Dundee’s already-tight budget could be squeezed by a further £34 million if lockdown continues for another three months.
Speaking at a webinar for the Scottish Business Resilience Centre, Dundee City Council (DCC) leader John Alexander said there is already a £17 million gap in the budget.
It comes as the local authority confirmed some staff could be placed on furlough, pending successful applications to the UK government.
In Perth, officials are preparing measures to ensure lost revenue is recorded. A national approach to that information is being developed by local authority association Cosla.
Mr Alexander previously warned there would be no “quick bounce back” from coronavirus in Dundee.
During the webinar, he said: “Over a three month period, in terms of the council’s position, we’ve got a £17 million gap in our budget.
“If that continues for another three months, that then shoots up £34m and so on.
“There are a whole series of challenges that we’ll all have to learn to adapt to.”
A report last month mooted that placing staff on furlough could ease some of the cash flow problems and applications are now being processed to place council staff on the Job Retention Scheme.
A spokesman confirmed that all workers concerned have been informed.
A DCC spokesman said: “We are progressing with furlough claims in areas of our operations where jobs are supported by revenue which has been impacted by Covid-19.
“Formal applications are also being made to the Jobs Retention Scheme for some posts.
“Staff who are in this position have been informed and trade unions have also been advised of the situation.”
A Perth and Kinross spokesman said it is not possible to “fully quantify” the impact of the pandemic “at this stage”.
He said: “Funding has been provided by the Scottish Government which will provide some cover for additional costs and lost income but whether this will be sufficient depends on how long lockdown lasts and what actions need taken to keep essential services operating.
“The costs associated with recovery will also be significant in light of the impact on people, communities and the local economy.
“Officer are putting in place measures to ensure additional costs and income lost is recorded and a national approach to gathering this information is being developed through Cosla.”
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