledged the need for transformation at pace.
Cllr Lobban said: “The Council notes the recent report by the Accounts Commission, which we consider broadly positive. In particular, we note the comments that the Council has significantly improved since 2020.
“We also note the positive comments in the report about the ways in which Highland Council is taking steps to transform its delivery of services.”
Highland Council has set a budget for 2025–2026 which uses zero reserves to fill its revenue gap.
The £12.9m of additional savings that were approved will enable strategic investment of £14m in energy and transport.
When the Highland Investment Plan was approved by the council in May last year, the report included details of the processes for its funding while, the council says, ensuring that the plan remained “affordable, prudent and sustainable”.
This approach is considered necessary in order to transform the Council’s assets and enable the improvement of services delivered across the Highlands.
The Accounts Commission last reported on the Highland Council in 2020.
All reports by the Accounts Commission and Auditor General published since 2000 are available here at www.audit.scot