After-effects of spending cuts could last a decade, council leaders warn

Published on Sunday 14 November 2010 18:23

LOCAL authority leaders have warned that the proposed budget cuts to be announced this week could have a knock-on effect lasting up to ten years.

• John Swinney will present his budget on Wednesday

The warning comes as it emerged finance secretary John Swinney is likely to announce a pay freeze for thousands of public-sector workers, saying it will save 10,000 jobs.

The pay freeze for all public-sector employees earning more than 21,000 a year from next April is expected to be one of the key measures in Mr Swinney's 2011-12 budget, which will be announced in the Scottish Parliament on Wednesday. Mr Swinney said "hard choices will need to be made", but said that "in return for an understanding that pay restraint is required" he would offer help to households through a "social contract" with policies such as the council tax freeze.

But Pat Watters, president of local government body Cosla, warned that "we're not talking about just next year, as this could go on for the next ten years".

And Peter Wright, the Scottish Secondary Teachers' Association president, said "teachers would be very angry" if teaching jobs were axed due to austerity measures.

Meanwhile ministers face increased pressure to set out the Scottish Government's spending plans for three years when the budget is announced this week. Opposition parties say the move would allow councils, health boards and businesses to plan their spending programmes.

Labour finance spokesman Andy Kerr claimed Mr Swinney knew how much money the Scottish Government had up until 2014-15 and called on him to spell out how this would be distributed.He said: "It is vitally important that he brings forward a three-year budget to enable local authorities, the NHS and the business community to plan for recovery."

The Lib Dem finance spokesman Jeremy Purvis has tabled a motion at Holyrood urging MSPs to back calls for ministers to publish a spending plan to 2014-15. He said: "I am concerned that the SNP cuts will be too severe because their budget is too short-term."

The finance secretary's "social contract" budgetary plans are set to include protecting free NHS prescriptions and free personal care and promoting investment in renewable energy.

But Labour's Andy Kerr said: "John Swinney's talk of a 'social contract' is a smokescreen for cuts that will hit children and pensioners hardest."

The Tory finance spokesman, Derek Brownlee, welcomed the pay freeze, but said the move was needed for "at least two years" to help "secure the recovery".

A spokesman for the finance secretary said that Wednesday's budget proposals would include details of which areas of spending would be prioritised during the next few years.