AN Audit report into Glasgow City Council has raised questions over how the equal pay settlement will will be funded and if it will affect services.

The Accounts Commission Best Value report said the council has made steady progress since the last report in 2009 with improvements in several areas.

It had concerns over the equal pay claims the council is currently in talks over settling with unions representatives. The Commission was concerned how this will affect future budgets.

It said: “The council predicts a funding gap of £129.1 million over the next three years.

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“In addition, the council is committed to resolving a substantial number of equal pay claims. This means that it faces a period of unprecedented financial pressure.”

The commission said these pressures may impact on the delivery of public services.

The Commission recommended the council should consider the impact of resolving equal pay claims and include this within its financial plans. More widely it said the council should consider the potential impact on service delivery.”

Graham Sharp, Chair of the Accounts Commission, said: “The equal pay claims issue has recently grabbed headlines. And our latest best value report is clear that the council should include the potential impact of any deal in its financial planning.

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“It’s a serious concern for anyone with an interest in the city and the services provided to its citizens. But the scale of the challenge shouldn’t obscure the steady progress the council and its partners are making.

“There are encouraging signs on the health of Glaswegians, young and old. Healthy birthweights are up, for example, and life expectancy has increased.

“It’s important that momentum continues.”

Susan Aitken, leader of Glasgow City Council said: “At the heart of any Best Value audit is whether the council is delivering quality services that respond to the needs of individuals and communities and I’m pleased that clear and steady progress in Glasgow has been recognised.

“The challenge of resolving equal pay is substantial and it would be unusual if it wasn’t a focus for the audit team. It’s a challenge we are committed to and we are making substantial progress.”