THE leader of Inverclyde Council has welcomed a spending watchdog’s report which warns Scotland’s local authorities are ‘long overdue’ a new funding deal.

The Accounts Commission published its report on the performance of councils on Wednesday, saying ‘radical change’ is needed if vital services are to be maintained.

The Scottish Government has been urged to escalate plans for a funding shakeup, with First Minister Humza Yousaf having agreed to a ‘new deal’ for local government.

Councillor Stephen McCabe told the Tele: “I wholeheartedly agree with the views of the Accounts Commission and would hope that the new First Minister and his ministers will respond positively to the points they are making and those that I and others in local government have been making for well over a decade.

“The current crisis facing Inverclyde and all other councils is principally a result of the policies adopted by the Scottish Government over the past 16 years.

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“Any new deal for local government must include a significant reduction in the amount of funding that is ringfenced, a new political consensus on how we fund public services, reform to Council Tax, the devolution of non-domestic rates to councils, with appropriate safeguards for smaller councils, and additional income generating powers for Councils such as a tourist tax.”

The Accounts Commission’s acting chair, Tim McKay, says councils across the country are already at ‘crisis' point.

He said: “Councils have gone beyond the point where making savings is enough. If the change needed doesn’t happen now, some services will continue to get worse or deeper cuts will be made.

“This will impact communities and individuals that are already at crisis point with the effects of inequality and persistently high poverty.

“Councils need to have open and honest conversations with their communities and staff about the future of council services.”

Inverclyde MSP Stuart McMillan, an SNP representative, said the Scottish Government recognises the role councils play in delivering ‘sustainable public services’.

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He believes the new deal will focus on empowering local authorities, giving them greater flexibility over local funding.

Mr McMillan added: “I have written to the finance secretary to outline my views on local government funding, as I agree that it must be reformed.

“However, the issue of local government funding cannot be looked at in isolation. The impact of UK Government cuts to Scotland’s budget must be taken into account.

“That is why I want to see more powers devolved in the first instance, but the end goal being independence for Scotland – because let’s face facts, without there being more ways for the Scottish Government to raise funds and in turn increase budget settlements, this age-old wrangle of local government crying out for more money will continue.

“The Scottish Government cannot give what it doesn’t have – and it would be good if Labour were to finally recognise this and get on board with the SNP’s calls for more powers to be handed over to Scotland.

“It’s a preposterous position for Labour to keep asking the Scottish Government for more money while actively working against the SNP’s efforts to deliver more powers for Scotland so we can actually have more control over our finances.”