Protecting 'front line jobs and services' has to be the priority for Glasgow City Council as they navigate an unprecedented funding crisis, councillors have been warned.
Council leader Susan Aitken said she has never seen a funding gap as large as the one the city currently faces, as forecasts shows bosses are £119.4 million short of the cash they need to run public services next year between April 2023 to 2024.
The council warns the “scale of savings required” is set to be considerably higher than before.
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The city's Labour leader warned any solution that threatened front line jobs or services would be "a dereliction of duty."
Speaking about the pressure, Councillor Aitken, SNP, said: “I don't think of any of us are under any illusion about the scale of the challenge. I don’t think any of us have ever seen a budget gap like this.
"It is a stark reminder of the rampant inflation we are seeing and that challenges in the economy are not only impacting households and communities but are also directly effecting public services as well.”
Speaking at today’s city administration committee, she added: “The scale of the gap we are looking at is unlike any I have ever seen in my time as a councillor.”
The council has a legal duty to set a balanced budget and most of its money comes from the Scottish Government.
Outlining estimated major costs, a council officer told the meeting that next year there is “approximately £80 million of pay inflation.”
He said the forecast assumes a flat cash settlement from the Scottish Government. He said there will also be financial pressure from contractual costs and utilities among others.
Labour leader councillor George Redmond said: “This budget gap is not of our making. It is the financial reality posed by rampant inflation and the cost of living crisis.
“We will have to find a way to navigate this latest crisis in a way that protects front line jobs and services. Anything less would be a dereliction of duty."
Pointing out responsibility lies with Holyrood and Westminster, he said: “We need to take stock and figure out what this really means for our city. But the reality is that the UK and Scottish governments have the power to fix this.”
He said the only real solution is for the SNP in Edinburgh to stump up more cash to fund vital services including bins, roads and schools.
He said: “It it is time the Scottish Government realised councils are not just delivery bodies - we are democratically elected to make choices for our communities in exactly the same way that MSPs are.”
Councillor Aitken said the issue lies with the UK Government.
There is a spending gap of of £196.2 million over the next three years at the council according to budget forecasts.
A council paper said: “The council has had to identify savings in order to produce a balanced budget for a number of years. With the current inflationary pressures within the system, the scale of savings which will be required are considerably higher than have been faced in previous years.”
Councillors are due to take part in a cross-party budget working group to figure out savings options.
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