SNP ministers have been warned over “angry” local authority leaders still not knowing if a controversial council tax freeze will be fully funded amid fears over bankruptcy.

Cosla, the umbrella organisation for Scottish councils, has warned that some local authorities could follow suit after councils in England warned they are facing bankruptcy.

In a briefing paper, Cosla said: “There is a risk this becomes the reality for Scottish councils if the funding by Scottish Government does not match growing cost pressures.”

But SNP Local Government Minister Joe FitzPatrick has claimed Scottish councils are at less risk of bankruptcy, saying that local authorities south of the Border have suffered more in austerity cuts from Tory ministers.

Read more: Scottish Budget: Cosla warns councils risk bankruptcy

Mr FitzPatrick claimed that “despite a decade of austerity from the UK Government, Scottish local government revenue funding is 2.6% higher in real terms than it was in 20213-14”.

He added: “Scotland is facing the most challenging budget since devolution as a result of a UK Government autumn statement that failed to deliver the investment needed for Scotland’s public services.

“This government will do all that we can within our powers to ensure public finances are on a sustainable path.

“Work is ongoing with Cosla to establish a new fiscal framework through the Verity House Agreement and decisions for local government budget for next year will be confirmed in the Scottish budget.”

But Scottish Labour’s local government spokesperson, Mark Griffin, said that the Scottish Government is yet to set out how it will fully fund a pledged council tax freeze to enable local authorities to balance the books with them set to lose potential revenue from hiking the charge.

He said: “A month ago, Shona Robison said that the amount needed to fund a council tax freeze would be figures out by negotiation. But the First Minister, Deputy First Minister and Finance Minister haven’t been able to tell me what fully-funded means.

Read more: Shona Robison admits council tax freeze not signed off by Cabinet

“Yesterday, Cosla said it needs £14.4 billion to stand still - £300 million for that council tax freeze.

“Will the councils get that funding to prevent the bankruptcy being warned of?”

Mr FitzPatrick insisted that “the budget process is underway and discussions are ongoing with Cosla”.

He added: “As we go into this budget round, we know that this is one of the most difficult, challenging times that we have seen.”

But Mr Griffin warned over the severity of the challenge.

He said: “I don’t think challenging covers it when councils are saying that they could go bankrupt.

“They have already considered sweeping cuts to libraries and leisure services “When councils are threatening bankruptcy, when people are being failed by repeated cuts, surely the government must see that local government services are breaking down.”

He asked the minister what preparations were being made in case councils were forced to declare bankruptcy.

Mr FitzPatrick claimed his opponent was “maybe getting ahead of things”.

Read more: Lorna Slater criticised for 'threatening councils with penalties'

He added that “local authorities in Scotland have a different framework to the rest of the UK”.

The SNP minister added that “a number of local authorities in England that have gone bankrupt” because of “the austerity that has come from the UK Government”.

He said: “Here in Scotland, though, things have been different.

"That does not take away from the challenges we are all facing right across public services. We are going to have to make difficult choices.”

But Conservative shadow finance secretary, Liz Smith, told MSPs that “bankruptcy is something that is being talked about by Scottish councils”.

She added: ”Does the minister understand just how angry councils are that two months on after the First Minister announced there was going to be a council tax freeze without apparently any consultation, we still don’t have the details about how that’s going to be funded.

“That is impacting on councils as they come to crucial decisions.”