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| SNP dampens hopes for public sector pay increase in Scotland | SNP dampens hopes for public sector pay increase in Scotland |
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| Scotland’s finance secretary has dampened hopes of a substantial pay rise for public sector workers, claiming he needed more money from the UK government. | |
| Derek Mackay said his ability to offer Scottish nurses, police, teachers and civil servants the proper wage increase he had promised depended on whether Philip Hammond, the chancellor, increased public spending in the next UK budget. | Derek Mackay said his ability to offer Scottish nurses, police, teachers and civil servants the proper wage increase he had promised depended on whether Philip Hammond, the chancellor, increased public spending in the next UK budget. |
| His remarks irritated Scottish trade union leaders, who believe Mackay is shifting the blame for a poor pay deal on to the UK government because Scottish ministers are unable to afford all their election promises. | His remarks irritated Scottish trade union leaders, who believe Mackay is shifting the blame for a poor pay deal on to the UK government because Scottish ministers are unable to afford all their election promises. |
| The finance secretary told the SNP’s annual conference in Glasgow his government would raise public sector pay, but declined to say whether it would be higher than inflation or whether conditions would be attached, such as a job freeze or increased efficiency savings. | |
| “There is something I must make clear: if austerity is not lifted, our ability to offer the kind of deal we might want to will remain constrained, no matter what powers we use,” Mackay said. “The majority of our budget is still determined by decisions in London.” | |
| The Scottish TUC issued a statement warning Mackay it expected both governments to honour their pay promises, minutes after he had won applause from delegates by disclosing that he and the STUC had written to Hammond urging him to lift the pay cap across the public sector. | The Scottish TUC issued a statement warning Mackay it expected both governments to honour their pay promises, minutes after he had won applause from delegates by disclosing that he and the STUC had written to Hammond urging him to lift the pay cap across the public sector. |
| Nicola Sturgeon’s government has repeatedly promised to end the 1% public sector pay cap, particularly after she endured difficult exchanges with nurses and teachers who complained about their financial problems during the general election campaign. | |
| Trade union leaders are pressing for an above inflation pay rise. They suspect Sturgeon and Mackay are shying away from using Scotland’s new income tax powers to fund higher pay, but the STUC said it ought to use those powers regardless of the UK government’s decision. | Trade union leaders are pressing for an above inflation pay rise. They suspect Sturgeon and Mackay are shying away from using Scotland’s new income tax powers to fund higher pay, but the STUC said it ought to use those powers regardless of the UK government’s decision. |
| “The Scottish government has responsibility for 90% of public workers. Half a million workers are depending on the SNP government taking action now for a fair pay deal,” the STUC said. | “The Scottish government has responsibility for 90% of public workers. Half a million workers are depending on the SNP government taking action now for a fair pay deal,” the STUC said. |
| “We can unite with the Scottish government on their call to end Westminster austerity. But the cabinet secretary for finance has recognised that Westminster is just one factor that determines public pay. Public workers won’t wait for Westminster.” | “We can unite with the Scottish government on their call to end Westminster austerity. But the cabinet secretary for finance has recognised that Westminster is just one factor that determines public pay. Public workers won’t wait for Westminster.” |
| Theresa May’s government in London has announced it will lift pay for certain public sector groups, offering a 2% rise for the police, with half given in a one-off bonus, and a 1.7% average rise for prison officers. | Theresa May’s government in London has announced it will lift pay for certain public sector groups, offering a 2% rise for the police, with half given in a one-off bonus, and a 1.7% average rise for prison officers. |
| It remains unclear whether that will lead to an increase in Scotland’s grant from the Treasury, but Holyrood already spends about £1,400 a head more on public services than the UK average. | It remains unclear whether that will lead to an increase in Scotland’s grant from the Treasury, but Holyrood already spends about £1,400 a head more on public services than the UK average. |
| The STUC’s intervention may fuel support among Scottish civil servants for industrial action. The PCS union, which represents 8,000 civil servants employed by the Scottish government and its agencies, started a UK-wide consultative ballot on strike action on Monday. | |
| It hopes PCS members will endorse a strike if ministers refuse to fund an above-inflation pay rise just before Hammond puts the finishing touches to this year’s budget in November, which will then be followed by Mackay’s Scottish budget in December. | It hopes PCS members will endorse a strike if ministers refuse to fund an above-inflation pay rise just before Hammond puts the finishing touches to this year’s budget in November, which will then be followed by Mackay’s Scottish budget in December. |
| Generous funding offers have become a feature of this year’s SNP conference, with Sturgeon keen to rebuild her party’s reputation for innovative and progressive domestic policies after losing seats in June’s election and delays to her campaign for a second independence referendum. | |
| On Sunday, John Swinney, Scotland’s education secretary, said science, technology and maths graduates working the private sector would be offered a £20,000 “golden hello” if they became teachers. There is a major teachers shortage in these so-called Stem subjects. | On Sunday, John Swinney, Scotland’s education secretary, said science, technology and maths graduates working the private sector would be offered a £20,000 “golden hello” if they became teachers. There is a major teachers shortage in these so-called Stem subjects. |
| Their pledges came after warnings from the Fraser of Allander Institute, an economics thinktank funded by the University of Strathclyde, that Sturgeon’s pledges to increase NHS funding by £500m above inflation would mean cuts of up to 20% in all other spending areas. | Their pledges came after warnings from the Fraser of Allander Institute, an economics thinktank funded by the University of Strathclyde, that Sturgeon’s pledges to increase NHS funding by £500m above inflation would mean cuts of up to 20% in all other spending areas. |
| Scotland’s economy is also faltering. The latest quarterly GDP figures showed only 0.1% growth to the end of September. The previous quarter’s GDP figure was revised down to 0.6%, while the UK economy grew over the same six months by 1.5%. | Scotland’s economy is also faltering. The latest quarterly GDP figures showed only 0.1% growth to the end of September. The previous quarter’s GDP figure was revised down to 0.6%, while the UK economy grew over the same six months by 1.5%. |