SCOTLAND’S biggest council faces a budget gap of up to £110 million over the next two years, a finance watchdog has warned.

Glasgow City Council racked up a whopping £45.7m overspend in 2024/25 — its highest in six years, the Accounts Commission found.

It warned the authority “currently does not have established longer-term financial planning arrangements” and could be on course for a budget shortfall of a staggering £109.7m across 2026/27 and 2027/28.

Accounts Commission deputy chairman Andrew Burns said: “The council is at a challenging point — decisions made over the coming months will have a significant bearing on financial sustainability and on the services that communities receive in future.

“There is no doubt about the scale and complexity of the challenges that Glasgow City Council faces, particularly equal pay and homelessness.”

The council has already shelled out more than £700m to settle outstanding equal pay claims over the eight year period, but its plans — unveiled last month — for a new pay and grading structure have already come under fire from trade unions, which are furious at proposed pay cuts of up to £11,000 faced by some workers while the highest paid officers remain outside the scheme.

Spending on homelessness has meanwhile rocketed from £38m in 2025/26 to a projected £58m in 2026/27, amid a national housing emergency exacerbated locally by the British government’s drive to clear a backlog in asylum cases without supporting the authority to meet the full cost of housing those granted leave to remain.

Scottish Labour local government spokesman Joe Fagan said: “The reality is that Glasgow, just like many other councils, is struggling with the impact of years of SNP incompetence and underfunding by the Scottish government.

“SNP ministers must urgently wake up to the financial situation they are in and ensure that resources are available to enable local authorities to continue to provide the important services the public rely on.”

The issues were “no surprise” to city treasurer Councillor Ricky Bell, who is expected to succeed as council leader later this month.

“They are things that we are planning for and working to address every single day,” he said.

“The Accounts Commission recognises that many of those challenges are not unique to Glasgow — and that others, such as the pressure on homelessness budgets, are not of the city’s making.”