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Committee convener James Dornan points out COSLA suggest local government are being treated less fairly than other areas.

"I disagree with that analysis," replies the finance secretary.

As long as he has been finance secretary local government has received real terms increases, despite austerity continuing from the UK government, Mr Mackay insists.

"I think we've treated local government very fairly."

Communities Secretary Aileen Campbell says the budget shows increased investment to deliver more affordable homes.

The total capital available for affordable homes will be £686m, she says.

We are also maintaining our commitment to reducing energy costs by improving energy efficiency and tackling fuel poverty, Ms Campbell states.

The cabinet secretary also points to the child poverty funding, plans to tackle food poverty in school holidays and a planned expansion of efforts to tackle period poverty.

Image source, SPICe

According to SPICe..., external

"The total allocation to local government in the 2019-20 Budget is £10,779.9 million... This represents a 2.5% increase in cash terms, or a 0.7% increase in real terms.

"Once Revenue funding within other portfolios (but still from the Scottish Government to local authorities) is included, the total is £11,071.2 million, a cash increase of 3.8% (£405.1 million), or 2% (£210.5 million) in real terms. This £210 million real terms figure was used by the Cabinet Secretary as the headline Local Government figure in his Budget speech.

"However, when looking specifically at the non-ringfenced Revenue funding available for councils to deliver services this falls by 1.7% (-£157.2 million) in cash terms, or 3.4% (-£319.1 million) in real terms between 2018-19 and 2019-20."

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Finance Secretary Derek Mackay says the 2019-20 budget is being delivered under the most challenging of circumstances.

Mr Mackay insists that despite this local authorities are getting a real terms increase in both revenue and capital funding and are being treated "very fairly".

The total settlement is over £11.1bn, he explains.

Mr Mackay insists the resource budget has increased by £197.5m and the capital budget by £207m, resulting in a total increase in local authority core funding of £405m, a real terms increase of some 2%.

Councils can also increase their revenue by increasing their council tax rates, he says.

The committee will now hear from:

• Finance Secretary Derek Mackay
• Communities Secretary Aileen Campbell
• Graham Owenson, Head of Local Government Finance at the Scottish government
• Robin Haynes, Head of Local Taxation at the Scottish government
• Caroline Dicks, More Homes Division at the Scottish government
• Angela O'Brien, Better Homes Division at the Scottish government

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A cross-party campaign was launched by Scotland's councils to fight for a better deal on finance from the Scottish government.

They also called for the reform or replacement of the council tax, to give them a secure level of funding in future.

Local authority representatives have said they are struggling to maintain core services.

But the Scottish government said it had treated local government "very fairly".

Read more.

Convener James Dornan seeks views on the tourist tax.

Plans to introduce a £2 tourist tax in Edinburgh have won strong support in a public consultation.

Cllr Gail Macgregor explains COSLA's view is that such a levy should not be used to plug gaps in the budget, but would allow local authorities to cover the costs of tourism.

Local government should be given discretion to raise money locally if the conditions require it, she insists.

Labour MSP Alex Rowley asks if there is a settlement on teachers' pay will it be fully met by the Scottish government and will other trade unions come back looking for more.

Cllr Gail Macgregor from COSLA explains she is negotiating with all the unions and the EIS specifically.

Ms Macgregor says COSLA mirrored Mr Mackay's policy in good faith after the cap was lifted, but she adds she cannot go into the specifics of the nine month negotiations.

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More talks are to be held in an attempt to agree a deal on teachers' pay.

While unions want a 10% rise, employers argue the three-year deal on offer - while worth less - is the most generous in Britain's public sector.

The biggest union, the Educational Institute of Scotland (EIS), is likely to discuss whether to call a strike ballot later this week.

Teachers pay is negotiated by a committee which brings together unions, councils and the Scottish government.

• Analysis: A profession on the edge over a pay dispute

Annemarie O'Donnell says local government is working with its community planning partners to meet priorities and outcomes.

For example, we are working with out partners on justice issues which also have an impact on health outcomes, she explains.

