Extra funding provided to Edinburgh by the Scottish Government is to be used to pay for “service change and transformation” at the city council.
The council is to benefit from a £15 million surplus in 2012/13 after the government ruled that no council’s funding should fall below 85 per cent of the Scottish average per head of population – effectively handing the Capital an extra £22m a year.
But a new report on the council’s finances has also confirmed that the authority will still face a £10.3m funding gap in 2013/14, widening to £40.8m in 2014/15.
Alastair Maclean, director of corporate governance at the council, said: “Given the growing deficit projection for 2013/14 and beyond, and the general economic outlook, it is important that any additional resources are applied in a manner which helps to secure future financial stability.
“In order to achieve this, it is recommended that these resources are used to enable service change and transformation so that resources are shifted towards priority outcomes and delivery of future savings.”