The Courier & Advertiser (Perth and Perthshire Edition)
£34,000,000 – cost to city of extended restrictions
Council chief warns another three-month hiatus will double Dundee’s budget squeeze
Dundee’s already-tight budget could be squeezed by a further £34 million if lockdown continues for another three months.
Speaking at a webinar for the Scottish Business Resilience Centre, Dundee City Council (DCC) leader John Alexander said there is already a £17 million gap in the budget.
It comes as the local authority confirmed some staff could be placed on furlough, pending successful applications to the UK Government.
Earlier this week, The Courier revealed the impact on the coffers in Fife could be as much as £30m.
In Perth, officials are preparing measures to ensure lost revenue is recorded. A national approach to that information is being developed by local authority association Cosla.
An Angus spokesman said details of the impact in the county will be revealed soon.
Mr Alexander previously warned there would be no “quick bounce back” from coronavirus in Dundee.
During the webinar, he said: “Over a three-month period, in terms of the council’s position, we’ve got a £17m gap in our budget. If that continues for another three months, that then shoots up £34m and so on.”
A report last month said placing staff on furlough could ease some of the cash flow problems and applications are now being processed to place council staff on the Job Retention Scheme.
A DCC spokesman said: “We are progressing with furlough claims in areas of our operations where jobs are supported by revenue which has been impacted by Covid-19.
“Formal applications are also being made to the Jobs Retention Scheme for some posts.
“Staff who are in this position have been informed and trade unions have also been advised of the situation.”
A Perth and Kinross spokesman said it is not possible to “fully quantify” the impact of the pandemic “at this stage”.
He said: “Funding has been provided by the Scottish Government which will provide some cover for additional costs and lost income but whether this will be sufficient depends on how long lockdown lasts and what actions need taken to keep essential services operating.
“Officer are putting in place measures to ensure additional costs and income lost is recorded and a national approach to gathering this information is being developed through Cosla.”
Council tax payers in Dundee were faced with a 4.8% rise earlier this year as DCC were forced to make a £5 million package of cuts at this year’s budget.