Scottish local councils face 'tough spending decisions' 28 March 2013 Last updated at 00:37 Councils may have to reintroduce proposals they previously ruled out as they try to balance their budgets, according to the Accounts Commission. Scotland's public sector watchdog said most councils had predicted substantial funding gaps over the next three years. It said the 32 local authorities would need to do more with fewer resources. Last month, councils voted through their spending plans, which could see millions of pounds worth of cuts to services and job losses. In response to a report by public spending scrutiny body Audit Scotland, the Accounts Commission said councils would continue to face tough challenges. Chairman John Baillie said: "They have coped well with the financial pressures of recent years but these pressures are not abating. They need to continue to review existing services as well as identifying fresh ways of providing them; working with their partners, sharing skills and resources and keeping close tabs on budgets to ensure every pound is spent wisely. Councillor Michael Cook, vice-president of Cosla, said councils were already rising to the challenge and finding new ways of doing more with less. He added: "Nevertheless, in order to balance budgets, many will be under increasing pressure to consider difficult decisions which they had previously ruled out." The report also highlighted other challenges facing councils this coming year, including the potential implications of welfare reform. Changes in police and fire services and plans to integrate health and social care are among other changes to be dealt with by councils.