Guaranteeing a fair deal for the public sector workforce and protecting lower-paid workers underlines the wellbeing focus of this year’s Scottish Budget, according to new Finance Secretary Kate Forbes – but local government trade union UNISON says care workers are being undervalued.
Scottish Government policy decisions mean the starting salaries for staff in a range of public sector professions in Scotland are already higher than in England, including:
• a newly-recruited teacher will earn £26,697 in Scotland, compared to £24,373 in England
• a band 5 staff nurse will earn £24,670 in Scotland, compared to £24,214 in England
• a newly-recruited police officer will earn £26,037 in Scotland, compared to £20,880 – £24,177 in England
The 2020-21 Public Sector Pay Policy published alongside the Budget includes a range of measures to further support the public sector workforce:
• a guaranteed 3% pay uplift for public sector workers earning up to £80,000
• a cash uplift of £750 for public sector workers who earn £25,000 or less
• continuing the Scottish Government’s commitment to the real Living Wage, now set at £9.30 per hour
• limiting to £2,000 the basic pay increase for those earning £80,000 or more
Ms Forbes said: “Wellbeing and fairness are at the heart of this year’s Budget, and promoting the wellbeing of our public sector workers by protecting and increasing their pay is an important part of that.
“This pay policy responds to real-life circumstances, with measures to help us tackle inequalities by protecting the salaries of lower-paid employees. And of course investing in our hardworking public sector workforce will also help deliver top-class public services while supporting jobs and the wider economy.
“I am grateful for the engagement Ministers have had with the trades unions and others, and now hope Parliament will work with us to pass this Budget and reward our vital public sector workers.”
However Local government union UNISON says care workers are being treated unfairly and is campaigning to see better pay and conditions for these key public sector workers.
Christina McAnea, UNISON assistant general secretary, said: “For all the things that are wrong with the care system in this country, we have a workforce that are passionate and committed. They care desperately about the people they look after. That’s a fantastic place to start in trying to build a care system that works.”
But care workers are not treated fairly. Care is in crisis, thanks to a system that has been underfunded and ignored by governments for years. Care workers and the people that they look after are paying the price.
UNISON is campaigning for change and urges councils across the country to sign up to their Ethical Care Charter. The union is fighting to win:
Local government umbrella body COSLA says the Scottish Government draft budget falls far short of what it considers a fair settlement for the country’s councils.
COSLA says the draft budget results in a £95m (£300m real terms) cut to revenue and £117m (£130m real terms) cut to capital budgets. The impact of these cuts will continue to be felt. This budget does not recognise the vital role Local Government plays in the economy across Scotland.
COSLA Environment and Economy Spokesperson Councillor Steven Heddle said: “Councils campaigned strongly for an increase in funding so that we can continue to develop local economies that provide fair and accessible work opportunities for everyone.
“Regretfully, the Government has again ignored these warnings and failed to recognise the unique role councils play in growing local economies.
“We are the main employer in almost every local authority in Scotland providing a tenth of Scotland’s workforce. If any other part of the economy was facing the risks we are, the Government would step in.
“When councils have the money to invest in capital projects, the benefits are felt across communities – from training and apprenticeships to support for local supply chains – this year’s Capital Budget will mean these benefits will all be lost.
“Less core revenue funding for economic development support, planning and regulation will also hit communities hard.
“We are calling on the Government and the Parliament to address these concerns, listen to our asks and prevent the loss of essential council services which communities rely upon.”
Edinburgh’s ruling SNP-Labour ‘Capital Coalition’ voted though cuts of £35 million to public services last night – and agreed to raise Council Tax by almost 4.8%. Labour councillor Gordon Munro abstained.
And if you think the cuts will end after next year, think again: the Council set a three year budget and plans to make cuts of £87 million over the next three years.
Council leaders say the budget will protect vital services, but opposition parties argue that the scale of the cuts will damage communities.
