Councils are finding financial pressures "increasingly difficult to manage", with some cash reserves running out in two to three years, according to a new report.

Spending watchdogs at the Accounts Commission said 2016-17 had been a challenging year for local government, with the amount of cash councils receiving from the Scottish Government down by 7.6% in real terms from 2010-11.

In 2016-17, a total of 19 councils used cash from their revenue reserves - up from the eight authorities in 2015-16.

Over the course of the year, the overall amount held in council revenue reserves, described as their "rainy day funds", fell by £32m.

The report said: "Councils are showing signs of increasing financial stress.

"They are finding it increasingly difficult to identify and deliver savings and more have drawn on reserves than in previous years to fund change programmes and routine service delivery.

"Some councils risk running out of general fund reserves within two to three years if they continue to use them at levels planned for 2017-18."

The Accounts Commission's financial overview of local government showed councils' net debt increased by £836m in 2016-17, with authorities spending on average almost 10% of their budget for day to day running costs on servicing this.

Scottish Government funding for councils amounted to just over £9.7bn in 2016-17, with ministers also providing £250m from the health budget to support the integration of health and social care services.

The Accounts Commission said even taking this into account, total revenue funding for councils fell in 2016-17.

Ronnie Hinds, deputy chairman of the Accounts Commission, said: "Our evidence tells us that councils are finding the financial pressures increasingly difficult to manage.

"The elections in May this year brought in major changes in council administrations across Scotland.

"Councils that have demonstrated effective leadership and robust planning will be in a better position to deal with the challenges that lie ahead."

Scottish Conservative local government spokesman Alexander Stewart said: "Under the SNP government, the financial health of Scotland's 32 councils has deteriorated rapidly.

"Debt levels are eye-watering and millions upon millions of pounds in taxpayers' cash is now being used just to service it.

"We've even got to the stage where local authorities are dipping into the rainy day fund routinely just to stay afloat.

"And as auditors say, if that continues, there won't be any reserves left to call on."

A Scottish Government spokesman said: "We have treated local government very fairly despite the cuts to the Scottish Budget from the UK Government.

"Including the extra £250m to support the integration of health and social care, the overall reduction in local government funding in 2016-17 equated to less than 1% of Local Government's total estimated expenditure.

"The 2017-18 local government finance settlement, including the increase in council tax and health and social care integration funding, means local government has an extra £383m, or 3.7%, in support for services compared to 2016-17."