A competitive jobs market and local government reorganisation are causing problems for the authority.
Scarborough Borough Council says it is continuing to lose staff as local government reorganisation approaches and is finding it difficult to replace them.
The Borough Council will be abolished in April when a new unitary authority comes into being.
Although Borough Council staff will transfer to the new body, Director - Nick Edwards - says the changes which are already happening are having an impact.
Scarborough Borough Council says losing key staff is it's number one risk.
Nick Edwards says as the reorganisation changes start to happen it's causing a seepage of key staff and replacing them is an issue.


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