Glasgow City Council Forecasts Budget Gap Reaching Up to £108m Over Homelessness and Pay Reforms
A financial outlook shows Glasgow City Council faces an estimated budget shortfall of between £90m and £108m for 2027/28 amid climbing homelessness pressures and staff grading adjustments.
Low-angle view of stone architectural details on Glasgow City Chambers. Stock image · Photograph: Photo by Ross Sneddon on Unsplash
Glasgow City Council is preparing for an estimated spending deficit of between £90m and £108m during the 2027/28 financial period, driven by escalating homelessness expenditure and a newly designed remuneration framework.
According to an upcoming financial outlook to be reviewed by elected members, implementing the pay and grading system will require £59.5m in 2027/28. Over the same timeframe, homelessness expenditure is estimated between £46m and £80m. A central estimate of £62m results in a £90.5m deficit, while an upper scenario of £80.2m increases the projected shortfall to £108.7m.
Across the two-year period from 2027 to 2029, the local authority anticipates an overall deficit ranging from £136m to £170m. Council officials noted that summer demand shifts created added uncertainty around homelessness figures, and discussions continue with ministers regarding Scottish Government funding support.
Substantial sums are presently spent monthly housing individuals in bed-and-breakfast venues and hotels. To curb expenditure, the local authority intends to lease as many as 1,000 properties within the private rented sector, alongside initiatives such as housing association partnerships and the Cowlairs housing development, with an aim to mitigate approximately £10m by the close of 2027/28.
The financial report also incorporates a £128.6m five-year cost to modernise an existing 2006 pay scheme identified as discriminatory toward predominantly female staff. Trade unions are currently consulting their memberships on the terms, with Unison advising rejection. Of the posts evaluated to date, nearly 89% would experience neutral or favourable outcomes, while over 11%—representing upwards of 2,000 employees—face reduced earnings.
Projections assume no change in central cash funding from the Scottish Government across the subsequent two years, with officials warning that every 1% funding drop would widen the shortfall by £18m. Potential risks also encompass inflation pressures on salary awards and the execution of previously agreed spending reductions, ahead of the Scottish budget announcement on December 3.