SNP Cllr Adam McVey, Council Leader, said: “We’ve agreed a bold budget which protects the most vulnerable in society and guarantees a fairer quality of life for future generations. It prioritises those Council services which work to help those who are most in need of our support – protecting our young people, our communities and our planet in the process.
“In the face of growth and a global climate emergency, we’ve outlined plans for the biggest investment ever to be made into new, sustainable and affordable homes in Edinburgh.
“The people of Edinburgh have told us they want their city to be sustainable, to be fair and for frontline services to be protected. That is what we are delivering with a budget which invests in the services our city needs. I’d like to thank fellow Councillors for standing up for a plan which is fair and sustainable.”
Labour Cllr Cammy Day, Depute Leader, said: “The plans passed today support new schools, sustainability and the regeneration of this city and I’m pleased we’ve been able to – yet again – agree a balanced budget, despite the ongoing financial uncertainty we and all local authorities face.
“This forward-thinking approach will provide much greater certainty to residents, to workers and to partners right across the city and will help us tackle poverty in all its forms.
“Under today’s budget, this Council is committing to do all that we can with the resources we have to improve residents’ lives and protect those services which are vital to our most vulnerable citizens. This will be supported by the thousands of new, affordable homes we’ll help to build and the community regeneration we’ve pledged to deliver.
“For too long we’ve turned our back on our fantastic waterfronts and this budget plan will allow us to move forward with our plans to regenerate Granton, providing new homes and a fantastic community for people to work and visit.”
Far from moving forward, Lib Dem councillors Kevin Lang and Louise Young believe the budget is a backwards step.
Commenting last night, the brother and sister councillors for Almond ward said: “We are sorry to say the SNP’s Council budget was passed tonight. We argued strongly for our alternative which avoided the worst of the service cuts but the votes weren’t there.
This means:
❌ an end to all Council funding for community policing, putting dozens of officer posts at risk.
❌ removing all 130 teachers from our nurseries.
❌ a big cut to headteacher school budgets.
❌ slashing the funding for local sports and leisure centres.
❌ opening the door to library cuts.
“The SNP also refused to accept our fully costed plan to put more money into road and pavement repairs or into new park playground equipment.
“We always try to be optimistic but there’s no getting away from the fact this is a bad budget for our constituents.”
Earlier this week the Convention of Scottish Local Authorities warned that the Scottish Government’s Budget will hit vulnerable communities the hardest.
COSLA said the Government has not considered successive years of cuts, or rising inflation and demand and have therefore put council services at risk.
Councils have said they believe the budget will have a major impact on the Government’s ability to address the four priorities of inclusive growth, tackling child poverty, wellbeing and climate change, and puts Scottish Government commitments at risk if no further funding is found as part of the Budget Scrutiny process.
COSLA’s view is that taken on its own, the Scottish Government’s announcement of an additional £495m for councils is misleading to communities.
Councils are required to deliver an additional £590m worth of new Scottish Government policy commitments, resulting in a cut to council budgets of £95m. It is vital to note that this doesn’t account for inflation and therefore the real terms cut to the Local Government revenue budget is nearer £300m.
The draft capital budget is equally as devastating. Whilst £54m of new capital money has been announced this is negated by £171m worth of Scottish Government commitments. This leaves a £117m cut to core capital budgets of 17%. Again, if we include inflation the real terms cut to capital budgets is £130m.
This settlement does not address any of the restoration called for in light of many years of cuts.
Speaking ahead of an evidence session at the Scottish Parliament’s Local Government and Communities Committee on Wednesday, COSLA Resources Spokesperson Councillor Gail Macgregor said: “COSLA has campaigned hard in recent months for the Scottish Government to address falling Local Government budgets.
“We called for Scottish Government commitments to be funded, inflation to be accounted for and restoration to the budget to reflect successive years of cuts to Local Government. It is unfortunate that a sphere of government in this country has not been listened to.
“This draft budget will impact on jobs, frontline services and Local Government’s ability to address inclusive economic growth, child poverty, wellbeing and climate change and does not address the growing demand most councils are facing in relation to services.”