Ms O'Donnell insists councils are outcomes-focused but there needs to be more flexibility in how they can deliver services.

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Mr Wightman pivots to the extension of early learning and childcare, and asks who is responsible if the 1,140 hours are not delivered.

The Green MSP asks if there is a fundamental problem about accountability and if there should be a clearer fiscal framework for council funding.

Cllr Gail Macgregor from COSLA replies: "Yes, absolutely."

Vicki Bibby from COSLA agrees calling for greater transparency around the local government settlement.

Annemarie O'Donnell from SOLACE Scotland says councils have a financial forecast with additional pressures linked to pay awards, which is a high risk going forward.

Yesterday Unite recommended that its members reject a 3.5% pay offer by local government body COSLA.

Green MSP Andy Wightman turns discussion to long-term outlooks, noting councils have publicly stated the savings they are looking to make.

What is the difference between these projections and the reality in this budget, he asks.

Cllr Macgregor says the reality on the ground will be much worse.

Pay inflation, demand pressure and other factors, on top of the savings, means the future is "looking quite dark" for many councils - particularly those without much reserve, she adds.

Councils should be given a fair settlement to match the new priorities and left to deliver them without too much intervention, she argues.

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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.

Read more here.

Cllr Gail Macgregor from COSLA says it is a question of which services should be cut if new priorities and core functions are not properly funded.

Ms Macgregor insists local government wants to deliver the priorities of the Scottish government, but it needs to be told which core services should not be delivered.

Cllr Gail Macgregor calls for "more flexibility" in how councils can raise money.

The council tax cap has not been particularly helpful, she adds.

We know the Scottish government cannot give us all the funding we need, but we do not have levers to raise more, the COSLA rep explains.

SNP MSP Kenneth Gibson says she is suggesting we have to "bleed the taxpayer" to pay for services.

Cllr Macgregor insists councils are very good at consulting communities and many people will be willing to pay a bit more if they can see the impact on local services.

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Councils have called for a 2.5% increase in local government funding in the upcoming Scottish Budget.

Council umbrella body Cosla argues that they have "no options left" for savings.

It also wants the 3% cap on council tax increases to be scrapped and says councils should be given the right to introduce levies such as tourist taxes.

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

It added that in 2018-19, councils would receive funding of £10.7bn and said Finance Secretary Derek Mackay was open to talks on options for local tax reform.

Read more.

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Tory MSP Graham Simpson says he thinks members of the public will be completely baffled by all of this.

Mr Simpson insists people will be scratching their heads at an overall increase in the budget leading to councils making cuts.

Cllr Gail Macgregor from COSLA says local government starts with a £190m cut to the budget at the base due to £400m of ringfenced new commitments.

The reality is that within the 42% of the non-protected part of the budget, things like road services could be part of the 6% cut, as could leisure and sport which impacts people from more disadvantaged areas.

"People are going to begin to notice."

Mr Simpson says libraries are starting to close and people will be furious about this and the maintenance of roads.

Scotland's finance secretary says he will work to win approval for his budget.

Derek Mackay will urge MSPs to back the Scottish government's budget plans to provide Scotland with economic certainty ahead of Brexit.

Speaking on Sunday Politics Scotland he said: "I recognise we are a minority government and I need to find a consensus in the Scottish Parliament."

The Scottish Greens have been the SNP's partners for the past two years but this year they have said they will not even enter formal negotiations until they see movement towards major reform of local government funding.

Speaking on the programme, Greens co-convener Patrick Harvie said: "We certainly won't be voting for the budget in its current form. It's clear that changes are needed."

Read more here.

Labour MSP Alex Rowley queries whether any additional funding from NHS Barnett consequentials isgoing towards integrated joint boards (IJBs).

Vicki Bibby from COSLA says while councils welcome the £120m which will be passed onto IJBs, they have also been asked the maintain 2018-19 levels of funding in health and social care going forwards.

This begs the question of where this money will come from because local government is being asked to provide more services without enough of a funding increase, she explains.