Labour claims John Swinney’s budget will cost 8,000 extra Scottish jobs

By TOM PETERKIN
Published on 12/10/2012 00:00

Labour yesterday claimed that John Swinney’s budget could lead to the loss of an additional 8,333 public sector jobs.

The figure, which was disputed by the Scottish Government, was based on Labour’s assertion that SNP ministers still had to implement its policy to transfer £250 million from its resource budget – the bulk of which is spent on salaries – to its capital budget.

Labour’s calculation was made on the basis that the government had said its public sector pay freeze would save £300 million – the equivalent of 10,000 jobs.

Assuming one job cost £30,000 to the public purse, Labour said the removal of £250m from the resource budget would cost 8,333 jobs.

Labour finance spokesman Ken Macintosh MSP, said: “Mr Swinney has hidden in the small print decisions which are going to cut jobs and potentially kill off any growth.”

A Scottish Government spokesman said: “These claims have no basis in fact.  The switch of £250m from resource to capital is being transferred in order to support jobs now and in the long term.”