FIFE COUNCIL is spending nearly half of the money it brings in from Council Tax on repaying debts, according to new research.

A report published by the Green Party shows that Fife has long-term debt of nearly £690 million. 

It states that the local authority's repayments are the equivalent of 47 per cent of the money brought in by council tax, with most of these repayments going to the UK Treasury. 

The report also finds that Scotland has the highest proportion of PFI (Public Finance Initiative) debt per person in the world. 

Like most local authorities, Fife Council is borrowing money from the private sector to pay for new infrastructure, this has included funding for 12 new schools. 

Green MSPs are calling for the debts to be written off so that local authorities can focus their resources on protecting public services. 

Mark Ruskell, Mid Scotland and Fife MSP for the Scottish Greens, said: "Given the incredibly difficult decisions local authorities are having to make just now as they consult on next year’s budgets, it's unacceptable that councils are using Council Tax revenue to deal with historic debts that enrich private banks and the UK Treasury. 

"We are facing huge cuts to frontline services like education and healthcare in Fife, with a potential £115 million funding gap over the next three years.

"Yet at the same time, Fife Council are trying to repay unethical loans from our own government. 

"The Westminster Government should write off council debts to end the unfair squeeze on local services."

Fife Council leader David Ross dismissed Mr Ruskell's comparison as "meaningless." 

He added: "We spend almost £1 billion every year delivering vital services to the people of Fife. This money comes from a variety of sources and council tax represents only 18 per cent of our income.

"Each year we spend 8.5 per cent of our overall budget on servicing debt. However, if the UK Government were to write this off we would be delighted to spend all funding available to us investing in, and protecting, public services for local people."