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Hunter comments on council budget problems
Wednesday, 17 August 2011

Glasgow City ChambersSNP support unions over workforce concerns

News that Glasgow City Council will need to access contingency funds to cover shortfalls in expected savings this financial year has been met with concern by the Council's SNP Group.  Glasgow's Labour administration estimated savings of £5m from service reform, including changes to staff terms and conditions, over two years -with £1.5m this year and £3.5m in 2012-13 - which it has now admitted cannot be achieved in this year as planned.  The £1.5m shortfall will be met from the Council's 'Service Reform Contingency Fund'.

Commenting on the news, SNP Leader of the Opposition, Councillor Allison Hunter said: "The news that the Council will fail to make its savings target for this financial year tells a tale of poor financial management.  At this year's budget meeting the SNP called for a full review of the Council's finances to ensure a stable future in these difficult times for council budgets.  Labour confidently predicted that savings would be found this year and it is this which has brought today's revelation."

Nw the Council has to draw on reserves again to make up the shortfall in projected savings through alterations to staff terms and conditions.  Not only is the Council struggling with budgets as a result of this failure, but Council employees and the unions remain worried about what the impact will mean for them.

"Employee annual leave and holiday entitlements are in question, as well as support to staff for disclosure checks vital for their work.  How can employees be confident in the administration and how can Glasgow citizens be reassured that the difficulties today will not become worse next year?

"It really is time for Labour to get a grip of this situation and steer the Councils finances back to a more stable position."

Note:

The Council briefing is available here, for information.

The Service Reform Contingency Fund, of some £10m, has already seen allocations of some £6.4m to date.  The additional drawing down of funds will leave only £2.1 of the Service Reform reserve for the rest of the financial year to April 2012. 

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