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Council facing 'bigger shortfall' Council facing 'bigger shortfall'
(about 2 hours later)
Scotland's largest council is facing a bigger financial shortfall than previously forecast, it has emerged.Scotland's largest council is facing a bigger financial shortfall than previously forecast, it has emerged.
Glasgow City Council's chief executive said the authority would likely have to save over £40m next year rather than the £25m previously thought.Glasgow City Council's chief executive said the authority would likely have to save over £40m next year rather than the £25m previously thought.
George Black said action was needed to avoid the council's reserves being "completely wiped out".George Black said action was needed to avoid the council's reserves being "completely wiped out".
He described the current financial downturn as "like nothing we have ever experienced before".He described the current financial downturn as "like nothing we have ever experienced before".
Writing in Insider, the council's in-house magazine, Mr Black said it was vital that he was clear with staff about how bad the current situation was, and how much worse it could get.. If we do not all do what we can to deliver those savings then the effect on the council, and on the services we provide to the people of Glasgow, will be dire George BlackGlasgow City Council chief executive But the Scottish Government denied that it was imposing cutbacks on councils.
Writing in Insider, the council's in-house magazine, Mr Black said it was vital that he was clear with staff about how bad the current situation was, and how much worse it could get. If we do not all do what we can to deliver those savings then the effect on the council, and on the services we provide to the people of Glasgow, will be dire George BlackGlasgow City Council chief executive
"Our income is falling and will continue to fall in the coming years and every single member of staff must take what responsibility they can for ensuring that we spend less," he said."Our income is falling and will continue to fall in the coming years and every single member of staff must take what responsibility they can for ensuring that we spend less," he said.
"For example, fees from planning are down by £1m per month and until the world economy improves we will need to spend less to cover this sort of shortfall."For example, fees from planning are down by £1m per month and until the world economy improves we will need to spend less to cover this sort of shortfall.
"Many members of staff have given long service to the council and it may be tempting to think that we've had financial difficulties before and that things always pick up in the end."Many members of staff have given long service to the council and it may be tempting to think that we've had financial difficulties before and that things always pick up in the end.
"The circumstances we face just now are like nothing we have ever experienced before. We are a very long way away from things picking up and I expect them to become substantially more difficult before they do."Mr Black said that last May, officers had forecast the need for £50m savings over the next two years. "The circumstances we face just now are like nothing we have ever experienced before. We are a very long way away from things picking up and I expect them to become substantially more difficult before they do." Mr Black said that last May, officers had forecast the need for £50m savings over the next two years.
As the economic climate worsened, that was revised upwards to £53m in November.As the economic climate worsened, that was revised upwards to £53m in November.
But he said the savings needed in 2010/2011 were likely to be "well over £40m".But he said the savings needed in 2010/2011 were likely to be "well over £40m".
The chief executive said this was down to a continuing fall in income and Glasgow's likely share of £500m savings which the Scottish Government had earmarked for councils in 2010/2011.The chief executive said this was down to a continuing fall in income and Glasgow's likely share of £500m savings which the Scottish Government had earmarked for councils in 2010/2011.
He added: "I understand that this will be frightening for some people. A government spokesman said that it operated on a fixed budget and despite what it believed was the worst settlement for Scotland since devolution, it was providing local government with record levels of funding.
"However it would be wrong of me to expect the sort of action from you which will be required in the coming years without being totally honest with you about the reasons why we need to take that action. He added: "Through the concordat, we have reduced ring-fencing with a corresponding reduction in bureaucracy and we have, for the first time, allowed councils to keep their own efficiency savings to re-invest in front-line services.
"In the coming weeks services will be taking action to reduce expenditure. "In contrast, it is the UK Government's decision which could see around £500m wiped from the Scottish Government's 2010/11 overall budget - just as our economy will be crying out for investment."
"If we do not all do what we can to deliver those savings then the effect on the council, and on the services we provide to the people of Glasgow, will be dire."