Brexit worries could force Perth and Kinross Council to make £65 million of cutbacks over the next five years.
Teaching jobs and other services face the chop as the local authority redraws its budget plans in the wake of the EU vote.
The council’s latest medium term financial plan sets out a forecast for spending based on expected pressures and challenges.
Head of finance John Symon said most economic commentators – including the Institute of Fiscal Studies and the International Monetary Fund – have predicted an exit from the EU would “have a negative impact on the UK economy in the short, medium and long term, although to widely varying degrees”.
He said: “The economic implications are highly uncertain and will not become clearer for some time, years rather than months.”
The council has already pledged to make savings of £1.2 million in the next year by reducing teacher numbers.
Early years development teaching posts could be axed and visiting specialists – such as PE and music teachers – reduced.
There are also plans to introduce maximum class sizes for English and Maths in S1 and S2. The move will affect around 30 posts.
Mr Symon said: “If the council is unable to manage overall teaching numbers, the challenge of developing a balanced budget will be very significant.”
Although details of where the cuts will be made are still to be drawn up, the council is aiming to shave more than £9.6 million from its education and children’s services budget between now and 2020.
A further £3.3 million could be cut from the environment service, with around £2.8 million taken from the health and social care partnership.
Council leader Ian Miller said: “In a situation like this, forward planning is vital and we will be well placed, in comparison to other local authorities, because of the various measures we have already taken or have prepared for in terms of service re-design and workforce planning.
“However, sadly it looks inevitable that further measures will be required and that will be the focus of our budget deliberations in the months ahead.
“Through all of this we need to keep our eyes and minds fixed on the council’s key policy priorities.
“Providing improved services during a time of diminishing resources won’t be easy, but if we remain ambitious and continue to work towards our vision for the future, we can continue to make progress.
“We already have a track record in doing so and that must remain a constant focus in the difficult years ahead.”
Council chief executive Bernadette Malone stressed that the plan was the “start of the process, not the end. We still have a long way to go.”
Councillors have approved the financial plan and its corporate saving targets.
They also agreed an addendum raised by city centre councillor Peter Barrett, asking the council to call on the Scottish Government to reinstate around £4.5 million raised by council tax in Perth and Kinross Council, much of which goes towards services in other regions.
