Scottish local authorities have been criticised for failing to collect �150m of council tax in the last financial year.

A report from the Accounts Commission says the increasing burden of local authority debt from unpaid taxes now stands at �950m.

The commission - which monitors the way in which public money is spent - says that at the end of March last year, the total amount of unpaid council tax since it was introduced in 1996 stood at almost �290m.

In addition, the debt inherited from before local government reorganisation in 1996 was �640m.

The organisation singles out the local authorities of West Dunbartonshire and Inverclyde for having failed to collect nearly a quarter of the council tax due to them in the year up to the end of March last year.

Councillor Andy White from West Dunbartonshire Council condemned the report as "misleading" and said the commission had acted "irresponsibly".

However, the watchdog insists the situation is serious, arguing that the longer the debt remains outstanding the harder it will be to collect.

It argues that earlier collection would provide scope to cut the burden on those who do pay on time.

The report says the public has a duty to pay the tax if councils are to provide good quality services.

Councillor White said on Wednesday: "This is a very misleading report and some of the comments from the commission have been irresponsible.

"Firstly, the figures don't take into account those entitled to council tax rebate, which makes up some 40% of residents.

"If the commission had looked at previous years they would have seen collection of in excess of 90% and we have now set a 95% target which is the same for England and Wales.

"We will achieve that in West Dunbartonshire."

Norman Murray, from the Convention of Scottish Local Authorities, said he sympathised with Councillor White's position.

"I think Andy White is right, this is only a snapshot taken at the end of the year. However we should be judged at the end of March of this year when we will have a clearer picture.

"I think we need to sit down with the commission to find out what is behind these figures. I am not keen on league tables and we need to get behind these figures.

"On the face of it the statistics appear to be correct. But is it to do with people who can afford to pay and are not paying or is people who cannot afford to pay?"

Finance Minister Jack McConnell has already received advice from the Scottish Executive/Cosla working group on council tax collection, suggesting new action to bring in more revenue.

Reform proposals

He said: "Council tax collection rates in Scotland are very disappointing.

"The money raised is vital in allowing councils to meet their responsibilities and those who do not pay simply increase the burden on their fellow citizens.

"That cannot continue and I want to see these results improve.

"Before devolution the Scottish Office set up with COSLA a joint working group to look into the issue.

"That group reported just before Christmas.

"Ministers are considering the group's recommendations (with COSLA) and are currently considering changes to improve collection rates.

"We will work together with local authorities to ensure the free ride for the few is over."