TAXPAYERS have had to foot a further £200m every year to fund a huge council pay rise offered in a bid to end the dispute that threatened to shut schools and and waste disposal services.

Union sources say that the local authority group COSLA increased the pay pot from Scotland's 250,000 local authority workers from around £400m to £600m at the 11th hour allowingthe lowest paid staff to get a pay increase of around 10 to 11% following the intervention of the First Minister.

The huge increase in funding has raised questions about how the pay rise is able to be funded days after Nicola Sturgeon and the Deputy First Minister John Swinney insisted there was "no more money".

The three main unions in dispute, public services union UNISON Scotland, GMB Scotland and Unite have now suspended strikes before consulting members. But all three recommended acceptance.

COSLA did not respond to questions about where the £200m has come came from.

The dispute has seen piles of rubbish build up in city centres as waste workers went on strike.

The development came after ten hours of a summit meeting chaired by Nicola Sturgeon on Thursday in the wake of the near two-week bins strike and a matter of days before a wave of education workers strikes that would shut schools and nurseries.

Council body COSLA backed a plan by 24 votes to 8 yesterday which would give £2000 to the low paid and cap the cash given to more affluent staff.

The Scottish Government was originally only providing an extra £140m of funding on a recurring basis to support an original pay offer - while COSLA was to come up with the extra £260m.

The Scottish Government says it is now effectively providing an extra £120.6m additional capital annually to fund the increase in salaries.  

In stating there was no more money ministers pointed out that the Scottish Fiscal Commission highlighted the overall 2022-23 Scottish Budget is 2.6% lower than last year in cash terms and 5.2% lower after accounting for inflation, primarily because of reduced Covid-19 funding and falling capital funding from the UK Government.

They said that despite this local authority revenue funding is £2.2bn higher in cash terms this financial year than in 2013-14.

On Thursday, the First Minister tweeted before the new offer: "I understand the pressures workers face which is why we have exhausted all options in last few days to make more funding available to support those on lowest incomes. If we could go further we would, but [the Scottish Government] budget is finite. I hope trade union members accept the offer."

The Herald:

After the new offer was made she tweeted: "Nicola Sturgeon tweeted: "My thanks to [COSLA, UNISON, Unite and GMB for positive discussions yesterday. I’m pleased that an agreement was reached that delivers a fair pay offer for workers and the suspension of strikes pending ballots - which I hope will result in acceptance of the offer.

"The [Scottish Government] will continue to do all we can to support workers and the country as a whole through the cost of living crisis. It’s time for the UK gov to do it’s job too- freeze energy bills, give more support to those struggling and provide more funding for public services"

Johanna Baxter, UNISON head of local government said: “This offer is a victory for UNISON members. It has taken eight months and the industrial might of UNISON members in schools and early years and waste and recycling workers to drag £600m out of Scottish government and COSLA and into the pockets hardworking people.

"COSLA originally offered 2%, then 3.5%, then 5% - we now we have £600m on the table, which is a 7.5% increase to the total pay bill and 87% of our council workers will receive fully consolidated increases between 5% to 10%.

"It is only through the collective action of our members in school and early years staff threatening strike action and our waste and recycling workers taking action that we have forced these extra funds out of government and the employer."

The Herald:

GMB Scotland senior organiser for public services Keir Greenaway said: “It’s not a perfect offer but it is the view of GMB Scotland’s local government committee that it’s worthy of members consultation and their acceptance, but ultimately our members whose campaigning and strike actions have improved these terms will have the final say."

Wendy Dunsmore, Unite’s lead negotiator for local government, acknowledged the First Minister’s direct involvement as a primary reason for the breakthrough.

SNP COSLA group leader Dougie Reid said: “Given the financial challenges facing budgets in Scotland, I am grateful for the way the Scottish Government and COSLA have stepped up so that the funding and flexibilities needed have been provided."

Councils were already telling parents that schools and nurseries would be shutting from Tuesday as industrial action was due to spread to thousands of education staff in 13 council areas.

Under the proposal anyone earning over £60,000 a year would have their pay capped at £3000 - a proposal that came out of the talks with the First Minister.

It means a pay rise of £2000 for those earning up to £20,500, and an increase of £1925 for those earning between £20,500 to £39,000.

There would be a 5% increase for those earning between £39,000 to £60,000 and an extra day's annual leave.

The dispute has seen waste workers belonging to the all three unions on strike in 25 of Scotland's 32 local authorities.

A new wave of waste services staff stoppages was also due to start on Tuesday, with an eight-day strike involving Unite union staff hitting 19 local authorities.

Waste workers who are members of UNISON Scotland and GMB Scotland were to begin a four-day stoppage the following day hitting a further six council areas.

Hundreds of schools and nurseries were expected to be closed when as part of the dispute, at least 13 councils were to be hit by an schools and early learning staff stoppage between starting on Tuesday.

The first bin strike began in the capital city on August 18 in the midst of festival season, after the unions - the GMB, Unite and Unison - rejected an initial pay offer equivalent to a 3.5% increase.