Wage rises major factor in Dundee City Council £45m savings warning
- Published
A pay increase was offered to council workers following a strike by refuse workers and school support staff
Dundee City Council has cited wage rises as a major factor in the need to cut £45m from its budget in the next four years.
Finance officials describe the figure as a "best estimate" but warn the range of savings could rise as high as £74m.
The most significant driver is due to a proposed pay increase offered to council workers earlier this month.
It was made to avert strikes among refuse workers and school support staff in Dundee and other areas in Scotland.
The sum amounts to around half of the estimated total rise in costs and the £45m in savings would account for almost 11% of the council's net revenue budget for 2022/23.
Soaring inflation, spiralling energy prices and the pound's record low against the dollar were also identified as major contributors.
You might also be interested in:
The projection was part of a medium term financial strategy, external brought before the council's policy and resources committee on Monday.
The range over the period is between £7m and £74m but the best estimate fell at £45m.
The report also stated that inflation would affect pay settlements and increase the cost of new borrowing for the city's capital plan.
This indicates that costs of any new building developments in Dundee would likely be affected.
Story provided by local democracy reporter David Nicoll.