Council leaders in Scotland have warned there is a risk of bankruptcy for local authorities if funding provided by the Scottish Government is not improved.

Local government body Cosla made the comment after Birmingham and Nottingham city councils effectively declared themselves bankrupt.

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

In a briefing paper published ahead of the Scottish Budget on December 19, Cosla said: “There is a risk this becomes the reality for Scottish councils if the funding by Scottish Government does not match growing cost pressures.”

Cosla resources spokeswoman Katie Hagmann warned without improvements in council funding, “tough choices” could mean essential services they provide “will cease”.

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