Moray’s SNP group has accused council chiefs of “playing political games” rather than concentrating on ways to resolve the authority’s financial crisis.
Council leaders courted controversy by plotting to become the first Scottish authority to raise the levy in nine years.
They said the move was essential to shield services from cuts as the council battled to plug a £12million deficit.
But the Scottish Government insists on the charge remaining at 2007 levels, and threatened to withhold £5million in funding if the scheme went ahead.
Council chiefs blasted the SNP administration at Holyrood as they reluctantly withdrew proposals to increase the tax by 18%.
Moray Council convener Allan Wright lashed out at the government sanctions which had forced them into the drastic U-turn.
He said the authority had been reduced to “a delivery vehicle for an SNP dictatorship”.
Last night, the leader of Moray Council’s Nationalist opposition group, Gary Coull, said administration members should have been seeking alternative methods to resolve the council’s financial problems rather than becoming embroiled in a spat with ministers.
Mr Coull said: “Unfortunately, the Independent and Tory administration had a huge knee-jerk reaction and tried to play political games with the Scottish Government, rather than getting down to the job of trying to find ways of saving money without hitting front line services.
“The continued council tax freeze will be welcomed by many people in Moray.”
The Keith and Cullen ward member also highlighted the sums his party has ploughed into the area.
He added: “We should remember that the SNP has delivered hundreds of millions of pounds worth of investment in Moray over and above the money the council gets.
“The government has ensured that four schools have been given major refurbishments, Moray has received funding to build four flood schemes protecting hundreds of homes, and 360 new council houses are being built.”
Last night, Mr Wright said government threats meant the council was “unable to guide its own destiny”.
He added: “Far from playing political games, what we have been forced to do is react to the impositions of John Swinney and the penalties he has come up with.”
Administration members say that delving deeper into reserves and postponing numerous projects will plug the council’s deficit without services having to suffer cuts.