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Audit Scotland Delivering for the future Responding to the workforce challenge 1509

Renfrewshire Council · 22 September 2025
Back to Audit, Risk and Scrutiny Board — 22 September 2025 and its agenda

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___________________________________________________________________
To: Audit, Risk and Scrutiny Board
On: 22 September 2025
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Report by: Director of Finance and Resources
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Heading: Audit Scotland: Delivering for the future: Responding to the workforce
challenge
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1. Summary
1.1 In August 2025, Audit Scotland published: Delivering for the future:
Responding to the workforce challenge on behalf of the Accounts
Commission.  The report evaluates the workforce situation across
Scotland’s local government sector, highlighting risks, opportunities,
and the urgent need for robust strategic workforce planning.  This
paper provides an overview of the report and its relevance to
Renfrewshire Council.
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2. Recommendations
2.1 It is recommended that members of the Audit, Risk and Scrutiny Board
note the contents of this report.
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3. Background
3.1 Several national reports have commented on the significant workforce
challenges facing local authorities in Scotland, including recruitment
difficulties, rising sickness absence, and the urgent need for new skills
to support digital transformation and service delivery.  Recognising the

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strategic significance of these pressures, the Accounts Commission
commissioned Audit Scotland to undertake a thematic national review:
Delivering for the future: Responding to the workforce challenge
published in August 2025. 
3.2 The report provides a comprehensive assessment of the local
government workforce.  It identifies risks and opportunities, evaluates
current planning and management practices, and sets out clear
expectations for how councils can address workforce challenges to
maintain and improve service delivery. 
3.3 The review draws on evidence from all 32 Scottish councils, presenting
sector-wide analysis and highlighting good practice as well as
significant areas of risk.  Audit Scotland’s findings represent a call to
action for council leaders and boards, emphasising the need for
integrated workforce and financial planning, targeted support for skills
gaps and a renewed focus on the wellbeing and engagement of
Scotland’s local government workforce.
4. Key Findings of the Report
4.1 The report notes that councils are facing clear and continuing financial
pressures and are having to make savings as they redesign and
transform how they deliver services, including examining the need to
make workforce reductions.  Recruiting and maintaining a skilled local
government workforce remains challenging and, at the same time,
demand for council services is increasing.  This is placing additional
demands on the existing workforce and there are indications this is
now impacting upon the wellbeing of an ageing workforce, with
absence levels rising to a new high.
4.2 Auditors report that councils have responded positively to these
challenges, but that further progress with workforce planning is still
needed considering continuing financial and demand pressures.  There
remains scope for better alignment of workforce plans to corporate
strategies, and opportunities to make better linkages between
corporate and service arrangements.  Councils could improve the
availability and use of workforce data and demonstrate better, more
meaningful engagement with their staff.
4.3 Auditors also reported that there are existing initiatives across the
sector to address issues with recruitment and retention, succession
planning and the development of staff.  But they also highlighted that
opportunities to share services and roles could be better explored to

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deliver potential efficiencies and improve services.  All councils
recognise the importance of digital solutions in shaping their future
workforce requirements, but digital capacity remains an issue for many,
and further engagement with staff and service users is needed as
councils transform how they deliver services.
4.4 The report outlines the Commission’s view that staff remain the most
important resource councils have to deliver services and meet the
needs of their citizens.  But the challenges of recruiting and supporting
staff are increasing as the workforce ages, needs change, and
structural issues with labour markets emerge.  Financial pressures are
also an important factor.  As councils adopt new technology and ways
of working, and look to generate efficiencies, the shape and size of the
future workforce needs to be actively considered. 
4.5 The report notes that councils need to prioritise workforce planning and
development to address existing and future challenges.  Addressing
rising sickness absence, embracing innovation and digital technology,
and increased collaborative working will all be necessary to attract and
retain staff, and ensure we all continue to benefit from a skilled and
motivated local government workforce.
4.6 The report also identifies that going forward, councils will need strong
leadership to develop the innovative approaches required to deal with
increasing workforce pressures and challenges.  Prioritising wellbeing
and fostering a culture of trust, empowerment and continuous learning
through improved engagement with staff will be increasingly important.
5. Accounts Commission Expectations/Recommendations
5.1 In respect of expectations, the report points to the Best Value Statutory
Guidance, which sets out what is expected of councils when carrying
out workforce planning as part of their overall management of their
workforce.  The guidance focuses on seven key themes, one of which
is effective use of resources.  Within this there are specific
requirements related to how councils carry out workforce planning as
part of the overall management of their workforce.
5.2 The report outlines recommendations aimed at improving workforce
planning to support service delivery, while supporting and developing
existing staff Workforce planning.  These recommendations were made
as part of the local best value thematic work on workforce innovation
carried out across all councils in 2024.

