John Swinney wants a “social contract” with the people of Scotland Scottish Finance Secretary John Swinney has hinted at a public sector pay freeze, as he faces a £1bn budget cut.
He said his spending plans for the year ahead, due to be set out on Wednesday, would be the toughest “in the history of devolution”.
Mr Swinney, who said pay restraint could save £300m, is also planning to end big public sector bonuses.
SNP ministers say they have £1.3bn less to spend in 2011-12, but the UK government insists the cut is £900m.
In return for public sector pay restraint – which could see a year-long pay freeze – Mr Swinney said the government could relieve pressure on peoples’ household bills.
He said: “Hard choices will need to be made – but it can be easier for all who live here and cohesion maintained within our communities by developing a ‘social contract’ with the people of Scotland.”
Salaries account for more than half of the Scottish government budget.
Mr Swinney blamed the previous UK government for two-thirds of the cuts, adding the Tory-Lib Dem coalition was “cutting too far and too fast” in its efforts to tackle the spending deficit.
Despite the reduction, he said the Scottish government was committed to continuing the council tax freeze and abolishing prescription charges, as part of plans to help hard-pressed families.
Elsewhere in the budget, the finance secretary is expected to announce plans to move some day-to-day spending to projects involving capital investment, to help save jobs and promote economic growth.
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