The closure of a troubled secure unit for young people will cost Scotland's largest local authority almost GBP2m.

Directors of Glasgow City Council's education and social work services claim the demise of Kerelaw School as a secure unit will impact on the council's finances through lost income from other councils, alongside potential redundancy costs of GBP723,073 and pension liabilities.

The North Ayrshire unit was run by the council on behalf of the Scottish Executive. However, changes in children's policy meant Kerelaw was to be phased out.