Public sector pay

Public sector workers earning up to £36,500 will have a pay rise of 3 per cent, which is more than the rate of inflation.

This pay bill is capped at 2 per cent both for people earning between £36,500 and £80,000, and any increase for those earning more than £80,000 to £1,600.

But Scotland’s teachers have already rejected a 3 per cent pay offer and are threatening strike action unless they get a 10 per cent increase in pay.

And the PCS trade union last night accused Derek Mackay of appearing to renege on an assurance to begin restoring public servants’ wages.

PCS national officer Lynn Henderson said: “Our members have lost hundreds of millions of pounds in pay over ten years and the impact on their living standards has been cruel and severe.

“Three per cent this year just isn’t good enough, it’s below inflation and therefore it’s a pay cut.”