FINANCE Secretary Derek Mackay defended his deal for councils yesterday after the Scottish Greens said their support would require £150 million more in funding for local authorities.

The party’s local government spokesperson Andy Wightman said they could not back Budget plans unveiled by Mackay yesterday in their current form.

However, the Lothian MSP said this could change if the 2018-19 settlement includes another £150m for councils.

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The minority SNP Government does not have the numbers to pass the draft budget without the backing of at least one other party, and last year’s Budget was secured after the Greens negotiated concessions worth hundreds of millions of pounds, including the provision of £160m to councils.

Wightman suggested funding for the additional sum could be gathered by changes to the small business bonus scheme, which he branded “very flawed”, claiming many recipients are “getting tax breaks they don’t deserve”.

Responding, former Renfrewshire Council leader Mackay said the offer set out for councils – which includes a £94m increase in “core funding” – is “very fair”. Adding that he is open to “constructive talks”, he insisted his Budget will pass.

He said: “For local government I’ve given them a very fair settlement. They were forecasting a three per cent reduction and that’s £300m of a reduction – that’s not what I’m proposing.

“I’m proposing flat cash, that’s about the same amount of money with more for capital, and if local authorities use their council tax powers up to three per cent then they will have a real terms increase.”

Councils body Cosla has raised concerns over who will provide the cash for the promised end to the public sector pay freeze, with its resources spokesperson Gail Macgregor, a Conservative councillor in Dumfries and Galloway, pinpointing this as a “particular issue” if it is not fully funded.

The organisation also warned that the current figures suggest “really difficult times” for its members, with services set to be affected.

Labour have raised concerns that the pay increase does not apply to 243,000 local government workers as the Budget states that matters relating to their pay and employment are delegated to councils. When asked yesterday if council staff could be the only public sector workers left without a pay rise, Mackay said: “That would be up to local authorities, they have control over their pay policy.

“I’ve protected their budgets, I’ve enhanced capital budgets for local authorities and if they use their powers they will have more money in real terms. It’s in that fiscal environment I believe they can engage constructively with their own workforce.”

Yesterday Councillor Stephen McCabe, who heads Labour-led Inverclyde Council, welcomed the Green intervention.

Acknowledging the role of the party in raising the funding level last year, he told The National the proposed £150m would be far less than the £545m Cosla had sought “just to stand still on current services” and cope with rising inflation and demand. However, he said that while there would still be cuts, they “would not be as devastating as what we are now facing”.

Inverclyde’s revenue grant has been reduced by £2.3m on a like-for-like basis, half of the £4.6m decrease it forecast.

But McCabe said: “It is still less money than we had last year. The council will have to fund the pay award along with other inflationary pressures. Combined with the ever-increasing demand for services from a tighter budget, we will have no choice but to make cuts.”

The local authority faces a funding gap of more than £10m from 2018-2020 and a consultation on savings is scheduled. Councillors will discuss a report on what the Budget means for the area on Thursday.

McCabe said: “We have to confirm by the middle of January whether the council intends to accept the settlement but, to quote the Cabinet Secretary’s own words, any local authority that does not will receive a revised ‘and inevitably less favourable offer’.”

Tory local government spokesperson Alexander Stewart claimed the Scottish Government is guilty of “totally inexcusable” cuts to councils, and said that “so many of them are furious” with the Finance Secretary.

However, trying to secure support in the chamber, Mackay said: “I’m in a minority government, I have to compromise to get a Budget through.

“Am I confident this Budget will pass? Yes I am.”