Accounts Commission - LG in Scotland overview complete

Renfrewshire Council · 13 June 2022
Back to Audit, Risk and Scrutiny Board — 13 June 2022 and its agenda

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To:  Audit, Risk and Scrutiny Board 
On:  13 June 2022 
Report by:  Chief Executive 
Heading: Accounts Commission – Local Government in Scotland – Overview 2022 
1. Summary 
1.1 Each year Audit Scotland prepares a report on behalf of the Accounts Commission which
provides a high level, independent view on the challenges facing councils in Scotland and
how they are performing. The 2021 report had a particular focus on the impact of Covid-19
on Scottish local authorities, and this is continued in the 2022 report, published at the end of
May 2022.  The Overview Report is included as Appendix 1 to this document. 
1.2 The Local Government in Scotland – Overview 2022 report covers a period of frequent
change, from March 2021 to February 2022.  That period included peaks of infection and
changes to restrictions, and the beginning of recovery and renewal rather than response. 
The report focuses on how the pandemic has impacted the way in which councils organise
themselves and manage resources, and on how they have adapted to address local needs. 
A number of case studies are included to show how different councils have dealt with the
many challenges arising. Renfrewshire Council’s Community Impact Assessment is
highlighted as a case study. 
1.3 In the key messages from the report, Audit Scotland acknowledge that councils have had a
very challenging year, managing a range of complex external factors including the
pandemic, the climate crisis and the UK’s departure from the EU whilst also dealing with
longer-term issues such as demographic shifts.  The report draws on lessons learned from
the pandemic response to highlight positive aspects which can be built on to further improve
services and outcomes. 
1.4 This report sets out a brief summary of the Audit Scotland overview and of Renfrewshire
Council’s current approach to tackling the challenges discussed.

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2. Recommendations 
2.1  It is recommended that the Audit, Risk and Scrutiny Board:
• Note the contents of this report;
• Note the contents of the Audit Scotland overview included as Appendix 1. 
3. Background 
3.1 In May 2022, Audit Scotland published its annual ‘Local Government in Scotland: Overview
2021’ report.  As with the previous year’s overview, this focuses on the impact of the
pandemic in particular.  It presents six key messages and provides detailed consideration
and recommendations on two themes – organising the council and meeting local needs.  It
also highlights the large-scale and complex changes to councils’ external environment. 
3.2       The six key messages presented are: 
• Councils have had a very difficult year;
• The challenging context means collaborative leadership is more important than ever;
• Pressure on the local government workforce continues;
• The impact of the pandemic and service disruption has been felt more strongly by those
already experiencing inequality;
• The early response showed what could be achieved by working closely with communities
and the voluntary sector; and
• Improvements are needed in data availability, tools and skills to support performance
monitoring, strategic decision-making and planning service improvements. 
3.3 Rather than focus directly on the pandemic in considering the external environment, the
report considers how this has exacerbated long-standing demographic and financial
pressures.  The fall in life expectancy is noted, and the report predicts that the current cost of
living crisis will impact negatively on child poverty rates and on the number of households
experiencing fuel poverty.  Audit Scotland expect this in turn to impact on demand for council
services.  However, they note that the approaches taken during the pandemic response –
strong partnership working, more community engagement and a focus on vulnerabilities –
will be of value in tackling these issues. 
3.4 Audit Scotland also note the impact of three other major external events:
• The UK’s departure from the EU, which is impacting on supply chains but also on
funding streams whilst new funds are established to replace the EU Structural Fund;
• Proposed social care reform, in the shape of plans to establish a National Care
Service for Scotland;
• Climate change, and the importance of having clear plans for reducing and mitigating
the impact of this. 
3.5 The report makes some reference to inflationary pressures, rising prices, supply chain
challenges and the cost of living crisis, but the impact of that is not addressed in any detail
for this year.

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3.6 The remainder of the Audit Scotland report focuses on the two key themes. Each of these
has sub-themes and a set of recommendations.
4. Theme 1 – Organising the Council
4.1 In considering how councils organise and operate, Audit Scotland have considered the
leadership of recovery and renewal, the management of resources, and the management of
workforce.
4.2 The first element considers how councils responded to the pandemic and how this is
reflected in planning and decision-making. Renfrewshire Council is highlighted as a case
study for the Community Impact Assessment undertaken, which shaped the development of
the Social Renewal Plan.
4.3 Audit Scotland highlight the important role that recovery plans have played and note that
incorporating these into refreshed strategic plans can help councils move from a response
phase to a renewal phase, incorporating the lessons learned and new ways of working into a
“roadmap for the future”. The report again highlights the importance of transformation
programmes as well as the need for recovery actions to be linked to improved outcomes.
The report makes the point that recovery and renewal are about responding to new local
needs rather than returning to the status quo.
4.4 The report states that collaborative leadership was an important element in responding to
Covid-19 and also asserts that this be maintained in order to meet current challenges.
Seven enabling features of pandemic leadership are highlighted:
• Communicative;
• Collaborative;
• Emotionally intelligent;
• Data-driven;
• Agile and flexible;
• Culture-focused; and
• Enabling community empowerment.
4.5 One risk that is highlighted in the report is the relatively high turnover in senior officer and
political roles. This could result in a loss of momentum and of organisational knowledge and
disrupt decision-making.
4.6 Audit Scotland consider there to be a lack of information nationally, generally, about
demands for and backlogs in council services, about progress with recovery and renewal
actions, and about plans for service changes as recovery continues. They note that the
collection and reporting of performance data has been disrupted by the pandemic but see
greater and better use of data as key to strategic decision making.
4.7 The pandemic impacted significantly on the financial position of all Scottish councils and this
was reflected in the Audit Scotland report ‘Local government in Scotland: Financial overview
2020/21’. There were additional costs to be borne as well as a loss of income, though it is
noted that most councils reported a surplus in the year due to additional funding from other

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tiers of government. Audit Scotland consider this to be a somewhat artificial position due to
restrictions on how funding can be used, and note a real terms funding reduction for local
government since 2013/14. The report also notes the challenges of financial planning in the
absence of multi-year budget settlements for councils.
4.8 Audit Scotland believe that councils should review long-term financial plans to reflect current
circumstances and take account of recovery approaches. It also notes the importance of
transformation programmes to maintaining financial sustainability. As well as suggesting
that such change programmes restart, Audit Scotland also note that capital investment has a
role to play in post-pandemic recovery as well as in addressing some of the climate impacts
councils face. This is within the context of ongoing supply-chain issues.
4.9 The ongoing discussions between COSLA and the Scottish Government regarding local
government finance are referenced several times in the report. As noted in paragraph 4.2
above, this includes discussion of multi-year settlements. It also includes consideration of
ring-fenced funding. It is noted that whilst this ring-fencing has supported the delivery of key
national priorities (such as the expansion of early years provision), it does reduce the
proportion of funding which is subject to local discretion.
4.10 The section dealing with managing the workforce focuses heavily on staff absence and
wellbeing. Although absence levels across Scottish councils fluctuated, they have tended to
remain above the pre-Covid average since March 2020. The pandemic is stated to have
exacerbated existing skills shortages, and Brexit is also contributing to this. Areas of
pressure exist in facilities management, HGV driving and social care. The report cites a
survey which found that 56% of councils are finding it challenging to recruit to senior
management positions.
4.11 Audit Scotland note that the pandemic has made workforce planning more difficult but also
more necessary. The shift to home-based working is likely to have a long-term impact on
how councils work but future models of working will need to be tested, and staff consulted.
4.12 The section on Organising the Council concludes by setting out nine recommendations
covering governance, collaborative leadership, planning (strategic, financial and workforce),
the use of data, and learning the lessons of the pandemic.
4.13 Renfrewshire Council is already progressing some of the suggested actions. The new
Council Plan, which will be presented to elected members in September 2022, will
incorporate the work currently being progressed through the Economic Recovery Plan and
Social Renewal Plan. It will also have a refreshed approach to performance management.
A new Employee Wellbeing Strategy is in development and staff engagement is a key
feature of ongoing work to embed new ways of working. A number of workstreams are in
place to support ongoing long-term financial stability and sustainability. The Right for
Renfrewshire transformation programme continued to deliver on Phase 1 changes during the
pandemic and is now being reviewed ahead of Phase 2 to ensure it remains fit for purpose in
the new context.

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5. Theme 2 – Managing Local Needs
5.1 The first element of this theme focuses on how Covid-19 has disproportionately impacted
those individuals and communities which were already experiencing inequalities. Examples
of how this affects demand for council services nationally include the increase in the volume
of applications for support grants, and from delays in carrying out repairs as a result of
backlogs from when services were not permitted to access properties.
5.2 The benefits of moving to digital delivery as an alternative to temporarily stopping service
delivery are seen as being clear by Audit Scotland, but unequal access to an internet
connection and digital devices is highlighted as a challenge and a risk. The importance of
engaging with communities on this is stressed.
5.3 The report highlights that national data is emerging to show that there has been a negative
impact on educational attainment, on care at home services, and on unpaid carers as
identified by Audit Scotland. There has been an increased risk of social and economic harm
for those on low incomes, for women, for those from minority ethnic communities, for older
people and for people with disabilities. Evidence is emerging of the impacts on children and
young people – of increase in developmental delay, worsening mental health, and more
children presenting with additional support needs. Audit Scotland believe that all councils
need to consider the impact of disruption to services and assess and address the longer-
term impacts. As noted earlier in the report, they highlight the potential for pandemic-
response approaches (collaboration with third sector and communities etc) as a means of
tackling these challenges. The need for data to support the understanding of issues and the
success of possible solutions is also restated.
5.4. The second element of this theme builds on those messages to focus on collaboration and
communities. Audit Scotland have already produced a report looking at the impact of the
pandemic on community empowerment and identified many positives. They now find that, in
general, there needs to be greater community input into recovery planning.
5.5 Increased demand for third sector services, coupled with uncertainty for many over future
funding, could present a risk for future service delivery.
5.6 Four recommendations are presented within this theme. They cover digital exclusion, a
continuation of the strong partnership working from the early phases of the pandemic, and
the need for improved use of data.
5.7 As noted in paragraph 4.2, Renfrewshire Council carried out a Community Impact
Assessment in order to inform recovery planning and has recently followed this up with a
survey to our Public Services Panel. This will help the understanding of how needs are
changing. The Community Plan is currently being refreshed in order to reflect how much has
changed in recent years, and on the added value that can be brought to work on recovery
and renewal through collaboration. The Council’s Digital Strategy has a clear focus on
digital exclusion and sets out how this can be tackled through direct provision of technology
and connectivity, and by upskilling.

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6. Next Steps
6.1 Overview reports such as this are very useful in understanding national trends and reflecting
on whether there is local variation. The findings of this support will support the council’s
continuous improvement agenda and will be considered alongside other external evaluations
such as Best Value assurance reports and reviews undertaken by bodies such as the
Improvement Service and the Care Inspectorate.
___________________________________________________________________
Implications of the Report
1. Financial – Local Government approach to financial sustainability is highlighted in
Audit Scotland’s report.
2. HR & Organisational Development – Local Government approach to workforce
planning and organisation development are highlighted in Audit Scotland’s report.
3. Community/Council Planning – Recommendation in Audit Scotland’s report.
4. Legal – none
5. Property/Assets – none
6. Information Technology – none
7. Equality & Human Rights - The Recommendations contained within this report
have been assessed in relation to their impact on equalities and human rights. No
negative impacts on equality groups or potential for infringement of individuals’
human rights have been identified arising from the recommendations contained in the
report because it is for noting only.
8. Health & Safety – none
9. Procurement – none
10. Risk – none
11. Privacy Impact – none
12. COSLA Policy Position – Audit Scotland’s report references the ongoing work by
COSLA around local government funding.
13. Climate Change – climate change and the need for mitigating actions is highlighted
in the Audit Scotland report as a priority area for local government.

