August 15, 2022

The Deputy First Minister warned that SNP ministers could have to chop budgets to finance public sector pay offers with out extra money from Westminster.

John Swinney sounded the alarm in a letter to Chancellor Nadhim Zahavi, expressing issues that final yr’s UK spending evaluate didn’t take note of the extent of wage will increase proposed by impartial pay evaluate our bodies.

Mr Sweeney, who has taken cost of the funds and the financial system whereas Keith Forbes is on maternity depart, additionally stated the spending evaluate didn’t take note of the broader influence of the surge in inflation.

He warned that with out extra funding, the Scottish authorities would solely be capable of ship comparable wage will increase by chopping budgets elsewhere.

He wrote: “Along with the joint letter from the Autonomous Administration’s finance ministers to you dated 15 July, and within the mild of subsequent bulletins by the UK Authorities concerning public sector wages, I’m involved that no collateral funding is being supplied to cowl these extra prices.

“Final yr’s UK spending evaluate, which, as you realize, determines the majority of the Scottish finances, didn’t take note of the degrees of wage will increase at the moment being supplied or the broader influence of inflation.

“The ensuing decline within the buying energy of public sector budgets raises deep issues about our public providers and our capability to reply to a cost-of-living disaster that may undoubtedly convey new challenges within the coming autumn/winter interval.”

He added: “Given our fastened budgets, our restricted borrowing energy and the lack to vary tax coverage in a single day, the shortage of extra funding for public sector funds by means of the Barnett system signifies that the Scottish Authorities can solely replicate these public sector pay transactions. employees in Scotland with extreme cuts in public providers.

“I urge you to think about applicable public sector wage financing and welcome discussions with you on this as quickly as doable.”

Scottish Conservative Shadow Finance and Economic system Minister Liz Smith stated: “It is a brazen try and blame the UK Treasury for the failure of the SNP to fund public providers in Scotland.

“However the actual story is that the Nationalists have created a £3.5bn black gap of their funds, in line with IFS, and have already lower ahead providers to the bone.”

“That they had the audacity to attempt to shift the blame to another person – the municipal employees are occurring strike as a result of the SNP has left the native authorities destitute they usually can’t elevate wages.

“And this regardless of huge extra help from the UK authorities, together with the most important Westminster block grant within the historical past of devolution.”

A UK Authorities spokesman stated: “Now we have supplied the Scottish Authorities with a report £41bn a yr over the following three years, the very best rescheduling settlement for the reason that handover.

“Because of this, the Scottish authorities receives about £126 per individual for each £100 per individual equal UK authorities spending in England over the following three years.

“We’re additionally serving to to handle the rising price of residing by defending eight million of essentially the most weak households with £1,200 direct funds this yr and by offering extra advantages to pensioners and the disabled.”

Leave a Reply

Your email address will not be published.