COSLA President Councillor Alison Evison added: “Recent benchmarking statistics have shown that 10,000 FTE jobs have been lost in Local Government since 2010/11. The impact of this on communities is real and cannot continue.
“We are calling on Scottish Government and the Parliament to address these concerns, listen to our asks and prevent the loss of essential council services which communities rely upon.
“Make no mistake, councils and the services which communities rely upon will be at risk as a result of this budget.”
Councillors have today agreed a 3 year balanced budget – protecting vital services, providing record investment for new schools + new homes, and outlining long-term plans to address inequality + climate change pic.twitter.com/q3ivlDb0K5
— The City of Edinburgh Council (@Edinburgh_CC) February 20, 2020
Councillors voyed to raise Edinburgh’s Council Tax by 4.79%. The tax band levels for Edinburgh in 2020/21 will come into effect on 1 April 2020 and will be:
A – £892.39
B – £1,041.13
C – £1,189.86
D – £1,338.59
E – £1,758.76
F – £2,175.21
G – £2,621.41
H – £3,279.55
Investing in vital public services and ending Scotland’s contribution to climate change are at the heart of the Scottish Government’s tax and spending plans for the year ahead, according to the Scottish government – but critics say the budget is another wasted opportunity and will mean yet more cuts to public services.
Yesterday’s budget was completely overshadowed by the shock resignation of Finance Secretary Derek Mackay, who left office just hours before the budget was due to be presented following a newspaper expose.
Public Finance Minister Kate Forbes stepped in to deliver the budget.
Setting out the Scottish Budget 2020-21, Ms Forbes announced a package of funding to accelerate Scotland’s transition to a net-zero economy, including £1.8 billion of investment in low carbon infrastructure which will help reduce emissions.
She also announced a record investment of £15 billion in health and care services and £645 million for the expansion of early learning and childcare.
The Scottish Budget 2020-21 also proposes:
Ms Forbes said: “The global climate emergency is at the centre of our Programme for Government and we have already put in place the most ambitious climate legislation and targets of any country. This Budget will help deliver on that world-leading ambition.
“From increased investment in low carbon transport to funding for peatland restoration and forestry, this Budget sets out our spending plans to help us deliver the transformation we need across society to transition to net-zero.
“We have also put wellbeing firmly at the heart of this Budget to benefit as many people as possible across the country. We will do this through prioritising inclusive economic growth with the creation of high quality jobs, supporting our public services and tackling inequalities head on.
“We estimate that we are investing at least £1.4 billion to support low-income households, mitigating the worst effects of the UK Government’s benefit cuts which are hitting the poorest in society and our Scottish Child Payment will help lift 30,000 children out of poverty when it is fully rolled out in 2022.
“I urge the Parliament to work constructively with us to pass this Budget in the national interest.”
The budget has come in for criticism, however.
STUC General Secretary Grahame Smith said: “This budget is long on promise but falls short on delivery. Positioning the budget as building the well-being economy is to be welcomed but far more was required to make that a reality.
“There is no doubt that the UK Government’s approach to Budget setting has left the Scottish Government in a difficult position. But to tackle the ‘crippling reality of austerity’ requires investment in decent local services. At best the budget provides only half of what local councils say they desperately need.
“We welcome the freezing of the higher rate tax threshold but much more is needed on redistributive taxation if the well-being economy is to be achieved.
“The Scottish government has missed an opportunity to commit to building the homes for social rent desperately needed in Scotland. By the next budget, it will be too late and local authorities and housing associations will have downed tools, without the funding to continue to build more homes for social rent. It is also disappointing that there are minimal new financial commitments in social security.
“On pay we are pleased that the government has listened to unions and extended the 3% pay increase to those earning over £40k per year, however we are a long way short of the much-needed restoration on public service pay to pre-austerity levels.
“While there are some new measures to tackle climate change, the funding levels proposed are still not sufficient to tackle the climate emergency.
