Council leaders have warned services will have to be cut as they reluctantly agreed to a funding deal from the Scottish Government.

Stirling Council's Labour leader Johanna Boyd said she had agreed to financial settlement "under duress", adding it would have a "significantly negative impact" on the local community.

South Ayrshire leader Bill McIntosh, a Conservative, also criticised the SNP administration, saying: "Councils have been placed in an impossible position by the Scottish Government and it's only because the alternative would make our financial position even more untenable that we have accepted this settlement."

The country's 32 local authorities have all signed up to the funding deal offered by deputy first minister John Swinney.

Local authority umbrella body Cosla said the deal, which includes a commitment to maintaining the council-tax freeze for 2016-17, integrating health and social care services and maintaining the pupil/teacher ratio in schools, represents a £350m funding cut which will hit local services.

Some local authorities had considered breaking the council tax freeze but would have faced the prospect of financial sanctions as a result.

Mr Swinney said: "I welcome the agreement of Scotland’s local authorities to this financial settlement which, when taken together as a package of funding, will enable them to increase the pace of reform and improve essential public services to communities all over the country.

"The Scottish Government was elected on a promise to freeze the council tax while we consider ways to replace it with a fairer system. That is the correct approach to take to provide support to household incomes in these challenging financial times.

"My priority all along has been to deliver a financial settlement that councils can accept in order that we can pursue our shared priorities to improve outcomes for local people through health and social care integration and by improving educational attainment."

Scottish Labour leader Kezia Dugdale accused the Scottish Government of forcing councils to "sign up to hundreds of millions of pounds of cuts or face sanctions of hundreds of millions more".

"Those cuts will be devastating to schools and children services across Scotland," she said.

"Rather than delivering Nicola Sturgeon's promises on childcare, her budget will slash investment in our children's future."

Ms Boyd told the deputy first minister the cuts her council is having to make have "in effect doubled" as a result of the funding deal.

She added: "The unfortunate reality is that Stirling Council has no choice but to accept the unacceptable or face draconian sanctions in losing our share of £408m.

"It is with a heavy heart and under duress from your government that I am forced to accept Scottish Government's funding settlement for Stirling."

Mr McIntosh said South Ayrshire Council would now "have to take the kind of decisions we have purposely worked hard to avoid until now - stopping services, reducing services, or delivering services in a very different way".