Dumfries and Galloway budget crisis leads council to use reserves
Council steps in as health budget crisis continues
Last updated 8th Jun 2026
Dumfries and Galloway Council has been forced to raid its reserves to plug a £9.5 million financial black hole left by the region’s struggling health and social care partnership.
The Integration Joint Board (IJB), which oversees health and social care services across Dumfries and Galloway, overspent its budget by £9.497 million in 2025/26 — leaving the council with no choice but to step in and foot the bill.
The council’s finance and accounting manager, Gillian Ross, has set out the stark financial position in a report going before the enabling and customer services committee next week.
She explained that the initial projected overspend was £12.5 million and savings measures have reduced debts by around £3 million.
The finance chief wrote: “While significant progress to reduce costs has been made by the service across a number of areas, the extent of year-end overspending remained significant at £9.497 million, with the main areas of pressure continuing to be experienced in relation to the provision of care and support to individuals under 65 years of age with complex care needs.”
To meet the £9.5 million shortfall, the council will draw on a combination of in-year corporate savings — including reduced energy bills, increased council tax collection and government funding for waste management — totalling £6.489 million.
The remaining £3.022 million has been taken directly from the council’s reserves.
The contribution to the IJB will not be paid back.
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It is the latest blow for a health and social care system that councillors declared an emergency over in December 2025, when a £58 million funding shortfall across the partnership was revealed.
At that time, Castle Douglas and Crocketford Councillor Pauline Drysdale warned that transformation of health and social care in the region was “not optional, it is essential,” describing the situation as a “social crisis.”
Lochar Councillor Linda Dorward has also raised concerns about a lack of IJB funding from the Scottish Government on multiple occasions, describing it as “a lack of compassion for our most vulnerable citizens.”
Gillian Ross acknowledges in her report that “the amounts available to support overall corporate financial management remain at a reasonable level”, but warns that the purse strings will be tightened for the remainder of the year – and that regular monitoring reports will be required to control spending.
In February this year, Scotland’s public services watchdog warned that integration joint boards (IJBs) and their NHS and council partners must take urgent decisions on redesigning, reducing or discontinuing services if they are not to run out of money.
The Accounts Commission released a report which stated that funding for Scotland’s health and social care partnerships is insufficient to meet the rising costs of supporting the growing number of people with long-term, complex needs.
Meanwhile, the council’s own services — excluding those delegated to the IJB — came in with a small underspend of £1.649 million.
Education came in under budget, partly due to lower than expected uptake of early learning and childcare places, while leisure and sport income exceeded targets, particularly at facilities in the west of the region.
Transport costs for children with additional support needs continued to cause problems, with an overspend of £320,000 even after additional funding was allocated.
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