22 February 2008
Councils need to make significant improvements in performance management, Scotland's public sector watchdog has warned.
In a report published this week, Audit Scotland acknowledged progress but called for changes in key areas.
'There remains an urgent need to improve performance management, including robust challenge and balanced public performance reporting,' the watchdog stated. This was particularly important in the light of the outcomes-based approach agreed between councils and the Scottish government.
The report added: 'Councils still have some way to go in producing good quality management information… This limits audit's ability to provide an overview of performance across services.'
The report, Overview of the local authority audits 2007, recognises the changes that have taken place in local government – including the election of councils by proportional representation and the impact of a Scottish National Party administration at Holyrood.
The Scottish government and the Convention of Scottish Local Authorities have entered into a concordat which includes a council tax freeze and the development of a single outcome agreement.
Professor John Baillie, chair of the Accounts Commission, responsible for local authority audit in Scotland, welcomed the improvements in local government, especially increases in the amount of waste recycled (up to more than 28%) and higher council tax collection rates (93.8% in 2006/07).
He said: 'But the drive for continuous improvement in services continues and there are ongoing pressures on resources.
'For example, councils need to improve performance management significantly to enable them to show whether they are improving services.'
Councils are also urged in the report to do more to support and develop leadership skills and capacity, demonstrate the benefits of community planning, take a more strategic approach to resources and make a stronger commitment to testing the competitiveness of their services.
The overall financial reserves of councils are shown to have been restored to the levels of two years ago but Audit Scotland said there were wide variations among councils. Accounts at March 31, 2007 showed total reserves standing at £1.1bn, up from £0.9bn at the end of the previous year.
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