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Glasgow Live
Glasgow Live
National
Chris McCall

Glasgow's Kelvingrove Museum could be remortgaged to help settle huge equal pay bill

Glasgow's Kelvingrove Art Gallery and Museum could be remortgaged to help settle a massive equal pay bill.

The iconic building is among those that may help the council raise the cash needed to settle the long-running dispute.

Council leader Susan Aitken admits that Glasgow City Council is working behind the scenes on potential ways to pay the second instalment of an equal pay settlement that has overshadowed the city for years, the Daily Record reports.

Any deal involving the museum would keep it in public ownership, but it will raise concerns over the authority's finances.

In 2019 the council stumped up £505million to end a challenge over unfair pay grades, where many men historically earned more than women.

But that settlement only covered the period up to 2018 and a second deal is required to cover the years after.

Speaking ahead of Thursday's council elections, Ms Aitken said the equal pay settlement was the "biggest challenge" she had faced in her five years as leader.

Follow our Scottish local elections LIVE blog for all the latest on Glasgow City Council and more

"We are actively working just now to raise the money for the next phase of payment - we always knew there would be a second phase," she said.

"We will have a new pay grading system in place at some point next year - and we are aiming to start paying out the next phase by this autumn.

"We are still talking through various elements with the claimants' representatives but I think we are largely on the same page.

"We are working towards the same outcome here. We all want the same thing."

Ms Aitken said she was not in a position to say what the final bill facing the city would be, but warned it would be "significant".

Glasgow City Council is already spending £30million per year for the next three decades to pay-off the first part of the settlement agreed in 2019.

The SNP councillor added: "What we have paid out so far costs the city £30million a year for the next 30 years. That figure will grow by more millions.

"I can say it will be paid for in a similar manner to the first phase of settlement.

"By and large it will be the same mechanism that we used last time - which is leveraging our built assets.

"I'm not going to mention any buildings as we are right in the middle of commercial discussions with partners just now.

"I am keen to be as transparent as possible with the city but, in order to deliver this and to get this right, there are elements that are going to have to be kept private.

"But it will be made public in time."

Asked if that meant buildings like Kelvingrove or the City Chambers being remortgaged, Aitken said: "I wouldn't rule anything in or our just now."

The first equal pay settlement saw venues such as the Old Fruitmarket and Royal Concert Hall remortgaged to raise finance.

Ms Aitken continued: "The first set of buildings all have an income stream. Are we able to keep going back to that? I'm not sure.

"What I can say - and I can make this commitment - is we are not looking to sell anything. That's not the place we are in.

"We are looking to repeat the same deal as last time - which I think was an ingenious deal in many ways - which protected those assets for the city.

She added: "Flogging off the family jewels is not something we are considering."

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