SCOTTISH councils are facing “increasingly difficult choices” on spending, with two-thirds planning to use cash reserves this year, a new report published today warns.  

The Accounts Commission said that a “budget gap” between income and spending of £0.4 billion would force local authorities to dip into financial reserves — which is “not sustainable in the medium to long term.”

The total debt of the 32 councils north of the border has also increased by £0.3bn to a whopping £19bn, the public body said.