Public services at risk as row erupts over Sturgeon 'refusal' to discuss Scots councils' funding

It comes in the wake of a backlash from public sector workers after ministers agreeing a "breakthrough" 5% pay deal to train drivers which could end a row which has led to major cuts to nationalised ScotRail services.

It included a “top-up revenue sharing arrangement” that could potentially raise the pay increase to nearly 10% which would apply where revenue targets are exceeded.

The prospect of thousands of Scots local authority workers from cleaners and binmen to care workers and school staff going on strike this summer in pay disputes has come even closer as three key unions Unison, GMB and Unite prepare for strike ballots over a 2.2% offer.

Action that would close schools is already being threatened as unions representing public sector staff fight for the same treatment as train drivers - despite huge cuts in public spending.

Public services in Scotland are braced for “brutal” cuts after ministers unveiled spending plan just over a week ago that will slash more than £1 billion from key areas including councils and the police.

Public services union Unison is today to ballot 25,000 school staff and waste and recycling workers for strike over after finance secretary Kate Forbes refused offer of last-ditch talks. The ballot will take seven weeks and will close on July 26.

Unison are recommending the workforce vote 'yes' to strike action as the only way left to move the position of COSLA.  They say they intend to shut schools across Scotland when children return after the school summer break.

Now COSLA has expressed "deep disappointment" that the First Minister and finance secretary Kate Forbes have refused a request from all council leaders to engage in discussions regarding the current settlement for local government and its "significant impact on our ongoing pay negotiations".

COSLA said: "The implications of the Scottish Government’s spending plans for the rest of the parliament are deeply concerning for communities across Scotland and have further increased the already strong likelihood of industrial action in the coming months. "Scottish Government continues to fail to respect the fundamental role local government and its workforce has in addressing their own priorities of tackling child poverty, climate change and a stronger economy."

It said that the Resource Spending Review shows that local government’s core funding for the next three years will remain static at time when inflation and energy costs are soaring. "This 'flat-cash' scenario gives no scope to recognising the essential work of our staff, whose expectations, quite rightly, are being influenced by Scottish Government’s decisions in relation to other parts of the public sector," COSLA said. " A suggestion that increases in welfare payments will mitigate the cost of living crisis do not recognise that our staff should not have to depend on such payments to make ends meet."

"As things stand, the only option available to councils is yet fewer jobs and cuts to services that are essential to communities everywhere."

A last-ditch attempt by unions to avert industrial action in a letter to First Minister Nicola Sturgeon, and finance secretary Kate Forbes also failed.

In a joint letter, signed by the unions Unison, Unite and GMB, said industrial action “would close schools across the country and see waste piling up on the streets” if a resolution was not reached.

A senior union member has already said that Scottish teachers will go on strike if pay talks over a 2% pay hike do not lead to an acceptable agreement. The Educational Institute of Scotland (EIS) “instantly” rejected the offer and are seeking a 10% rise while inflation is at at 9%, its fastest rate for 40 years.

On Thursday, negotiators for the train drivers' union Aslef who have been in the depths of their own pay dispute decided to recommend acceptance of an improved 5% pay deal after negotiations with the nationalised rail operator's management. It has still to be put to drivers.

The union's executive commitee previously rejected a 4.2% pay offer in the midst of threatened strike action. Unlike with the latest offer, the negotiating team had not recommended either acceptance or rejection.

But the National Union of Rail, Maritime and Transport Workers (RMT), which represents most of the vast majority of the 5000 ScotRail staff, including conductors, ticket examiners and some drivers has rejected the offer.

The union will instead recommend to its national executive that it continues to ballot its members for strike action.

Union sources have said that the development clearly showed that the 2.2% offer to tens of thousands of public sector staff for 2022/23 was inadequate.

COSLA’s resources spokesman Gail Macgregor said: “COSLA, every year, argues for fair funding for local government to maintain the essential services our communities rely on. No increase in our core funding damages these services and limits the options we have in successfully concluding pay negotiations. Refusal to engage in discussion will only see this continue and our communities will see and feel the difference.”

The Fraser of Allander Institute has recognised the impact on councils saying: “The local government budget will decline by 7% in real terms between 2022/23 and 2026/27…….the real terms erosion of the funding allocations of local authorities represents the continuation of a longer trend.”

The Scottish Government previously projected a widening gap between its funding and spending of around £3.5bn by 2026/27, with critics accusing it of “mismanagement”.

A resource spending  review - which lays out how the Scottish Government intends to spend £180bn over the rest of the parliamentary term - includes £22.9bn for social security, protecting the Scottish Child Payment rises, and £73.1bn for health and social care, including developing a National Care Service.

However, spending in justice and local government will be frozen – equating to real terms cuts.