GLASGOW City Council’s Aleos have a £2 million shortfall in the last three months, according to the latest report.

The monitoring report into the ten Arms Length External Organisations owned by the council shows they are coming up short of the budgeted for cash expectations.

The firms, that are intended to deliver a discount, meaning cash goes back to the council, are not making as much as anticipated.

The biggest deficits are showing for Cordia the council’s catering and care firm and Glasgow Life which runs museums, libraries and leisure centres.

Cordia is £2m down while Glasgow Life is £1.3m lower than projected.

The reports said Glasgow Life was struggling with income from its Glasgow Sport arm.

It stated: Actual income in Sport is lower than anticipated and continues to be extremely challenging.”

The Aleo is predicting a deficit of £1m for the year compared to a budget expectation is would break even.

The report added: “Glasgow Life are putting in place various interventions to manage this through underspends across the service.”

Cordia has a surplus of £31,000 against a budgeted for surplus of £2,059,000. The monitoring report found that the catering and technical care operations were doing better than forecast but the home care and facilities sections were below expectations.

It is £1m lower than the expected surplus of almost £3.5m.

The council’s budget expects income form the Aleos termed discounts totalling more than £14m.

The report stated: “ Forecast shortfalls in their surplus are reporter for Cordia, City Property and City Building which is likely to impact on the discount which is due to be returned to the council. City Property and City Building are mitigating this shortfall with the use of reserves and carry forwards.”

The council is due to set the budget in the next few weeks with further cuts expected to departments.

A spokesman for the City Council said A spokesman said: “Both organisations are on track to return a surplus to the council, however, the report details that, at quarter three, these are below the levels budgeted at the start of the financial year.

“These are known issues that are taken account of in the council’s overall financial position.”