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MAJOR BUDGET CRISIS HITS SCOTTISH CITIES

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The seriousness of Glasgow and Edinburgh's finances was outlined yesterday, The Scotsman reports (p8). ...
The seriousness of Glasgow and Edinburgh's finances was outlined yesterday, The Scotsman reports (p8).

On present estimates, Glasgow was faced with a spending cut of £50m, or 6%, in 1997-98. This was equivalent to the cost of financing 1,000 jobs. Council tax bills could rise up to 25% next year if there was not improvement in the city's financial position.

Edinburgh chief executive Tom Aitchison has ordered departments to bring spending back into line with budget proposals in order to eliminate the forecast overspend of £8.1m. This was equivalent to a 6% rise in council tax.

Meanwhile, the paper reports that an inquiry has been launched into how many people are on Glasgow's social work department payroll after it emerged that its wages budget has been overspent by £5m.
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