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List of Background Papers: none 
Author:      Lisa Fingland, Service Planning & Policy Development Manager,
lisa.fingland@renfrewshire.gov.uk

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Prepared by Audit Scotland
May 2022
Local government in Scotland
Overview 2022

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Who we are
The Accounts Commission
The Accounts Commission is the public spending watchdog for local government. We
hold councils in Scotland to account and help them improve. We operate impartially and
independently of councils and of the Scottish Government, and we meet and report in public.  
We expect councils to achieve the highest standards of governance and financial stewardship,
and value for money in how they use their resources and provide their services.  
Our work includes:  
• securing and acting upon the external audit of Scotland’s councils and various joint boards
and committees  
• assessing the performance of councils in relation to Best Value and community planning  
• carrying out national performance audits to help councils improve their services  
• requiring councils to publish information to help the public assess their performance.  
You can find out more about the work of the Accounts Commission on our website: 
www.audit-scotland.gov.uk/about-us/accounts-commission 
Local government in Scotland: Overview 2022 | 2 |

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Contents
Key messages 4
Key facts  7
Timeline         8
Background         10
Progress towards recovery and renewal         11
Responding to the external environment          12
Organising the council
• Leading recovery and renewal         15
• managing resources         22
• managing the workforce         26
• recommendations         31
Meeting local needs
• impact of Covid-19 on services and inequality        32
• collaboration and communities         41
• recommendations         44
Endnotes 45
Local government in Scotland: Overview 2022 | 3 |

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1. Councils have had a very difficult year
Alongside the ongoing response to the pandemic, councils have
faced challenges in recovering services, dealing with increased
demand and backlogs, and meeting community needs and
expectations. This has taken place against a backdrop of long-
standing pressures such as increased demand from an ageing
population and rising poverty.
2. The challenging context means
collaborative leadership is more 
important than ever
Councils are operating in a difficult and uncertain strategic context
and face longer-term financial pressures, a lack of certainty and
flexibility over long-term funding, and the prospect of major
service reforms. This challenging context needs local government
leaders skilled in effective strategic thinking, decision-making and
collaborative working, and able to learn lessons from new ways of
working. Collaborative leadership is more important than ever as
councils work with partners, communities, and citizens to support
recovery and improve outcomes.
Key messages
Local government in Scotland: Overview 2022 | 4 |

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3. Pressure on the local government
workforce continues
Councils are continuing to experience high absence levels.
Impacts on staff wellbeing and skills shortages, particularly in
front-line workers, have also been noted. A resilient workforce is
critical to the ongoing response to Covid-19 and the recovery of
services. Workforce plans will need to be updated, considering
lessons learned from new ways of working. Wellbeing support for
the workforce must also continue.
4. The impact of the pandemic and service
disruption have been felt most strongly by
those already experiencing inequality
Councils have worked hard and adapted to maintain service
delivery but not all services are back at pre-pandemic levels so
those most in need of support are still being affected. Councils
must evaluate these impacts so that recovery and renewal
supports those most affected and addresses inequalities.
Recovery and renewal should also reflect the wider ambitions of
the public service reform agenda. 
Key messages continued
Local government in Scotland: Overview 2022 | 5 |

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5. The early response showed what could
be achieved by working closely with
communities and the voluntary sector
This momentum may be lost if communities and the voluntary
sector are not involved in shaping recovery. Flexible governance
and decision-making structures will be needed, as will
opportunities for more local participation.
Key messages continued
6. Improvements are needed in data
availability, tools and skills to support
performance monitoring, strategic
decision-making and planning service
improvements
Data has been important in guiding the response to the pandemic
but there are key areas where a lack of data could hamper
recovery, such as unmet needs, service demands and backlogs.
Data is a key tool in tackling inequality but there are gaps in
equality data, particularly at a local level.
Local government in Scotland: Overview 2022 | 6 |

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Local government in Scotland: Overview 2022 | 7 |
 
Key facts
Local government in Scotland: Overview 2022 | 7 |
Financial hardship
8.8 per cent
Rent arrears as a per cent of rent due at 
Dec 2021. Up from 7.3 per cent in 2019/20 
(pre-pandemic)
132,435 Claimant count Feb 2022. Still above 
pre-pandemic levels
32 5.5 million
Councils People served by councils
213,000 £13.8 billion
Workforce Budget
Local government workforce FTE
Q4 2021. 2.4 per cent increase
since Q4 2020
Net expenditure budget 
for 2021/22
1.3 million £0.5 billion
Covid-19 cases Lost income
Cases between 
Mar 2021 and Feb 2022
Estimated loss of income from
customers and clients in 2020/21
 
Key facts
Inequality
24 years less Healthy life expectancy in most deprived areas
compared to less deprived areas
24.3 per cent Children living in poverty in 2019/20 
(most recent year available)
Support
30 per cent Increase in Discretionary Housing Payment
budget since 2019/20 (pre-pandemic)
£600 million Value of business support grants 
administered 2021/22
56,205 Self-isolation grants awarded at end Nov 2021
(started 12 Oct 2020)
491,016 Number of Helpline calls and texts (includes
Test and Protect), Mar 2021 to Feb 2022

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Local government in Scotland: Overview 2022 | 8 |
Timeline
Covid-19 restrictions and key events between March 2021 and February 2022
March April May June July August
3rd - Support
UK Gov. announce
furlough and Universal
Credit uplift extended
to September
12th - Restrictions 
Easing of level 4
restrictions, incl. two
households can again
meet outdoors
15th - Education
All remaining primary
school children return
to school full-time,
with secondary school
pupils returning 
part-time
2nd - Restrictions  
Stay at Home 
regulations lifted, 
replaced with guidance 
to Stay Local
16th - Restrictions 
Further easing of 
restrictions on outdoor
socialising, six people
from six households 
can meet outdoors
19th - Education
All school pupils return 
full-time except those
shielding
26th - Restrictions 
All Scotland moves to 
level 3. Hospitality and 
public buildings can 
reopen eg, libraries, 
leisure facilities
17th - Restrictions 
All Scotland moves
to level 2 except
Glasgow and Moray.
Indoor mixing of up
to six people allowed
and exercise classes
resume. Most islands
move to level 1
21st - Restrictions 
Moray moves to level 2
3rd - Education
SG announce Education
Scotland and SQA will
be reformed
5th - Restrictions 
Glasgow moves to 
level 2. 15 councils
move to level 1 and
islands to level 0
24th - Covid-19 
powers extended by
Parliament
18th - Milestone
All adults received or
offered first dose of
vaccine
19th - Restrictions  
All Scotland moves
to level 0, physical
distancing measures
still in place
23rd - Self-Isolation
exemption for critical
staff
29th - Support
SG announce £1 million
funding for 
nine projects
supporting carers and
disabled people
9th - Restrictions  
All Scotland moves
beyond level 0 with all
venues able to reopen,
physical distancing and
limits removed
25th - Support
£14 million fund for NE
economic recovery and
skills announced
Local government in Scotland: Overview 2022 | 8 |
Timeline
Covid-19 restrictions and key events between March 2021 and February 2022
3rd - Support
UK Gov. announce
furlough and Universal
Credit uplift extended
to September
12th - Restrictions 
Easing of level 4
restrictions, incl. two
households can again
meet outdoors
15th - Education
All remaining primary
school children return
to school full-time,
with secondary school
pupils returning 
part-time
2nd - Restrictions  
Stay at Home 
regulations lifted, 
replaced with guidance 
to Stay Local
16th - Restrictions 
Further easing of 
restrictions on outdoor
socialising, six people
from six households 
can meet outdoors
19th - Education
All school pupils return 
full-time except those
shielding
26th - Restrictions 
All Scotland moves to 
level 3. Hospitality and 
public buildings can 
reopen eg, libraries, 
leisure facilities
17th - Restrictions 
All Scotland moves
to level 2 except
Glasgow and Moray.
Indoor mixing of up
to six people allowed
and exercise classes
resume. Most islands
move to level 1
21st - Restrictions 
Moray moves to level 2
3rd - Education
SG announce Education
Scotland and SQA will
be reformed
5th - Restrictions 
Glasgow moves to 
level 2. 15 councils
move to level 1 and
islands to level 0
24th - Covid-19 
powers extended by
Parliament
18th - Milestone
All adults received or
offered first dose of
vaccine
19th - Restrictions  
All Scotland moves
to level 0, physical
distancing measures
still in place
23rd - Self-Isolation
exemption for critical
staff
29th - Support
SG announce £1 million
funding for 
nine projects
supporting carers and
disabled people
9th - Restrictions  
All Scotland moves
beyond level 0 with all
venues able to reopen,
physical distancing and
limits removed
25th - Support
£14 million fund for NE
economic recovery and
skills announced

Page 17

Local government in Scotland: Overview 2022 | 9 |
Source: SPICE (Scottish Parliament Information Centre), Scottish Parliament
10th - Libraries
SG launch fund to help
libraries reopen
15th - Social Care
Named visitors allowed
into care homes during
Covid-19 outbreaks
30th - Support
End of UK Gov.
furlough
5th - Education
SG publish Education
and wider Covid-19
recovery strategies
7th - Support
SG announce 
£1.6 million funding to
help councils support
people affected by
psychological trauma
and adversity
19th - Education
School mitigations
remain in place
29th - Support
SG announce 
£41 million Winter
Support Fund for low
income families
29th - Milestone
First Omicron cases
detected in Scotland
11th - Restrictions 
10-day self-isolation
reintroduced
14th - Restrictions 
New guidance
recommends reducing
social interactions indoors
to three households and
restrictions on care home
access
17th - Restrictions 
New guidance on limiting
Omicron takes effect for
businesses, care homes
and school and childcare
settings
17th - Support
SG launch new 
£25 million regeneration
capital fund to support
disadvantaged
communities
27th - Restrictions 
Further restrictions due
to Omicron
3rd - Education
All high school pupils
asked to take lateral
flow tests (LFT) before
returning to school.
Mitigations still in place in
schools
6th - Restrictions 
Self-isolation reduced
from 10 to 7 days 
with LFT
20th - Social care
New guidance for care
homes issued, reducing
isolation periods
24th - Restrictions 
Restrictions for hospitality,
leisure and events
removed
31st - Restrictions 
Businesses can
resume hybrid working
arrangements
1st - Education
SG confirms senior
phase exams will go
ahead in spring
2nd - Social care
SG announce £1 million
fund to support social
care staff wellbeing
9th - SG extend
expiry date for
statutory Covid-19
powers to September
28th - Education
High school pupils and
staff no longer required
to wear face coverings
in classrooms
September October November December January February
Timeline continued
Local government in Scotland: Overview 2022 | 9 |
Source: SPICE (Scottish Parliament Information Centre), Scottish Parliament
10th - Libraries
SG launch fund to help
libraries reopen
15th - Social Care
Named visitors allowed
into care homes during
Covid-19 outbreaks
30th - Support
End of UK Gov.
furlough
5th - Education
SG publish Education
and wider Covid-19
recovery strategies
7th - Support
SG announce 
£1.6 million funding to
help councils support
people affected by
psychological trauma
and adversity
19th - Education
School mitigations
remain in place
29th - Support
SG announce 
£41 million Winter
Support Fund for low
income families
29th - Milestone
First Omicron cases
detected in Scotland
11th - Restrictions 
10-day self-isolation
reintroduced
14th - Restrictions 
New guidance
recommends reducing
social interactions indoors
to three households and
restrictions on care home
access
17th - Restrictions 
New guidance on limiting
Omicron takes effect for
businesses, care homes
and school and childcare
settings
17th - Support
SG launch new 
£25 million regeneration
capital fund to support
disadvantaged
communities
27th - Restrictions 
Further restrictions due
to Omicron
3rd - Education
All high school pupils
asked to take lateral
flow tests (LFT) before
returning to school.
Mitigations still in place in
schools
6th - Restrictions 
Self-isolation reduced
from 10 to 7 days 
with LFT
20th - Social care
New guidance for care
homes issued, reducing
isolation periods
24th - Restrictions 
Restrictions for hospitality,
leisure and events
removed
31st - Restrictions 
Businesses can
resume hybrid working
arrangements
1st - Education
SG confirms senior
phase exams will go
ahead in spring
2nd - Social care
SG announce £1 million
fund to support social
care staff wellbeing
9th - SG extend
expiry date for
statutory Covid-19
powers to September
28th - Education
High school pupils and
staff no longer required
to wear face coverings
in classrooms
Timeline continued

