INCREASING public sector pay in Scotland within the limits of Holyrood’s fixed budget would require “robbing Peter to pay Paul”, the First Minister has said.
Pressure is growing on the Scottish Government to intervene in a pay dispute between trade unions and the Convention of Scottish Local Authorities (Cosla) which could see vital council services halted if staff follow through on strike plans.
But Nicola Sturgeon has said key levers to ease the mounting cost-of-living crisis remain in the hands of the UK Government and that Scotland’s power to act is restricted by the funding settlement partly dictated by Westminster.
Speaking to STV News, the SNP leader said: “The money to pay for the public sector comes from that fixed, effectively fixed, budget that the Scottish Government operates within.
“That is largely set by decisions taken at Westminster, so that doesn’t escape that hard reality.
“If we are to increase the overall budget for local government or any other significant part of the areas that the Scottish Government is responsible for, without robbing Peter to pay Paul, we need to see the overall size of the funding envelope increase and I don’t have the powers, my government doesn’t have the powers to do that unilaterally.”
Workers represented by the GMB and Unison trade unions have voted to go on strike over what they have branded a “shameful” pay offer of a 2% rise. Inflation is currently sitting at 9.1% - its highest rate since April 1991.
Key levers to help ease the cost of living crisis are still controlled by the UK Government, said the First Minister. https://t.co/Tdn3D2lBZ8 pic.twitter.com/gmsmNOnfEt
— STV News (@STVNews) July 29, 2022
Cosla has argued it does not have the budget to fund a better pay deal and said it is hopeful the Scottish Government can find more cash to increase council workers’ pay packets.
Sturgeon added: “Of course, we will continue to talk to Cosla about how we can best support fairness there – just as we are supporting fairness for the NHS and other public sector workers.”
The Scottish Government insists it is doing its utmost to combat the cost of living crisis and is spending around £3 billion in measures to ease the pressure on squeezed families.
“Some of those are temporary measures – help through council tax bills, for example, that came earlier in the year,” said the First Minister.
“Much of that is trying to permanently put more money in the pockets of those at the bottom end of the income scale.
“For example, the new Scottish Child Payment, we’ve doubled that from £10 to £20 per week.
“Many of the key levers here and access to most resources lie with the UK Government, whether we’re talking about regulation of the energy market, VAT on fuel, the macro-economic levers that help to influence the rate of inflation, these are levers that lie with the UK Government.”
Unions warned on Thursday that “waste could pile high” in the streets – in an echo of the widespread strikes of the 1970s – if a better wage settlement could not be reached.
Workers in 13 local authorities across Scotland are poised to walk out, including school staff – excluding teachers – binmen and nursery workers.
Unions are calling for a wage increase of £3000 and a £12 minimum hourly rate.
