JOHN Swinney has acknowledged warnings from council finance chiefs who said vital services could be cut due to a budget gap of £1 billion – but warned giving local government extra cash would "starve" the NHS.
All 32 of Scotland’s council directors of finance wrote to the Deputy First Minister and interim Finance Secretary to highlight concerns over the sustainability of councils.
The letter warned tough decisions could be made on axing or reducing key services in schools and the health sector if additional support is not made available.