TENS OF thousands of Scottish public sector workers earning more than £21,000 (€24,000) a year will have their pay frozen next year by the Scottish executive, which is faced with having to cut £1 billion from its spending.
Meanwhile, replacements for retiring highly-paid staff in government departments or state agencies will be given a salary “at least 10 per cent lower than the person they are replacing”, Scottish finance minister John Swinney declared yesterday.
Despite the budget pressures, the Scottish National Party-minority administration is to go ahead with plans to abolish all drug prescription charges and continue a freeze on council tax payments for another year.
The SNP, which is facing elections next May, insists that it has to find £1.3 billion (€1.5 billion) worth of cuts to deal with restrictions imposed by British chancellor George Osborne, though London insists the gap is £900m.
The decision to freeze pay for state workers will protect jobs and will directly affect those employed by the Scottish government, agencies and non-departmental public bodies and “set down a framework” for nurses, teachers, police and firemen, Mr Swinney said.
“By taking the difficult decision to limit pay awards . . . we are using the savings to protect jobs. Our pay restraint policy will support thousands of jobs in local economies across Scotland,” he told the Holyrood parliament.
Mr Swinney does not have powers to raise taxes on cigarettes, alcohol or petrol, which are controlled by the House of Commons. However, Scotland is entitled to raise income taxes by 3p in the pound – although it has never used these powers.
Interestingly, the SNP has not produced spending plans that go beyond next year because such predictions could imperil their hopes of re-election next year.