Accounts Commission commends Highland Council's culture of transformation

27th June 2025

Members of the meeting of The Highland Council (26 June 2025) have considered and agreed the Accounts Commission's Best Value report, which was published in April 2025 and highlights organisational improvements across leadership, performance management and community engagement.

In April’s report, the Accounts Commission recognised and welcomed significant progress within the organisation since the 2020 Best Value Assurance Report (BVAR) and commended the embedded culture of transformation. The report noted however that the Council would have to maintain momentum and continue identifying transformation opportunities.

These points were acknowledged in the first annual progress report for the Operational Delivery Plan approved by Council on 15 May 2025. Highlights from the progress report which sets out the transformation programme included: 95% of the planned savings of £27.6m will have been delivered (excluding those savings associated with adult social care); the significant level of staff engagement undertaken within the organisation, along with examples of innovative approaches to income generation.

Convener of the Council Cllr Bill Lobban said: "Whilst the Accounts Commission’s report covers financial management and sustainability, a significant point which it did not reference is that the Council’s 2025/26 budget does not make use of any reserves to meet the revenue gap. This was important to us, as it ensures the Council’s financial sustainability. We are here for people for the long haul."

“Highland faces unique geographic challenges, with central government funding failing to account for the fact that we deliver services across a vast remote and rural area. Elected members therefore need to make tough decisions when it comes to setting the budget. The £12.9m worth of additional savings that were approved will enable strategic investment of £14m in energy and transport, planning for the needs of the next generation.”

The Council’s response to the report provides assurance that the organisation’s borrowing, savings and investment of council tax revenues remains an affordable, prudent and sustainable way to fund the necessary transformation, without requiring the use of reserves to fund revenue gaps.

The Accounts Commission’s report has concluded that appropriate and effective financial management arrangements are in place.

 

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