Shona Robison has denied “punishing councils” after threatening to withhold extra funding unless they freeze their council tax.

The SNP finance secretary said it was only reasonable that households saw the benefit of keeping the levy flat during the cost of living crisis.

Humza Yousaf announced at the SNP conference last October that the tax would be frozen in 2024/25, but failed to consult local authorities in advance, leading to a backlash.

Ms Robison initially offered Scotland’s 32 councils £147million between them to offset a 5% rise, but this was rejected by council leaders who demanded more money.

Last week, Tory/Liberal Democrat run Argyll & Bute council put up the tax by 10%.

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After a meeting with the council umbrella group Cosla, Mr Robison admitted her initial offer had been insufficient and offered authorities an extra £62.7m.

The extra was made conditional on councils agreeing a freeze.

Cosla resources spokesperson Katie Hagmann said it was “not appropriate for Scottish Government ministers to interfere in the democratic decision making of councils”.

Council leaders also said it was for individual authorities to set their own level of tax “without sanction or financial detriment imposed by the Scottish Government”.

Interviewed on BBC Radio Scotland this morning, Ms Robison was asked if her policy was about punishing councils which did not go along with the freeze.

She said: “This isn’t about punishing councils. It’s about recognising that taking together the funding that we’re providing - the additional funding - is nearly £210m.

“So I don’t think it’s unreasonable that council tax payers see some of the benefit of that.

“And we believe that at a time when rising prices are putting significant strain on household finances, that the council tax freeze gives some support to households over the coming year.”

She said local government was also getting a larger share of the Scottish Government’s overall budget, rising from 31% to 32%.

MSPs vote tomorrow on the final stage of the Budget Bill for 2024/25.

Ms Robision also said those on the lowest incomes would benefit the most from the freeze.

But put to her that John Dickie, director of the Child Poverty Action Group, had said the council tax freeze would make “little difference” for poorer households, she said: “I’m talking about those who are not entitled to council tax reduction but who are on lower incomes, they pay a larger proportion of their income on council tax than those who are better off.”

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Tory MSP Liz Smith said: “Shona Robison herself admitted that the SNP government’s funding for the council tax freeze was nowhere near enough and left local authorities in limbo about their budgets.

“It’s disgraceful that she should be threatening to withhold money when they are trying to provide essential services with inadequate Scottish government funding.

“Even when she got unexpected additional money from the UK government, councils have been short-changed because of the black hole in the SNP’s finances. Yet again, it will be the public who suffer from the SNP’s mismanagement of the economy.”