Councils will have to make cuts year-on-year if the draft Scottish Budget is passed by MSPs, the finance secretary has admitted.

Derek Mackay was grilled by Holyrood's local government committee on Wednesday following the publication of last week's draft devolved budget.

The SNP, who run the Scottish Government as a minority administration, are proposing a real terms cut to the funding given to the country's 32 local authorities for day-to-day spending on services.

The independent Scottish Parliament Information Centre forecast councils will receive a £157.3m cut in their revenues if the plans are approved unamended.

Mackay estimated the bodies will have to make "efficiencies" of around 3% annually but he insisted it is a "good deal" for them.

When pressed by Conservative MSP Graham Simpson on whether councils would have to make cuts, Mackay replied: "That's for local authorities to determine. It's my position local government has got a fair settlement and, as I say, it's far better than was forecast.

"I think the negotiations have gone well with Cosla [Convention of Scottish Local Authorities] in that they've raised a number of asks and I've been able to support them in that on particular pressure points."

He added: "Will local authorities have to continue to make efficiencies? Yes they will, they actually have a target of approximately 3% every year.

"I have also recognised that these are challenging times for all our public services whilst expectations rise.

"But we as a government are proposing to use our tax powers to ensure that we can adequately resource our public services and local authorities also have that ability in relation to council tax."

As the SNP govern the country as a minority administration they must find support from at least one opposition party for the Budget to be passed.

The Scottish Greens, who are their most likely to do so, have already said they cannot support the plans as published.

Andy Wightman, the party's local government spokesman, said last week councils have for too long been forced to "accept crumbs from the table from the Scottish Government".