Scottish councils warn of ‘bankruptcy’ risk without more funding

Local authorities are at risk of bankruptcy if funding from the Scottish government is not improved, council leaders have said.

Cosla issued the warning in a briefing paper ahead of the Scottish budget on 19 December.

The local government body said councils need nearly £14.4bn in the budget just to “stand still”.

The Scottish government said it had given councils a real-terms increase of £376m, or 3%, this year.

Both authorities have issued Section 114 notices, which prevent spending on virtually everything apart from statutory services.

In its briefing paper, Cosla stated: “There is a risk this becomes the reality for Scottish councils if the funding by Scottish government does not match growing cost pressures.”

A council tax…