FIFE Council's leader believes they'll have to cut £200 million from the budget they use to fix roads, tackle flooding and improve schools.
Councillor David Ross also warned that some local authorities are set to hike council tax by 10 per cent to balance the books but hopes his Labour administration can keep the rise in the Kingdom "well below that level".
At last week's full council meeting he admitted "we don't yet know what the implications of the Scottish budget are for the council" but believes they'll have to cut up to £200m from the capital plan, which funds the biggest infrastructure projects.
Cllr Ross said: "In regard to council tax, whilst we haven't taken a decision or view on it - we'll do that once we see the figures - there are councils across the country, including Perth and Kinross, that are indicating they need a 10 per cent increase in council tax.
"There are others in a similar position.
"I hope that we can keep ours well below that level but we need to look and see what we're actually getting."
He welcomed the Scottish Government's decision not to "implement a freeze or cap on council tax" but said that, ahead of the council setting their own budget in February, there were "two areas of particular worry" in Fife.
He called for better funding from Holyrood for health and social care services, and added: "We are only receiving additional money for the living wage payment to commission service providers and for the free personal care element, and nothing to actually address the underfunding."
And on the capital programme, Cllr Ross said: "We've been advised that we probably need to find reductions somewhere in the order of £200m and whilst we have pressures on things like roads, flooding, replacement and refurbishment of schools, I hope we could have some sensible discussions with all political groups and come up with something that actually puts the council on a firm and sustainable footing for the future."
He also welcomed "additional, uncommitted money" of £289m for councils in 2025-26 but added that it was "probably going to be swallowed up in pay increases, and quite rightly as I think pay for local government workers has fallen behind over a number of years".
He added: "So while the £289m is welcome, it doesn't go very far, if at all, to offset the impact of cuts over the past decade."
Cllr Ross was speaking ahead of the announcement of the local government settlement, which the Scottish Government said would see councils sharing a record £15 billion.
Fife's share, including capital cash, is just under £960m.
Finance secretary Shona Robison said the settlement includes a £289m increase to help councils meet local needs and an extra £120.5m for pay deals, as well as a one-off £40m to respond to the climate emergency.
She added: "Local authorities provide some of the most important services to our communities - from schools to social care - which is why we’ve increased their funding by more than £1 billion compared with last year’s budget.
“The settlement is the result of meaningful budget engagement with COSLA and councils. While council tax decisions are a matter for individual local authorities, with record funding of over £15 billion there is no reason for big increases in council tax next year."
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