Total useable reserves as a % of council annual budgeted revenue

As demand for services is increasing and cost pressures are rising, local authorities are facing higher levels of scrutiny over their decision-making and financial management strategies. Robust scrutiny is a core step towards financial decisions that best serve our organisations and our communities. Central to balancing the budget gap has to be a clear understanding of possible areas of financial risk, and how these can be responded to.

Creating a common set of financial sustainability measures which are comparable across all Scottish local authorities will support robust discussions around financial decision making and on the robustness of budgets.

Year on year increase is largely due to increase in Capital Grants & Receipts Unapplied Account, only a small element of which is usable. In addition, there were increases in General Fund, Renewal & Repair Fund and Insurance Fund. Despite the increase, we are still below the Scottish average of 16.9%.