John Swinney set to end public sector pay freeze

FINANCE secretary John Swinney has signalled that the public sector pay freeze imposed by the Scottish Government is to be lifted in the next financial year.

Mr Swinney said yesterday he was hopeful that the government could move into “a period of modest pay increases” in the public sector for 2013-14, having had two years of pay restraint.

“I’m working to deliver that because I think you have to strike a balance … between the exercise of restraint and actually recognising the difficulties that families are facing because of that self-same restraint,” he added.

Mr Swinney was speaking the week before MSPs return to Holyrood, where the SNP government will present its budget.

His remarks came despite business organisation CBI Scotland calling for continued public sector pay restraint and more investment in infrastructure such as roads and housing.

The CBI also supports the privatisation of Scottish Water because the government does not receive any Barnett consequentials by keeping it in public ownership.

Director Iain McMillan said: “That industry is privatised south of the Border, so the Scottish Government is having to spend money that they would not otherwise have to spend.”

But Mr Swinney said that “there was no way” Scottish Water would be privatised because it contributes directly to capital investment.