COUNCIL TAXES UP BY BILLIONS; Executive won't share burden of equal pay deal.

Byline: By LINDSAY McGARVIE Political Editor

THE Scottish Executive are on a collision course with councils as they are set to refuse to pick up the bill for a new equal pay deal.

Council and union insiders have speculated the cost could run into billions.

Scotland's 32 local authorities aim to iron out pay inequalities between male and female employees - but funding it could mean hundreds of pounds extra on council tax bills. The authorities have called on Tom McCabe, minister for finance and public service reform, to help pay for the deal, which was agreed by union and council leaders in 1999.

But he is not expected to stump up and thousands of council workers could be laid off to meet the cost of changes.

A senior Executive figure said: "No way will we be bailing them out - we simply can't afford it nationwide. The bill would be astronomical The cost could run into billions and hit NHS and education funding.

The source added: "What councils and the trade unions must never lose sight of is that the primary reason for local authorities is to provide services first for council tax payers and jobs second."

Sources at the Convention of Scottish Local Authorities said the public would pay if the Executive refused to.

One said: "Council tax bills could rise by hundreds of pounds or services will be cut."

Last week, Aberdeen City Council sent out letters saying some staff would have their wages cut by pounds 16,000-a-year.

Trade unions led by Unison said the council were trying to fund increases for senior managers. Both sides are calling for the Scottish Executive to fund a deal which would see no workers lose out in the pay restructuring

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Help plea: Finance minister Tom McCabe