“Given the failure over a number of years to create the new green jobs once promised, it is crucial that new funding comes with new jobs and does not simply provide cash handouts to big business and landowners.
“To be worthy of the name of a Green New Deal would require a publicly led and planned approach to decarbonisation involving publicly-owned companies, something this Budget fails to do.”
Jim McCormack, Associate Director of Joseph Rowntree Foundation Scotland, said: “This Budget was an opportunity to show the Scottish Government’s ambition to deliver on tackling poverty, yet today’s statement falls short of the mark.
“It cannot be right that one in four children in Scotland have their lives restricted by poverty. At the start of the decade in which all parties have pledged to solve child poverty, we welcome the financial commitment to introduce the Scottish Child Payment. But we know this won’t be enough to turn the tide: Scotland is not on track to meet the ambitious targets set for 2023-24.
“Scotland’s lower levels of child poverty compared with the rest of the UK are due to lower housing costs. If this advantage is to be maintained then the affordable homes programme needs to be continued beyond 2021. Now is the time to commit to further investment in secure, affordable homes for those facing rising rents and stuck in temporary accommodation.
“In-work poverty is a pressing economic challenge for families. Two-thirds of children in poverty are in families where an adult is working. The new Parental Employment Support Fund is too small to meet the scale of the challenge and only runs for two years. Investment should be increased and extended to benefit more families for longer.”
COSLA said it was disappointed that once again the Scottish Government has presented a Budget for Local Government that looks much better than the reality behind the figures.
Speaking this afternoon following the Scottish Government’s (Thursday) Budget announcement, COSLA’s Resources Spokesperson Councillor Gail Macgregor said: “On the face of it this looks like a good Budget for Local Government with a cash increase of £495million and whilst we acknowledge this money, the reality behind this figure unfortunately is quite different.
“What we are left with when you factor in the Scottish Government commitments of £590million – is a cut to Local Government core budgets of £95 million. This is £95 million in hard cash that will need to be taken out of front line services for communities. We campaigned hard to ensure that this position did not happen – it is disappointing our message has not been listened to.
“When you add in a £117million cut to capital funding (which equates to a 17% cash cut) – a hit to both communities and growing the economy you are left with a crisis for Local Government which is a long way from the picture being painted. This is even worse when seen in the context of an increasing Budget for the Scottish Government.
COSLA President Councillor Alison Evison added: “Local Government’s core budget which provides our essential services has been cut as a result of today’s budget. A cut of a significant proportion is the Budget Reality that our Communities now face – a cut to services, a cut to local jobs, a cut to the work councils do to tackle child poverty and respond to climate change.”
“In addition to the cuts – it is also extremely disappointing that we have seen no money for inflation or any other of the significant pressures we face, such as restoration for cuts to our funding in previous years. COSLA will be raising these issues with the Scottish Government and all parties across the Parliament at the earliest opportunity to ensure this picture is rectified as part of the budget scrutiny process. It is our communities and the priorities of tacking child poverty, wellbeing, climate change and inclusive growth that will suffer.
“Things cannot go on in this manner. I am really concerned that more and more of what Local Government does is directed by the centre. As a result of the Scottish Government commitments that Local Government has to deliver we are no longer able to respond to local priorities.”
The Scottish Government argues that the budget offers a real terms increase for local government, hower. Cabinet Secretary for Local Government Aileen Campbell said: “This budget provides a fair settlement for our partners in local government and supports vital public services across Scotland.
“Taken together with the flexibility to increase council tax, this local government settlement gives councils an increase of revenue spending of up to 4.3% in real terms to deliver local services.
“The settlement will deliver on our joint key commitment to expand the funded hours of early learning and childcare this year, funds a fair pay deal for our teachers, and invests more than £120 million targeted at closing the attainment gap through the Pupil Equity Fund.
“This increased settlement will ensure fair, sustainable funding for local authorities.”
The Scottish Government’s budget will be published on 6 February 2020, Finance Secretary Derek Mackay has announced.
