Finance Secretary Shona Robison has been likened to Margaret Thatcher following the government's £460m ScotWind cash grab.
The GMB criticised the government for "frittering away" money from leasing Scotland’s seabed, rather than using it for the promised energy transition.
In a stinging letter to the minister, Louise Gilmour, the union’s Scotland Secretary, said it was also wrong for the government to suggest that public sector pay deals caused the £500m cuts to spending.
She said ministers were repeatedly warned that their public pay strategy was unfit for purpose.
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The Finance Secretary emptied the renewable energy fund in her pre-budget fiscal update last week.
The money was originally raised from an auction of seabed leases to companies planning to build offshore wind farms.
There were 20 projects approved in 2022, raising £756m in fees, which the government said at the time would “tackle the twin climate and biodiversity crises.”
However, ministers have already dipped into the fund, taking £96m in 2022-23, and another £200m used this year.
There had been plans to use some of the money in 2023-24, but it was never drawn down
No additional funds from ScotWind are expected until electricity generation begins, likely closer to 2030.
In her letter, Ms Gilmour said using £460m of Scotwind income to “plug the gap in Scotland’s finances” was “unsustainable and represents poor financial planning.”
She added: “For our members in energy, it yet again obliterates the claim of a ‘just transition’.
“These funds should have been used to build the renewable supply chains across Scotland.
“Instead, they have been squandered.
“Our Harland and Wolff members are facing yet another crisis and are in need of investment; Grangemouth is on the brink of ending refining operations; and oil and gas members face decimation via taxation with no green jobs to step into.
“Just as Thatcher raided Scotland’s oil and gas profits preventing the creation of a sovereign wealth fund akin to that of Norway, Scotland’s future in renewables is now being frittered away.
“Failing to invest and plan in the future of our energy network undermines the Scottish Government’s own ability to fund future spending in the public sector.”
Much of the black hole in the public finances comes from a higher-than-expected public sector pay bill of around £800m.
Ms Gilmour said that was the government’s own fault for failing to prepare accordingly.
She said unions had made clear to Scottish Ministers “that the Public Sector Pay Strategy did not meet our members’ expectations on pay.”
“The decision to then adhere to this strategy and not financially plan accordingly was one made by Scottish Ministers – not trade unions,” she added.
Ms Gilmour also said it was time for the Scottish Government to seriously look at the “inherently unfair” council tax, and at the very least refuse to freeze it next year.
“If the freeze is not lifted, Scottish Ministers will be placing the exact same restraints on local government that the UK Government is placing on the Scottish Government.”
Ms Robison was asked about ScotWind funding last week during an interview with the BBC. She said how much she used depended on the UK Government.
“The real crux comes down to how much of the UK pay review body pay deals, how much of that is funded by the UK Government,” she said.
“If more of it is funded I will have to draw down less of the ScotWind.
“If less of it is funded I will have to draw down more of the ScotWind.
“So we will have to see where we end up.”
The Finance Secretary continued: “I don’t want to deploy all of the £460 million I announced yesterday, that will depend on how much of the pay settlements are supported through UK Government funding.
“If more is supported I can draw down less of that money, and I want to draw down less of that money.”
A Scottish Government spokesperson said: “We have consistently warned of the pressure on the public finances from prolonged Westminster austerity, Brexit, and the cost of living crisis. Following the UK Chancellor's July statement, we face the most challenging financial situation since devolution.
"This requires tough choices to ensure funding can be directed towards the priorities including public sector pay.
"Salaries in Scotland are 6% higher on average than the rest of the UK – with the lowest paid earning 10% more than their counterparts in the UK.
"Our support also contributes to nearly 90% of people in Scotland being paid at least the real Living Wage. We have done so without equivalent action from the UK Government.
“Under current constitutional arrangements in-year pressures can only be managed within the budget available and we are seeking to protect ScotWind revenue.”
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