A PIONEERING jobs scheme set up as part of the Commonwealth Games legacy will be a casualty as Scotland's largest council prepares to announce over £130million of cuts.

The £50m Glasgow Guarantee, which provides training, apprenticeships and job opportunities to workless youths, graduates, over 50s and ex-armed forces personnel, will see it funding slashed as the authority faces an unprecedented shortfall in cash.

The Herald understands the Labour-led administration will reduce the amount paid into the scheme on the basis the private sector is now more buoyant than has been the case in recent years and is better able to financial support opportunities.

It is also understood the crisis engulfing the city council spin-off firm which administers the scheme is another factor in the decision.

Police are currently investigating Jobs and Business Glasgow over misuse of European Union monies with four senior managers currently suspended.

According to the council "almost 6000 Glaswegians between the ages of 16-24 have progressed into employment, apprenticeships or training through a number of initiatives" which are part of the Guarantee scheme.

It claims that "opportunities are available across a range of sectors and job types" and is aimed at workless young people who are not in full time education, training or employment, adults aged 20 to 29 and in the same bracket, adults over 50 not in works, unemployed Armed Forces veterans, as well as unemployed and underemployed graduates who have left university within the previous 12 months.

The council has refused to confirm or deny what, if any, cuts will be made to the fund, with leader Frank McAveety insisting the Guarantee will "continue to offer 1000 places for apprentices and job-seekers next year”.

But several senior sources have said there will be less cash for the scheme in the next 12 months.

The development comes less than a week before Labour announces its budget for the next year, breaking with its approach of recent years in spelling out the cuts and savings well in advance of the meeting.

It also comes as it unveils the responses to a consultation which ran for a few weeks across January and February, which asked the public which cuts it would make.

Only around 200 people attended the meetings, with ideas floated including selling off art and cultural collections not on show, loaning out more of its artefacts for a cost and closing museums and galleries for several days a week.

It also recommended cutting the pay of senior officers and promoted the unions' idea of a no cuts budget.

But senior figures within the trade unions have criticised the exercise.

Unison's Glasgow chief Brian Smith said: "This consultation exercise has been carried out in a complete vacuum and you’ve got to question the value of simply asking members of the public to say how they would make cuts.

"Instead of fighting cuts the council is asking the public where to make them.

"Just 200 people have taken part, it’s hardly representative but it is noteworthy that the chief executive hasn’t included the most popular options of a no-cuts budget and cutting the pay of those earning over £100,000 in her email to staff on the consultation."

Frank McAveety, leader of the council, said: “We have to save at least £130m over the next two years and given the unprecedented cuts that have been imposed on us by the Scottish Government and Westminster, there’s pressure on every part of our budget.

“We have already identified savings and further options will be brought forward next week at the full council meeting.

“The Glasgow Guarantee is the most ambitious scheme of its kind anywhere in the UK and will continue to offer 1000 places for apprentices and job-seekers next year.”

But a senior SNP source said: "We understand Labour plan to reduce funding to job creation programs. This is being done without consultation or any apparent strategy to actually help and improve the life chances of Glaswegians."