Glasgow's homelessness crisis is threatening to overwhelm the city's finances, with costs forecast to rise to £93m by 2028/29. An Audit Commission report warns that "costs associated with homelessness services are placing significant additional pressure on the council's already tight financial position".
Rising costs and Scottish Government support
The cost of paying private landlords to house people in the city was £38m in 2025/26, with £56m budgeted for 2026/27. Estimates suggest costs will rise to £75m in 2027/28, reaching £93m the following year. The Scottish Government is expected to cover around 70 per cent of these costs in the next year, though the longer-term sustainability of such spending remains uncertain.
Poverty and deprivation
The report also highlights stark poverty figures, with 45 per cent of communities within the city boundaries ranked among the 20 per cent most deprived in Scotland. This has significant implications for service delivery across schools and healthcare. Reducing child poverty remains a top priority for both the council and Scottish Government, though confidence in the local authority was severely tested by the "Beastie House" case, where a gang of abusers terrorised children in a filthy Townhead flat for years despite repeated social work visits.
Budget gap and pay structure challenges
Councillors must still find ways to plug a £110m budget gap over the next year, despite recent cuts and council tax hikes. The council also continues to grapple with the fallout of historic equal pay claims, which saw roles historically filled by men often paid more than those held by women. After eight years of negotiations and a £770m settlement, no new pay grade system is in place. SNP and Green councillors recently pushed through a plan to slash wages of thousands of workers, prompting furious staff to pledge strike action.
Leadership and pay-offs
The Accounts Commission warns all 85 councillors: "We expect elected members to play a key role in providing constructive challenge, ensuring robust oversight of performance, risk and financial sustainability. This is especially important given the scale and complexity of the challenges facing the council."
Despite financial pressures, the council paid more than £1m in pay-offs to five former senior officials, including former chief executive Annemarie O'Donnell, who received a £357,845 pension contribution, and Elaine Galletly, former Director of Legal and Administration, who received £223,065 in pension contributions and £59,971 for loss of office. O'Donnell agreed to repay money after the row broke.
