Councils have given the extra funding a cautious welcome

Dumfries and Galloway Council convener Tommy Sloan described the extra funding next year as a "valuable boost".

While Scottish Borders Council leader David Parker said there was still a "significant challenge" in the budget.

All councils have been warned not to increase council tax sharply after receiving the funding increase.

Mr Parker said the funds were welcome but said it would not be straightforward to keep tax levels down in the Borders.

We are working hard to keep the council tax increase to the rate of inflation and to deliver the efficient government agenda Tommy Sloan Dumfries and Galloway Council convener

He said: "Whilst I welcome this increase in funding from the executive, the council still faces a significant challenge in making further efficiency savings and keeping council tax increases for next year to the minimum.

"The administration will now work up its detailed budget proposals for presentation to the council on 8 February."

Mr Sloan also said his authority would try to keep tax levels under control.

'Working hard'

He added: "We are working hard to keep the council tax increase to the rate of inflation and to deliver the efficient government agenda."

Dumfries and Galloway vice convener, David McKie, said the pressures of equal pay and delivering new services remained great.

He said: "These changes must be recognised with an increase in funding to local authorities.