2. To ask the Scottish Government what impact recent public sector pay settlements are having on the provision of services. (S6O-02465)

The Government values the vital role of the public sector and the people who deliver its services. We support fair work principles and partnership approaches with trade unions through collective bargaining arrangements. However, our budget has been hit by inflation and, in 2022-23, we directed about £900 million to fund higher pay awards. Despite that pressure and the lack of consequentials from the United Kingdom Government, agreed pay settlements for national health service staff, teachers, firefighters and others provide evidence of the success of our approach of providing fair settlements to maintain high-quality public services and avoid costly industrial action.

I put it on record that I fully support the Scottish Government in helping folk to cope with the UK cost of living crisis by negotiating those settlements within its fixed budget. However, the Scottish Government has no control over inflation, which is running at 8 per cent. Is it not crystal clear that the constraints of devolution are there for all to see—causing us to eat into other budgets to the amount that the cabinet secretary just disclosed—and that we need to be independent of this failing UK sooner rather than later?

I agree completely with Christine Grahame’s last point, but, in the meantime, the Treasury could support the cost of pay deals but refuses to do so. The Tory UK Government seems to have a high threshold for industrial action. That is not something that the Scottish Government supports. We believe in going forward in partnership, and we absolutely recognise the cost of industrial action to public services and the people who rely on them.

The chief executive of Scottish Water has been awarded a pay rise that unions have highlighted as being £50,000 above the Scottish Government’s current policy on public sector pay, while lower-paid staff are in dispute over their wages. Will the cabinet secretary listen to unions that are calling for a review of public sector pay policy, including excessive executive pay at the top?

Pay rises are a matter for public bodies, but we would expect them to abide by public sector pay policy, and it is important that those in leadership positions in public bodies lead by example. We reinforce that through our sponsorship teams, and we will continue to do that. I should say that Scottish Water—in terms of its performance, operation and delivery, and as a financial model—is doing a lot of good work. Nevertheless, in times such as these, the need for constraint should be recognised by everyone, particularly those in leadership positions.