COUNCIL chiefs in Argyll and Bute have called for "fair funding" from the Scottish Government after a report laid bare the financial challenges facing councils.

Officials from the authority were reacting to a document by the Accounts Commission which said that councils must change how they operate to continue and improve key services.

Argyll and Bute Council recently forecast a total budget gap for the next five years of nearly £23.8million, with a gap of £6.7m currently forecast for the 2024/25 financial year.

The Accounts Commission identified four areas across Scotland where performance was “at risk or declining”: adult social care, housing and homelessness, environmental services and culture and leisure.

Tim McKay, the Accounts Commission’s acting chair, said: “The New Deal for local government, agreed between the Scottish Government and COSLA (Convention of Scottish Local Authorities), is long overdue.

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“Putting this in place will give councils longer-term financial stability, supporting them to make decisions and make the fundamental changes that are urgently needed.

“Councils have gone beyond the point where making savings is enough. If the change needed doesn’t happen now, some services will continue to get worse or deeper cuts will be made.

“This will impact communities and individuals that are already at crisis point with the effects of inequality and persistently high poverty.

“Councils need to have open and honest conversations with their communities and staff about the future of council services.”

An Argyll and Bute Council spokesperson said: “Local government has been at the forefront of transformation and public reform for a long time and we will continue to do so, working with key partners to deliver positive outcomes for Argyll and Bute.

“This council along with many others has already made significant efficiencies in response to ongoing budget cuts over the last decade.

"It’s reassuring that the report recognises the huge challenges that we continue to face due to budget constraints and increased cost pressures.

“It is essential that the new local government deal sets out a collaborative working relationship with the Scottish Government, with fair funding so we can continue to deliver critical public services for our residents.”