Dumfries and Galloway Council is setting out how it will plan for growing financial pressures and manage change to support sustainable services over the coming years.
When Full Council meets on Thursday 24 September, councillors will be asked to consider a Medium Term Financial Strategy and a Transformation and Change Programme. Together, the reports will support longer-term financial planning and provide clearer oversight of council-wide change.
The financial strategy estimates that the council could face a funding gap of around £42 million over the next three years, rising to around £74 million over five years, before further savings or Council Tax increases are taken into account.
Increasing demand, rising costs and continued pressure on public finances are creating major challenges for councils across Scotland.
The Medium Term Financial Strategy covers the five years from 2027/28 to 2031/32. It is intended to support long-term planning and inform future budget decisions by setting out the financial pressures, assumptions and potential funding gaps facing the council.
The figures are projections and could change significantly as information about funding, inflation, pay, demand and other pressures becomes clearer. They will be monitored and updated through the council’s annual budget-setting process.
The reports do not ask councillors to approve the implementation of individual service changes. Detailed proposals would be considered separately, with consultation and assessment of their effects before final decisions are made.
Councillors will also be asked to agree a Transformation and Change Programme covering the period from 2026 to 2030. This would bring existing and proposed change activity into one programme, with clearer oversight, regular reporting and opportunities for councillors to examine progress through service committees and Full Council.
The programme would support work to redesign and improve services, make better use of technology and resources, strengthen prevention and early intervention and work differently with communities and partners.
Transformation is one part of the council’s response to its financial position, not the complete solution. Future budget decisions are also likely to require councillors to consider savings, service priorities, income and other measures as the financial projections are updated.
Convener of Dumfries and Galloway Council, Councillor Tracey Little, said:
“Like councils across Scotland, we face significant financial challenges caused by increasing demand for services, rising costs and continued pressure on public finances.
“These reports are about planning ahead and being open about the scale of the challenge. The figures are projections rather than final budget decisions, but they give us a clear indication of the position we must prepare for.
“Our Transformation and Change Programme is not the whole solution. It would provide a clearer framework for managing change, improving services and making the best possible use of our resources, alongside the wider choices councillors will need to consider through future budget processes.
“There is also a wider national context. The Scottish Government’s Programme for Government highlighted the need for public service reform and announced engagement on the future shape of local government and public services.
“We will continue to work with COSLA, the Scottish Government and our local partners to understand and influence that national discussion. At the same time, we must ensure our council plans responsibly and remains focussed on the needs of the people and communities of Dumfries and Galloway.”
The meeting papers are available on the council’s website at Agenda for Dumfries and Galloway Council on Thursday, 24th September, 2026, 10.45 am | Dumfries and Galloway Council.