The financial implications of Dundee City Council’s response to the coronavirus crisis are laid out in a report released by the local authority.
Council efforts to protect and support individuals, communities and businesses are shown, alongside the rising number of contacts from people asking for assistance.
Published through essential business arrangements having received cross-party approval, the document explains that significant additional costs are being incurred by the council.
The report shows how the council has received a 79% increase in crisis grant applications, while council tax reduction applications have gone up by 65%.
Assistance for people has also included the suspension of recovery actions over council tax and rent arrears.
The crisis has seen the city receive extra money from the Scottish Government of over £3.3 million. This is being used to help some of the most vulnerable members of society, with allocations from initiatives including the national hardship and food funds.
There have also been 1,600 local applications for Scottish Government business support grants, with millions of pounds paid out.
But the report warns of a real risk that government funding, and the reallocation of existing Council budgets, will not prove sufficient to fully cover additional costs after the crisis. In this event, it would be necessary for the council to access its scarce uncommitted reserves and contingencies, or take alternative remedial actions.
In the meantime, in discussion with the trade unions, the council is currently reviewing the UK Government Job Retention Scheme. This is to determine whether there are any income generating services where consideration may be given to making an application to the scheme and furloughing a limited number of employees.
The report states that the scheme may be appropriate for some staff “in a small number of cases.” The results of this review will be brought forward when completed.
The report also shows how the council is working to support bodies like Tayside Contracts and Leisure & Culture Dundee, as well as the third sector.
City council leader John Alexander said: “The response of the city council and its employees to the coronavirus crisis has been, and continues to be, magnificent.
“I am impressed daily by the dedication of everyone in our team to help the most vulnerable in our communities.
“We are delivering services in some of the most challenging circumstances imaginable, and showing how Dundee is a city of strong and committed partnerships.
“We are extremely grateful for the millions of pounds that the city has received to assist our work, but we have to recognise that this crisis is causing significant cost implications for the local authority.
“This report is an appraisal of where we stand. It is important that we highlight these issues as openly as possible and we must continue to monitor the situation.
“However, I can reassure everyone in Dundee that the council and its partners will not cease in our efforts to help our communities get through this unprecedented time.
“Our overriding priority is the health and wellbeing of Dundonians. We must recognise the financial challenges we face but not let that divert us from the task of protecting and supporting people at this time.
“We’ll continue to work with the Scottish Government and seek additional funding where appropriate.”
The full report is available at https://www.dundeecity.gov.uk/sites/default/files/publications/144-2020.pdf
Dundee City Council
Dundee draws skilled workers from a 60-minute catchment population of 640,000 and has a local population of over 140,000. The availability of a large pool of highly skilled labour is a key feature in the Dundee economy. Flexibility in the labour force is currently more prevalent in Dundee than in Scotland as a whole. All forms of labour market flexibility - part-time, temporary employment, self-employment and shift work - are widely operational within the city. Labour force stability in the city is excellent, enabling companies to plan with confidence. Labour turnover levels are less than 5% and absenteeism averages 2%.
