Midlothian Council told to make 'difficult decisions' in financial report
The Accounts Commission has been looking at the local authority's budget
A new report warns Midlothian Council 'urgently' needs to deal with a £14.5million budget shortfall.
The report, prepared for the Accounts Commission by Audit Scotland, says changes need to be made over the next two years so it can ensure funding for services in the future.
The spending watchdog says in recent years the local authority has used funding reserves rather than make difficult spending decisions.
Accounts Commission member Tim McKay said: "Midlothian needs to address the significant challenges it faces - the cumulative funding gap and the additional pressures from a fast-expanding population.
"The council has a good record of working with its partners and local communities. This will help in supporting a medium-term strategy and transformation programme to get its finances and services in good shape for the future."
The study also notes the region is experiencing a projected 13 per cent rise in its population by 2026, which is the fastest rise in the country.
In response, the local authority says it is welcoming the findings.
Council Leader, Councillor Derek Milligan said: “The report rightly points out that, with the fastest growing population in Scotland, Midlothian Council faces an increasing funding gap and significant financial challenges."
“In recently agreeing a new medium term financial strategy, the council has already taken steps to address a number of these key issues and is putting robust plans in place to bring about the transformation in services that is now needed, said Councillor Milligan.
“We have not drawn on our reserves to balance our budget over the last two years as is suggested here, and indeed this year we have come in under budget.
"When it comes to showing better leadership, the Best Value report is actually highlighting the need for closer working between the three political groups – something that we have already addressed in developing our new financial strategy.
“The council is aware of where it needs to improve and we are focused on working with our communities to meet our key priorities."