Public bodies told to cap rises

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The Scottish Government has said that basic pay rises in the public sector must not go above 1.5%, as the recession bites.

And public bodies' overall wage bills should not increase by more than 3%, under the government's public sector pay policy for the coming year.

Finance Secretary John Swinney said public spending was under severe pressure.

The policy covers 28 public bodies, including Scottish Enterprise.

Mr Swinney said: "Scotland is in recession. Public spending is under pressure due to this government receiving the worst settlement provided for any administration since devolution.

"It is only right that, in those circumstances, public sector pay awards are kept under tight control.

"The priority has to be that increases are both affordable and sustainable."

Pay negotiations this year will affect 13,600 staff, most of whom work for "non-departmental public bodies", which have a combined wage bill of about £550m.

They also include the Scottish Prison Service, Scottish Natural Heritage and tourism agency VisitScotland.

Meanwhile, ministers are working on similar pay guidelines for public sector chief executives and chairs and board members of public bodies.