By Steve Bargeton, political editor

MINISTERS WERE last night accused of a pre-election “bribe” after giving councils extra cash to cushion council tax rises on the eve of the Holyrood elections next May.

The hope is that council tax rises in April will be kept to around the rate of inflation.

In parliament yesterday, Finance Minister Tom McCabe announced that the core settlement to local authorities in 2007/08 will rise by £393 million to £8.7 billion—almost twice the rate of inflation.

Last year ministers predicted that council tax should not go up more than 2.5%, but the average increase across Scotland was 3.2%.

Mr McCabe said he had reached an agreement with council chiefs to “continue to bear down” on council tax levels over the next three years, but he refused to put a figure on it.

An Executive spokesman said the expectation was rises next year would be below 3.2%, but added, “We don’t have a figure.”

The minister told MSPs that in return for a generous financial settlement he expected councils to take action to increase council tax collection rates and to make further efficiency savings.

“Scottish local authorities have received record levels of funding from the Executive since devolution,” said Mr McCabe.

“Between 1999-2000 and 2006-07, funding increased by 51%.

“In response to representations made to me by local government, I said repeatedly that I would be prepared to look again at the funding for local government for 2007-08. I am delivering on that promise.

“We have re-opened the funding agreed for the final year of the spending review to announce £201 million of new money for councils.

“That is £201 million extra for local authorities to invest in local services and local infrastructure.

“We have kept our promise—and we expect local government to keep its promise to deliver increased council tax collection rates, to continue to exert downward pressure on council tax levels, to develop more effective asset management strategies, to deliver increased efficiency savings and review the delivery of free personal care.”