Glasgow City Council is facing a potential deficit of £50m by 2015, according to the latest forecast.

Scotland’s largest local authority will have to make savings over the next two years to deal with a predicted deficit of £48.8m.

A briefing paper handed to City Council members has blamed rising costs and restrictions in government funding for the potential debt and also revealed that a further £50m could be expected for the financial years 2015 – 17.

Councillors will have to decide how to make up the shortfall in the coming months, as the authority already plans to cut 2,800 jobs as part of wider plans to save about £115 between 2011-13.

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It is expected that this latest briefing could put pressure on the Council to cut further jobs.

A council spokesman said: "This forecast sets out the financial challenges facing all Scottish local authorities now and in the foreseeable future.

"We have taken some difficult decisions in the last few years and over the autumn we will be putting together a package which will continue to take the city forward."

The briefing delivered further blows to the Council’s economic forecast, stating: "This forecast has concentrated on the next two financial years, however, some early work has been undertaken in respect of projections beyond 2015.

"It is difficult at this early stage to accurately forecast the impact for the council but initial projections suggest the reduction in grant over that two-year period could be in the region of around £50m. This is before any allowance for spending commitments."

(IT)