Councils are getting a cash boost for major projects — but will still be millions of pounds worse off, new figures show.
Finance Secretary Derek Mackay has released a breakdown of his funding deal for local authorities following his draft budget last week.
In Tayside and Fife, councils are getting an extra £25m for capital spending in 2017/18, but their pot for day-to-day spending is being slashed by £28m.
Mr Mackay says the core grant reduction does not take into account extra cash that councils can raise from tax hikes, health and social care integration proceeds and funds going direct to headteachers to close the attainment gap.
His figures claim that once other sources of income are included Courier Country councils are £42m better off.
Eileen Rowand, the finance director of Labour-run Fife Council, rubbished the data produced by Mr Mackay.
“The figures presented do not reflect the funding that local government will receive from the Government as other funding streams are included,” she said.
“Councils have seen a cash reduction in their grant.”
Fife Council leader David Ross says that Mr Mackay’s claims of an increase in council funding are “frankly ridiculous”, adding 300 jobs are at risk at his local authority as it seeks to find estimated further savings of £35m.
He added the rise in the capital budget simply restores funding to a base level after last year’s cut.
Mr Mackay was confronted in Holyrood over a cut to local budgets in Holyrood on Thursday.
But he said the deal is being is considered by the umbrella group that represents most councils in Scotland.
“If local authorities are not happy with the settlement that I have given them, why has the Convention of Scottish Local Authorities not rejected it?” Mr Mackay told MSPs.
Councils will have to make a decision on whether to accept the settlement by January 13.
Angus, Dundee, Fife and Perth & Kinross councils have all indicated they are looking seriously at raising council tax by 3%, the maximum hike permitted by the Scottish Government.