Page 18

Our strategic approach to covering Covid-19 in local government
overview reporting
1. In August 2020, we set out a strategic medium-term approach to
reflect Covid-19 in future local government overview reporting.
2. The first report in the series, Local government in Scotland:
Overview 2021, considered the initial response phase of the pandemic
from March 2020 to February 2021. This included:
• the initial emergency response and the impact on council
services, how councils and their workforce were working in new
ways, and how collaboration with communities and partners had
been vital
• the continued financial challenges councils face, and how
councils were starting to plan for recovery and learn lessons from
responding to the pandemic.
3. Future reporting will cover further progress towards recovery and
renewal and examine the longer-term impact of the pandemic.
4. An in-depth financial overview of the sector complements each local
government overview. This year’s report, Financial overview 2020/21,
was published in March.
This report:
• is the second in the series of reports that reflects the evolving
and long-term nature of the impact of the Covid-19 pandemic
• considers the second year of the pandemic from March 2021 to
February 2022, with data and information correct as at the end of
February 2022. We attempted to use this timeframe for all data
but where it was not possible the most recent available was 
used instead
• builds on last year’s overview report and assesses: 
– the ongoing impact of Covid-19 and councils’ progress towards
recovery and renewal 
– how councils are positioned to address long-term priorities
including climate change, inequality and public service reform 
– how effectively council leadership is managing recovery and
renewal
• includes exhibits and case studies throughout to illustrate issues
and practice across councils
• The findings of this report are drawn from the range of local and
national audit work carried out during the year as well as specific
research and analysis of available data and intelligence.
Background
Reporting on the impact of Covid-19 on local government
Local government in Scotland: Overview 2022 | 10 |

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Progress towards recovery and renewal
Councils have had a difficult year. Alongside continuing to respond to Covid-19 they have been planning and recovering
services and renewal in an increasingly complex and uncertain environment.
5. As we began scoping this year’s overview, we hoped that the second
year of the pandemic would be about recovery and returning to normal.
That has not been the case. Covid-19 has continued to have a significant
impact on all aspects of daily life.
6. Councils too have had a difficult year. They have moved on from the
immediate emergency response of year 1, but they have had to continue
to respond to Covid-19 – managing restrictions and mitigation measures,
providing support to communities, and operating differently – while also
recovering services and planning renewal in a complex and uncertain
environment. The timeline (pages 8 and 9) shows the complexity as
councils moved in and out of restrictions throughout the year and different
programmes of support were introduced.
7. Recovery and renewal are not about returning to the pre-pandemic
status quo. The process of recovery and renewal includes directing
resources to help ensure that services can restart and are reshaped to
meet the new needs of the local area, to address the harm caused by the
pandemic, to support economic recovery, to empower communities, to
address inequalities, and to tackle key priorities including climate change,
growing poverty, and the long-standing need for public service reform.
8. We have structured this report around three main themes on which
progress towards recovery and renewal depends. Leaders need to
consider how well their council is:
Progress towards recovery and renewal
Councils have had a difficult year. Alongside continuing to respond to Covid-19 they have been planning and recovering
services and renewal in an increasingly complex and uncertain environment.
5. As we began scoping this year’s overview, we hoped that the second
year of the pandemic would be about recovery and returning to normal.
That has not been the case. Covid-19 has continued to have a significant
impact on all aspects of daily life.
6. Councils too have had a difficult year. They have moved on from the
immediate emergency response of year 1, but they have had to continue
to respond to Covid-19 – managing restrictions and mitigation measures,
providing support to communities, and operating differently – while also
recovering services and planning renewal in a complex and uncertain
environment. The timeline (pages 8 and 9) shows the complexity as
councils moved in and out of restrictions throughout the year and different
programmes of support were introduced.
7. Recovery and renewal are not about returning to the pre-pandemic
status quo. The process of recovery and renewal includes directing
resources to help ensure that services can restart and are reshaped to
meet the new needs of the local area, to address the harm caused by the
pandemic, to support economic recovery, to empower communities, to
address inequalities, and to tackle key priorities including climate change,
growing poverty, and the long-standing need for public service reform.
8. We have structured this report around three main themes on which
progress towards recovery and renewal depends. Leaders need to
consider how well their council is:
Responding to the external
environment:
climate change, reform, financial pressures,
Brexit, demographic change
Organising the council:
leadership, resources, workforce
Meeting local needs:
inequality
Shaped by
engaging with
communities and
collaboration
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Page 20

Responding to the external environment
As councils continue to plan their recovery from Covid-19 and renewal they need to tackle key
priorities including climate change, poverty, and the long-standing need for public service reform.
Councils have to respond to a large and complex
programme of reform and the impacts of departure
from the EU
Social care reform
9. The Accounts Commission together with the Auditor General for
Scotland recently reported on the huge challenges that face the social
care sector in Scotland in their Social care briefing. Increasing demand,
severe workforce pressures and limited progress in service improvement
and reform are affecting the sustainability of services. Action is needed
now to address these issues.
10. Scottish Government proposals for a new National Care Service
are still at an early stage but will have a substantial impact on local
authorities’ responsibilities. Such a significant programme of reform
brings challenges and risks. Reform in other areas of the public sector
has shown that expected benefits are not always clearly defined,
and even when they are, they are not always delivered.1 Focusing
on such a major transformation will also risk a diversion from tackling
the immediate challenges within the social care sector. For local
government there is uncertainty about the destination of the policy, and
concern over a loss to local empowerment and funding for councils.
Brexit
11. The UK’s departure from the European Union is exacerbating
the challenges councils face. The Trade and Customs Agreement
(TCA) between the United Kingdom and the European Union has
imposed new tariff and non-tariff barriers in stages from 1 January
2021. This represents a further supply shock to the United Kingdom’s
economy in addition to Covid-19 and the rise in global energy prices.
Councils are facing higher prices and shortages of key resources, for
example construction materials and labour shortages particularly in the
construction and care sectors. There is also uncertainty around the loss
of EU structural funds and their replacement. There is a reported lack
of understanding about how the Shared Prosperity Fund, due to launch
in 2022, will work for councils, and what its relationship will be to the
Community Renewal Fund and the Levelling-Up Fund.2
12. It is difficult to untangle the combined impacts of Brexit and
Covid-19. Councils remain uncertain about the long-term effect of EU
departure and are continuing to monitor impacts on the labour market
including staff shortages, access to funding, and on business.
Local government in Scotland: Overview 2022 | 12 |

Page 21

Climate change
13. Councils recognise that climate change is an urgent issue. They
have committed to taking action to achieve net zero, but clearer plans
are needed to achieve it.
Source: Audit Scotland
Climate change – policy spotlight
Around two-thirds of councils have formally declared
a climate emergency, and COSLA’s Blueprint for Local
Government states that climate change is a ‘greater threat than
COVID’.3 However, there is no universally shared understanding of
what declaring a climate emergency means in practice and there
is variation in policy and practice across councils. The Scottish
Government has recently published guidance on public sector
leadership on the global climate emergency to help public bodies 
in leading climate action.4
Councils’ ambitions for how and when they will achieve net zero
or other emissions reductions targets are varied, but all are either
on or before the Scottish Government’s national target year of
2045. Council recovery plans have climate change as a theme with
commitments such as providing active travel routes in communities,
installing electric car charging infrastructure, and pushing forward
plans for low-emission zones.
We, together with the Auditor General, set out our joint approach
to auditing climate change in October 2021 in Auditing climate
change: An update (audit-scotland.gov.uk). It reported that
while public bodies, including councils, have declared a climate
emergency, there are questions around definitions of net zero
and the robustness of plans. It also highlighted the importance
for bodies in tackling adaption and resilience to reduce the impact
of climate change that has already taken place, the need for
investment to achieve net zero, the critical role for the public, and
the need for strong partnership working and public 
sector leadership.
Addressing the climate emergency and setting actions to achieve
net zero will need to be a key element of councils’ recovery and
renewal from the pandemic. We will be reporting on the approach
that councils are taking to meet their climate change ambitions in
late summer 2022.
Local government in Scotland: Overview 2022 | 13 |

Page 22

The impact of the pandemic sits against a backdrop of
long-standing and growing demographic pressures and
a growing cost of living crisis that will affect demand
for council services
14. The overall population is projected to fall over the next 25 years.5
The trend is towards an ageing population and the proportion of those
aged over 65 will increase. The latest data shows that overall life
expectancy has fallen as has healthy life expectancy. Deprivation has a
big impact on both.6 7
15. Poverty rates have been rising in recent years, with the highest
rates among children. The proportion of children living in poverty (after
housing costs) has increased from 21.6 to 24.3 per cent since 2013/14,
including a 1 percentage point increase in the most recent year in
which data is available.8 This trend is seen across all 32 councils but in
recent years poverty rates have increased at a faster rate in councils
with lower levels of deprivation.
16. Increasing financial hardship is expected as the cost of living rises
rapidly, with the greatest effects felt by those already experiencing
poverty. Energy Action Scotland estimate that in 12 council areas over
40 per cent of households will live in fuel poverty after April’s energy
price rises. Eileanan Siar is forecast to be the worst affected area with
an estimated 57 per cent of households living in fuel poverty.9
Challenges for councils
17. Planning to respond to these longer-term issues is difficult. Funding
levels continue to be uncertain because of short-term funding cycles,
ring-fenced funding and uncertainty over how long Covid-19 funds will
remain in place. 
18. It will be challenging for councils to find the capacity and resources
to respond to, influence and shape this programme to their own
contexts particularly while continuing to respond to Covid-19 and deal
with service backlogs and increased demand and harms arising from
the pandemic. This uncertain and challenging context needs effective
strategic thinking, decision-making and collaborative working from local
government leaders. It also needs a resilient workforce, and a culture
that promotes collaboration, innovation and wellbeing.
19. Councils can learn from how they responded to the pandemic –
through strong partnership working, engaging with communities and
focusing on vulnerabilities.
Local government in Scotland: Overview 2022 | 14 |

