The debt of councils in Scotland is more than one-and-a-half times the latest local government funding settlement, the Scottish Conservatives have found.
Local authority debt in the devolved nation has reached £21.8bn, compared to around £14bn allocated to councils for 2024-25.
Scottish Conservative shadow finance secretary Liz Smith said the situation was ‘eye-watering’ and ‘unsustainable’.
She warned Holyrood's recent council tax freeze meant debt was likely to grow.
Ms Smith said: ‘It’s only a matter of time before a Scottish council goes bust unless the SNP Government finally agrees to a fair funding deal.’
A Scottish Government spokesperson said: ‘Ministers are aware that many councils are under financial pressure, which is why the 2024-25 Scottish Budget provides record funding for local government of over £14bn.’
