An additional £223 million will be provided to local authorities
to support pay awards to staff as part of the 2023-24 Scottish
Budget.
Deputy First Minister said an improving financial
position enabled him to address some pressing asks. The extra
money for local authorities comprises a new £100 million for
non-teaching staff and the £123 million announced last week for
2023-24 to support a new pay offer for teachers which would see
salaries rise by 11.5% from April. It comes on top of the
additional £570 million already included in the local government
settlement and takes the total settlement to nearly £13.5
billion.
Opening the Budget Bill Stage 3 debate in the Scottish
Parliament, Mr Swinney also announced a £6.6 million increase to
Creative Scotland’s budget and promised to fund the revenue cost
increases incurred by local authorities managing the
inter-islands ferry network.
He said additional funding confirmed by the UK Government in
Supplementary Estimate figures this morning had enabled him to go
further in 2023-24 - but stressed that the financial position
remained exceptionally challenging and would require continued
prioritisation throughout the coming year.
Mr Swinney said:
“I am very aware of the challenges faced as we manage our way
through this cost crisis and this Budget is designed to do as
much as we possibly can to assist at this most difficult moment.
“None of this is easy - this is by far the hardest Scottish
Budget process that I have led - with the effects of raging
inflation being felt against the impact of more than a decade of
austerity and Barnett funding down 5% in real terms since
2021-22.
“I hope this additional funding will enable a swift agreement in
the Scottish Joint Council pay negotiations so that relevant
staff receive a pay increase as early as possible in 2023-24.
“The Budget strengthens our social contract with every citizen of
Scotland who will continue to enjoy many benefits not available
throughout the UK. Delivering support for people most in need, in
these difficult times, is the foundation of this Budget.
"The Budget that has been set out to Parliament enables us to
invest in our public services, to ensure a strong boost to local
authority funding and to ensure that we help those who need it
the most."
Background
The Deputy First Minister's
statement to Parliament.
The £100 million further funding announced today is for pay deals
negotiated for the majority of local government employees by the
Scottish Joint Council. Separately, the Scottish Government has
already confirmed it will provide an additional £156 million -
£33 million in 2022-23 and £123 million in 2023-24 - to support a
new pay offer for teachers which would see teacher salaries rise
by 11.5% from April.
