The Highland Council seeks meeting with First Minister on future of public sector reform

Published: 17 September 2026

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Decision taken a Highland Council on 17 September 2026

The Highland Council has requested a meeting with the First Minister to discuss the Scottish Government’s Programme for Government and how public sector reform can best support communities across the Highlands. 

The Council is well placed to shape the national conversation on local governance in Scotland because of its experience combining strategic regional leadership with a strong commitment to local decision-making through its area committee structure and support for over 150 community councils. 

The Convener and Leader have asked for early engagement with the Scottish Government to ensure the Council’s perspective is taken on board as part of the discussions. 

Earlier this month the First Minister announced a Programme for Government, which included a review of local governance, reform of NHS health boards, and rationalisation of public bodies.  

Convener of The Highland Council, Councillor Bill Lobban, said: “We recognise that public services must continue to evolve to meet changing demands, demographic pressures and ongoing financial challenges, but it is essential we are an active partner in shaping that. The Highland Council can make a valuable contribution to the discussion as we already operate on a regional scale that enables strategic investment and solutions to regional problems, while strengthening local democratic accountability through our area committee structure.  

“We are keen to engage positively and constructively with the Scottish Government to share our learning and explore how councils can be given more powers, flexibilities and economic levers to support growth and improve outcomes for local communities. 

"Our ambition is to build on the significant progress made in recent years and ensure that any future reforms strengthen local decision-making, protect democratic accountability and provide the flexibility needed to meet the distinct needs of Highland communities. 

“As these discussions progress, it will also be important to ensure future funding properly reflects the challenges and opportunities of serving an urban centre and large rural area.” 

Governance model 

The Council already demonstrates much of the characteristics being highlighted in national discussions on public sector reform, balancing the benefits of operating at a regional scale with local decision making and delivering sustainable outcomes for communities.  

It has also been recognised by Audit Scotland for its transformational approach to improving services and managing finances sustainably in the context of contracting budgets (Best Value Report, 2025). 

At Thursday’s meeting of The Highland Council, councillors heard examples of how the scale, flexibility and powers of being a regional local authority had enabled the Council to deliver significant projects and investments, including:  

  • The Highland Investment Plan, a £2.1 billion, 20-year capital investment programme to improve schools, roads and local infrastructure across the Highlands.  
  • The Highland Housing Challenge Action Plan, which aims to deliver 25,000 homes in the region over the next decade to meet local housing need. 
  • The Invest Highland investment prospectus and website, which showcases region-wide strategic infrastructure opportunities, alongside local development priorities and community-led place plans.  
  • The Social Value Charter, which has secured private sector investment commitments from the renewables industry worth more than £6 billion for the Highlands. 
  • More than £30 million additional investment by the Council in social care services over the past three years to support delivery by NHS Highland under the Lead Agency model. 
  • Development of visitor experiences like An Stòr to support the visitor economy and raise additional income for local infrastructure improvements. 
  • Investment in sustainable bus travel to support connectivity and community resilience across the Highlands. 

In addition to the work of local area committees, the Council is aiming to strengthen local-decision making through its Future Operating Model. Backed by £2 million of annual investment, the aim of the programme is to make it easier for people to access services in their local communities, improve partnership working across services and partners, and enable more people to live and work in rural areas by making best use of council space, infrastructure and digital technology. 

Social care reform 

Elected members also discussed the implications for health and social care services under the Programme for Government and agreed to pause its current review of its Lead Agency delivery model until there is clarity from the Scottish Government on its plans for social care. 

Currently, NHS Highland delivers adult services on behalf of the Council, and the Council deliver some children’s health services on behalf of the health board. The First Minister has indicated NHS should have greater accountability across Scotland for social care. 

It had been intended to consult publicly about how best to deliver integration of health and social care services in Highland. Planned stakeholder events will continue to take place in October on the Highland Outcome Improvement Plan.  

Cllr Lobban added: “We are disappointed that the Scottish Government’s announcement means we now have to pause our current consultation with NHS Highland about the best way to deliver these services. However, it’s important we have clarity for our staff and service users about what options may remain open to us before we engage further on the specifics of the review.” 

A further report on the Programme for Government and implications for the Highland Council will be brought back to December’s meeting of The Highland Council.