Local authority body Cosla has warned inequalities in Scotland "could start to overtake some third world countries" unless action is taken.

Costa president David O’Neill made the warning in a new manifesto which calls for councils to be given greater financial choice - including an end to national government direction on council tax.

The representative body also wants local authorities to have the power to introduce discretionary local taxes, subject to electorate approval, and to be able to spend budgets to reflect local choice.

The financial demands are one of five pledges Cosla wants parliamentary candidates to sign up to in advance of the May Scottish Parliament election. The others are:

n the Manifesto for Stronger Scottish Democracy, Mr O’Neill said: “Despite all of the best efforts of the public sector, inequalities in Scotland are growing. Poor outcomes for a small proportion of the population drive very large amounts of public spending and if we don’t do something soon, inequalities in Scotland could start to overtake some third world countries.

“No-one in Scotland set out to create these outcomes, but they are unacceptable in a modern democracy, and they have to change.”

Speaking as he launched the manifesto, he added: “All of us within Scottish local government want to harness the power of a more local way of doing things, and overhaul participation in decision making across the country by bringing democracy closer to people.

“A series of independent reports have shown that it is time for this new, radical, local approach. Communities around Europe are already feeling the benefits and there’s a buzz about what can be achieved here. It’s time to translate that energy into real action. “However, we know that this simply won’t be possible without commitment from across the political spectrum and across all spheres of government.” SNP Local Government Minister Marco Biagi said: “We welcome Cosla’s contribution to the debate and a re-elected SNP Government will build on our record by working with communities, local authorities and Cosla to ensure that not only are services delivered at the right level but that local communities have greater ability to tackle inequalities and grow local economies.

“Over the last parliament, we have delivered the Community Empowerment Act giving communities a greater say over local services and local budgets, health and social care integration, and increased community right to buy - all ensuring more power to tackle inequality is held by communities.”