The Scottish Finance Secretary has said he does not want to take an "unnecessary gamble" with the new tax powers for Scotland by raising the top rate of income tax in his draft budget.

Labour has accused Derek Mackay of "bottling out" of using the new powers but the Finance Minister said analysis suggested increasing the top rate would lose money for public services in Scotland.

Herald View: Mackay’s Budget makes history in a circumspect way

Two Labour-controlled Scottish councils claim they will have to make cuts and savings of £90 million in total - Glasgow City Council claims it may need £60 million of savings and Fife Council is predicting £30 million cuts - but Mr Mackay said he had increased the money available for local government services by £240 million in Thursday's draft budget announcement.

Opposition parties claim local government funding is being cut by up to £300 million.

Mr Mackay told the Today programme: "We're investing £700 million extra resources and I don't want to take an unnecessary gamble with the new tax powers that we have.

"We had analysis that suggested if I increased the additional rate, the top rate of tax at this time, it would be possible that it would be counter productive and I would lose money to Scottish public services.

"That's not a gamble I was willing to take but I will continue to look at the evidence, engage with other political parties and monitor this situation, but I'll provide a balanced proposal on taxation and spending in Scotland to do the right thing to grow our economy and tackle inequality in our society."

Questioned about claims that some higher rate taxpayers in Scotland may end up paying £300 more in tax than their counterparts elsewhere in the UK, he agreed.

Herald View: Mackay’s Budget makes history in a circumspect way

He added: "But you were also correct to say that I've frozen the basic rate, the higher rate and the additional rate and in Scotland there are public services and commitments, part of the social contract that we really value, such as no prescription charges in Scotland, concessionary travel, free education, that means no tuition fees and major investment in the infrastructure of our country as well as a very competitive business regime as well.

"You get what you pay for and we have a social contract in Scotland where we value these things and I'm not following the austerity approach of the UK Government."

He later told the BBC's Good Morning Scotland: "You have to look at the whole package to local government. If this settlement is so bad tell me why Cosla hasn't rejected the package that I've presented to local government?

"They're considering the package and they most certainly haven't rejected it because they recognise that there's been movement in areas of policy."

Labour's James Kelly told Good Morning Scotland: "Fundamentally, Derek Mackay failed to use the powers of this parliament to protect public services. This was the most historic budget in the history of the Scottish Parliament and he bottled out of it."

Herald View: Mackay’s Budget makes history in a circumspect way

Conservative MSP Murdo Fraser told the same programme the Finance Minister had failed to address the the "fundamental issue" of under performance in the Scottish economy.

Andy Johnston, director of the Local Government Information Unit in Scotland, said: "If there are cuts, it doesn't look as if they're as bad as expected and, as ministers are keen to point out, not on the scale seen down south."

He added: "It may seem odd to focus on what didn't happen when commenting on this budget, but the principle of 'no taxation without representation' has been upheld. Taking locally collected taxes and spending them on education outside of that locality, without the permission of those taxpayers, would have violated that principle. The Scottish Government have listened to representations from local authorities.

"As ever, the devil is in the detail and, as the Government has no majority, that detail will be negotiated in the next few weeks."

Scottish Labour's deputy leader, Alex Rowley, said: "The SNP is in denial about the scale of the cuts it is imposing on local services. The impartial experts at the Scottish Parliament have confirmed that councils face cuts of £327 million next year. These are cuts that will hit everybody, but particularly hurt the most vulnerable.

Herald View: Mackay’s Budget makes history in a circumspect way

"The SNP's cuts will make it even harder for schools to educate our children, for social care services to look after our older people, and for councils to provide support to those in need.

"It is hypocrisy for Derek Mackay to say councils should increase local taxes when Nationalist ministers refuse to use the Scottish Parliament's own tax powers to stop the cuts and invest in valued public services.

"Labour will not vote for a budget that cuts our public services and doesn't ask the richest few to pay their fair share. The question people need to ask themselves is why would the SNP?"