Decade of austerity looming over council amid ‘£78m shortfall’

DUNDEE City Council is facing another decade of austerity, with a projected £78.1 million budget shortfall over the next 10 years.

The l ocal authorit y expects it will have to find savings and efficiencies equal to a fifth of that total – £17.3m – in its budget next year alone. It comes after £9m of savings had to be made this year.

The council has also had to sell its Dundee House headquarters to insurance giant Canada Life in a £23.8m deal that will see it lease back the offices for the next 40 years.

Now a report to go before the policy and resources committee next week is warning worse is yet to come.

It says: “Based on current projections of budgetary requirements and available grant funding, it is estimated savings and efficiencies of £78.1m may be required over the next 10 financial years in order to achieve a balanced budget.

“This includes a savings and efficiencies requirement estimated at £17.3m, which assumes a flat cash settlement for the next f i n a n c i a l y e a r, 2020-21.”

The report also warns the final terms of Brexit may also have a detrimental impact on the economy and the money available to councils.

Council l eader John Alexander said: “Unfortunately, i t will come as no surprise to the public that councils are facing very serious, difficult and unenviable challenges.

“This is a sobering reminder of what comes from a decade of austerity, started under the Lib Dem and Conservative coalition.”

The SNP councillor said the precarious financial situation meant difficult and unpopular decisions were now unavoidable.