Dundee City Council Criticised for Financial Mismanagement in Health and Social Care Spending
Dundee City Integration Joint Board (IJB) is facing scrutiny following revelations of significant overspending, ongoing reliance on reserves, and a projected cumulative funding gap of £46 million by 2028/29. A recent audit by Audit Scotland highlighted persistent financial mismanagement and a lack of robust long-term planning, raising serious concerns about the Council's ability to deliver health and social care services sustainably.
The IJB’s financial report for 2023/24 revealed an operational overspend of £0.7 million against its revised budget, despite the planned use of £3 million in general reserves. The reserves balance has dwindled to £17.8 million, falling below the board's policy of maintaining at least 2% of net expenditure as uncommitted reserves. With only £6.8 million left in uncommitted reserves, the board faces a precarious financial future.
Looking ahead, the IJB forecasts an operational overspend of £9 million for 2024/25, necessitating further use of reserves. If this trend continues, reserves will be almost entirely depleted by March 2025, a sobering prospect for an organisation tasked with managing critical health and social care services.
The board’s long-term financial outlook is even bleaker, with a predicted cumulative funding gap of £46 million by 2028/29. This alarming figure underscores a systemic failure to align spending with available resources. Although the board has developed a Financial Recovery Plan, critics argue that it falls short of addressing the root causes of the funding crisis.
The reliance on one-off savings and reserve use demonstrates a lack of proactive financial planning. Instead of implementing sustainable solutions, the Council appears to be lurching from one financial crisis to another.
The IJB has been operating without a permanent Chief Officer since October 2024, following the retirement of the previous incumbent. Acting appointments have ensured continuity, but the absence of a dedicated leader has raised questions about the board’s ability to tackle the mounting financial and operational challenges. Audit Scotland’s report emphasised the urgency of appointing a permanent Chief Officer to provide clear and consistent leadership.
The audit also pointed to declining performance outcomes in key areas. Of seven national indicators, four showed worse performance in 2023/24 than the previous year, with only two indicators surpassing the Scottish average. A similar trend was observed in the biennial Health and Care Experience survey, where six of nine indicators showed deterioration compared to 2021/22.
These findings raise questions about whether taxpayers are receiving value for money. Despite increased spending in some areas, performance is stagnating or even declining, highlighting inefficiencies in resource allocation and service delivery.
While the financial pressures are undeniable, critics have questioned the Council’s spending priorities. For instance, significant funds are spent on administrative overheads and high-level staff salaries, while frontline services remain under-resourced. The IJB’s ongoing reliance on external consultants and costly temporary measures further underscores a lack of strategic vision.
Some residents have voiced frustration at what they perceive as wasteful spending. “How can the Council justify this level of mismanagement when essential services are being cut or scaled back?” one Dundee resident remarked.
Audit Scotland’s report called for a more robust approach to financial management, urging the Council and the IJB to adopt transformational changes and collaborate effectively with partners and communities. Critics argue that these recommendations, while necessary, should have been implemented years ago.
The lack of accountability and forward planning has left many questioning whether the Council is fit to manage health and social care services. Without significant reforms, the financial situation is likely to worsen, with potentially devastating consequences for Dundee’s most vulnerable residents.
The Council’s ability to overcome these challenges will depend on its willingness to make difficult decisions. This includes implementing a comprehensive Transformation Programme to redesign services, reducing reliance on reserves, and addressing inefficiencies in resource use.
Equally important is the need for transparent communication with the public. Residents deserve to know how their money is being spent and what steps are being taken to ensure long-term sustainability.
The findings of the Audit Scotland report should serve as a wake-up call for Dundee City Council and the IJB. Without immediate and decisive action, the board risks not only financial collapse but also the erosion of public trust.
The next few years will be critical in determining whether Dundee can address its financial mismanagement and restore stability to its health and social care services. For now, however, the city’s leadership has much to answer for.
