A “fundamental shift” in how local services are delivered is needed, Deputy First Minister John Swinney has said.
As further details of local government funding were published, he said there should be increased use of early intervention to tackle problems before they become acute.
The Scottish Government said councils will receive £13.2 billion in the next financial year, with a total cash increase of £570 million or 4.5%.
However, Cosla has disagreed with these figures and said the cash increase could be just £71 million once Scottish Government-mandated policies are paid for, while capital funding will remain flat for next year.
The Government has now published provisional allocations for each of Scotland’s 32 local authorities.
Aberdeen City Council is receiving the largest percentage increase at 11.6%
Shetland Islands Council has received the smallest increase at 4.3%.
Mr Swinney said: “I recognise the challenge which local councils face in delivering services during the current, bleak economic climate.
“The 2023-24 budget confirms that, despite the most turbulent, economic and financial context that most people can remember, and the huge pressure on public finances, we are providing councils with a real terms budget increase of 1.3% next year.
“Local government had sought even more funding but – candidly – there was no way in the current climate we were going to be able to meet the request in full.
“The entire country is having to make difficult choices, including Government and local authorities, but we have managed to find an extra £570 million for councils on top of last year’s budget allocations.”
He continued: “We are building flexibility and autonomy into how budgets can be spent, but a more fundamental shift is required.
“We will work with local authorities to review how public services are delivered, so that they are designed around the needs and interests of the people and communities of Scotland.
“That means tackling problems through early intervention before they become acute.
“It means creating a more effective way of working together with local government by focusing on outcomes, not process.”
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