The backlash from councils against planned SNP cash cuts has forced John Swinney to abandon a key agreement deadline.
Scotland’s local authorities were supposed to have accepted the spending package offered by the Deputy First Minister in his draft budget by today, but the Scottish Government admitted there was no longer any sign-off target time.
Fife Council leader David Ross said his administration had made their concerns and disappointment clear.
He added: “The cut in what’s being offered translates to another £17 million that we have to save this year on top of our existing budget gap of £21m.
“Our first priority is to protect local services for the people of Fife.
“We are therefore consulting with communities on our draft budget proposals over the next few weeks, concentrating on issues including whether or not there is an appetite to raise council tax.”
Analysis published by the Scottish Parliament’s information centre put the average revenue settlement reduction for councils at -4.7%.
Dundee’s was the third biggest cut in the country at -5.5%, while the cut for Angus was -5.1%, Perth and Kinross -4.2% and Fife -4.1%.
A Scottish Government spokeswoman insisted discussions with council umbrella group, the Convention of Scottish Local Authorities (Cosla) were “going quite well”.
She added: “The discussions with Cosla are continuing and, in discussion with Cosla, we thought it would be best to lift the deadline date.
“It indicates we are having quite constructive discussions and these discussions should be continuing.”
It emerged that Mr Swinney had written to every council leader in the country as The Courier revealed that Alex Bell, the former head of policy to Alex Salmond, suggested council tax should be scrapped in favour of a rise in income tax payments to make the revenue-raising system fairer.
The Scottish budget is pencilled in to be formally passed on February 24.
Scottish Labour Communities spokesperson Ken Macintosh said: “It’s no surprise that John Swinney is running into trouble trying to get local leaders to agree to his plans his cuts would be absolutely disastrous for families across Scotland.”