Councils have managed to balance funding shortfalls using reserves and council tax rises, the Audit Commission report said.

It pointed out that an additional £189m was raised from council taxpayers.

According to the watchdog, councils had managed budgets well over the period but face a difficult time ahead.

The report found that in 2017-18:

• Councils used savings and reserves to manage budgeted funding gaps of 4%
• 24 increased council tax (In the current year all 32 have done this)
• Overall rises in spending on education and social work were offset by reductions in other services
• Read more here

Image source, bbc

Committee convener James Dornan says the net result in local government is a flat line and asks whether this mean there is less money going in, in total.

There is an increasing pressure on finances as the main funder the, the Scottish government, reduces, answers Mr Sharp.

The Account Commission representative adds that the balance of funding has altered.

He explains that everyone is looking at using the maximum level of council tax.

Image source, bbc

Fraser McKinlay from the Accounts Commission says there is real variation across councils in which services they charge for.

Mr McKinlay says councillors must be able to satisfy themselves they are making decisions with the knowledge of the impact on people in the communities.

We won't! Join us for extensive coverage from 3.25pm..................

Graham Sharp, chair of the Accounts Commission, explains the report shows councils continued to manage their budgets well in the face of continued financial pressures.

He highlights a reduction in funding from the Scottish government by 2.3% in real terms and 0.6% in cash terms, but he adds this was largely offset by council tax increases.

The impact across services varies, Mr Sharper states, with increases in education and social work balanced by reductions elsewhere.

There is a continuing need to make changes in the way services are provided, he insists.

Regarding the use of reserves, the Accounts Commission chair says no council is planning to use them in a way that risks financial sustainability for next few years.

Briefly on integrated joint boards, Mr Sharp says this while finding for them increased by 3%, the majority have underlying financial sustainability issues.

Scotland's 32 councils are facing difficult times ahead with no sign of financial pressures easing, according to the public spending watchdog.

The Accounts Commission said funding from the Scottish government fell by 2.3% in real terms in 2017-2018.

Its annual overview of councils across Scotland highlighted the increasing role of council tax funding.

Responding, authorities' umbrella body Cosla said "councils are at a cliff edge" and need more financial powers.

The Scottish government said it had treated local government "very fairly".

Image source, Getty Images

Image source, Acounts Commission

The Local Government and Communities Committee, external will shortly take evidence on the Scottish government's budget 2019-20.

MSPs will take evidence from the Accounts Commission for Scotland on the Local government in Scotland: Financial Overview 2017/18 report, external, published on 29 November 2018.

MSPs will quiz:

• Graham Sharp from the Accounts Commission
• Fraser McKinlay from the Accounts Commission
• Brian Howarth from Audit Scotland
• Ashleigh Madjitey from Audit Scotland

UK Prime Minister Theresa May will face a vote of confidence in her leadership later on Wednesday.

In a statement in Downing Street, Mrs May said: "I will contest that vote with everything I have got."

She said a new prime minister would have to scrap or extend Article 50, the mechanism taking Britain out of the EU on 29 March, "delaying or even stopping Brexit".

Conservative MPs will vote from 18:00 GMT to 20:00 GMT.

A result is expected an hour or so later.

Mrs May said changing Conservative leader would "put our country's future at risk and create uncertainty when we can least afford it".

• Live updates: Theresa May faces challenge
• Laura Kuenssberg: No surprise in May's defiance
• Guide: Rules for the challenge to Theresa May
• Who has written no confidence letters?

Image source, PA

Good morning and welcome to a huge day at Holyrood on Wednesday 12 December 2018, with the Scottish draft budget and the response to the Tory vote of no-confidence in Theresa May.

We'll bring you extensive coverage of both throughout today, with analysis and reports, as well as all the socail media reaction.

Image source, PA/Getty Images

We begin with the local government committee taking evidence from Audit Scotland and the Accounts Commission on the budget, with the focus on council funding.

After portfolio questions, at 2.40pm, Brexit Secretary Mike Russell will make a statement on Brexit.

Then it’s budget time. Join us for extensive coverage and analysis from 3.25pm until 5pm.

Tory MSP Gordon Lindhurst will then lead a member’s debate marking the Korean War.