Page 23

Councils prepared recovery plans in response to the
pandemic, and leaders are now starting to plan and set
out their vision and strategy as their councils navigate
the uncertainties and challenges they face
20. Local government leaders are operating in a complex, uncertain and
volatile environment, and external pressures make it difficult to plan and
deliver councils’ recovery from the pandemic. These include:
• uncertainty about the course the pandemic will take and its
impact on operations, pivoting between response and recovery
• the impact of major public service reforms, including the
proposed National Care Service
• a lack of longer-term financial settlement and limited flexibility
because of ring-fenced funding.
21. Councils have prepared recovery plans that vary in their approach
from high-level strategic statements to more detailed short-term
operational plans. They have been a helpful tool for managing the
early recovery phase and reinforcing the need for councils to remain
flexible in a changing and volatile environment. We expect that councils
will continue to refresh and refine their plans to set out more clearly
how they will address inequalities, mitigate the harm caused by the
pandemic, improve outcomes and monitor progress.
22. Recovery plans include a focus on partnership working, but leaders
have an opportunity to collaborate more widely with their communities
in planning for the future. This could lead to more sustainable,
community-focused renewal and innovative ways of delivering services
in communities.
By leaders we mean elected members, chief executives
and the senior management team.
Organising the council: leading
recovery and renewal
Leaders in local government face a challenging context. As they plan for recovery and renewal it will be
important that they collaborate with their partners and communities. This will need skilled leadership,
learning lessons from the pandemic and working to make the best use of resources to improve outcomes.
Local government in Scotland: Overview 2022 | 15 |

Page 24

23. Some councils have integrated their recovery plans into refreshed
strategic plans, including Local Outcomes Improvement Plans,
recognising the impact of the pandemic, lessons learned from the
response, and the need to realign priorities. This can help councils
move from response to renewal and set a roadmap for the future.
Common themes in recovery plans that are being reflected in wider
strategic plans include:
City of Edinburgh Council 
In response to the pandemic, the council quickly developed
and implemented their Adaptation and Renewal Plan.
It realised that pre-pandemic working practices could not
continue and might never return. It created the Now, Near,
Far & Beyond programme linked to national guidance but
with the ability to respond to any changes. The plan was
regularly updated and aligned with the agreed City Vision
2050. Updates included a Covid-19 dashboard containing
a range of public health, Covid-19 response and economic
data, as well as details of decisions made at committee
meetings. These were made available online to the public,
via the council website, providing transparency of the
council’s decision-making and governance process.
Source: Audit Scotland using information from City of
Edinburgh Council
Case study 1
24. The Scottish Government published a national recovery
plan in October 2021.10 While most councils’ recovery plans
were published before this, councils will have an opportunity to
consider the priorities set out in the national recovery plan as they
refresh their own plans. There is also an opportunity to consider the
wider public service reform agenda and how to incorporate the
principles of people, prevention, performance, and partnership into 
their plans.11
• New ways of working – digital technology, the workforce
• Addressing growing inequalities
• School education recovery
• Focus on health and wellbeing both in the community and
workforce
• Economic recovery
• Climate emergency.
Local government in Scotland: Overview 2022 | 16 |

Page 25

Current recovery plans emphasise the negative effect
that Covid-19 has had on inequalities but are not
clear on how planned recovery actions will improve
outcomes for those most affected
25. As outlined in paragraph 77, there is a lack of data on the scale
of service backlogs and increased demand, and evidence of the harm
caused is still emerging.
26. Councils have struggled in the past to bring about the level of
change that is needed to deliver public service reform, sustainable local
government, and better outcomes. Transformation programmes have
been disrupted by Covid-19 at the same time as new operating models
and service delivery approaches have been presented.
27. There is a risk that councils are unable to deliver the level of
recovery and transformation needed with their existing resources and
will have to make difficult decisions about prioritising services.
There are good examples of councils showing
leadership in tackling long-standing structural issues
through new place-based initiatives such as community
wealth building
28. Following successes in England, North Ayrshire was the first
council in Scotland to create a community wealth building strategy,
in which the council, other public bodies and key organisations work
with communities to support local economic development and tackle
poverty.12 Community wealth building has now been adopted by a
number of councils and is part of the programme for government.
Collaborative leadership skills have been important
during the response phase and need to be maintained
to meet the complex challenges ahead
29. Collaborative leadership enabled the response to the pandemic as
councils worked with partners, communities and across departments.
Exhibit 1. (page 18) outlines key leadership principles that have been
important in the response phase and could further support recovery and
renewal. Recent Best Value Assurance Reports have shown that not
all councils have the collaborative leadership needed to drive change,
and so it is particularly important that they develop the leadership skills
needed in this complex and uncertain environment.
Renfrewshire Council
Case study 2
Renfrewshire Council worked with partners to carry out a
community impact assessment to gather information on
how the pandemic has affected people in Renfrewshire.
This included analysis of all available data, a programme
of community meetings and surveys, and engagement
with local partnerships on key issues affecting local
communities. The findings were used to develop a social
renewal plan which sets out the work the council will do
with other public sector and voluntary sector partners to
tackle inequality and poverty and to support families and
communities in the wake of the pandemic.
Source: Audit Scotland using information from
Renfrewshire Council
Local government in Scotland: Overview 2022 | 17 |

Page 26

Exhibit 1.
Principles of leadership that enabled the response to Covid-19
Source: Audit Scotland
Exhibit 1.
Principles of leadership that enabled the response to Covid-19
Communicative – being available, engaging, honest and
open. The pandemic created uncertainty that demanded
more frequent communication with staff, partners, and
communities. This provides assurance, uncovers issues, and
enables decision-making. The shift to remote and hybrid
working also demands more frequent communication.
Collaborative – working with and empowering others.
This was critical to the pandemic response and harnessing
the resources of the community and partners. Complex
problems need a ‘whole systems approach’ that works
across organisational and functional boundaries and aligns
objectives and outcomes.
Emotionally intelligent – showing empathy, understanding
and dealing with the ‘whole person’. The impacts on the
health and wellbeing of the workforce and communities
demands greater emotional intelligence from leaders.
Cont.
Data driven – using data and information to plan, make
decisions, direct resources and monitor progress, as well as
to learn from looking back. Data has been a vital tool, and
leaders’ ability to use data will be important as we move into
the future.
Agile and flexible – making decisions and working quickly
to respond to emerging issues. Having a clear vision and
purpose is important, but also being agile and flexible in an
uncertain environment.
Culture focused – being open and honest, inspiring trust
and respect, and having empathy are all important, as
are encouraging learning, improvement, innovation and
collaboration. Leaders need to focus on creating the right
organisational culture.
Enables community empowerment – supports
communities to take more control, builds effective
relationships with communities, and shows strong public
sector leadership on community empowerment. These can
help improve outcomes and reduce inequalities.
Source: Audit Scotland
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Page 27

Changes and turnover in senior officer and political
leadership present a risk to councils’ capacity to
maintain momentum and drive forward recovery
30. Turnover of senior officers has been high recently with half of all
council chief executives coming into post within the past four years as
well as other changes to senior leadership teams in some councils over
the past year. Some councils are experiencing difficulties in filling vacant
senior management positions. The pandemic is reported to have led
to a surge in resignations, as senior leaders and management consider
their work/life balance and overall position, potentially leading to further
change in the sector. The local council elections may also bring in a
new cohort of elected members and changes in political leadership 
in councils.
31. This turnover in officials and elected members could bring new
ideas and energy to the challenges of recovery, but it could also risk a
loss of momentum, organisational knowledge and capacity and disrupt
decision-making. At this time, it is important that councils establish
stability in their leadership to provide strong support and guide recovery
and renewal. Effective succession planning arrangements are needed
so that the skills required at a senior level are developed in
new and emerging leaders.
As governance structures are re-established, better
information is needed on service recovery to support
scrutiny and inform decision-making
32. Councils put in place emergency governance arrangements in the
initial months of the pandemic. They have since re-established their full
committee structures, albeit via online, virtual and hybrid meetings.
33. Public accessibility and therefore participation has changed following
the shift to online and virtual meetings. All councils provide public
access via either live streaming or a recording of council and committee
meetings, and most councils offer both. As restrictions continue to be
lifted, councils should review how their approach can best meet the
needs of their citizens and make sure that no one is excluded.
34. Councils have taken a range of approaches to the governance of
recovery and renewal, with some having recovery boards and other
structures that can involve both elected members and senior managers.
35. It is not clear whether sufficient information on the status of, and
changes in, council services is available to support scrutiny and inform
decision-making. It is difficult to find update papers that clearly set
out councils’ progress on recovery and renewal, what demand and
backlogs exist, and what changes to services are planned. Greater
transparency is needed to provide assurance that proper scrutiny is 
in place. Our ‘Questions for elected members’ checklist has
been developed to help elected members in their
scrutiny and decision-making roles and in working with council
executives. The Improvement Service has also worked with
councils to prepare induction materials that will be available for the
new cohort of elected members which will help them take up their
role in leading and scrutinising recovery.
Local government in Scotland: Overview 2022 | 19 |

Page 28

Councils recognise that they have an opportunity
to learn lessons from the new ways of working and
approaches to service delivery that have been put in
place in response to the pandemic
36. Leaders need to do more to learn the lessons from the pandemic
response and use this to drive longer-term recovery and renewal. Key
lessons learned include the benefits of:
• collaborative working with partners and communities to respond
and reshape services
• having access to and making better use of data to understand
needs and plan services
• the rapid use of digital technology in service redesign
• focusing on vulnerability and inequality, including taking a ‘whole
systems’ and holistic approach
• new ways of working for staff
• focusing on physical and mental wellbeing – for communities and
the workforce
• promoting shared values and a caring culture (kindness)
• the opportunity to reconfigure the estate
• adopting place-based approaches.
37. The Improvement Service is supporting councils by updating the
Public Service Improvement Framework (PSIF) to capture learning from
the Covid-19 response.13 It has developed several checklists and self-
assessment tools that councils are starting to use.
38. South Lanarkshire Council pioneered the new PSIF checklists,
resulting in its ‘New Ways of Working’ plan, which includes technology,
maintaining the new networks and new volunteers, ‘agile’ working, and
maintaining its work with partner organisations on information sharing.
Data has been important in guiding the response to
the pandemic. But improvements are needed in data
availability, tools and skills to support performance
monitoring, strategic decision-making and planning
service improvements
39. Council performance reporting has been affected by the pandemic
and, while councils continue to report regularly, there have been delays
and inconsistencies. Comparing performance over time is difficult given
the disruption to council services during the pandemic.
40. The Local Government Benchmarking Framework (LGBF) 2020/21
shows increasing variation in performance across councils and a level
of complexity that needs careful interpretation but offers councils a rich
source of intelligence to evaluate how local factors (ie, different local
restrictions, patterns of demand and need, and local response and
solutions) affected their performance.14
41. Early in the pandemic the Improvement Service developed a Covid-
19 data dashboard to provide councils with up-to-date council- and
Scotland-level data across 22 measures. This helps councils to monitor
key aspects of their Covid-19 response and supports more immediate
data-driven decision-making. Alongside the Local Government
Digital Office, the Improvement Service is working to create a local
government data portal.
Local government in Scotland: Overview 2022 | 20 |

Page 29

42. Research by the Urban Big Data Centre found that since the
beginning of the pandemic councils have experienced a rapid increase
in demand for ‘on the ground’ information to understand their local
communities.15 But this is hampered by challenges including access
to data, a lack of joined-up data, issues with data quality and a lack of
analysts to generate intelligence from it.
43. The pandemic has introduced additional complexity into existing
data sets, with data gaps and disruption of data collection, as well
as the impact of service disruptions on data trends, making it more
challenging to interpret the data. We know that councils were reporting
data skills shortages before the pandemic.16 It will be important for
leaders to collectively drive improvements in data, in terms of not only
data quality and timeliness but also building data skills within councils.
This will support councils to put a performance monitoring framework
in place that allows them to make strategic decisions and to plan
improvements, recovery, and renewal.
Local government in Scotland: Overview 2022 | 21 |

