His comments come after more than 2700 people signed an online petition calling on the council to reinstate the traditional Hogmanay party from next year.

Cllr Guild told the Tele today the council was entering a period of “significant financial pressure” and it was his opinion that a Hogmanay celebration simply was not financially viable.

He said the council would listen to anyone who could put forward a sound financial plan for staging an event, but it was not something it was actively pursuing.

“Things like Edinburgh’s (Hogmanay celebration) have been largely self-financing”, Cllr Guild said today. “Unless you can get a large number of people coming in who are happy to pay then I don’t think it is financially viable and it hasn’t been for many years.

“It has been many years since we had an organised celebration on Hogmanay and we are moving into a period of considerable financial stringency. If those who are lobbying for it can come forward with a business plan then we will look at it.”

Turning to the controversial Winter Light Night celebration on Friday, Cllr Guild said he believed the event had been a success.

However, he said the concept would not be repeated in 2010 as the event had been made possible only by a one-off payment by the Government during the year of Homecoming.

He said, “There were thousands of people in the centre of Dundee on Friday night who were all obviously enjoying themselves. They were free to move around and not penned into City Square as before and it was a very relaxed and very good-natured evening with lots going on,” he said.

“The churches were fully behind it and I think we should be pointing that out.

“This year we had additional cash to create this event and next year that will not be available. There will be considerable financial stringencies on the council, so basically we will put on as good a show as we can. Friday was a one-off because of the additional funding.”