Pay cap on public sector to go

Finance secretary Derek Mackay has said the Scottish Government will lift the 1 per cent cap on public sector workers’ pay north of the Border.

Mr Mackay’s comments came after the Tories and the DUP combined at Westminster to reject a bid by Labour to scrap it.

The defeated Labour amendment to the Queen’s Speech was supported by SNP MPS.

The vote followed signals the UK government was considering abandoning

the cap. These were later denied by Downing Street.

The Uk-wide cap has restricted annual pay rises for about 500,000 staff, including nurses and firefighters, to 1 per cent since 2013.

The approach taken by the SNP at Westminster led to Labour calling on the Scottish Government to lift the cap in Scotland.

Mr Mackay said: “The Scottish Government will take into account inflation in the future pay policy.

“Remember that what the Labour Party proposed was basic-rate tax rises for the workers of Scotland, including public sector workers. We will take a reasonable approach that absolutely recognises that the time is up for the 1 per cent pay cap.

“Not only will the SNP commit to that, but we will do it.”

Mr Mackay’s comments were welcomed by Scottish Labour leader Kezia Dugdale. She said: “It is high time that our public sector workers get the pay rise they deserve. This U-turn has only come about because Labour shamed the SNP into backing our policy.”

Earlier, First Minister Nicola Sturgeon tweeted that the Scottish Government was “already committed” to lifting the cap.