Argyll and Bute Council has become the first local authority in Scotland to reject the Scottish Government’s council tax freeze as it announced a 10% hike.

Humza Yousaf offered councils the equivalent funding of a 5% council tax rise if they kept the levy at its current rate, with £147m put forward to fund this.

Local authorities across Scotland warned the First Minister that the money did not go far enough as they struggled to make ends meet.

Argyll and Bute Council said it would be forced to cut services if it did not raise tax, saying it faced a funding gap of more than £40m.

Those in band D properties will now pay £1,627.12 a year, the local authority said.

Glasgow, Aberdeenshire, Scottish Borders, North Lanarkshire and South Lanarkshire have all agreed to freeze council tax.

But that came with a warning they would be forced to make millions in cuts to public services.

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