Angus Council expects to have to find millions of pounds in extra savings as its financial outlook has deteriorated.
The cash-strapped council projected in March there would be a funding gap of £26.5m in the three years from 2017/18 to 2019/20.
The outlook has darkened and council officers now predict the gap over the next three years will be £31.1m, an increase of £4.6m.
There is a large amount of uncertainty as the level of Government grant for next year is still unknown.
However, officers are taking a “more pessimistic view” of the settlement and have shifted the council’s baseline projections.
This would mean that savings of £11.7m – more than five per cent of the overall budget – would be required next year for the council to break-even.
The funding gap is projected at £9.6m in 2018/19, £9.8m in 2019/20 and another £9.6m in 2020/21 – savings of £40m are needed over four years.
Another cost pressure has been the introduction of an apprenticeship levy.
Officers have prepared projections based on more optimistic and more pessimistic views of what its future income and costs may be.
Its optimistic view sees £23m of savings required over the next three years. Its pessimistic view is that £39.1m of savings will be needed.
The report noted that most difficult element of the projections was predicting what the government grant would be, with no guidance currently available.
It adds: “The UK Chancellor will make the Autumn Statement announcement on November 23.
“The Scottish Government will announce the results of its 2016 Spending Review thereafter, with announcements relating to grant allocations to councils unlikely to be made until mid-late December.
“It remains to be seen whether the new UK Government takes the same approach to public finances and austerity as that which the Government led by David Cameron applied.
“The projections assume a continuation of severe financial constraint and austerity but the new Government’s policy in this respect will not be known until November 23.”
The council recorded a £2m uncommitted underspend last year which will be used to mitigate against future cuts.
Council leader Iain Gaul said the council would “rise to any challenge” and added that it wasn’t afraid to make “difficult decisions”.
He said: “Angus Council is not surprised at the continued pressure on public sector finances. There is a lot of uncertainty in the UK and beyond right now.
“The real challenge is how we continue to provide high quality outcomes for our citizens and those who need us the most in these difficult times.
“Many people want to focus on the money.
“For us the real test ahead is how we ensure services are delivered, and delivered well.
“The efforts of this council will be focused on that task.
“It is clear things will not stay the same.
“Many changes have taken place in the past few years, more will certainly come.
“In Angus the budgets will be managed and challenges faced.
“We will undoubtedly be a different council in the years ahead but our commitment to delivering high quality outcomes for our citizens remains.”
