Aberdeen City Council is bracing itself for another round of multi million pound cuts to services.
All departments have been asked to identify where budget cuts of up to five per cent by the authority's chief executive Sue Bruce.
It is estimated the cuts could amount to as much as £20million.
The council is expecting a reduction in the annual grant it gets from the Scottish Government when the funding announcement is made next month.
In July the council was praised for the progress it had made just months after making £60million worth of cuts that saw schools and charity’s shut down.
The local authority currently receives the lowest amount of money per head of population of any council in Scotland from the Scottish Government.
And it is believed that the city will again receive a low funding payment for 2011-12.
Opposition labour councillors have warned that the city cannot take any more cuts.
Labour Group Leader Councillor Barney Crockett said: “I think the present administration have to remember that people have options and we are seeing people leaving Aberdeen to get better services.
“We must stop that flow and we need to get the services we need to fight our corner, we need to make sure we don't have to face the people of Aberdeen again with another list of cuts."
Ms Bruce insists her staff have only been asked to look at areas where savings can be made as a precautionary measure and councillors would still have to vote on the matter.
Last year cuts to schools, charities and community facilities were met with fierce public opposition when thousands of people took to the streets of Aberdeen to protest at cuts to schools, charities, and leisure facilities.
It is feared the same services would again be targeted for savings. It is believed £8million in funding could be lost from education alone.
The city’s bid to become UK City of Culture in 2013 could also be a project hampered by the cutbacks.
Today the man behind the bid said whether they go forward with it will depend very much on the council's financial position.
