Councils say they face worst ever finance pressure

Council finance chiefs have warned that Scotland's local authorities are facing unprecedented financial pressures.

The Scottish government said it had given councils an extra £570m for local services in its December budget.Finance directors from three councils told Holyrood's local government housing and planning committee they faced huge challenges as they prepared to set next year's budgets. A common complaint was that most central government funding was directed for specific purposes, giving councils little leeway on where to make savings.

"You've got your waste, your bins, your leisure facilities, your cultural facilities - it means it's a deeper cut for them," she said.Councils say services such as refuse collection face the brunt of cuts because other spending areas are ring-fenced They also warned that money allocated for new policies often failed to take into account inflation in future years, meaning that core funding was eroded over time.

The directors said council tax offered only a limited source of income. Rates would have to rise by 20-25% to cover their estimated budget shortfalls, something that would not be acceptable, they said.

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