Council leader John Alexander has welcomed an additional £2.5 million of revenue as the local authority faces a challenging budget, warning cuts are still likely.
Dundee City Council was looking at £20 million of cuts before Finance Secretary Derek MacKay’s intervention on January 31, which found another £90 million for council coffers across Scotland.
It comes as the Labour group in Dundee intimated they are unlikely to offer an alternative budget this year.
While the net budget from the Scottish Government has increased from £290.7 million last year to £301 million in the coming year, Mr Alexander said the challenge is that costs have increased at a higher rate.
“Just like everyone’s household budget, if your costs outstrip your outgoings, you need to cut your cloth accordingly,” he said.
“The budget announcement was one which we broadly welcome. It’s something that will undoubtedly help us in continuing to provide those key services and reducing the level of savings required.
“We are working through the detail of the budget announcement as we speak.
“The reality is that our budget has gone up but cost pressures remain a very real issue. In the coming year, costs related to three percent staff pay increases — which I wholeheartedly support — and pensions, roughly represent an additional £10 million cost.
“Therefore, we will still be required to make savings as these pressures outstrip increases.
“We’ll be looking to bring forward a budget which continues to deliver on our ambitious programme of investment for the city.
“You just need to look at the transformation over the last five year, despite challenging budgets, to see what our passionate SNP administration has and will continue to deliver.”
The Strathmartine councillor took exception to Chancellor Philip Hammond’s claims that “austerity is over”.
“The cumulative effect of UK Government policies continue to wash through,” he added.
“Hundreds of millions of pounds at a national level are currently being diverted to assist people facing real hardship and poverty from policies such as the bedroom tax.”
The SNP councillor cited the troubles Northamptonshire County Council face, as an example. The cash-strapped local authority is proposing a council tax increase of 5% to help balance the books.
“You only have to look at the likes of Northamptonshire, run by a Conservative administration, to see the issues created by the UK Government’s austerity agenda,” he said.
Meanwhile, Labour councillors are giving “serious consideration” to not offering an alternative budget.
Councillor Kevin Keenan has confirmed it is unlikely that the opposition party will offer an alternative budget. He said there are “several reasons why we would do that”.
He said: “The SNP have been in control of Dundee for the last 10 years and not once have they taken any notice of the alternative budget proposals made by opposition parties, no matter the political persuasion be it Labour, Lib Dem, Conservative of independent.
“Alternative budget proposals have only ever been used by the administration to engage in a political spat as a distraction to their cuts.”
