COUNCIL tax in Glasgow is set rise for the first time in 12 years as the authority looks to bridge a spending gap of almost £70million.

The council's leader said a three per cent hike was likely when the Labour administration sets its budget in the weeks ahead.

Frank McAveety said the increase, the first since 2005, would raise more than £7m, in a year when the city is facing a budget gap of £67m.

A final decision on council tax will be taken by members when they meet to set a budget for the next financial year.

Mr McAveety said: “Raising Council Tax will support frontline services while protecting the most vulnerable in our city.

“One-in-four households will not pay a penny more and we can avoid around £7m of the most difficult cuts, which would otherwise hit every community across the city

“The Scottish Government’s huge cuts to local government mean Glasgow is facing a £67m funding gap next year. The total budget cuts between 2016/17 and 2017/18 now amount to £150m."

In recent months Labour-run South Lanarkshire Council said not would raise council tax, with others likely to continue with their own freeze.

However, the move by Glasgow, which started the policy under the leadership of Steven Purcell but has been a vocal critic of the freeze in recent years, could see other authorities now follow suit.

The council said its funding gap was made up of a £36.4m reduction in the city’s settlement from the Scottish Government and £30.4m of other spending pressures.

It said the figure was £20 million more than previously forecast and took the total saving for 2016/17 and 2017/18 to £150 million.

A spokesman added that around 71,000 households currently qualify for full Council Tax Reduction; 18,000 qualify for a partial reduction and 138,000 receive a single person discount.