Local authorities are at risk of bankruptcy if funding from the Scottish government is not improved, council leaders have said.
The Convention of Scottish Local Authorities (COSLA) issued the warning before the Scottish budget on December 19, arguing councils need nearly £14.4bn just to “stand still”.
The Scottish government said it had given councils a real-terms increase of £376m, or three per cent, this year.
COSLA’s comments came after Birmingham and Nottingham city councils effectively declared themselves bankrupt. Both issued Section 114 notices, which prevent spending on all but statutory services.
COSLA stated: “There is a risk this becomes the reality for Scottish councils if the funding by Scottish government does not match growing cost pressures.”
A council tax freeze was announced by First Minister Humza Yousaf in October. No details have emerged on how much money councils will receive to compensate for this.