Councillors have been voting on increased rates

Most of the country's 32 councils were unveiling their charges for the coming year on Thursday.

West Dunbartonshire Council is expected to have the lowest percentage increase in the country after announcing a rise of 1.8% to �1,089 at Band D.

The largest increase is expected to be in Moray, where bills are to rise by 9.8% to �996 at Band D.

The increase was recommended mainly to deal with local issues such as roads maintenance and flood prevention schemes.

Aberdeen will see an 8.6% increase, while bills in Shetland are to rise by 7.2%.

COUNCIL TAX RISES The new council tax bills in full

However, Clackmannanshire Council said it would not be setting its council tax bills on Thursday due to a delay in issuing the agenda for the meeting.

The necessary papers were delayed after staff had to be evacuated from a council building last week after asbestos was discovered.

The council will meet next week to set its rate.

The Convention of Scottish Local Authorities (Cosla) said the average increase across Scotland was 4.4%.

Finance Minister Andy Kerr said he would have "grave concerns" about any increase over 5%.

He said he saw no reason why any council would have to increase its tax by 10% over and above Scottish Executive funding totalling �7.7bn.

'System working'

"Scottish local authorities will receive an adjusted increase of 6.5% in funding in 2004-05," Mr Kerr said.

"This settlement has ensured that local authorities set their council tax at levels similar to those announced provisionally last year.

"The fact that most councils tax levels are similar to provisional figures shows that this system is working.

"I am surprised that two councils have not managed to set their council tax in line with expectations."

Charities claim pensioners are being discriminated against

Cosla finance spokesman John Pentland pledged Scotland's councils would strive to get the most out of every penny collected.

Mr Pentland said: "Councils are determined to provide the best possible services to their communities ranging from educating our children, caring for the elderly, lighting our roads, cleaning our streets through to providing emergency services like police and fire.

"The quality of all of these services is important to Scottish councils.

"They believe that the money people pay in council tax is well spent and represents excellent value for the extensive range of services local government provides."

Mr Pentland also warned against calls to scrap the council tax system, although Cosla is seeking changes to the banding system.

We need to introduce a system of local taxation based on the ability to pay John Swinney SNP leader

But speaking in Holyrood, Scottish National Party leader John Swinney argued that the council tax was unfair and should be abolished.

"We need to introduce a system of local taxation based on the ability to pay," said Mr Swinney.

Pensioners charity Help the Aged also said it was planning to campaign for reform.

It will launch a petition later this month, urging the creation of an expert body to examine the fairness of the existing system and look at a viable alternative.

Tory local government spokesman Brian Monteith said: "It doesn't matter what it's called, it's how hard it hits their pockets that enrages so many Scots.

"Council tax has soared under Labour, and when water charges are added even tax payers in the cheapest local authority area will face band D bills of over �100 per month."