'Bleak' outlook for council cash

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Scottish council chiefs have warned of serious budget cuts ahead, amid a "much bleaker" outlook for public spending.

Local authority group Cosla also said efficiency savings alone would not make up for smaller budgets in the future.

The concerns came as a Scottish Parliament inquiry on local government spending continued.

The Scottish Government has warned Westminster efficiency savings mean £500m being cut off the Holyrood budget - a claim denied by Labour.

In a submission to Holyrood's local government committee Cosla said Scotland's 32 councils had played their part in being more efficient - making £726m of cash savings since 2005.

'Bridge the gap'

But the body warned there was growing pressure to deliver services such as child protection and free care for the elderly amid "sharp reductions in real budgets".

"Looking forward to next year and to the next spending review, the financial picture is much bleaker," the Cosla statement said.

"Independent scenarios suggest real reduction in public spending of between 6.7% and 11.4%.

"Under these circumstances, efficiency savings achieved through improvement or shared services will need to be taken out of budget, rather than redeployed."

Cosla went on to warn: "It is unlikely that, in and of itself, ongoing efficiency and shared service effort can bridge the gap between declining real resources and rising demand."