Council tax rise "almost inevitable" as Dundee City Council prepare for 2022/23 budget
The council could have to make up to £14.7 million in savings to achieve a balanced budget
Last updated 1st Dec 2021
Dundee City Council could have to make savings of up to £14.7 million to achieve a balanced budget in the next financial year.
The policy and resources committee will be considering a report next Monday which suggests the council meet on the 24th February 2022 to set the council's revenue budget alongside council tax for 2022/23.
Councillors will be told that delivering a balanced budget is providing them with a significant challenge.
The council say this comes against a backdrop of significant risk and uncertainty around the continuing impact of Covid-19, Brexit, government grant support, pay awards and inflation.
The report states: “There is a real risk that the actual grant reductions could be more severe than those currently being assumed.”
Currently the estimated savings required to achieve a balanced budget in 2022/23 is in the range of £10.4 million to £14.7 million.
Depute policy & resources convener and finance spokesperson Councillor Willie Sawers said: "I think it's almost inevitable that council tax will rise but that level has yet to be determined. It's really a balance against bringing in some more money against making further savings."
He added: “We are facing a unique position and the council is working hard to limit the impact on services to the people of Dundee.
“I will be watching the Scottish budget closely on December 9 and a further report will come before councillors in January outlining our actual grant settlement.
“These are tough times, and we will no doubt have to take tough decisions.”
John Dickie, Director of the child poverty action group in Scotland said: "It's absolutely vital that the council has the resources it needs to deliver services that prevent and reduce child poverty. Every budget decision must be proofed for its impact on that poverty.
"Secondly, it's absolutely vital that eligible low income females are encouraged and supported to apply for council tax reduction. This is a benefit that is too often underclaimed."
He added: "There is no question that low income families are under extraordinary pressures as the universal credit cut bites, energy prices soar, food prices are going up. Families are under extraordinary pressure and they rely on council services and supports to help insure they have got the financial support they are entitled to and protect them.
"Council's do need that money to provide services but it's also vital that those families, who are entitled, get the council tax reduction support that they're eligible for."