Dundee City Council leader John Alexander has said there will be no pay freeze imposed on staff, despite a potential £20 million financial black hole in the local authority’s budget.
Councillors will be told on Monday the local authority may have to find savings of between £18.9 million and £24.5 million next year depending on the central government grant to councils.
The grant is expected to be cut by at least 3%, which amounts to £54.1 million over three years in Dundee’s case.
Scottish Government finance minister Derek Mackay will announce his budget next week.
Labour group leader Kevin Keenan said it would be “immoral” for the administration to try to claw back money from its lowest paid staff.
Mr Keenan said: “Given that we have had the Westminster budget delivered with little result, it is now down to Derek Mackay to deliver for local government.
“Officers have presented a paper with their scenario planning on giving examples of a 3-5% cut and what they would reflect in hard cash – potentially £69.6m cuts over three years.
“This is linked to the comments made by the council leader who has said that his SNP administration will be reviewing the terms and conditions of employees.
“There is something morally wrong with an administration looking to squeeze more out of the household budget of our lower paid employees that, for years, have had to live with wage restraints.
“Perhaps employees earning £50,000 to £100,000 could take the hit? It’s doubtful whether that would be the same for the grass cutter, refuse collector and care worker, all of whom deliver day in day out for the city.”
Mr Alexander hit back, stating the projected figures already take into account provision of a 2% pay award.
He said: “Firstly, we are yet to be provided with details of our allocation of funding and the Cabinet Secretary for Finance will make his statement in Parliament on December 14.
“This report is to provide the public and elected members with an overview of potential scenarios and is not the definitive position.
“Secondly, the report details the costs associated with a number of areas which we have taken into consideration which includes a 2% pay award.
“There is no mention of anything to the contrary and no suggestion anywhere whether that be publicly or privately that we would be seeking a public pay freeze.
“I think the position of my party is perfectly clear on this and the pay freeze is coming off.”
Mr Alexander added: “I would caution Councillor Keenan about trying to play politics with a very difficult situation for everyone concerned before any detail has even come forward.
“Like the administration, the public will expect the Labour Group to submit a balanced budget and work with us. Difficult decisions will have to be made by every party in order to deliver a balanced budget and a council which works for Dundee.
“We need to develop better ways of delivering services to meet these significant financial challenges; flexible working, reducing our reliance on overtime and ensuring that our services can flex and move with demand and need.
“Our ambition for Dundee remains undiminished and we are committed to making the city a better place for everyone. We cannot shirk the hard work that lies ahead to adapt our services in the face of serious pressures.”
He concluded: “No decisions have been made about the budget and we have regular meetings with trade unions to discuss such issues.”
