Scotland’s councils are facing mounting financial pressure as the cost of delivering services rises faster than the funding available. In its latest update on council finances, the Commission said councils are overspending on service delivery and increasingly relying on borrowing and reserves. However, for the first time in six years, they reported a collective overspend on the cost of delivering services. Councils must fundamentally reconfigure how they operate and deliver services.”Cosla, the umbrella body for Scotland’s 32 local authorities, said the findings underlined the scale of the challenge facing councils. “As we look ahead to 2026/27, the budget settlement falls far short of what is needed to sustain essential local services without difficult decisions being made locally.