SCOTTISH councils have drawn up a blueprint that would allow local authorities “powers to raise and set taxes” amid a growing funding gap amid the Covid-19 crisis.

In March, the Herald on Sunday revealed that the umbrella organisation for Scottish councils, Cosla, wanted the Scottish Government to devolve powers to a local level – allowing authorities to generate “taxation without restrictions”.

READ MORE: Council leaders call for new funding model to give local authorities more power

Last month, the Accounts Commission warned MSPs over “real concerns” about the financial sustainability of local government, with particular attention needed for education and social care – amid calls for “radical change” to how Scottish councils are funded.

Cosla has now launched a new blueprint which points to the new tax powers it claims are needed, as well as the European Charter of Local Self-Government being adopted in Scotland – alongside a culture change allowing all communities to be able to take part in decisions that are taken.

Graham Houston, Cosla’s vice-president, said the document “provides a narrative around the kind of country we want”.

He said: “The value of local government can be seen in our response to Covid-19, where councils have taken decisive action to support communities, people, and businesses.

“The local government workforce, which is the largest in Scotland, has fundamentally changed the way it works to reduce the disruption caused to everyday life. “Scottish local government must be further empowered to bring about the change we now need.”

He added: “The financial impacts of Covid-19 have been severe and have placed extreme pressure on already strained council budgets and on our workforce. Without proper resourcing we will see reductions in spending and inevitable cuts to services, furthering the inequalities highlighted by the pandemic and putting at risk the very recovery we seek.”

“We have proved our worth, we will continue to deliver and our blueprint is the menu for change that local government now requires.”

READ MORE: MSPs warned about 'real concerns' over financial future of Scottish education and social care

Labour has called for cross-party talks on the crisis facing local councils amid claims local authorities face financial pressures of around £500 million.

Scottish Labour local government spokesperson, Sarah Boyack, said: “Local councils must be empowered and funded properly to be able to support our communities, not just through the pandemic, but to invest to ensure that the local community infrastructure is in place to support people into work, to revitalise our town centres and neighbourhoods and to invest in education and care services.

“Last month the Accounts Commission highlighted ‘real concerns’ about the financial sustainability of social care and education. The reality is that we’ve seen the damaging impact of increasing centralisation and underfunding of local government by the Scottish Government during the SNP’s time in power. Local government needs to be empowered not micro-managed.

“The blueprint presented by Cosla offers the chance for a cross-party agreement that our councils need to be empowered with fair funding, long term certainty and more powers to make the decisions our communities need. It is time for the SNP to enter into dialogue with Cosla and other parties to ensure that the micro-managing and cuts to councils end.”