Coalition ministers trying to force changes on Scottish Government, says John Swinney

CONTROVERSIAL changes to pension arrangements are being “imposed” by Westminster without consultation, the Scottish Government has complained.

Finance secretary John Swinney accused the UK government of planning to legislate to link the normal pension age and state pension age, while also setting the normal pension age for police and firefighters at 60.

Mr Swinney, who set out his complaint in a letter to Chief Treasury Secretary Danny Alexander, said the move cut across negotiations the Scottish Government was having with employer groups and trade unions.

He said: “Previous statements by UK ministers made it clear that the Scottish Government was free to design schemes which suit Scotland’s needs, and we have entered into negotiations on that basis in good faith.

“So it is astounding the UK government is now seeking to place legislative restrictions on our freedom to negotiate with our own workforce.”

Mr Swinney went on: “This damages our ability to ensure a fair and equitable agreement taking into account all views and reflecting Scottish circumstances. There has been no prior indication of the UK government’s plans to do this and I am sure this news will surprise employees and trade unions as much as it did the Scottish Government.”

The SNP’s finance secretary said the UK government was already “threatening” budget cuts if Scottish ministers treated employees differently north of the Border.

He claimed the Westminster government had had “numerous opportunities” to explain its plans, adding: “It is with genuine dismay that I have had to request urgent clarity on these issues which affect around half a million public sector employees in Scotland and I hope that the UK government will now, for the last time, tell us exactly what they plan to do.”

However, Mr Alexander, a Lib Dem member of the coalition, defended the pension shake-up and said the UK government had “protected those closest to retirement” when introducing the changes.

He added: “The Scottish Government has significant flexibility in their discussions, including on the rate at which pensions are built up each year, earnings revaluation for active members and arrangements for those choosing to retire earlier or later than their normal pension age.”