THE local government minister has shrugged off calls to stop spending £20m on another independence referendum - and use the money to properly fund public services.

The call after the First Minister came under fire for refusing to engage in discussions with local authorities on improved funding as concerns rise that cuts will hit public services and have a "significant impact" on an ongoing pay dispute.

The Convention of Scottish Local Authorities (COSLA) has warned about the risks to public services while raising concerns about the failure of Nicola Sturgeon and finance secretary Kate Forbes to talk.

It comes in the wake of a backlash from public sector workers after ministers agreeing a "breakthrough" 5% pay deal to train drivers which could end a row which has led to major cuts to nationalised ScotRail services.

Nicola Sturgeon has insisted that allocating £20m for an independence referendum in the Scottish Government’s spending plans is a “really good investment”.

The new call to abandon the funding came from Craig Hoy, the south Scotland MSP and chairman of the Scottish Conservative Party, who had been asking how often the Scottish Government had met with councils body COSLA.

He said: "Because of the financial constraints that the SNP government has imposed upon them and despite allocating £20m to preparations for a second independence referendum, the SNP will slash council budgets by 6.3% in real terms, which means a cut of £11m in East Lothian by 2026. "Why doesn't the SNP-Green government just give it a rest and commit that £20m to council services rather than wasting it on that constitutional obsession?"

Local government minister Ben Macpherson MSP, said: "As has been pointed out, of course, we have an obligation to the people of Scotland to fulfil the democratic duty on which we were elected on. And I would just refer Craig Hoy to the very poor record on local government funding that his party has in other parts of the UK.

"Of course, overall funding for the Scottish Government has been cut by 5.2% in real terms since last year.

"But in 2022/23 we increased the total package of local government funding to £12.7bn, a real terms increase of 6.3%."

The prospect of thousands of Scots local authority workers from cleaners and binmen to care workers and school staff going on strike this summer in pay disputes has come even closer as three key unions Unison, GMB and Unite prepare for strike ballots over a 2.2% offer.

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Action that would close schools is already being threatened as unions representing public sector staff fight for the same treatment as train drivers - despite huge cuts in public spending.

Public services in Scotland are braced for “brutal” cuts after ministers unveiled a spending plan over a week ago that will slash more than £1 billion from key areas including councils and the police.

Mr Macpherson said the Scottish government "engages regularly with COSLA representatives to discuss a "wide range of issues as part of our shared commitment to working in partnership with local government to improve outcomes for the people and communities of Scotland".

He added: "We in the Scottish Government absolutely recognise and value the really important and unique role that councils play in the daily lives of the people of Scotland and it is therefore vital that we can continue to work in partnership with local government... not only to jointly tackle the challenges... but also to be ambitious and share ideas about progressing our mutual aims and priorities.

"So we are absolutely unequivocal about working with local government collaboratively and collectively, and the people of Scotland are best served when national and local government work together."

Public services union Unison is today to ballot 25,000 school staff and waste and recycling workers for strike over after finance secretary Kate Forbes refused offer of last-ditch talks. The ballot will take seven weeks and will close on July 26.

Unison are recommending the workforce vote 'yes' to strike action as the only way left to move the position of COSLA. They say they intend to shut schools across Scotland when children return after the school summer break.