It is now clear that the trimming they have undertaken so far will not be sufficient for the radical cuts required over the next three years to overcome the double whammy of decreased funding and growing demand for services.

The need for a 25% to 35% reduction in costs by local authorities identified by accountants Pricewaterhouse-Coopers will come as a shock to many council employees. As the result of an examination of the spending of 20 of the largest authorities in England as well as Scotland, it does not take account of all local variations. For example, the prediction of a significant move from private to local authority schools is unlikely to be as significant in Scotland. However, other trends, such as an increase in the care budget due to the growing number of elderly people and fewer paying for private care as a result of the financial downturn, will impact across the board.

The central analysis, that the way to tackle the problem is with radical action now, is the correct one. Some of the ideas put forward in the PwC report, such as charging for services which have long been free, will be particularly unpalatable in Scotland’s council chambers. Nevertheless, there is already a recognition that the looming funding gap makes this the time to think the previously unthinkable. The eight councils around the Clyde Valley which are currently exploring ways of amalgamating back-office functions deserve credit for breaking down barriers, not only between council fiefdoms, but in related areas such as health boards and emergency services. Councils across the land are engaged in different forms of staff reduction, but the trick will be to achieve savings while protecting the quality of essential services. With that focus, the financial crisis could at least be turned into an opportunity for improving efficiency.