Council tax will rise for households across Scotland next year after Shona Robison decided not to repeat the current freeze.

The finance secretary confirmed that the Scottish Government will not impose a freeze or any cap on any rises for 2025/26 when the existing one ends next Spring.

But the finance secretary warned local authorities the move, revealed by The Herald on Saturday, should not lead to large increases in council tax bills for households because of a rise in £1billion in funding.

However, local government experts warned the additional money was not sufficient and councils would have to increase the levy and make cuts to local services.

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Jonathan Carr-West, Chief Executive, Local Government Information Unit Scotland, warned the extra funding was not enough for struggling local authorities which would have to increase council tax.

“We know from our annual survey that local government finances in Scotland are hanging by a thread. One in four councils are afraid they won’t be able to pass a balanced budget next year. Three quarters are warning that they may not be able to do so within the next five years. Today’s budget from the Scottish Government does not engage with the scale of that challenge," he said.

"Local government may welcome commitments to the New Deal with Local Government continuing work on a fiscal framework and plans to deliver new revenue raising powers. However, they will be dismayed to see how much funding continues to be ring fenced.

"There is an increase in core funding in today’s budget but it doesn’t cover the ever growing costs of core statutory services."

He added: "The Scottish Government has responded to the concerns of councils and has removed the freeze on council tax rises, but the Cabinet Secretary’s expectation that record funding levels should mean councils do not need to put up council tax is too complacent. 

"The truth is that even with the additional funding announced today, local authorities will still need to raise council tax and make cuts to services and will still edge closer to being unable to balance their books.” 

Last year, Ms Robison announced a hastily-arranged council tax freeze which angered local councils struggling under the weight of increased inflation.

But on Wednesday, she announced a “record” increase in funding for local authorities in the draft budget, and cautioned against sizeable tax rises.

“In 2025-26, the Scottish Government will increase local authority funding by more than £1 billion,” she told MSPs.

“It will take their total funding to over £15 billion, including £289 million to give real-terms protection to the general revenue grant.

“While it will be for councils to make their own decisions with record funding, there is no reason for big increases in council tax next year.”