Page 30

Covid-19 significantly impacted on many aspects of
councils’ finances in 2020/21
44. Our report Local government in Scotland: Financial overview
2020/21 is the first to capture the full year effect of Covid-19 on
councils’ finances and explains how the pandemic and the associated
lockdowns have created significant financial challenges and uncertainty.
45. Councils experienced significant additional costs, loss of income
and unrealised savings as a result of the pandemic. For example,
councils experienced a drop in the income generated from customer
and client receipts of approximately £0.5 billion in 2020/21, from the
disruption of key income streams such as cultural and community
activities, car parking, school meals and trade waste disposal.
46. In 2020/21, the Scottish Government increased funding to
councils by £1.5 billion to support them to deal with the impacts
of the pandemic.
Organising the council: managing resources
Councils’ finances have been significantly affected by Covid-19. The long-term funding position remains
uncertain, with significant challenges ahead as councils continue to manage and respond to the impact of the
pandemic on their services, finances, and communities.
47. All councils reported surpluses in 2020/21, largely because of the
additional funding received. Total usable reserves across Scotland
increased significantly, from £2.6 billion in 2019/20 to £3.8 billion in
2020/21. However, this has artificially inflated the position. Councils
are unlikely to have flexibility in how large elements of reserves can
be used.
Funding to local government has been reduced in
real terms since 2013/14. The rest of the Scottish
Government budget has seen an increase in funding
over the same period
48. Funding from the Scottish Government to local government
increased by 7.0 per cent in real terms between 2013/14 and 2020/21.
However, this was because of significant additional Covid-19 funding.
When this additional funding is excluded, councils’ underlying
cumulative funding has fallen by 4.2 per cent in real terms since
2013/14. This is in contrast to an increase of 4.3 per cent in Scottish
Government funding of other areas of the budget over the same period
Exhibit 2. (page 23).
Local government in Scotland: Overview 2022 | 22 |

Page 31

The ongoing absence of a multi-year financial
settlement creates uncertainty for councils at a time
when effective and robust financial management 
is crucial 
49. The Scottish Government continues to fund councils on an annual
basis. This makes it challenging for councils to plan and budget effectively
for the medium and longer term, and work with partners to develop long-
term plans to deliver better outcomes and address inequalities.
50. Managing reserves and having in place robust medium- and 
longer-term financial plans will continue to be key to maintaining
financial sustainability. 
51. The Scottish Government has indicated that a longer-term funding
settlement for councils may be possible, however multi-year allocations
were not included in the 2022/23 budget.   
52. The Scottish Government and COSLA are currently developing a
fiscal framework to determine future funding of local government. Work
on the Local Governance Review also continues. These may result in
additional spending powers for local government, giving communities
and places greater control over the decisions that affect them most.17
Exhibit 2.
A comparison of real-terms changes in revenue funding in
local government and other Scottish Government areas
(including and excluding Covid-19 funding)
-10%
0%
10%
20%
30%
40%
50%
20/2113/14
SG minus LG
Including
Covid-19
funding
20/2113/14
Excluding
Covid-19
funding
SG funding
minus LG
LG Total
Revenue
LG Total
Revenue
Source: Finance Circular 5/2021 and Scottish Government 
budget documents
Local government in Scotland: Overview 2022 | 23 |

Page 32

Councils now need to review longer-term financial
plans as Covid-19 uncertainty diminishes. They
should ensure that financial plans are clearly linked to
overarching recovery strategies 
53. Auditors have reported greater uncertainty in current financial
planning arrangements at councils because of Covid-19. Analysis
of a sample of 22 councils found 15 with a long-term plan in place.
However, many of these now need to be updated to reflect current
circumstances.  
54. As the uncertainty created by Covid-19 diminishes, councils
should update their longer-term financial plans and take account of
their overarching recovery strategies to ensure a cohesive approach to
recovery and renewal of services, finances and communities.
As Covid-19 funding ends, councils will need to adapt
and make difficult decisions to maintain financial
sustainability 
55. COSLA expect that councils will need to restart change
programmes that have stalled, deliver savings and bring forward
proposals to reduce costs. Transformation programmes will be
important for councils in helping identify resources for priority areas.
56. Responding to the programme of reform outlined in paragraph 10
further exacerbates this challenge. In addition, councils’ financial outlook
challenges are heightened by increasing inflation – data from the Office
for National Statistics shows that this has risen to a level higher than
has been seen for many years.18
While COSLA and the Scottish Government continue
to discuss the extent of ring-fencing in the local
government budget, it is clear that spending on priority
areas have increased while other areas of the local
government budget have faced spending cuts 
57. There is a significant difference between the view of COSLA and
that of the Scottish Government on the extent of ring-fencing in local
authority budgets.
58. While ring-fenced funding helps support delivery of key Scottish
Government policies, such as expanding early learning and childcare
services, it can constrain a proportion of the total funding and resources
available to councils and removes local discretion over how these funds
can be used.
59. Exhibit 3. (page 25) shows the change in revenue expenditure
over the longer term 2010/11 to 2020/21 for protected and unprotected
service areas. These longer-term spending reductions on areas
including environmental services, culture and leisure, and corporate
services, have placed these services under pressure as councils
respond and recover from Covid-19.
Local government in Scotland: Overview 2022 | 24 |

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Exhibit 3.
Percentage change in expenditure (real terms) 
by service from 2010/11 to 2020/21
-50% 0% 50% 100%
Pre-school
Homecare
Looked after children - Community
Looked after children - Residental
Primary school
Secondary school
Economic Development & Tourism
Residential care
Sports
Museums
Roads
Planning
Central support services
Parks
Trading standards
and environmental health
Street cleaning
Libraries
126%
29%
26%
14%
10%
0%
-12%
-14%
-17%
-22%
-25%
-26%
-27%
-34%
-34%
-35%
-36%
% Change 
10/11 to 20/21
Source: LGBF 2020/21 data, using Audit Scotland Covid-19 adjusted
methodology for calculating real terms (page 7, Local government in
Scotland: Financial overview 2020/21 for further detail)
Covid-19 has impacted on capital projects and volatility
in capital funding allocations could affect councils’
recovery and investment plans
60. Auditors reported that Covid-19 had a significant impact on the
delivery of capital projects in 2020/21. Capital project costs increased
owing to increases in the cost of raw materials, supply chain delays and
inflation associated with delayed contracts. CIPFA Local Government
Directors of Finance Section notes that these cost increases have not
been matched by an increase in the capital grant received.
61. At the same time most councils, 26 in total, reported reduced
capital expenditure in 2020/21, with Covid-19 restrictions disrupting
construction activity in many instances.
62. Capital investment is likely to play a key role in councils’ recovery
from Covid-19 and in particular address the impact of climate
change. The local government estate, comprising buildings and
vehicles, will need some modernising to deliver councils’ carbon
reduction targets and wider investment needed to mitigate and adapt
to the impacts of climate change. Funding will need to be in place to
support this.
63. Our Local government in Scotland: Financial overview 2020/21
report notes that the local government capital settlement in 2021/22
decreased from £0.8 billion in 2020/21 to £0.6 billion, and capital
funding received in recent years has been very volatile. Lack of 
longer-term funding settlements will again impact on councils’
investment plans.
Local government in Scotland: Overview 2022 | 25 |

Page 34

The second year of the pandemic continues to have a
negative impact on the workforce and staff wellbeing
64. Council services are facing high demand, high staff absence
levels from new waves of the pandemic and staff burnout from the
prolonged response and recovery phase. These impacts have been felt
across the workforce but particularly so in front-line community-facing
roles. Exhibit 4. and Exhibit 5. (page 27) show that teaching and
education staff absence levels peaked in December 2021 and wider
staff absences also rose in the last quarter of 2021.
Exhibit 4.
Average percentage of council staff absent during the
pandemic
Note: Pre-Covid-19 average is based on 2018/19 data.
Source: Improvement Service
0%
5%
10%
15%
25 February 2022
18 February 2022
11 February 2022
04 February 2022
28 January 2022
21 January 2022
14 January 2022
07 January 2022
31 December 2021
24 December 2021
17 December 2021
10 December 2021
03 December 2021
26 November 2021
19 November 2021
12 November 2021
05 November 2021
29 October 2021
22 October 2021
15 October 2021
08 October 2021
01 October 2021
24 September 2021
17 September 2021
10 September 2021
03 September 2021
27 August 2021
20 August 2021
13 August 2021
06 August 2021
30 July 2021
23 July 2021
16 July 2021
09 July 2021
02 July 2021
25 June 2021
18 June 2021
11 June 2021
04 June 2021
28 May 2021
21 May 2021
14 May 2021
07 May 2021
30 April 2021
23 April 2021
16 April 2021
09 April 2021
02 April 2021
26 March 2021
19 March 2021
12 March 2021
05 March 2021
26 February 2021
19 February 2021
12 February 2021
05 February 2021
29 January 2021
22 January 2021
15 January 2021
18 December 2020
11 December 2020
04 December 2020
27 November 2020
20 November 2020
13 November 2020
06 November 2020
30 October 2020
23 October 2020
16 October 2020
09 October 2020
02 October 2020
25 September 2020
18 September 2020
11 September 2020
04 September 2020
28 August 2020
21 August 2020
14 August 2020
07 August 2020
31 July 2020
24 July 2020
17 July 2020
10 July 2020
03 July 2020
26 June 2020
19 June 2020
12 June 2020
05 June 2020
29 May 2020
22 May 2020
15 May 2020
08 May 2020
11.7%
4.1%
7.0%
May Aug FebNov May Feb Aug Nov
2020 2022 2021
Organising the council: managing the workforce
Pressure on the local government workforce continues, with high absence levels, impacts on wellbeing,
particularly for front-line workers, and skills shortages in key areas. A resilient workforce is critical to the ongoing
response to Covid-19 and the recovery of services. Councils will need to update workforce plans, learn lessons
from new ways of working put in place, and provide wellbeing support for their staff.
Pre-Covid-19 average 4.7%
Local government in Scotland: Overview 2022 | 26 |

Page 35

Exhibit 5.
Number of school staff absent March 2021 to February 2022
0
1,000
2,000
3,000
4,000
5,000
6,000
22/02/202215/02/202208/02/202201/02/202225/01/202218/01/202212/01/202214/12/202107/12/202130/11/202123/11/202116/11/202109/11/202102/11/202126/10/202119/10/2021(H)12/10/2021(H)05/10/202128/09/202121/09/202114/09/202107/09/202131/08/202124/08/202117/08/202122/06/202115/06/202108/06/202101/06/202125/05/202118/05/202111/05/202104/05/202127/04/202120/04/202130/03/202123/03/202116/03/20212 Mar – 30 Mar
2021
20 April – 22 June 17 August – 14 December 12 January – 22 February
2022
Teaching staff absent due to Covid–19 Other school based staff absent due to Covid–19
Holiday
Holiday Holiday
Half-term for 
some schools
Source: Scottish Government Education Analytical Services
Local government in Scotland: Overview 2022 | 27 |

