Funding for local authorities across Scotland is set to increase by 2.9 per cent during the 2010-11 financial year, following an announcement by the Scottish Government.

Scottish finance secretary John Swinney has confirmed an additional £308m will be available in revenue funding to councils, compared with 2009-10, in a bid to reduce the strain on householders suffering from the recession. Swinney also unveiled proposals to work in partnership with local authorities, which will see a further £70m provided to councils that freeze council tax for a third successive year.

"This announcement maintains the administration's commitment to reverse the decline in councils' share of the Scottish budget and ensure local government goes on receiving an increasing share of the overall funding available to the Scottish Government," said Swinney. "The funding increase for councils next year would have been £174m higher had it not been for the £500m cut in the Scottish budget from Westminster. We welcome the commitment of the councils agreeing to accept this share of the reduction and go on working with national government to meet our agreed commitments."