Middle managers could go and savings of £50m found from its budget as Scotland's largest local authority begins its financial planning against a backdrop of economic uncertainty.

For the first time, Glasgow City Council is publishing its financial forecast for the next two years and is seeking the input of all political groups to better explain the economic climate it is operating in.

In all, it will cut £25m, or 2.5%, from its budgets across each of the next two financial years to balance the books, beginning its planning nine months before the budget is published.

Glasgow also wants to avoid the criticism aimed at Aberdeen City Council for its budgetary cut of £27m, leading to proposals to close school and leisure facilities.

This is the third year in succession that Glasgow has frozen its council tax. This year, however, the rest of Scotland's local authorities have also kept their council tax rates unchanged, in return for central government support.

With warnings of a rise in inflation, Glasgow has had to factor in an impact on its finances of almost £47m. After a cull of its most senior staff following the equal pay agreement, the council may now shed 10% of middle management - around 25 posts, through natural wastage, insisting there is still a large degree of duplication and that this can be done without any loss of expertise. One area where the council will take a significant financial knock is the pension for retiring police officers, with a significant number who joined up in 1979 approaching 30 years' service.

Across 2009/2010 and 2010/2011 an additional £27.4m will be swallowed by both the police and fire boards largely as a result of pensions.

Its programme of capital investment will also increase, largely due to the Commonwealth Games and the cost of pensioners' care homes rising from £580m to £630m.

The council hopes to ease this through the sale of some its surplus properties in the city centre. Additional income is also expected through the money made by arms-length firms such as City Building, which made £5m last year, while, at the same time, they will receive no additional funding over the two years.

Some £20m will also be taken from the budgets of the two biggest departments - education and social work - although council leader Steven Purcell insists services will not suffer. He added: "Pressures remain both in terms of income and unavoidable expenditure. All parts of the public sector should constantly look at what they do and ask if they are delivering value for money for tax payers.

"There is now a great deal of responsibility on political parties in the city who will have to propose further efficiencies if they wish to see any part of the council's budget grow in the coming years."

Opposition leader, John Mason of the SNP, said he acknowledged the tight funding, but said spreading the responsibilities across the political spectrum was a tactic to also spread blame.

Martin Doran, of the GMB union, said: "Obviously, if there is an impact on our membership we will consult on industrial action."

Mike Kirby, of Unison, added: "We recognise the fact that the council is in a difficult financial situation, but slightly disappointed that the savings have not yet been the subject of discussions with unions."