A spending black hole of tens of millions of pounds is looming for Glasgow City Council.

Scottish Government cuts, inflation and a drop in income leads to the gap between what comes in and what is available for services.

It could lead to another council tax rise and potential for more damaging cuts to already under pressure council services.

A financial forecast prepared ahead of this year’s budget, and shared with councillors, shows a prediction of a £36m shortfall for 2021/22.

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The council budget has to be set before it can start to send out council tax bills before April and a date for February is expected to be set.

But it has been complicated this year as the Scottish Government has not yet set its budget, which allocates cash to Scotland’s 32 local councils.

The council faces pressures from a significant drop in income as a result of the coronavirus lockdown, annual inflation and a projected reduction in the income from the Scottish Government grant.

The three-year forecast shows a shortfall that will total £113m by 2023.

City Treasurer, Richard Bell, will have to deliver a balanced budget that allows the council to only spend what it receives in income.

Council income from service charges and commercial events has been affected in 2020 and will continue to be hit in 2021 with the closure of many venues like Glasgow Life leisure centres and community halls.

Big events are also unlikely to generate income for the council with restrictions on gathering expected to continue beyond the Spring.

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It is anticipated by the council finance officers that the Scottish Government grant will be reduced by £13m in each of the next three years.

Additional spending pressures totalling more than £72m, more than half due to inflation.

The spending gap is likely to lead to an increase in council tax but even at the maximum allowed, of a 4.84% rise, would still leave a shortfall of more than £20m outstanding.

No decision has been taken, or proposed, yet but a 4% rise would raise another £9.2m for the council.

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And a maximum permitted 4.84% increase would see bills rise for householders in band C by £59 to £1291, not including the water charge.

On a Band B bill the council tax would increase by £52 to £1130

A spokesman for Glasgow City Council, said: “Officers make financial forecasts - and continually refine them as more information becomes available - in order to help the political groups on the council plan ahead and develop their budget proposals.

“That involves making predictions and assumptions about financial pressures, such as inflation, as well as the overall level of funding available to the city in the future – and, as things stand, the single biggest pressure on the city’s budget is the potential cost of inflation.

“However, it is important to understand the forecast is not, itself, a set of budget proposals.

“The process is complicated this this year because we expect the city will have to set a budget before the Scottish Government is able to finalise its own spending plans – so it remains possible the amount available to the city could change even after its budget is agreed.”