THE budget for Glasgow’s multi-million subway modernisation project this year has been cut by more than half.

Strathclyde Partnership for Transport was expecting to be allocated £45m from the Scottish Government for work in 2016/17.

Instead it will receive £20m as it takes its share of spending cuts in Finance Secretary, John Swinney’s budget.

SPT said the overall long term budget would not be affected and it expected to receive the cash in future years with the £25m being “re-profiled” but warned the project would now need “careful management”.

A report to SPT councillors states the organisation’s capital support grant has also been cut by 30%, which will have “significant implications” for the capital plan.

The report stated: “While the total remains the same this change in profile will require careful management and require use of the Subway Modernisation Fund at an earlier stage that had been anticipated.”

The Subway cash cut is on top of a capital funding cut from £22m to £16m.

The report warned the Subway project costing £282m with £246 coming from the Scottish Government, would have implications.

It continued “SPT is seeking to continue dialogue with transport Scotland to ascertain whether any additional support is available through the current yea to assist with the reduction announced in future years although at this stage this looks unlikely.”

Labour warned the reduction in cash was a cut given another name.

Patricia Ferguson, Labour MSP for Maryhill and Springburn, campaigned for the Subway Modernisation to go ahead said the budget allocation meant a cut.

She said: "These are even more hidden cuts for Glasgow from the SNP Government in Edinburgh.

“Just as Glasgow City Council looks to move forward with significant infrastructure investment through the City Deal we see the SNP slashing funding for a key part of the city's transport network.

“The SNP can spin it anyway they like people know that re-profiling means cuts."

A spokeswoman for SPT said “The overall budget for Subway Modernisation remains the same and planned work will still go ahead.

“We always have more projects than funding allows, SPT will assess all projects internally before committing to a capital investment plan for 2016/17 which we will present at a future meeting.”

A Scottish Government spokesman said it was committed to the project.

He said: “Despite continued cuts to our budget by Westminster, we will provide SPT with up to £246 million towards the programme as agreed in 2012, and this remains unchanged. “Although the budget for the forthcoming financial year has been reduced, the total funding commitment has not and we are providing SPT with greater flexibility within the terms of their general capital grant agreement to help them manage their overall capital programme.”