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Workforce planning
5.3 Auditors made recommendations to enhance workforce planning,
improve transparency, and ensure alignment with the council’s
strategic priorities, including:
 making linkages between workforce strategies and plans and
corporate strategies more explicit.
 ensuring that service-level plans reflect and address corporate
priorities.
 more clearly defining performance measure outcomes and
setting clearer targets.
 establishing regular monitoring and reporting of progress.
 expanding the range of workforce planning information collected
to inform planning, including overall workforce profile, data on
turnover, vacancy rates, casual and temporary staff, and the
learning and development needs of staff.
 better engaging with staff as part of the planning process and
being transparent about how staff feedback is incorporated.
Digital technology
5.4 Auditors made recommendations on the use of digital technology to
support workforce productivity and improve service delivery, including:
 being clearer how plans for digital technology will shape and
impact the workforce, including expected benefits and
necessary support for skills development.
 increasing the pace of digital transformation projects and
developing measures to monitor their impact on productivity and
service outcomes.
 undertaking a corporate review of digital skills to identify gaps
and areas for improvement.
Hybrid working
5.5 Auditors made recommendations to enhance the effectiveness of
hybrid working, ensuring benefits for both the organisation and its
employees, including:
 formalising the policy and procedures for hybrid working.
 measuring and monitoring the impacts of hybrid working. This
should capture the benefits for staff including wellbeing, and any
savings achieved or improvements to services.

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Workforce development
5.6 Auditors made recommendations in relation to developing a skilled and
capable workforce to meet future demands effectively, including:
 assessing the skills profile of the current workforce in line with
future workforce requirements, including a digital skills
assessment.
 reporting on the impact that current skills and capacity
development programmes are having on filling skills gaps and
succession planning.
 monitoring and reporting on the cost versus benefit of using
agency staffing, including collecting data on the number of
agency staff employed.
Shared services and collaborative working
5.7 Auditors made recommendations in relation to collaborative working,
including:
 continuing to explore opportunities for joint working and
collaboration to build resilience and to make the best use of
resources.
 capturing learning from successful shared roles and functions
and establishing flexible roles to apply when developing future
roles.
Measuring the impact of plans
5.8 Auditors made recommendations on the measurement of impact of
workforce planning approaches, including:
 clearly setting out scrutiny arrangements for workforce planning
with clear roles and responsibilities for monitoring, oversight and
decision-making on workforce planning at committee and officer
level.
 prioritising the development of workforce planning reporting
tools.
 ensuring that organisational and service-level workforce
strategies are supported by appropriate performance
management information including quantifiable metrics.
6. Renfrewshire Best Value Audit arrangements
6.1 As part of the ongoing Best Value Audit arrangements, a thematic
review on Workforce Innovation was undertaken during 2024 by the

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Council’s external auditors, Azets.  The report, which was presented to
the Audit, Risk & Scrutiny Board on 23 September 2024, outlined the
auditors’ findings in relation to 6 question areas, key messages and
suggested areas for improvement. 
6.2 As previously reported, the findings overall were positive, with
comprehensive evidence provided to support each question area.
Across the 6 question areas, positive outcomes were achieved, with 4
yellow gradings (scope for improvement) and 2 green gradings
(effective and appropriate arrangements in place), indicating no areas
of concern.
6.3 In response, an improvement action plan was produced which sets out
audit recommendations in key areas, and the Council’s planned
response including responsible officers and dates for implementation.
These actions were added to the Council’s Corporate Improvement
Plan, which was first reported to Leadership Board in February 2025.
6.4 Following this, a progress update on the Corporate Improvement Plan
was reported to the Leadership Board on 17 September 2025, the
actions in relation to the workforce innovation thematic
recommendations have all been completed and include the following:
 To implement clear productivity measures in relation to
efficiencies and measure the impact on productivity, a refreshed
suite of indicators was included in the 2025/26 Service
Improvement Plans (SIPs). Performance will be reported to the
relevant Policy Board twice a year.
 These measures allow us to also track the impact of our
workforce skills and development. However, this has been
further enhanced with the inclusion of an action the SIPs for
each service to deliver a refreshed approach to workforce
planning and workforce innovation as part of the review of the
Council’s People Strategy, supporting future Financial
Sustainability.
 We have improved the quality of reporting to the relevant Policy
Boards, in particular, regular updates are provided to the
Finance, Resources and Customer Services Policy Board, these
have included an overview of the workforce profile which
highlights the importance of utilising a people metrics for
effective evidence-based decision-making within the Council.
These are supplemented with the six-monthly and annual SIP
progress reports to the relevant policy boards.

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Implications of the Report
1. Financial – none
2. HR & Organisational Development – none, details issues and
challenges experienced by local government in relation to the
workforce
3. Community/Council Planning – none
4. Legal - none
5. Property/Assets – none
6. Information Technology – none
7. Equality & Human Rights - the recommendations within this report
have not been assessed in relation to their impact on equalities and
human rights as the report concerns a national report on local
government workforce issues and is for noting only. 
8. Health & Safety – none
9. Procurement – none
10. Risk – none
11. Privacy Impact – none
12. Climate Risk –not applicable
13. Children’s Rights –not applicable.
14. COSLA Policy Position –not applicable.
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List of Background Papers:
(a) Report to Audit, Risk and scrutiny Board 23 September 2024: Best Value
thematic work – Workforce innovation.
(b) Report to Leadership Board 17 September 2025: Best Value – Corporate
Improvement Plan.

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___________________________________________________________________
Author: Annie Torrance, Senior Policy Officer, Chief Executive’s
Annie.torrance@renfrewshire.gov.uk