The SNP administration on Glasgow City Council has pledged to "lobby" the UK and Scottish Governments to help plug a £119 million blackhole.
Scotland's largest local authority faces a financial crisis caused by soaring inflation, the on-going costs of the city's equal pay settlement and real-term cuts in funding from Holyrood.
Councillors were this week warned they face making savings that are "considerably higher" than first anticipated - with a funding shortfall of almost £120 million.
It comes just weeks after the Record revealed how council chiefs will sell Kelvingrove Art Gallery and the City Chambers to meet outstanding equal pay claims.
A report by the council's director of finance, Martin Booth, said: "For many years the council has had to identify savings in order to balance its budget.
"As a result, the ability to identify opportunities for efficiency savings and service reform was becoming increasingly difficult.
"However, the current levels of inflation are significant and are forecast to have a profound effect on the finances of the council family over the next three years. This will severely affect the type and range of savings the council family are able to identify for the period of this financial forecast."
The report added: "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."
Council officers are working on the assumption local authorities will receive a flat cash settlement from the Scottish Government - meaning a funding cut in real terms.
The local authority receives almost 80 per cent of its funding from Holyrood.
SNP councillor Ricky Bell, City Treasurer on the council's ruling group, tweeted the report was "worrying and a sign of the impact of rampant inflation on public services as well as households".
He added: "It’s too early to speculate exactly what this means until we hear UK Government plans and Scottish Government response. Difficult decisions ahead, our focus will be protecting core services.
"The SNP administration will continue to lobby both the UK and Scottish Governments to increase funding to local authorities and Glasgow in particular."
Labour leader councillor George Redmond said today: “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."
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