Council to foot £9.5m healthcare bill in bail out

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 for councillors.

She explained the initial projected overspend was £12.5 million and savings measures have reduced debts by around £3 million, adding: “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 with complex care needs.”

To meet the shortfall, the council will draw on a combination of 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 their reserves.

The contribution to the IJB will not be paid back.

It is the latest blow for a health and social care system that councillors declared an emergency over in December, when a £58 million funding shortfall across the partnership was revealed.

At that time, 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.”

Councillor Linda Dorward has also raised concerns about a lack of IJB funding from the Scottish Government on multiple occasions.

Gillian Ross’ report acknowledges “the amounts available to support overall corporate financial management remain at a reasonable level”, but warns the purse strings will be tightened for the remainder of the year – and regular monitoring reports will be required to control spending.

In February, Scotland’s public services watchdog warned that integration joint boards 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.

And the Accounts Commission stated that funding for health and social care partnerships is insufficient to meet the rising costs of supporting growing numbers with long-term, complex needs.