Glasgow City Council is in a “critical” state over a £110m budget black hole, according to a watchdog report. Rising homelessness, fuelled by a refugee crisis, and equal pay costs are piling pressure on the council.
Labour MSP Joe Fagan said: “This report paints a stark picture about the huge challenges faced by Glasgow.”
Homelessness costs balloon
Total costs for helping people without a home stood at £38m in 2025/26, but estimates suggest this will balloon to £56m this year and then to £75m. Council chiefs believe the UK Government’s policies on clearing the backlog of asylum seeker cases are behind the increased spending. When asylum seekers, thousands of whom are housed in Glasgow, have their applications approved they can declare themselves homeless in the city.
Unresolved equal pay claims and rising demand for services are other factors said to be behind the council’s financial crisis.
Accounts Commission warning
A report by the Accounts Commission, published today, has laid bare the perilous state of the city: “Glasgow City Council is at a critical point as it tries to tackle financial pressures, rising homelessness, growing demand for services, persistent high poverty levels and unresolved equal pay claims. Each of these challenges are significant.
“The council needs to show sustained leadership from councillors and officers, together with local and national partners, as they tackle all these challenges, including homelessness.”
Over 3,000 asylum seekers were being housed in Glasgow by Home Office contractor Mears as of March. Nearly 6,000 refugees with leave to remain were living in temporary accommodation in the city in November last year.
Political reaction
The Commission said of the soaring homelessness bill: “Costs in respect of homelessness have been a significant area of financial pressure on the council. Under homelessness legislation, households that receive leave to remain in the UK following an asylum decision can seek assistance from a local authority.”
SNP Cllr Ricky Bell, the city treasurer, said: “The issues and challenges called out in this report are not a surprise to us – they are things that we are planning for and working to address every single day.”
Fagan said: “The budget gap of £110m is significant and will likely require very difficult decisions to be made, which will impact on people living right across the city.”
Tory MSP Alexander Burnett said: “This is a stark warning that Glasgow’s finances and frontline services have been pushed to breaking point by years of SNP failure.”
Scottish Green MSP Iris Duane said: “This is a ticking time bomb that has been years in the making. Glasgow is facing multiple, concurrent crises, but none of this was inevitable.”
A Scottish Government spokesperson said: “This year, Glasgow City Council will receive over £1.8 billion to fund local services which equates to an extra £105.4 million or an additional 6.1% compared to last year.”
