The cost of secure and residential children's homes in Dundee is placing a severe strain on the city council's budget.

Council chiefs told the Scottish Parliament's local government committee that expenditure on the care for children ran to £2.6m - more than five times the grant-aided expenditure (GAE) provided for the service of £500,000.

Dundee has the second-highest council tax level in Scotland, with a band D figure of £1,046.

The committee took evidence on the budget process for 2002/03 from the convener of Dundee's finance committee, George Regan, and its director of finance, David Dorward.

Mr Regan said one of the most serious strains was being placed on the social work budget. Secure and residential care for children was causing excessive pressure through a higher number of placements from the Children's Panel and the courts, as well as the high charges by providers of the care service.

Mr Dorward said: "It's demand-led and we have no means whatever of controlling this. We just have to send the money as it's demanded."

Used courtesy of the Aberdeen Press and Journal