AN ELEVENTH-hour intervention from Scotland's finance secretary into Inverclyde's explosive budget row has sparked claims from the SNP that the Labour-led administration's plan to hike council tax is now 'indefensible'.

Deputy first minister Shona Robison wrote to the district's MSP Stuart McMillan on Tuesday - following an intense months long budget planning process at the Municipal Buildings - pledging enough money from Scottish Government coffers to fund a tax freeze. 

The last-minute move - which would add nearly £3m to the council's bank balance - came as local authority leader Stephen McCabe was preparing to table a proposal today to defy government policy and raise the local levy by 8.2 per cent next year in order to add £2.87m to the council purse. 

But Ms Robison's letter to her SNP colleague Mr McMillan stated that the council would receive 'around £2.9m' if it implements the government's desired freeze.

READ MORE: Inverclyde Council set to defy Holyrood plans for council tax freeze

Mr McMillan claimed yesterday that there was no need to hike the council tax and joined a number of his party colleagues in expressing their outrage about the Labour group's budget plan. 

The council's SNP group are set to move an alternative one-year budget at this afternoon’s meeting which includes a council tax freeze - but would see a £3.2m funding gap left to be closed next year.

Greenock Telegraph: Stuart McMillan, MSP for Greenock and Inverclyde

Mr McMillan said: “Inverclyde will be in a position to deliver a fully funded council tax freeze.

“Despite this, Labour wants to push ahead with their proposal to impose an 8.2 per cent increase which will be a hammer blow to thousands of homes across Inverclyde during a cost-of-living crisis.

“Make no mistake, the additional money from the Scottish Government means Inverclyde Council does not need to increase the council tax – as it is equivalent to the amount of funds an 8.2 per cent increase would provide.

“This letter also confirms that the additional money is baselined, meaning it is guaranteed for next year.

“Therefore, not accepting the additional money means Inverclyde will lose out next year too.”

The latest budget development follows reports that council leader Stephen McCabe had written to Tory cabinet minister Michael Gove after the Scottish Government tied funding from Westminster to accepting a freeze.

Mr McCabe is said to have requested that the UK Government directly award Scottish town halls their share of £45m from the Westminster purse after Ms Robison said the money would only be handed over to local authorities if they freeze council tax.

Mr McCabe took to Twitter yesterday morning to push back on Mr McMillan's claims, questioning the SNP's decision not to propose a two-year budget. 

Responding to Mr McMillan, he said: "Why is your SNP Group not proposing a two year budget?

"Is it because they are trying to hide the need for a big Council Tax rise in 2025/26 or huge cuts amounting to £3.2m and that's after using £3m of reserves? 

"The council tax freeze is financially irresponsible. It's a stunt."

But Chris Curley, who is Inverclyde Council’s deputy group leader, says it would make ‘no sense’ not to freeze council tax given the finances involved.

He said: “The proposal by Labour and the two independents raises revenue of £2.87m, therefore by foregoing the council tax freeze and raising council tax by 8.2 percent there is only a net gain of £28,000.

“It’s not worthwhile, it’s illogical and I think it’s indefensible.

“I don’t think it makes any sense at all."

Greenock Telegraph: Chris Curley

He added: “There isn’t a hole in our budget next year, the fact is that we will be looking at the same process next year and starting in a much better position than we were starting at this time last year."

The area’s SNP MP Ronnie Cowan also weighed in on the proposals and vowed that his party’s council group would fight against them.

Greenock Telegraph: Ronnie Cowan

He said: "Councillor McCabe and his colleagues on the Labour group have demonstrated how far out of touch they are. 

"If they came to one of my cost-of-living crisis surgeries they would understand completely that now is not the time to impose tax rises.

"There is no need for it because the money on offer from the Scottish government would take the burden away from council taxpayers in Inverclyde.

"Other Labour-controlled councils which threatened huge Council Tax rises have seen sense and opted for a freeze.

"The people of Inverclyde deserve much better than this."