Unison, the UK’s biggest public service union, said on Wednesday it would have accepted the 5% rise offered by the government but for the cost-of-living crisis that has hit workers in Scotland. Citigroup this week said UK inflation could peak at more than 18 percent next year as gas prices in Europe hit a new record. The escalation of industrial action in Scotland is the latest in a wave of walkouts across the UK as workers fight for higher wages as the cost of living continues to soar. “This is a national crisis playing out on the streets of Edinburgh at the busiest and most important time of the year,” said Edinburgh council leader Cammy Day of the opposition Labor Party. “We need the Scottish Government to come back to the table.” The strike has also fueled pre-existing disputes in Scotland over local government funding, which in Edinburgh has drawn attention as international visitors have flocked to the first full return of the Edinburgh festival after two years of Covid-19 restrictions. Speaking at a festival event on Wednesday, Nicola Sturgeon, Scotland’s first minister, said that while she understood the demands of workers at a time of a cost-of-living crisis and high inflation, her government was forced to act because of the need to balance its budget. “I would love to be able to offer pay rises that keep pace with inflation,” he said in response to a question about a pay dispute in NHS Scotland. The build-up of rubbish at top tourist sites has embarrassed city leaders, while opposition parties criticized the Scottish National Party government, saying it had cut funding for local authorities. In turn, the government in Edinburgh blamed the government in London for tighter budgets. The other unions involved in the dispute with Cosla, the body representing councils across Scotland which collectively spend £19bn a year and account for almost 10 per cent of jobs, are Unite and the GMB. Unison said it had given notice of walkouts by support staff in schools and nurseries from September 6, while Unite confirmed that strikes by bin collectors and other waste service workers would be extended to Glasgow and Aberdeen, among other areas.

While the dispute is between councils and unions, the Scottish Government has come under increasing pressure to intervene. Unison said John Swinney, deputy first minister, was due to meet union and Cosla representatives later on Wednesday. Unite claimed that, for more than half of local authority workers in Scotland, the 5 per cent pay offer was below that given to their counterparts in England by between £700 and £1,000. Unison said it had initially asked for a flat rate increase of £3,000. The Scottish Government said it was providing an extra £140m to help staff get a pay rise, which was more than half the amount Kosla needed to make his 5% offer. Scotland’s budget deficit was £23.7bn, or 12.3 per cent of GDP, in 2021, according to figures published on Wednesday. The Government Expenditure and Revenue Scotland (Gers) report showed that Scotland accounted for 9.2 per cent of total UK public sector spending, at £17,793 per person – almost £2,000 higher than the UK average.