Page 36

65. Staff wellbeing, both physical and mental, has been a prominent
theme within recovery plans. Councils are making efforts to understand
these issues through staff surveys and other methods, provide
confidential support services, and incorporate training for stress and
mental health into council training programmes (Exhibit 6.).
Exhibit 6.
Examples of council wellbeing initiatives
Dundee City Council launched a new wellbeing
support service and also gives staff access to the
intranet on their own devices.
Clackmannanshire Council integrated training on
stress and mental health into its corporate training
calendar to increase awareness.
Argyll and Bute Council launched ‘Wellbeing
Wednesday’.
Source: Audit Scotland using information from councils
Councils are facing skills shortages and recruitment
difficulties in key areas
66. Covid-19, combined with Brexit, is exacerbating skills shortages,
many of which were pre-existing (Exhibit 7., page 29). Covid-19
has had a particular impact on facilities management services because
of the increased need for cleaners and a tighter labour market. HGV
(Heavy Goods Vehicle) driver shortages have been affected by Brexit,
as councils are unable to compete with private sector wages.
67. Social care faces the greatest skills shortages. Our Social Care
briefing highlighted the considerable vacancy and recruitment
problems facing the sector, with poor terms and conditions contributing
to these issues. See Exhibit 9. (page 35) for further details.
68. Councils are changing their recruitment strategies in the face of
these shortages, with more marketing, use of social media and local
employability initiatives. The Scottish Government established a Fair
Work in Social Care Group, in partnership with COSLA, which includes
representation from local government, private sector provider groups,
third sector, and trade unions. Since summer 2020 the group has
been working to develop and implement recommendations regarding
improving pay, terms and conditions, and effective employee voice for
the social care workforce.
69. Councils are also seeing an increase in retirement and flexible
working contributing to the skills shortage. Fifty-six per cent of councils
report difficulties in recruiting to senior posts and leadership positions.
Succession planning is important in this context.19
Local government in Scotland: Overview 2022 | 28 |

Page 37

Exhibit 7.
Percentage of councils reporting skills shortage by
occupation
0% 20% 40% 60% 80% 100%
Building
standards
Teachers
Environmental
health officers
Social workers
HGV drivers
Facilities
management
Social care 91%
63%
56%
53%
50%
38%
31%
Note: Facilities management includes catering and cleaning
Source: Society of Personnel and Development Scotland
Councils have adopted new ways of working
70. Councils have shown considerable flexibility in redeploying staff
to areas of greatest priority and demand and in adopting remote and
hybrid working. The shift to home working brought about by the
pandemic is likely to have a longer-term impact on how councils work.
Wider evidence shows that it can bring benefits for both employers and
staff, but individual circumstances should be considered.20
71. Councils are considering how hybrid working can support their
ambitions for a more flexible and adaptable workforce in future. For it to
work well, councils need to provide staff with a wide range of support,
including health and wellbeing support, a supportive workplace and
management culture, and appropriate technology and equipment. The
diverse roles in councils mean that not all staff can work remotely. It
will be important for councils to continue to consult and engage with
their employees, learn lessons from what has been done to date, and
test new models of working as they move forward.
1
Local government in Scotland: Overview 2022 | 29 |

Page 38

The pandemic has made workforce planning both more
difficult and more necessary
72. Workforce planning is developing in councils. Some have plans that
are linked to wider strategic plans as well as individual service plans,
while other councils’ workforce plans are more limited.
73. As a result of the pandemic, councils have had to respond to short-
term pressures, but they need to plan for longer-term resilience in the
workforce. Some councils have started to update their plans to reflect
more flexible and remote ways of working and to focus on wellbeing.
74. There are common recruitment pressures across councils, as
detailed above, but these are changing more frequently as the
pandemic affects the wider labour market. Some councils are ‘growing
their own talent’ by improving modern apprentice programmes and
creating new internal recruitment and movement of staff across the
council or new talent programmes.
75. Councils report that they lack resources to support workforce
planning and are collaborating and sharing practice to make
improvements.21 Joint working through the Improvement Service
and the Society for Personnel and Development Scotland is allowing
common challenges and practice to be shared. The Improvement
Service has provided tools for councils to develop workforce plans.22
It is vital for councils to share lessons learned and to use them to
inform their revised plans.
City of Edinburgh Council 
The City of Edinburgh Council developed a new work
strategy after receiving feedback from 6,400 employees
via two surveys conducted in 2020. The surveys asked
employees how the pandemic has changed the way they
work and how they would like to work in the future. The
responses made it clear that staff want to retain a more
flexible approach to work in future.
‘Our Future Work Strategy’ outlines three trials to explore
new ways of working. Two of the trials are about adapting
current office space to best fit a future of hybrid working.
The third trial is of a longer-term plan to develop local
offices that would enable staff to work close to where they
live, reducing the need for commuting. The council believes
that investing in local working and following the principle
of ’20-minute neighbourhoods’ will contribute to reducing
emissions locally, and so help Edinburgh achieve its target of
becoming a net-zero city by 2030.
Source: Audit Scotland using information from City of
Edinburgh Council
Case study 3
Local government in Scotland: Overview 2022 | 30 |

Page 39

Organising the council: recommendations
Actions for leadership
• Councils together with their partners and communities should revise their strategic plans, including Local
Outcomes Improvement Plans to realign priorities and provide a roadmap for recovery and renewal. They should
also consider how this contributes to the national recovery strategy set out by the Scottish Government.
• Elected members and senior managers need to work together to drive change, make decisions and deliver recovery
and renewal.
• Councils should consider the leadership skills needed for now and in future. This includes clear succession planning
arrangements and a structured programme of induction for new elected members.
• Councils’ governance arrangements should ensure that their elected members have sufficient information to
support the scrutiny and decision-making needed for recovery and renewal.
• Councils need to clearly set out how they are evaluating new service models and learning lessons from the
response to Covid-19.
• Councils should have a clear plan for developing the use of data in their councils, this includes data skills, data
standards and data tools.
• Councils must ensure that financial plans and overarching recovery strategies and actions are clearly aligned,
including funding to deliver on their duty to address inequalities.
• Councils must have clear plans for management of reserves.
• Councils should update their workforce plans to build on lessons learned, address skills gaps and build a resilient
workforce for the future. This will include monitoring the wellbeing of the workforce, and the effectiveness of health
and wellbeing initiatives.
Local government in Scotland: Overview 2022 | 31 |

Page 40

The Covid-19 pandemic continues to affect council
service delivery, but a lack of clarity on demand, unmet
need, and service backlogs makes the full extent of the
effect unclear
76. Councils are still early in recovery, having moved on from the initial
emergency response and operating under lockdowns. They report that
the second year of the pandemic has been more difficult than the first.
Ongoing restrictions, Covid-19-related staff absences and the non-linear
nature and uncertainty of the pandemic, for example the emergence
of the Omicron variant, mean that councils still need to adapt service
provision and many services are disrupted.
77. The picture of service disruption is incomplete. A lack of up-to-date
publicly available data makes it difficult to assess the extent to which
council activities have returned to pre-pandemic levels, the level of
demand for services and levels of unmet need.
Meeting local needs: impact of
Covid-19 on services and inequality
Covid-19 continues to disrupt council services, and those already experiencing inequality have felt the
impacts of both the pandemic and service disruption most strongly. As councils focus their efforts on
addressing these unequal harms, they need better local data and community engagement.
78. Disruption has continued in those services we reported as most
affected last year: education, social care, and culture and leisure.
Exhibits 8, 9 and 10 (pages 34-36) provide more detail.
79. Alongside continued disruption, councils are also having to manage
new pressures across services:
• from backlogs due to paused activity in the first year of the
pandemic, such as repairs to roads and housing
• from an increase in demand, for example administering
support grants, assisting with testing and vaccinations and in
environmental health and trading standards. Increased levels
of financial hardship are driving an increase in applications for
discretionary housing payments and other support grants.
An inability to clear backlogs and meet new demands is a risk to
wider recovery.
Local government in Scotland: Overview 2022 | 32 |

Page 41

80. Public tolerance of service disruption and backlogs is declining, and
communities have expressed their frustration in some cases. Councils
are having to balance a growing expectation that services should be
back to normal while still adhering to Covid-19 guidelines and facing
absences that limit their capacity to deliver.
Councils have worked hard and adapted to maintain
delivery of key services. Digital delivery has expanded
but brings with it the risk – for some – of increased
digital exclusion
81. As we found in our Digital progress in local government report,
the pandemic has brought about a change in the way in which many
council services are delivered. Councils have expanded their digital
service provision, to replace temporarily unavailable services, to respond
to new needs, or to provide an alternative means of accessing services.
Councils have introduced online booking systems for services such as
recycling, created online learning hubs for parents and carers to support
children’s learning, and developed more digital resources from libraries
and leisure services.
82. The rapid shift to digital delivery allowed services to be delivered
rather than stopped. It also highlighted how unequal access to the
internet, devices and skills leaves those most disadvantaged without
the same opportunities to learn, access services and remain socially
connected as others.23
The extent to which councils have assessed and can
evidence the impact that Covid-19 related service
changes and disruption have had on different groups
and citizens in their local areas is unclear
83. Changes in service provision have offered an opportunity to learn
lessons about how services are delivered in the future. But it is not
clear that councils have carried out equality impact assessments or
community consultation where they have made changes or plan to
continue changes made to service delivery during the pandemic.
Local government in Scotland: Overview 2022 | 33 |

Page 42

Risks and challenges
The pandemic has affected the comparability of education data for 2019/20
and 2020/21 when S4-6 exams were replaced with teacher assessed
grades. Our joint report, Improving outcomes for young people
through school education, noted the difficulties and risk this could cause
for councils in assessing and acting on the poverty related attainment gap.
Restrictions on school visitors have limited access for vital voluntary
sector support services, including preventative youth work: 34 per cent
of organisations that want access to school facilities do not have it. This
has a particular impact on those with additional support needs, who need
alternative supportive environments outside school.
Exhibit 8.
Education services continued to be disrupted throughout the second year of the pandemic
Disruption included:
• infection control measures in place, including masks, increased
ventilation, ‘bubbles’ to limit contact and restrictions on school
visitors
• the cancellation of S4-6 exams, which were again replaced by
teacher assessment
• high levels of Covid-19-related pupil and staff absences (Exhibit 5.,
page 27) which made it hard for schools to offer continuity and
stability to pupils.
Emerging data is now evidencing the adverse effect the
pandemic has had on children and young people:
Educational attainment data is only available for primary school pupils.
Attainment has fallen in both literacy and numeracy and more so for
those pupils in the most deprived areas, meaning that the attainment
gap has widened. For example, the attainment gap in literacy has
increased from 22.1 to 24.7 percentage points.
We talk more about the negative impact the pandemic has had on
children and young people’s social and wellbeing, including on their
mental health, in paragraph 86.
Note 1. No data available for 2019/20
Source: See endnote 24
Risks and challenges
The pandemic has affected the comparability of education data for 2019/20
and 2020/21 when S4-6 exams were replaced with teacher assessed
grades. Our joint report, Improving outcomes for young people
through school education, noted the difficulties and risk this could cause
for councils in assessing and acting on the poverty related attainment gap.
Restrictions on school visitors have limited access for vital voluntary
sector support services, including preventative youth work: 34 per cent
of organisations that want access to school facilities do not have it. This
has a particular impact on those with additional support needs, who need
alternative supportive environments outside school.
Exhibit 8.
Education services continued to be disrupted throughout the second year of the pandemic
Disruption included:
• infection control measures in place, including masks, increased
ventilation, ‘bubbles’ to limit contact and restrictions on school
visitors
• the cancellation of S4-6 exams, which were again replaced by
teacher assessment
• high levels of Covid-19-related pupil and staff absences (Exhibit 5.,
page 27) which made it hard for schools to offer continuity and
stability to pupils.
Emerging data is now evidencing the adverse effect the
pandemic has had on children and young people:
Educational attainment data is only available for primary school pupils.
Attainment has fallen in both literacy and numeracy and more so for
those pupils in the most deprived areas, meaning that the attainment
gap has widened. For example, the attainment gap in literacy has
increased from 22.1 to 24.7 percentage points.
We talk more about the negative impact the pandemic has had on
children and young people’s social and wellbeing, including on their
mental health, in paragraph 86.
Percentage of pupils (P1, P4, P7 combined) achieving the
expected Curriculum for Excellence level in:
Literacy Numeracy
Gap between most deprived and least deprived
16/17 16/1720/21 20/2117/18 18/19 18/1917/18
66.9%72.3%69.2% 71.4% 74.7%79.1%78.4%76.4%
21.4pp16.8pp16.8pp17.6pp24.7pp20.7pp21.6pp22.1pp
19/20 19/20
1
Note 1. No data available for 2019/20
Source: See endnote 24
Local government in Scotland: Overview 2022 | 34 |
Risks and challenges
The pandemic has affected the comparability of education data for 2019/20
and 2020/21 when S4-6 exams were replaced with teacher assessed
grades. Our joint report, Improving outcomes for young people
through school education, noted the difficulties and risk this could cause
for councils in assessing and acting on the poverty related attainment gap.
Restrictions on school visitors have limited access for vital voluntary
sector support services, including preventative youth work: 34 per cent
of organisations that want access to school facilities do not have it. This
has a particular impact on those with additional support needs, who need
alternative supportive environments outside school.
Exhibit 8.
Education services continued to be disrupted throughout the second year of the pandemic
Disruption included:
• infection control measures in place, including masks, increased
ventilation, ‘bubbles’ to limit contact and restrictions on school
visitors
• the cancellation of S4-6 exams, which were again replaced by
teacher assessment
• high levels of Covid-19-related pupil and staff absences (Exhibit 5.,
page 27) which made it hard for schools to offer continuity and
stability to pupils.
Emerging data is now evidencing the adverse effect the
pandemic has had on children and young people:
Educational attainment data is only available for primary school pupils.
Attainment has fallen in both literacy and numeracy and more so for
those pupils in the most deprived areas, meaning that the attainment
gap has widened. For example, the attainment gap in literacy has
increased from 22.1 to 24.7 percentage points.
We talk more about the negative impact the pandemic has had on
children and young people’s social and wellbeing, including on their
mental health, in paragraph 86.
Percentage of pupils (P1, P4, P7 combined) achieving the
expected Curriculum for Excellence level in:
Literacy Numeracy
Gap between most deprived and least deprived
16/17 16/1720/21 20/2117/18 18/19 18/1917/18
66.9%72.3%69.2% 71.4% 74.7%79.1%78.4%76.4%
21.4pp16.8pp16.8pp17.6pp24.7pp20.7pp21.6pp22.1pp
19/20 19/20
1
Note 1. No data available for 2019/20
Source: See endnote 24
Local government in Scotland: Overview 2022 | 34 |Local government in Scotland: Overview 2022 | 34 |

