Kate Forbes

The settlement represents a total cash increase of £917.9 million or 7.9%, which is the equivalent of a real-term rise of 5.1% to support vital local government services.

It includes a real-term increase in day-to-day revenue funding of 4.9%, compared with the 2021/22 draft budget.

In addition, the Scottish Government said it has responded to requests by councils for more financial flexibility by enabling them to make their own local decisions on council tax.

Finance secretary Kate Forbes said: “The 2022/23 Budget confirms that, even in the face of the economic uncertainty caused by the pandemic, we are providing councils with a real-terms increase to their budgets for the coming year of more than 5%.

“Local authorities are key partners with government as we tackle the pandemic and protect our communities, businesses and public services. As we move forward, they will play an important leadership role in creating a greener, fairer and more prosperous Scotland.”

She added: “This settlement reflects that and includes protection to the core budget in cash terms, an extra £554m for health and social care, £145m for additional teachers and support staff and £94m to support the expansion of free school meals.

“I have been clear that this Budget has required difficult choices. But I am determined that councils should be fairly funded within the limited resources we have available.”