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Top level talks over Glasgow's budget amid huge shortfall

City Chambers George Square Glasgow <i>(Image: Newsquest Media Group)</i>
City Chambers George Square Glasgow (Image: Newsquest Media Group)
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Talks have taken place between Glasgow City Council and the Scottish Government over the huge pressures in this year's budget.

The council is facing a massive overspend on homelessness due to unrelenting demand for accommodation.

The Glasgow Times reported how the city is taking on the cost from the HSCP running to tens of millions of pounds.

More than £45m has gone to hotel and B&B owners for the more than 2600 people who require a home but can’t be found a temporary flat.


Recent reports show there are around 10,000 people in temporary accommodation in Glasgow.

More than half of the demand has come from an increase in applications from people with leave to remain.

The City Treasurer, Ricky Bell said the problem has been created by the UK government’s decisions.

There has been a fast-tracking of asylum claims and then people have to leave their Home Office provided accommodation and leaving them homeless.

Councillor Bell said: “The difficulty for Glasgow is that our most significant budget pressure is not only unique but also totally outside of our control.

“The city is facing a £66m overspend on homelessness services, almost entirely as a consequence of UK Home Office decisions and procedures.

“We can talk about that pressure as part of our own budget discussions – and, believe me, we have talked about it a lot – but there is no budget day decision and no council policy change that can mitigate it. 

“I’m grateful to the Scottish Government for agreeing to meet to discuss a situation that is not primarily of their making.

“I think we should actually be having a conversation with the UK Government about the problem they have created - and how they support the city to cope with the consequences - but they have not yet shown any willingness to do that.”

The Greens at Glasgow City Council said they are not prepared to vote for budget that requires so much cuts.

Jon Molyneux, Green group co-leader, said: “The budget gap Glasgow faces this year is huge and that’s almost entirely due to excess homelessness costs.

“That could mean drastic cuts to public services to line the pockets of hotel and B&B owners

“It’s absolutely vital, even at this late stage that the SNP Government steps in with a special deal for Glasgow.

“Fixing this is now the test of Susan Aitken’s leadership. There’s no way Green councillors will vote for a budget that drives through £70m worth of cuts and I can’t imagine SNP backbenchers will be happy to do so either .

They say they are making the case for Glasgow but are the First Minister and the Finance Secretary prepared to listen and act.”

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