Dundee City Council’s leader believes neither Holyrood nor Westminster are offering clear answers to the local authority’s financial woes.
John Alexander, the SNP member for Strathmartine, painted a stark picture at the end of a year in which councillors voted to declare a “cost of living emergency.”
He said less money from central government on top of increased demand on local services is pushing the limit on resources and there are no ready answers at hand.
After the Scottish Government’s budget two weeks ago, Cosla, the umbrella body for Scotland’s councils said “essential services councils deliver have not been prioritised.”
Mr Alexander says he is committed to finding solutions and claims that under current circumstances, party politics is not a priority.
‘No clarity’ on cost of living funding
Asked if the Scottish or UK governments are providing new or differing advice, Mr Alexander said: “I’ll try and do what politicians don’t always do and I’ll give you a direct answer: No.
“Whilst I’m having those conversations, and I understand there is a process, I have no clarity from either government on additional support or funding…
“Of course, I understand that both governments have to go through a process and it’s important that the parliamentary process is respected….
“Nonetheless, I’m sitting here at the moment facing approximately £18m of a budget reduction next year.
“And I don’t have the answer as to how I’m going to fill that void…to stand still (break-even), we need an extra £18m.”
Councils across the UK lie on shifting economic sands that are forcing reductions to services, and in some cases, threatening their existence.
Kent and Hampshire county councils in England warned last month that their budget deficits could end in bankruptcy.
And last week Mr Alexander stressed the budget delivered by the Scottish Government is “insufficient.”
£1m increase in energy costs
He said: “Our energy costs alone, are set to increase by between £3 million to £4 million at a time when our budget is depleting.”
He emphasised any rise in council tax should not dwarf the 2.9% increase brought in this financial year.
“I would not suggest we need to increase council tax by seven, 10, or 15%.
“But we need to find the balance between reducing our services…and increasing revenue.
“Council tax only provides 18% of our budget. So, if external factors have an impact on the remaining 82%, we have no control over that.
“There’s a tendency to believe…in the public sense, that the council tax pays for everything, and it doesn’t.”
The local authority’s mid-term draft budget in autumn set out a minimum 3% rise in council tax.
In his budget, Deputy First Minister, John Swinney said each council has “flexibility” to set council tax rates, but should carefully consider financial pressures on the public.
‘Personal politics irrelevant’
Mr Alexander said there’s no place for party politics during talks with the UK and Scottish governments: “I am a politician – I’m elected as part of a political party.
“But in my job, it’s irrelevant. I will work literally with everyone and anyone, so long as we can deliver results in the city.
“My politics never comes into those conversations. I know what the needs are on the ground.”
Conversation