More public spending cuts will be required amid a “very challenging environment”, Scotland’s finance secretary has warned. In a letter to a Holyrood committee, Shona Robison said “additional measures” will be necessary following UK Chancellor Rachel Reeves’ recent announcement of a £22 billion hole in the public finances. It came as college lecturers were urged to accept a new pay deal that would bring a long-running dispute to an end.
Unions have also recommended NHS workers accept a 5.5 per cent pay increase. College Employers Scotland (CES) said the Scottish Government had agreed to provide an extra £4.
5 million in additional funding to allow the fresh offer to be tabled. Ms Robison said more cost-cutting measures were needed following the Treasury’s review of public finances and uncertainty over how pay review body recommendations will be funded. Earlier this month, she confirmed a freeze on public sector recruitment for everything except “essential frontline” posts.
Scotland’s version of the winter heating payment will also be means-tested, following a similar decision by the UK government. Meanwhile, the arts body Creative Scotland has closed one of its key funds due to concerns over support from the Scottish Government. In a letter to Kenneth Gibson, convener of Holyrood’s finance committee, Ms Robison said more cost-cutting was needed in the 2024/25 financial year.
She said: “The Scottish Government, along with government and public sector bodies across the UK, faces a very challenging environment as we manage our finances through the current financial year and set our budget for 2025/26. “I am working with my Cabinet colleagues to agree the necessary actions to reduce expenditure and ensure our finances are on a sustainable footing. “Further to this, additional measures are now necessary following the UK Treasury’s recent audit of public spending and lack of clarity over whether their decision to deliver pay review body recommendations will be fully funded.
” Details are expected to be set out when the Scottish Parliament returns from recess in early September. Ms Robison also said the Government would publish its tax strategy at the same time as the draft Budget document for the coming financial year. Responding to her comments, Conservative MSP Liz Smith said: “Shona Robison’s imminent spending cuts are entirely of her party’s own making.
The SNP finance secretary will continue to try and point the blame elsewhere, but after 17 years of financial mismanagement, the nationalists have nowhere left to hide. “Despite being in receipt of record block grants, they have squandered money on a colossal scale on their own pet projects, rather than on Scotland’s real priorities.” Colleges have tabled a 4.
14 per cent pay rise in 2025/26 - up from 3 per cent previously – which is in addition to a £5,000 pay increase across the preceding three academic years. If accepted by members of the Educational Institute of Scotland (EIS) FELA teaching union, it would end an industrial dispute that has lasted nearly two years. CES said it would deliver starting salaries for lecturers of nearly £42,000 from September 2025 and “further cements Scottish college lecturers as having the best pay and conditions of any college lecturers across the UK”.
Gavin Donoghue, director of CES, the national body for colleges as employers, said: “It is hoped this improved pay offer to the EIS-FELA will mean an end to this long-running pay dispute, and prevent any further disruption to staff and students at the start of the new academic year. “Given the financial pressure colleges are under, it has only been possible to improve the pay offer because ministers have agreed to the employers’ request that additional funding of £4.5 million be made available from 2025/26.
“We urge EIS-FELA members to accept this substantial pay offer if it is put to them in a formal ballot. This would allow colleges to get back to providing the world-class educational experience our students deserve. “Employers have also requested the trade union cancel all industrial action while the pay ballot takes place, so that students do not continue to suffer any further disruption to their learning.
” The EIS said it would now open an indicative ballot and recommend its members accept the offer. General secretary Andrea Bradley said: “This has been a long and painful campaign, with EIS-FELA members forced to engage in a long-running programme of industrial action to secure a fair pay offer from college employers and assurance that this will not come at the cost of jobs. “The gains which have been achieved in this offer have been hard-won, and it is of great credit to our members that they have taken this stand and fought hard to secure this improved offer from colleges.
The intervention of the Scottish Government, and their commitment of an additional £4.5m in funding, was key to the improvements in this offer.”.
