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Council tax rise considered in Dundee amid £10m-plus financial black hole

Council finance spokesperson and councillor Willie Sawers
Council finance spokesperson and councillor Willie Sawers

Council tax could be set to rise in Dundee next year as the city council looks to plug a financial black hole of more than £10 million.

The local authority says estimates suggest the need to make cuts of between £10.4m and £14.7m in 2022/23.

It claims continuing concerns around the impact of Covid-19, Brexit, inflation and the availability of support grants are to blame.

But it comes in the context of a roofing error that will cost the council £4.4m to put right and the need to spend another £4.5m on repairing the Olympia swimming pools.

The council tax rise is being considered just a year after all Scottish councils agreed a freeze after receiving money from the Scottish Government – and despite suggestions that councils will get further money to maintain a freeze in future years.

‘Number of options’ being considered for budget cuts

A report to the policy and resources committee, which meets on Monday, states: “There is a real risk that the actual grant reductions could be more severe than those currently being assumed.”

Councillor Willie Sawers, deputy policy and resources convener and finance spokesperson, said: “There are a number of options we will need to consider, which includes the prospect of a rise in council tax to bring down savings.

“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.”

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