TALKS have broken down between ministers and councils over the funding of the SNP’s manifesto pledge of an extra £100m a year for education.

Cosla, the umbrella group representing 28 of Scotland’s 32 local authorities, has formally withdrawn all co-operation with the Scottish Government on the issue, it has emerged.

The dispute is over government plans to fund the education system from council tax rises.

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The SNP manifesto promised to allocate “the additional £100m that will be raised each year from our local tax reforms directly to schools”, helping to narrow the attainment gap.

But councils say it breaks a fundamental link between local taxation and local accountability.

They are furious that, although they will raise the cash, it will not stay with them locally, but will instead be redistributed by ministers according to educational need across Scotland.

It means that relatively affluent councils with large numbers of Band E to H houses, which are often the councils with the best schools, will subsidise poorer councils with poorer schools.

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The Sunday Herald, The Herald’s sister paper, reported council leaders in Colsa have now written to the government boycotting all discussion of the £100m plan.

A Yes-supporting Independent councillor who holds the balance of power in Midlothian, has also hit out at the SNP for raiding £1.2m of the £1.7m being raised by higher council tax there.

Financier Peter de Vink, a friend of Alex Salmond who kept the SNP in power in Midlothian since 2012, split with the party last week, ostensibly over redundancy policy.

However in an interview yesterday, he said: “We face the most savage cuts local councils have ever encountered. I strongly disapproved of the £1.2m raid by the Scottish Government on the £1.7m raised from the increase in Midlothian’s council tax.

“I felt all of the £1.7m should be used for education in Midlothian, not elsewhere.”

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Relations between local and central government are already under strain over recent SNP plans to bypass councils on the running of schools and childcare provision.

It also emerged this weekend that SNP ministers plan to push councils to merge services across boundaries and devolve many of their services down to local communities.

The power squeeze comes as the SNP are predicted to win power in most councils next May.

A Cosla spokesman said that at their monthly meeting in September, leaders expressed disappointment at Government failure to address their concerns and that Cosla remained “totally opposed” to ending the link between local taxation and local service accountability.

The Government spokeswoman said it remained committed to engaging with Cosla “in further dialogue on a range of issues, including the question of the treatment of the additional £100m.”