Finance Secretary Shona Robison orders halt on public spending to fund public sector pay deals

Money will now only be spent if it is ‘essential’ to meeting the government’s legal requirements

Public spending in Scotland is to be halted and key projects cancelled to fund hundreds of millions of pounds worth of public sector pay deals.

Finance Secretary Shona Robison has written to cabinet ministers saying money will only go to government departments if it is essential to meeting legal requirements or to prevent an economic crash.

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This comes after the government stumped up an extra £77.5 million to offer an enhanced pay deal to call off the bin strikes, which had been due to go ahead today.

Ms Robison says the public sector pay deals have intensified the severe cuts laid out in December’s 2024/25 budget, and is worried about the impact Chancellor Rachel Reeves’s financial audit may have.

This is because the Scottish Government does not know how much money will come their way from the UK Treasury.

In her letter, seen by The Times, she said: “Emergency spending controls will now be introduced with immediate effect.”

She added: “Any activity undertaken or commitment made that generates expenditure in 2024/25 must only proceed if it is truly essential and unavoidable.

“By avoidable, I mean that the Scottish Government would otherwise breach its legal obligations or fail to provide essential support to emergency situations or cause significant economic damage across Scotland.”

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It is expected the bill for public sector pay awards will be at least £500m, with some concerned it could be as high as £700 - this is on top of the additional £77m needed to stop the bin strikes.

On top of this a third round of talks with the Royal College of Nursing will take place next week, where the 5.5 per cent pay offer made in England is expected to be demanded.

Projects previously promised by the Scottish Government will now be scrapped, with doubts now cast on pledges such as extending free school meals, scrapping peak rail fares, and economic and green policies.

A spokesman for the Scottish Government said: “The Scottish Government balances its budget every year.

“The Scottish Government and the whole of the public sector faces a financial position that is extremely challenging.

“It is always necessary to ensure resources are used economically, efficiently and effectively, and increased additional scrutiny will now be applied to expenditure.”

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