THE body representing Scotland's councils faces a divisive split as it grapples with whether to back John Swinney's demands over a council tax and teacher numbers freeze.
SNP authority chiefs are preparing to back ministers over their controversial demands on local government.
Willie Gibson, the leader of the SNP-led North Ayrshire Council and the party's leader at Cosla has denied the Finance Secretary's all-or-nothing package will see local authorities lose tens of millions of pounds if they refuse to sign up.
Willie Gibson, who denied putting party loyalty ahead of his council and its citizens, adding he did not believe agreeing with government policy was bad for local democracy or would create divisions within Cosla.
But one Cosla source within the organisation said the position would inevitably create a major schism, adding it was "an odd position as Cosla's raison d'etre is about getting most money and the best available deal for councils".
Mr Swinney said this week that failure to agree to both a council tax and teacher numbers freeze as well as new social care plans will see a council's share of the combined cash to deliver the Government policies axed.
In all, £408million has been set aside to pay for maintaining the freeze, the health and social care integration and retaining teacher pupil ratios.
Mr Swinney also warned the Government would move to claw back the total money given to a council for all three elements if they signed up to the deal but then failed to deliver on any element.
Mr Gibson said: "Clearly I will be supporting John Swinney and the SNP Government position. In my view this is part of continual cuts from Westminster. John Swinney has moved on certain things and has given most of the money for the health integration to councils.
"I don't believe this is draconian and if councils are not going to do all items requests then its clear that the government will not give them the money for them.
Meanwhile, Inverclyde Council is delaying setting its budget for the first time due to "uncertainty over future Scottish Government funding".
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