New research has revealed that public sector workers in Scotland have received significantly higher pay increases than their counterparts across the UK, raising concerns about the long-term sustainability of the Scottish Government’s finances.
A report by the Institute for Fiscal Studies (IFS) found that Scottish public sector pay has risen by 5% above inflation since 2019, while state employees elsewhere in the UK have seen no real-terms increase. The pay hikes have coincided with an 11% increase in Scotland’s public sector workforce, equivalent to 56,000 additional staff since 2017, pushing the government’s annual wage bill to £27 billion.
Higher Salaries in Key Public Sector Roles
The IFS report highlights that public sector salaries in Scotland are notably higher than in other parts of the UK. For instance:
- Newly qualified teachers in Scotland earn £33,594, around £2,000 more than the £31,650 starting salary in most of England.
- Newly qualified nurses in Scotland begin on £31,892, compared to £29,970 in large areas of England.
The research also found that 22% of Scotland’s total workforce is now employed by the state, compared to 17% in England.
Fiscal Challenges and Political Criticism
Jonathan Cribb, an economist at the IFS, questioned whether the higher wages and staff increases have led to tangible improvements in public services.
“Scotland has not only increased the number of public sector workers more quickly than other parts of the UK, it has also increased their pay more quickly,” he said. “While these are reasonable priorities, they add to the Scottish Government’s fiscal challenges, given that funding from the UK Government will not reflect these Scotland-specific decisions.”
Opposition politicians argue that these rising costs are unsustainable and do not necessarily translate into better services.
Craig Hoy, a Scottish Conservative MSP, criticized the Scottish National Party (SNP) government for failing to manage spending responsibly.
“There’s been no attempt by the SNP to rein in spending, to tackle waste on an industrial scale, or to improve public services,” Hoy said. “These higher rates of pay have become frankly unaffordable.”
Future Financial Strain?
With UK government funding unlikely to rise in line with Scotland’s spending decisions, the findings raise questions about how Holyrood will balance its budget in the coming years. If wage growth and workforce expansion continue at their current pace, tax increases or spending cuts elsewhere may become necessary to maintain financial stability.
The Scottish Government has yet to respond to the findings, but the debate over public sector pay and affordability looks set to continue.
