Clackmannanshire Council is the last to set its tax rate

Clackmannanshire councillors voted in favour of keeping rates at 2007 levels.

The decision means 31 of Scotland's councils have agreed to leave the tax unchanged. Only Stirling has voted to lower council tax by 1.1%.

The Scottish Government said in November that it would provide an extra �70m of funding to councils if they froze the tax at last year's levels.

The news means the charge for a Band D property in Clackmannanshire will remain at �1,148.

Today's decision means that no council tax payer in Scotland will see any increase in their council tax bill this year John Swinney Finance Secretary

However, water and sewage rates for the area will increase by 3.74%.

The council received �648,000 from the Scottish Government in return for the council tax freeze.

The local authority said savings would be made by reducing staff numbers and in asset management.

Council leader Janet Cadenhead said: "With this tight budget, we are redistributing spending to the areas where it is most needed.

"I'm confident that our dedicated staff will continue to provide high quality services.

"Over the next three years, we expect to realise some savings from the asset management review, putting these to good use in regeneration projects and in Alloa town centre."

Historic concordat

Finance Secretary John Swinney welcomed the move and attacked those who said a rates freeze was not possible.

He said the Scottish Government would be publishing a consultation paper on an alternative to the council tax "shortly".

He added: "Today's decision means that no council tax payer in Scotland will see any increase in their council tax bill this year.

"People said the freeze wouldn't or couldn't happen. That a council tax freeze was nothing more than a pipe dream.

"But the new relationship between central and local government enshrined in the historic concordat is proving the sceptics wrong.

"There has been some disgraceful scaremongering about supposed cuts in services but the reality on the ground is that councils are taking full advantage of the package of measures this government has put in place."