By STEWART PATERSON

Political Correspondent

GLASGOW City Council is facing a budget shortfall of almost £60m next year.

The projections include planning for 2.5% reduction in funding from the Scottish Government, when Finance Secretary, Derek Mackay, sets his draft budget later this year.

The new SNP administration will set its first budget early next year but as a minority administration will need the support of councillors form other parties.

Council officials are being asked to propose their own budgeting plans and discussions will be held over the coming months on proposals.

The projection is for a cut of £57.5m for 2018/19 then another£59m and £49m in the next three years mean a total cut of £165m.

City Treasurer, Allan Gow, said he will be looking at maximising other income streams from the Scottish Government and other sources but said it doesn’t necessarily mean jobs cuts.

Mr Gow said: “The challenge is, how do we reflect our priorities in next year’s budget?”

He added: “I don’t take the view that job losses are inevitable.”

The council will have a budget of around £1.8bn and Mr Gow said he wants that to be the priority.

He said he wants to focus on the remaining cash that he will have at his disposal and how services can be delivered better and more efficiently.

However, he said it is possible that the council will not be able to deliver all services it currently provides.

He added: “There is always the focus on the savings, but who is looking at the 97.5%.”

The council is conducting a review of its ALEOs which could be one way on making savings, but wider restructuring could take years to produce savings.

Rather than lose jobs, with the council expected to deliver on national commitments on closing the attainment gap and early years provision, the City Treasurer said it is possible the council will need more staff in certain areas, if cash is forthcoming.

The figure of £57.5m for next year is a projection at this stage and could be reduced by other decisions.

It doesn’t include any council tax increase which can be up to 3%, raising around £7m. It doesn’t include any increase in charges or any new charges implemented by the council for services.

The figure also doesn’t take into account the £14m that was provided last year after the deal at Holyrood between the SNP and the Greens which reduced the level of cuts, as that can’t be counted on happening again.

Last year the council had to cut £53m, down from £67m after the SNP/Green Holyrood budget deal.

The Council is waiting to hear funding decisions from both the Westminster Government next month when Chancellor Phillip Hammond sets his budget and then Mr Mackay at Holyrood in December.

Mr Gow added: “It all hangs on what Westminster does, and then what is available from the Scottish Government.

“Is local Government’s share going to be maintained? I hope it increases.”

“I don’t care how Derek Mackay gives me the money, I’ll take it and I’ll spend it.”