Page 43

0
200
400
600
800
1,000
1,200
1,400
Jan 22
Dec 21
Nov 21
Oct 21
Sep 21
Aug 21
Jul 21
Jun 21
May 21
Apr 21
Mar 21
Feb 21
Jan 21
Dec 20
Nov 20
Oct 20
Sep 20
Aug 20
Jul 20
Jun 20
May 20
Apr 20
Mar 20
Feb 20
Jan 20
Dec 19
Nov 19
Oct 19
Sep 19
Aug 19
Jul 19
Jun 19
May 19
Apr 19
Mar 19
Feb 19
Jan 19
Dec 18
Nov 18
Oct 18
Sep 18
Aug 18
Jul 18
Jun 18
May 18
Apr 18
Mar 18
Feb 18
Jan 18
Dec 17
Nov 17
Oct 17
Sep 17
Aug 17
Jul 17
Jun 17
May 17
Apr 17
Mar 17
Feb 17
Jan 17
Dec 16
Nov 16
Oct 16
Sep 16
Aug 16
Jul 16
Health and social
care reasons
Patient and family
related reasons
Code 9 (complex)
April 2020
2017 2018 2020 20212019 2022
Jan Jan Jan Jan Jan Jan
Risks and challenges
The Scottish Government is planning significant reform of social care over
the next five years (paragraph 10) but, as we state in our social care
briefing, action is needed now to address critical issues and better meet
the needs of people relying on care and support.
The ongoing disruption means that unmet demand continues, and older
people, and adults and children with disabilities face a reduction in or
complete withdrawal of care and support in the home. The Scottish
Human Rights Commission has expressed significant concern that this
affects the human rights of these individuals. It highlighted the need to
invest in a social care system, based on human rights, that meets people’s
needs and improves outcomes.
Exhibit 9.
The pandemic has exacerbated ongoing challenges in social care
Delayed discharge Census by Delay Reason
Our Social care briefing outlined the immense pressure the social care
sector is facing. The pandemic has exacerbated the long-standing staffing
challenges, compounded by Brexit. This has increased workloads, leading
to staff burnout and high sickness absence levels, and risks limiting the
capacity to provide good quality, consistent care to citizens.
There is evidence of ongoing disruption with:
• reductions in home care packages because of staff shortages 
and tighter eligibility criteria for accessing care being applied to
manage demand
• many day centres and respite services still closed.
Unmet demand puts additional pressure on unpaid carers, who are
reporting increased feelings of anxiety, depression, and mental exhaustion.
Delayed discharges dropped significantly early in the pandemic, because
of a marked reduction in non-Covid-19 related admissions along with a
focused effort to get people of out hospital as quickly as possible. Delayed
discharges returned to pre-pandemic levels in September 2021 and remain
high reflecting the continued pressure in the system.
During strict restrictions, a rapid shift to digital tools allowed some staff to work
in more flexible ways and to provide some services remotely including some
online assessments and triage, and support and wellbeing check-ins through
technology enabled care.
Source: See endnote25
Local government in Scotland: Overview 2022 | 35 |

Page 44

0 400 800 1,200 1,600
Dumfries & Galloway 
Eilean Siar
Angus 
Scottish Borders 
Aberdeen City  
North Ayrshire 
Aberdeenshire 
Argyll & Bute 
Renfrewshire 
Glasgow 
West Dunbartonshire 
Fife 
Edinburgh 
Midlothian  
Inverclyde 
South Lanarkshire 
East Lothian  
Orkney 
East Renfrewshire 
Highlands  
Perth & Kinross 
North Lanarkshire 
East Ayrshire 
West Lothian  
Dundee 
Shetland 
East Dunbartonshire 
Stirling 
South Ayrshire 
Moray 
Falkirk  
Clackmannanshire 
-58%
-54%
-53%
-52%
-48%
-48%
-46%
-37%
-32%
-29%
-28%
-27%
-23%
-21%
-20%
-20%
-20%
-16%
-16%
-13%
-10%
-10%
-10%
-9%
-7%
-4%
-2%
0%
0%
0%
0%
0%
Exhibit 10.
Public library services continue to be disrupted following Covid-19 restrictions
Libraries could fully reopen in April 2021 with some social
distancing measures in place. However, most library services
were still operating a reduced service in early 2022, compared
to pre-pandemic. During lockdown many councils adapted and found
innovative ways to deliver library services to continue to support their
communities. Librarians across councils shared ideas.
Opening hours at 
end of February 2022
Opening hours 
pre-covid-19
Change in total library opening hours, 
pre-covid-19 and at end Feb 2022
Examples of innovative service adaptations include:
• enhanced digital offer; click and collect and home delivery
services; bespoke book selection; digital story-telling; online book
groups and contact calls to socially isolated elderly users.
Research found that engagement with library services had a positive
impact on wellbeing and building community connectedness.
Not all councils give reasons for continued reduced hours. 
Those that do cite: 
• staffing issues including high sickness absence or redeployment
• access issues such as the building being used for covid-19 testing,
restricted access arising from sharing space with schools or
buildings undergoing refurbishment.
Local government in Scotland: Overview 2022 | 36 |

Page 45

Exhibit 10. (continued)
Risks and challenges
Library services have faced declining investment. The ten years since
2010/11 saw a 29 per cent reduction in spend, yet the same period saw a
42 per cent growth in visit numbers (physical and virtual visits).
Some councils have plans to increase opening hours further. Other
councils were already reducing hours and the level of service before the
pandemic, and they have faced the most significant issues in recovering.
Library closures have shone a light on the extent of digital exclusion. It is
not clear that councils have fully assessed the impacts of closures and
reduced hours on communities and groups. And while the digital offer will
shape the future of library services, research shows the buildings are vital
as a safe, accessible, free, trusted and communal space in communities.
Source: See endnote26
Local government in Scotland: Overview 2022 | 37 |

Page 46

The impact of the pandemic and service disruption
has been felt most strongly by those communities and
citizens already experiencing inequalities
84. A substantial and growing body of evidence, mostly from research
at a national level on the ‘four harms of Covid-19’ – the direct impacts
of Covid-19, other health impacts, societal impacts and economic
impacts – shows that particular groups have been most affected. 
For example:
• People with disabilities have faced increased clinical risk from
Covid-19 as well as disruption to care services and social
connections.
• Minority ethnic communities have faced high clinical risk from
Covid-19 and increased risk of social and economic harm as a
result of pre-existing inequalities in employment, income and
opportunity.
• Those on low incomes and living in the most deprived
communities have faced worsening social and economic
inequalities, including digital exclusion, lower educational
attainment and increased financial hardship.
• Older people have faced increased clinical risk from Covid-19 and
are more likely to have experienced disruption to care services
and social connections.
• Women have been disproportionately affected both economically
and socially because of the increased childcare burden and
because they are more likely to be front-line workers and have
lower pay and insecure jobs.
85. For some, inequalities have worsened. Others are experiencing
inequalities for the first time. Those with intersectional characteristics,
that is people who fall into more than one group, and therefore
experience several disadvantages at the same time, have suffered the
most severe impacts. Councils’ recovery and renewal efforts need to
take account of worsening, new and overlapping disadvantage.
86. Mounting evidence suggests that the pandemic has had severe
social and wellbeing impacts on children and young people. This
includes developmental delays seen in the very youngest because of
increased social isolation, worsening mental health, a fall in educational
attainment, and young people’s increasing concerns about their job
prospects. Evidence also suggests that more children are presenting
with additional support needs or behavioural issues and that these
children are not always able to access services and get the support
they need because of a lack of staff capacity. The impacts are greatest
for children and young people in vulnerable groups and living in poverty.
87. Ongoing disruption to council services has meant that those most
in need of support are still experiencing that unequal impact.
Local government in Scotland: Overview 2022 | 38 |

Page 47

While councils recognise the disproportionate impact
the pandemic has had on different groups, they need
to learn lessons from taking early action and assess
the impact of service disruption to address longer-term
impacts
88. Early in the pandemic there was a huge collective effort to support
the most vulnerable, with more collaborative working at a local level, a
coordinated response with the voluntary sector and more place-based
and holistic approaches. As we highlighted in our 2021 report, councils
targeted their responses to support the most vulnerable. This included
supporting families and children living in poverty through the provision
of free school meals, distribution of digital devices, community food
initiatives, fuel poverty and period poverty initiatives, action to prevent
homelessness and eliminate rough sleeping, and online events and
programmes to support mental health and wellbeing.
89. As we move into the recovery phase, some evidence suggests
that councils are putting in place services to mitigate the impacts of the
pandemic on the groups most affected by:
• supporting employment and improving economic prospects for
women, minority ethnic groups and disabled people
• improving routes to employment and training for young people
• doing more to address the social isolation of older people and
people with disabilities.
Some councils are using lessons learned from the
pandemic to improve how they tackle vulnerability 
and inequality
90. The collaborative placed-based approaches, cross-council working
and community engagement that enabled the early response is informing
Dumfries and Galloway Council
In response to the pandemic four locality hubs were
established in Dumfries and Galloway to coordinate partner
and volunteer activity at the local level. Since then, the four
hubs have developed to become the recognised model for
local community planning in Dumfries and Galloway.
Another model that evolved from the council’s pandemic
response is the ‘single access to services’ model, known as
the single access point. This brings together different council
services and partner agencies in one multi-agency team to
ensure an efficient, clear and streamlined approach to assist
those who are vulnerable. The single access point model
will continue to evolve and the council is reviewing other
opportunities to develop this approach.
Source: Audit Scotland using information from Dumfries and
Galloway Council
Case study 4
new ways of tackling poverty and vulnerability. Several councils have since
adopted or adapted these service models to put in place a more holistic
approach to tackling inequality. (Case study 4)
Local government in Scotland: Overview 2022 | 39 |

