£15 Million Black Hole in Dundee City Council Budget

Dundee City Council is facing a challenging financial gap of £15.6 million as it works to balance next year’s budget. Without major savings, the city would need to consider a nearly 30% increase in council tax a steep and unlikely solution.

A recent report, which will be discussed at the next city governance committee meeting, highlights this pressing shortfall. According to the report, the council is expected to make cuts in various departments, from children and family services to city development and broader administrative costs. Achieving the necessary £15.6 million in savings will mean a reduction of about 9% across seven key service areas. The report makes clear that this is an “exceptional challenge” and equates the shortfall to needing a 29% council tax increase if cuts cannot be found elsewhere.

To address the shortfall, council officers have been working on identifying where savings could be made to help councillors set a balanced budget. Among the options being considered are cuts that could affect the council’s service provision throughout the city. Additionally, the council is exploring how fees and charges could help offset costs, aiming to recover a higher portion of what it spends on services.

Staffing costs are also under review, as reducing personnel expenses could make a significant difference. Leisure and Culture Dundee, a separate organisation funded partly by the council, is also expected to suggest ways to cut costs. This organisation operates with a mix of funding from the council and income from attractions and activities. In August, councillors approved a review into this funding, and any possible savings identified will shape their recommendations.

Further reports on these potential savings options will be presented to councillors in the coming months, with the final budget for 2025-26 set to be decided in February.

Dundee City Council is navigating a tricky path to manage the city's resources effectively, and these decisions in the coming months will be crucial for determining the future of services in the community.

https://www.dundeecity.gov.uk/