The council has said it is doing everything in its power to put the total of £67.7 million missing from its coffers back into the public purse.

The revelation comes just weeks after councillors agreed to cut their budget by £23m for the coming year – with more than £10m of further cuts expected in 2017/18.

A spokeswoman said: “Dundee City Council has a duty to collect outstanding debt.

“This debt covers multiple years with the vast majority of council tax, non-domestic rates, rent and sales ledger income being assumed in the council’s budget and accounts.

“We will offer advice and support at an early stage to avoid debt escalating and any additional legal charges.

“The council makes every effort to collect money owed and we take the issue of debt recovery very seriously.”

Councillor Richard McCready, leader of the council’s Labour Group, said: “Dundee City Council should be making sure these outstanding balances are resolved — as it is unfair to those who pay their way and everyone ends up suffering as a consequence of this. Everyone should pay their way.

“However, the council needs to make sure it doesn’t make a bad situation worse — particularly families who have fallen on hard times.

“The council needs to be sensitive to the troubles of those who are in debt.

“With the pending £23m worth of cuts, resolving some of this debt would ensure these cuts aren’t as drastic.”

Tracy McNally, operations manager of Dundee Citizens Advice Bureau — which has specialist advisers for people in debt to the council — added: “In our experience the vast majority of clients who come to see us about debt whether it be council tax and rent arrears, parking fines or any other debt, have arrived where they are through circumstances that are often outwith their control.

“We would urge anyone who is having problems with debts, benefits or any issue to contact Dundee Citizens Advice Bureau where they will receive impartial and independent advice and support.”