SNP ‘inflation’ vow on minimum wage

The minimum wage would rise at the same rate as inflation in an independent Scotland, Alex Salmond announced yesterday.

In what was being seen as an attempt to dangle a carrot in front of floating voters ahead of next year’s referendum, the First Minister insisted the move would ensure lower-earning workers are not squeezed by the cost of living. He claimed they would be £675 better off if the policy was in place, with the minimum wage set at £6.68 compared to the current rate of £6.31.

Salmond’s pledge came a day after Nicola Sturgeon entered into a bidding war with Labour over energy costs, with the Deputy First Minister promising to cut fuel bills by around 5% in the event of a Yes vote.

In a passionate keynote speech to the SNP conference in Perth, Salmond said: “In every single year since the recession of 2008 that minimum wage has failed to keep up with the cost of living. If elected, on independence this Scottish Government will establish a Fair Work Commission. The central pillar of that commission will be to set a minimum wage guarantee. This guarantee will ensure a minimum wage that rises, at the very least, in line with inflation.

“Let us pledge that never again will wages of the lowest paid in Scotland fail to keep up with the cost of living. If this had been in force in the last five years the lowest paid Scots would today be almost £675 better off.”

In his 45-minute address, the First Minister also attacked Westminster’s benefit reforms including the hated bedroom tax and the privatisation of Royal Mail. And he insisted the Glasgow Commonwealth Games would be the greatest-ever Scottish sporting event.

Salmond also revealed the Scottish Government’s White Paper on independence would be released on November 26. The document is expected to lay out the nuts and bolts of how Scotland’s transition from part of the UK to a separate state would be undertaken. It will also spell out the SNP’s vision for what an independent state would look like.

Salmond told delegates: “Our time is now.”

He also pledged a £60 million investment for 43 business development projects, backed up by £20 million of European Regional Development Funding (ERDF).

Ministers say the funding will help to start over 700 businesses, support a further 5,000 businesses to grow and create over 3,000 jobs including employment opportunities for young people.

However, Scottish Labour Deputy Leader Anas Sarwar accused Salmond of making “empty promises about an imagined world after independence” that don’t apply to people’s lives today. He added: “When will our First Minister stop acting like he is in opposition and realise he is in Government?”

Secretary of State for Scotland, Alistair Carmichael, added: “So far the SNP’s track record has been to say anything, and do anything, to win the referendum.”

Meanwhile, Health Secretary Alex Neil announced a new £10 million “Healthy at Home” fund to look at ways to improve care and support for older people and adults with complex needs. He also revealed he had created a group to review PFI contract arrangements in an attempt to claw back money from the projects. He said: “This group will identify opportunities for driving more effective management of these contracts and try to get better value for money for the people of Scotland.”