The financial planning of Welsh councils is ‘strengthening' but there is still scope to improve the way savings are identified and delivered, auditors have said.

A report by the Wales Audit Office noted spending within budgets was proving to be a ‘challenge' for some authorities.

It also warned the engagement of councillors and the effectiveness of decision making on savings was ‘inconsistent'.

The report called for improvements in the way savings are identified and delivered, and the development of corporate-wide income generation, charging and reserves strategies.

‘Councils in Wales are facing significant financial challenges,' said the Auditor General for Wales, Huw Vaughan Thomas.

‘The continued impact of austerity and reductions in public monies, coupled with the unclear implications of Brexit, require councils to continue to cope with uncertainties.

‘While I am pleased to see councils making progress in strengthening their financial planning, they need to do more in response to the challenging environment.'