Glasgow City Council is facing massive cuts next year to meet its biggest ever budget deficit.

Unless there is more cash allocated from the Scottish Government, the council is projecting a shortfall of almost £120million for 2023/24.

Councillors have been told of the dire financial situation, which is a deficit ten times higher than last year.

The four political parties in the council budget working group will be asked to identify possible savings to address the shortfall.

Inflation is the main reason accounting for £87m of the deficit with pay inflation accounting for most of that.

Martin Booth, the council’s finance director, prepared the report detailing the budget implications and the figure of £119.4m

The council said the budget assumes that next year’s pay settlement will be no lower than this year’s.

Adding the future implications of this year’s higher than expected settlement and deducting additional Scottish Government funding means that pay inflation is expected to be £80.1 million.

The equal pay settlement continues to have an impact on the council budget.

The council said the next largest impact is £26.7 million, made up of budget pressures including increases in utility costs and the revenue consequences of capital investment.

It stated: "Part of that figure is the rental cost of operational properties included in the most recent sale and leaseback arrangements which will fund our equal pay liabilities. "This rental payment is £11.7 million." 

This is understood to be in addition to the ongoing £22 million cost of servicing the first round of equal pay settlements.

Last year the shortfall was brought down to £12m and the highest in recent years was £50m in 2019/20.

The financial situation facing the council will be replicated across Scotland with the pay deal applying to every local authority.

Glasgow City Council gets most of its income, around 80% from the Scottish Government grant.

The Scottish Government is due to set its budget later this year on December 15, following the autumn statement from the UK Chancellor later this month.

Council officers will present options to the council’s cross-party budget working group over the next few weeks but no decisions on options will be taken before the council’s budget meeting.