Council budget gap has ‘ only slightly improved’

GLASGOW’S huge budget deficit has been reduced only “very slightly”, the council’s chief executive has told staff. It has been reported the budget gap had reduced from an initial £ 120m to just under £ 70m.

But Annemarie O’Donnell said that doesn’t include pressure facing social work and social care.

She told employees, in a newsletter seen by the Glasgow Times, the budget process was “complicated” and the improvement is “marginal”.

She said: “Decisions taken in the Government’s budget mean that we essentially now must deal with social work – which represents almost a third of our spending – separately from the rest of the council family.

“Our forecast spending gap was £ 120m across the whole family. It is now around £ 70m – but, while this may sound like a healthy improvement, this does not include any of the significant budget pressures facing social work and social care.

“The extent of those pressures is for the Health and Social Care Partnership and the Integrated Joint Board to consider – but I think it is clear that, taken together, the financial challenge facing the wider council family has reduced only very slightly.”

When all spending pressures are considered it is understood the actual spending gap facing all council services could still be around £ 105m, which would still be the highest ever.

It comes as a council budget options paper has been leaked which shows one possibility for making savings is reducing the number of teachers in the city by 800.

The paper distributed to the political groups in the council to help them draw up their budget plans outlined savings in education that would total £ 51m.

It included closing schools early on Fridays and support for learning staff also reduced.

The officials did note that if this option was taken forward this would have an impact on attainment and potentially discipline.

Due to many areas being protected the council can only take savings from education, neighbourhoods and regeneration and Glasgow Life.

Education accounts for almost half the council’s spending. A spokesperson for Glasgow Council said: “As part of the annual budget- setting process, a cross- party group of councillors works with officers to scrutinise and develop options on where savings and investment could be considered.

“Officers also regularly update a financial forecast, taking into account inflation and the latest information on national settlements.

“The financial challenge facing the council this year is exceptionally tough with savings of around £ 68m required, even before pressure on social work and care services are taken into account.

“Political groups will present their budget proposals next month and it is for them to decide whether they wish to include any of these options.”

The budget will be set next month.