SNP will fight pay-freeze plan for public servants, says John Swinney

PLANS by Chancellor George Osborne to freeze public sector pay in some parts of the UK until it reaches the same level as private sector pay will be strenuously opposed by the Scottish Government, SNP Finance secretary John Swinney said yesterday.

The SNP made it clear that the proposal, expected to feature in the Budget on Wednesday, would play a significant role in the independence campaign.

In the short term it has raised fears that it could see a reduction in Scotland’s £35 billion block grant from Westminster, although the Scottish Government has promised to protect public sector pay.

But if the move did hit the block grant and brought Scotland more into line with the average received by English regions, it would also please Tory backbenchers, who have complained that too much money goes north of the Border.

The proposal to regionalise public sector pay is also opposed by the unions, although the government has pointed out that there is already a special pay rate for London, where the cost of living is much higher.

But yesterday Mr Swinney branded the proposal “totally irresponsible”.

He said: “It will place further pressures on household incomes at a time when we desperately need a boost in consumer confidence to get the economy moving again. While Scottish ministers set pay policy for devolved bodies, public sector workers employed by UK departments would be affected.

“This move could potentially penalise public servants in Scotland and damage public services – resulting in spending cuts to pay for higher public spending in London and the south-east – hindering our efforts to share growth across all of the country. The Chancellor must think again about his half-baked plan.”

He went on: “Our current pay policy supports lower-paid workers while freezing pay and bonuses for the year ahead, and ministers are taking a pay freeze for the fourth year in a row. All bodies covered by our public sector pay policy must pay the living wage of £7.20 per hour.”

Mr Swinney made it clear the issue would feature in the campaign for independence. He said: “This simply highlights the need for Scotland to have full control of all the economic levers in Scotland.”

Mr Swinney has been joined by his counterparts in the devolved Welsh and Northern Irish assemblies in opposing the move, which has also angered public sector workers in the north of England.