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Dundee council leader warns of ‘month-to-month’ budgets due to UK Government delay

Dundee City Council leader John Alexander.
Dundee City Council leader John Alexander.

Dundee City Council leader John Alexander has warned budgets may have to be set on a month-to-month basis because of a delay in the UK government setting out its spending plans.

That date is the last possible time local authorities can set their council tax rates for the forthcoming financial year.

Normally, councils set their budgets at the start of the year but local authorities will be unable to plan for the full year ahead without knowing what money will be allocated to the Scottish Government, which then decides how much to grant councils.

Posting on social media Mr Alexander said: “This will cause havoc with both the Scottish Government budget and Dundee City Council budgets.

“Under current legislation, the last possible day that council’s can set the council tax is March 11.

“People need to know how much they’ll be paying before they are charged in April. It’s absolutely ridiculous that we won’t have any clarity until the date.”

He added: “I will be speaking with officers first thing to discuss the implications for Dundee.

“If we cannot set an annual budget before that time, because we don’t know what the Scottish Government budget will be, then it may mean (worse case scenario) that we have to implement a budget month to month until clarity is reached.

“The budget was already looking to be one of the most difficult the city has faced, with potential reductions of £18 million on top of a decade of austerity.

“The UK government need to deliver what they said… An end to austerity.”

Chancellor Sajid Javid cancelled his November 6 Budget because of the General Election.