Finance bosses have urged the city council to stop spending “wherever possible” in a bid to tackle cost pressures.
Aberdeen City Council – which is the lowest funded local authority in Scotland – is undergoing a restructuring programme with the aim of saving £125 million over five years.
The council’s finance bosses said spending should be stopped and reduced – meaning additional spending should be avoided – but this would not involve cutting any existing services.
However, the report adds the council’s financial performance has so far been a “positive one” with spending “largely in line” with budget for this stage of the year.
The council is facing a small overspend of £0.8m.
Councillor Douglas Lumsden, convener of the city growth and finance committee, said: “The quarter two financial performance report highlights the performance to date is a positive one with net expenditure largely in line with budget for this stage of the year.
“As the lowest-funded council in Scotland, it is getting harder and harder each year to balance our books.”
A total of 370 posts will go through job transfers and not recruiting for vacant roles, as well as offering voluntary redundancies and early retirement.
At the end of the second quarter, the council has achieved savings of £13.7m of an £18.1m target, with £9.9m made by cutting 330 posts.
The report said a “significant proportion” of the posts reduction savings have been achieved through voluntary severance and early retirement, with the costs associated with the scheme continuing to be a “pressure” against the council’s balance sheet.
It added a continuation of posts reduction through this means was “unsustainable”.
Keep up to date with the latest news with The Evening Express newsletter
The council will now need to look at “other means” of managing the workforce including the upskilling of the roles of existing staff.
Tommy Campbell, Unite regional officer, said: “The cost they should be considering is the cost this is having on the remaining workforce who are burdened with the work that has to be done.
“The workload has not reduced even though the workforce has.”
A Scottish Government spokesman said: “Despite continued UK Government real terms cuts to Scotland’s resource budget, we have treated local government very fairly.
“Aberdeen City Council will receive over £354m of Scottish Government funding in 2018-19.
“Taken together with the decision to increase council tax by 3%, Aberdeen City Council will have an additional £9.7m to support day-to-day services compared to 2017-18.”
The report will be considered by members of the city growth and resources committee when they meet tomorrow.