KATE Forbes has been accused of failing to take responsibility for “savage cuts” to local councils ahead of Conservatives demanding local authorities “automatically receive a set percentage” of the budget.

In a Holyrood debate this afternoon, the Scottish Conservatives will call on SNP ministers to “commit to fair funding for local councils by delivering a new financial framework” which would mean a set proportion of the Holyrood budget would be siphoned off for local authorities.

The appeal comes after Cosla, the umbrella organisation for Scottish councils, raised concerns over the draft settlement offered by the Scottish Government in next year’s budget.

Local authority funding will be at a virtual standstill next year, rising just £40m to £11.1billion – but with councils required to bring forward more Scottish Government priorities with ring-fenced cash.

Speaking on BBC Good Morning Scotland, the Finance Secretary was pressed over the concerns raised by Cosla.

Ms Forbes said: “We have protected the core budget for local authorities in cash terms. But what Cosla is referencing, which many, many other parts of the public sector and the private sector are referencing, is the impact of inflation.

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“Now, I've been clear, I can't inflation proof any part of the budget because my own budget is not inflation proof. The Scottish Fiscal Commission, which is obviously the key independent forecaster for our own budget states that the Scottish budget next year is down 5.2 per cent.”

Ms Forbes was pressed over whether the Scottish Government could reduce ring-fenced funding for SNP priorities to be rolled out by councils, with Cosla suggesting they only have freedom of choice over 38% of their budget.

The Finance Secretary said: “This is where I would dispute the figure – ring-fenced grants only account for 7% of local authority budgets.

“What we often hear in terms of the figures cited is a removal of many of the other funding streams to local authorities that are dealing with the pressures.”

Ms Forbes added: “So, for example, over and above the core budget, there is substantial more funding for social care as part of the health and social care consequentials.

“We know social care is an area under pressure, substantially more funding that's often ignored in these discussions. The same for education, these are the areas of pressure, that's where we've substantially increased the funding on top of protecting the core budget and cash flow.”

The Scottish Conservatives have accused Ms Forbes of finally admitting she is cutting council funding in real terms after stating she cannot inflation-proof her budget.

Tory finance and economy spokesperson, Liz Smith, said: “Kate Forbes admitted this morning that her party has slashed council funding in real terms – yet the Finance Secretary is still trying to wriggle out of taking responsibility for these savage cuts.

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“By underfunding our local government to the tune of almost £400 million, the SNP is leaving councils with an impossible choice between failing to deliver essential services, and implementing punishing tax hikes on the communities they serve.”

Ms Smith added: “The SNP has been systematically underfunding local councils for years, and these damaging cuts are no longer sustainable.

“That’s why the Scottish Conservatives are once again calling on the SNP to pass on the record UK Government funding at their disposal, and finally support our local communities with fair and adequate funding for local councils.”