It comes after the UK Government confirmed their budget would be delayed until 11 March 2020. Continue reading Scottish budget date set for 6th February
Ray of hope for projects hammered by Health & Social Care grant cuts
Up to 200 council jobs in the Capital will go as the SNP-Labour administration passed a controversial austerity budget which sees £33 million of cuts to vital public services across the city. Continue reading Capital Coalition votes through £33 MILLION cuts package
The 2019-20 Scottish Budget provides Scotland with economic stability by making strategic long-term investments to strengthen and prepare the economy for the future, according to Finance Secretary Derek Mackay. However local government umbrella organisation COSLA says the budget will mean only more cuts to council services. Continue reading Budget: saving public services?
Consultation opens on ‘transformation vision’
THE Scottish Fire and Rescue Service is set to launch a public consultation as it continues to lead the way in Scotland’s public sector – by proposing to transform to meet modern risks. Continue reading Have your say in Fire & Rescue Service consultation
“Our evidence tells us that councils are finding the financial pressures increasingly difficult to manage” – Ronnie Hinds, Accounts Commission
Councils are showing increasing signs of financial stress and face even tougher challenges ahead, says the Accounts Commission. In its annual financial overview published today the local authority watchdog says funding has reduced while costs and demands have increased, and more councils are using reserves to fund services.
The Scottish Government provides around two thirds of council budgets. This fell by 5.2 per cent in 2016/17 to £9.7 billion.
2016/17 was also the last year of the council tax freeze. Council tax provides just 14 per cent of councils’ income. The report notes that if all councils chose to raise council tax by three per cent, it would yield an estimated £68 million – broadly comparable to a one per cent pay rise for staff.
Overall council debt rose by £800 million in 2016/17 as councils took advantage of low interest rates to fund projects. While not posing an immediate problem some councils are concerned about longer term affordability.
The report highlights a number of financial pressures. A rising proportion of council funding directed towards national priorities such as educational initiatives means councils have to look at deeper cuts in other services. For example, resources for culture, planning and development, and roads have seen the sharpest falls in funding over the last three years.
The report also looks at the current financial year (2017/18) where councils have approved £317 million of savings and use of £105 million in reserves. Some councils could risk running out of general fund reserves within two or three years if they continue to draw on them at current levels.
The report aims to help councils plan ahead for setting their 2018/19 budgets.
Ronnie Hinds, deputy chair of the Accounts Commission, said: “Our evidence tells us that councils are finding the financial pressures increasingly difficult to manage. The elections in May this year brought in major changes in council administrations across Scotland. Councils that have demonstrated effective leadership and robust planning will be in a better position to deal with the challenges that lie ahead.”
Dear Editor
Capitalism, the system under which we live, constantly tries to retain control over the population. The ways of doing this are many, as a reading of history will show: a catalogue of land thieving, forced clearances, draconian laws and the prosecution of those who resisted. A policy of ‘divide and rule’ always was, and still is, the main tactic.
A recent example, the financial collapse of 2008, is blamed on the Labour Party, dividing organised political resistance against the savage cuts in public services and wages. It is now admitted that the financial crisis was worldwide caused by the banking industry.
From 2010 divide and rule was stepped up,with people not in work accused of being skivers and scroungers. It was then extended to disabled people and those who for many reasons were unable to work, having to claim benefits on which to live. They were then subjected to an assessment on their fitness to work by a private company – despite their having medical certification.
The housing shortage is partly blamed on people occupying a house or flat deemed to have spare rooms, and now this is followed by stories of elderly people being financially better off at the expense of younger generations.
All these example, and many more, are designed to set one against another, making unity more difficult.
To counter this we must show that there are many issues common to everyone, to get people thinking and acting again in a positive manner and making these issues work for the benefit of all.
We all need energy supplies, water and utilities, and a good reliable public transport system. It is not right that these essential services are mainly privately-owned, instead of being run for the benefit of all.
Unity, not division, will change things. There is so much on which to unite, making progress to a better life for all.
A. Delahoy, Silverknowes Gardens