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Data is a key tool in tackling inequality but there are
gaps in equality data, particularly at a local level
91. While councils recognise the disproportionate impact of the
pandemic on different groups, it is less clear how councils have
assessed how their changes in the way services are delivered, and the
pandemic more widely, have affected those most in need in their area.
92. There is still a lack of data and evidence at local level that would
allow councils to fully understand the adverse impacts of the pandemic
on different groups within their area and inform local plans. Most
council recovery plans and reports on mainstreaming equality cite
national report findings or increases in measures such as housing
applications, unemployment or complex case work, rather than local
equality data.
93. This problem is not unique to local government, and the Scottish
Government’s Equality Data Improvement Programme is working to
improve equality data, in particular data on overlapping inequalities, ie
intersectionality.
94. Some councils have used data well to understand the impacts 
of the pandemic on specific groups and the emerging needs. 
(Case study 5)
Glasgow City Council
Before the pandemic Glasgow City Council had been
gathering detailed data to enable it to better understand
the extent of child poverty in the city. The Council’s Centre
for Civic Innovation (CCI) took a ‘deep dive’ into the data
the council holds on recipients of Housing Benefit and
Council Tax reductions, as well data on kinship care and
education benefits. This work meant that the council was
able to measure the levels of relative child poverty before
the pandemic and in the middle of it.
The research found that in December 2020 at least 26 per
cent of children in Glasgow were living in relative poverty
compared with 24 per cent in February 2020. This equates
to at least 2,510 more children living in poverty and 27,995
children overall. This data profiling and analysis is unique
to Glasgow, and it provides a detailed ‘snapshot’ of families
that will help the council to map and understand the impact
of interventions to reduce child poverty.
Source: Audit Scotland using information from Glasgow City
Council 
Case study 5
Local government in Scotland: Overview 2022 | 40 |

Page 49

Meeting local needs: collaboration and communities
The early response phase showed what could be achieved by working closely with communities and the
voluntary sector. This momentum may be lost if they are not involved in shaping recovery.
Collaboration has enabled new relationships and more
effective ways of working but communities and local
partners need to be more involved in recovery
95. Our report Local government in Scotland: Overview 2021
showed how communities and the voluntary sector were a vital asset
in the response phase. Collaborative working enabled vulnerable
citizens most in need to be speedily supported through initiatives such
as community hubs.
96. In October 2021, Audit Scotland published Community
empowerment: Covid-19 update, bringing together the learning points
from the community response to the pandemic to help public bodies
develop their longer-term approaches to supporting and empowering
communities. The briefing outlines key learning points under the five
principles for community empowerment: community control, leadership
on community empowerment, effective relationships, improving
outcomes and accountability.
97. Assistance was most effectively provided in areas where
local engagement and collaboration with local groups was already
established before the pandemic. Greater flexibility, trusting
relationships, relaxation of bureaucracy and autonomy in decision
making enabled the public sector to work with communities and
voluntary organisations and deploy support quickly. (Case study 6)
Fife Council
Fife Council introduced multi-disciplinary teams to respond
to the pandemic. Teams composed of council staff and
partners worked well together to respond quickly and
effectively to meet the needs of Fife residents. The council
is focused on learning from the success of these groups as
it aims to ‘build back better’ and renew its public services.
Reforming how it works collaboratively with partners and
communities and focusing on people and place is seen as
critical to sustaining the sense of common purpose brought
about by the pandemic.
As part of the Plan for Fife, the council has established
People and Place Leadership Groups across its seven areas.
The council sees these groups as an initial step forward
from the team working that evolved during the pandemic
response. The council sees these groups as a fundamental
part of driving community wealth building as the council
aims to create a fairer, more socially just economy.
Source: Audit Scotland using information from Fife Council 
Case study 6
Local government in Scotland: Overview 2022 | 41 |

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There is limited evidence of direct community input
driving recovery actions and more needs to be done
98. Some councils are seeking the views and experiences of citizens
and communities to inform recovery and learn from their experiences
(Case study 2, page 17) (Case study 7). But there is limited
evidence of direct community input driving recovery actions or
meaningfully reshaping services.
99.  Councils need dialogue and involvement of communities and the
voluntary sector in planning service priorities and delivering support
to vulnerable groups. More flexible governance and decision-making
structures will be needed to make community participation easier.
100. Some councils have set up models of co-production. There are
examples of joint work with youth councils to develop services for
young people.
Voluntary sector organisations are facing pressures
that could threaten their ability to deliver services to
vulnerable people who rely on them
101. Throughout the pandemic voluntary sector organisations have
lost income, while demand for their services has increased. A Scottish
Council for Voluntary Organisations (SCVO) report found that 57 per
cent of surveyed organisations saw increased demand for their services
while almost half faced financial issues, as uncertainty over annual
funding makes it difficult to plan for the future.27
Aberdeenshire Council
Case study 7
Aberdeenshire Council carried out a community impact
assessment (CIA) in the summer of 2020. The CIA included
an online survey of the local community asking about
the impact of the pandemic and the council’s response
during its early stages. On reporting the findings, the
council acknowledged that there was a need for further
engagement and feedback from harder-to-reach, more
vulnerable groups. 
The council then engaged with several groups and
individuals most likely to be affected negatively by existing
inequalities. The final report, Aberdeenshire Voices on the
Pandemic: Same storm, different boats, includes insight
from low-income households, care home residents, the
recovery community and New Scots and volunteers.
The themes covered in the report include digital exclusion,
access to food, home-schooling challenges and impacts on
mental wellbeing. Local voices from Aberdeenshire have
also been included in the national report If Not Now, 
When?, published by the Social Renewal Advisory Board 
in January 2021.
Source: Audit Scotland using information from
Aberdeenshire Council
Local government in Scotland: Overview 2022 | 42 |

Page 51

102. Organisations providing support to children and young people,
from early years to youth work services, are also facing barriers to
delivering their services.28 A lack of staff capacity, increased demand,
and lack of access to premises to deliver services (of those voluntary
sector organisations wishing to access local authority premises 65 per
cent say they have no access) is affecting delivery of a range 
of services.
103. A collaborative, place-based approach has been essential in
supporting communities during the pandemic and mitigating the harm
caused. Voluntary sector organisations have been a vital component
of this, and councils and the Scottish Government need to do more to
make sure they can continue to deliver services to those that 
need them.
Councils worked well with their community planning
partners in the response phase, but they need clearer
plans for the future
104. Councils worked with their partners in planning, sharing data and
information, and coordinating the response to the pandemic. Some of
this joint working is continuing with community planning partnerships
working together to revise their Local Outcomes Improvement 
Plans to take account of recovery, and this collaborative working 
should continue.
South Ayrshire Council
South Ayrshire Council worked with partners to provide
support to vulnerable communities during the pandemic 
by creating the Ayrshire Resilience Partnership.
This group included the Ayrshire councils’ chief executives,
along with representatives from health, police, and fire
services. It established close working relationships with
business and local voluntary groups to deliver a range of
services and support.
Source: Audit Scotland using information from South
Ayrshire Council
Case study 8
Local government in Scotland: Overview 2022 | 43 |

Page 52

• While some progress has been made in improving the use of data in decision-making, councils need to have a clear
sense of where increased demand and service backlogs exist so that they can identify areas of high risk and direct
resources accordingly. This information also needs to be more transparent and publicly available.
• A key priority for councils’ recovery and renewal is assessing the impact of the pandemic and service disruption on
the most vulnerable and learning from this to inform how they support those most affected and address inequalities.
This will need better local data to improve understanding.
• Where councils plan to continue with the changes made to services during the pandemic, they need to conduct
impact assessments and consult the community. With the expansion of digital services, councils need to assess and
mitigate the impacts of digital exclusion.
• Councils need to ensure that partnership working forged in the pandemic with their communities, partners and the
voluntary sector remains in place. They also need to learn what made it work and harness this to transform future
engagement. The momentum and energy from communities may be lost if public bodies don’t capitalise on what has
been achieved.
Meeting local needs: recommendations
Actions for leadership
Local government in Scotland: Overview 2022 | 44 |

Page 53

1 Consultation response: A National Care Service for Scotland, Audit Scotland, Nov 2021
2 What is happening with the new Shared Prosperity Fund? – SPICe Spotlight, Jun 2021
3 Blueprint for Scottish Local Government, COSLA, Sep 2020
4 Public sector leadership on the global climate emergency: guidance, Scottish Government, Oct 2021
5 Projected Population of Scotland (Interim) 2020-based, National Records of Scotland, Jan 2022
6 Life Expectancy in Scotland, 2018-2020: Infographic Summary, National Records of Scotland, Sep 2021
7 Healthy Life Expectancy 2018-2020, Infographic Summary, National Records of Scotland, Feb 2022
8 LGBF Benchmarking Overview Report 2020-21, Improvement Service, Mar 2022
9 Energy Action Scotland news release, Mar 2022
10 Covid Recovery Strategy: for a fairer future, Scottish Government, Oct 2021
11 Audit Scotland blog: Christie - it really is now or never, Oct 2021
12 Elected Member Briefing Note: Community Wealth Building, Improvement Service, Sep 2020
13 Improvement Service - Public Service Improvement Framework
14 LGBF Benchmarking Overview Report 2020-21, Improvement Service, Mar 2022
15 Scottish local government during Covid-19: Data needs, capabilities, and uses, UBDC, May 2021
16 Digital progress in local government, Audit Scotland, Jan 2021
17 Fiscal Framework and Local Government letter, LGHP committee, Scottish Parliament, Dec 2021
18 Consumer price inflation, UK: Jan 2022, Office for National Statistics, Feb 2022
19 Society of Personnel and Development Scotland
20 The longer-term shift to hybrid working: Implications for local government, LGIU, Oct 2021
21 Society of Personnel and Development Scotland
22 Workforce Planning, Improvement Service
23 Report on the impact of the Covid-19 pandemic on equalities and human rights, Scottish Parliament, Mar 2021
Endnotes
Local government in Scotland: Overview 2022 | 45 |

Page 54

Endnotes
24  Audit Scotland using information from Achievement of Curriculum for Excellence Levels 2020-21; the Improvement Service, Minutes from the
Coronavirus (COVID 19): Advisory Sub-Group on Education and Children’s Issues and Cross Party Group: Children and young people
pandemic survey 2022, Scottish Parliament, Feb 2022
25  Audit Scotland using information from: PHS delayed discharges census table, January 2022; Briefing: Learning from changes to social care
during the Covid-19 pandemic, The Alliance; Covid-19, Social Care and Human Rights, SHRC Monitoring Report; State of Caring report, Carers
Scotland news release, Oct 2021; BBC research, February 2022; Health and Sport Committee evidence session, November 2021.
26  Audit Scotland using information from SLIC and additional data from councils; LGBF Benchmarking Overview Report 2020-21, Improvement Service,
Mar 2022 Libraries in lockdown: Scottish public libraries and their role in community cohesion and resilience during lockdown
27 The Scottish Third Sector Tracker, SCVO, Nov 2021
28 Cross Party Group: Children and young people pandemic survey 2022, Scottish Parliament, Feb 2022
Local government in Scotland: Overview 2022 | 46 |

Page 55

Local government in
Scotland
Overview 2022
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