Current status: Answered by Shona Robison on 2 October 2024
To ask the Scottish Government what assessment it has made of any funding reductions that have been made as a result of the reallocation of funds to local authority pay awards.
Public sector pay continues to be a significant driver of in-year pressures and, under the current devolution settlement, any substantive in-year pressures can only be funded by reductions elsewhere. If the UK Government does not fully fund public sector pay deals, there will be a significant gap between the expectations of the workforce and the available funding.
As confirmed in the Fiscal Statement to the Scottish Parliament on 3 September, the Scottish Government has identified a range of measures to support the 2024-25 budget totalling almost £1 billion, of which up to £500 million are direct savings. Correspondence with the Convenor of the Finance and Public Administration on 3 September, confirmed that the impact of these measures has been appropriately assessed, including in formal impact assessments where required.
In relation to local authority pay awards, the Scottish Government has agreed with local government that they can draw on specific existing programmes to fund pay deals. The relevant funding will be replaced in 2025-26 and assurance has been sought from local authorities to confirm that they are able to mitigate any impacts in 2024-25 and that delivery timescales will not be significantly impacted.