To ask the Secretary of State for Scotland, what discussions he has had with the Scottish Government on the potential impact of the Chancellor’s statement on public spending inheritance of 29 July 2024 on public sector pay in Scotland.
Answered on
4 September 2024
The financial inheritance - the worst inherited by any incoming Government since World War 2 - was compounded by the unforeseen £22 billion black hole in spending left by the previous Government. This means we face hard choices we didn’t expect or want to make to fix the foundations of our economy.
What the previous Government did - spending the Treasury reserves three times over by July - was reckless and unforgivable. They also for the first time excluded an affordability clause from the Pay Bodies and the SNP had no set pay back either.
The Scottish Government is responsible for public sector pay awards for devolved workforces. Barnett consequentials and Supplementary Estimates for 2024-25 will be confirmed at the budget in October and the Spending Review will set block grant funding up to at least 2027-28. This will allow the devolved governments to financially plan over a longer period of time.