Scottish Government warns coalition pay plans will hit Scots workers

John Swinney: Finance Secretary says 30,000 Scots workers could be affected.

The Scottish Government has rejected proposals for pay to be set on a regional basis.

Ministers opposed the plan to link public sector remuneration to local market conditions when it was first proposed by the UK Government.

The new policy would set public sector workers' salary according to prices and incomes in their local area.

However, the Edinburgh administration has now lodged a submission with the independent UK pay review bodies, claiming the policy will have a negative knock-on effect in Scotland.

Ministers insist public sector employees should be paid a living wage.

Finance Secretary John Swinney said: “The UK Government’s proposals are damaging, unfair and without any merit. I am deeply concerned about the potential impact of the UK Government’s proposals on both the Scottish economy and over 30,000 public servants employed in Scotland by UK Government departments.

“The Scottish Government will not follow this approach for those employees for whom we have responsibility and we will do everything we can to persuade the UK Government to reconsider its proposals for those UK public servants in Scotland who could be affected.

“Today we have submitted the Scottish Government’s response to the pay bodies that have been asked to consider these matters, to reinforce the strength of the Scottish Government’s opposition to the policy. Our submission highlights the weaknesses of the UK Government’s approach, and in particular the lack of strong evidence that these proposals will support economic growth or lead to greater public service efficiency.

“Public sector pay must be both affordable and fair. That is why this Scottish Government has protected those on the lowest incomes, implemented the Scottish Living Wage and frozen pay at senior levels. Our approach is helping us address the challenges that exist in the public finances and, crucially, is helping us sustain the contribution that public sector jobs and public services make to local economies across Scotland.”

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