The council’s significant health and social care overspends are deemed unsustainable, necessitating £46 million in savings by 2027/28.

The council will have to significantly change how it delivers services to make the savings needed. Added to this, the council’s money set aside for contingencies dipped below its rolling three-year target. This will need to be monitored.

The council has some strong foundations for the future. This includes strong engagement with local communities. It is also implementing some innovative solutions to address its workforce challenges and is developing three-year plans across all services to deliver change. Now the council should review its Medium-Term Financial Strategy to take into account the impact of these plans and provide transparency in how reserves will be used in the future.

Andrew Burns, deputy chair of the Accounts Commission, said: “Fife Council has reached a turning point. Significant change needs to happen now to ensure the sustainability of services and so the council can continue to balance its books. Tough decisions lie ahead.

“The council has excellent engagement with local communities and strong working relationships across councillors of all parties. It must now build on these strengths, working with communities to develop clear plans on how significant savings and changes to the delivery of services can be made.”