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SCOTTISH MINISTERS CHALLENGE LABOUR ON FUNDING SHORTFALL

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Scottish Labour council leaders warned yesterday that council tax bills are set to rise nationally by an average of...
Scottish Labour council leaders warned yesterday that council tax bills are set to rise nationally by an average of 18% with spending cuts totalling £395m, reports The Scotsman (p1).

The forecast was made as Labour announced the start of a campaign to persuade the Scottish secretary to reconsider his financial settlement.

But Michael Forsyth and local government minister George Kynoch last night challenged Labour to say how it would make up the shortfall, reports the paper.

My Kynoch said: 'I'm fed up with hearing opposition parties on this. I want to lay it firmly on the line. We have increased local government expenditure by 2.9% - that's £148m. Councillors are in a position to decide how to spend their funds.'
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