SCOTLAND’S finance secretary has proposed cuts in the cash Scottish Government gives Argyll and Bute Council to support local services.

Derek Mackay plans to give Argyll and Bute revenue funding of £187.451 million for 2018-19, alongside £13.057m in capital funding – a total of £200.508m.

That compares to ‘distributable funding’ of £207.038m given to the council for the 2017-18 financial year.

But the proposed settlement is already shrouded in uncertainty after the Scottish Greens insisted that more money for councils was essential if the party is to support the minority SNP government’s spending plans in a Holyrood vote.

Mr Mackay announced details of the proposed new local government finance settlement last Thursday.

If Argyll and Bute Council opts to raise council tax by the maximum 3 per cent when the authority’s own budget for the next financial year is set in February, it could bring in an extra £1.51 million, taking the potential total to £202.018m.

However, council leader and Helensburgh councillor Aileen Morton said it was still too early to be thinking of a definite sum the authority will have to spend next year.

Cllr Morton said: “The full detail of what the Scottish Government’s announcement means for Argyll and Bute Council is still being developed and our finance officers will provide updates in the new year.

“Shrinking budgets and growing demands mean that we can’t keep doing what we have done in the past.

“In the meantime, there’s a chance for all local people to give us their views on the future shape of the council by taking just a few minutes to answer our consultation.”

The council’s consultation on a list of potential savings options totalling £2m runs until January 2 and can be completed at argyll-bute.gov.uk/planningourfuture2017.

But the Scottish Greens’ finance spokesman, Patrick Harvie, pointed to independent analysis by the Scottish Parliament Information Centre showing that in real terms local councils would receive less from the Scottish Government than they did in 2017-18.

Mr Harvie said: “This analysis confirms that the draft budget published last week would not enable councils to keep services running as they are, or to offer a fair pay settlement to their employees.

“We have been very clear with the finance secretary that we cannot support a budget that imposes real terms cuts, either to pay or to local government in general.”

Helensburgh’s MSP, Jackie Baillie, added: “The SNP will blame Westminster and I have some sympathy with that, but the rhetoric hides another reality.

“The Tories have cut the Scottish Government’s budget by 1.5 per cent over the past three years, but over the same period, the SNP’s cuts to local government funding amount to 4.6 per cent.”

Mr Mackay said Scotland’s councils would receive more than £10.5 billion from the local government finance settlement in 2018-19 under his proposals.

He said: “The Scottish Government has continued to ensure that our partners in local government receive a fair funding settlement despite further cuts to the Scottish budget from the UK Government.

“We have protected day-to-day local government spending, while increasing the capital budget.

“Local authorities will receive more than £10.5 billion through the local government finance settlement in 2018-19.”