Scotland faces deeper cuts as SNP admits its public sector workforce reduction plan is 'off course'

From the Newshound archive · first published 30 September 2026 · last updated 1 October 2026.

Deputy First Minister Jenny Gilruth told Holyrood's finance committee Wednesday that the SNP government's plans to shrink the public sector workforce are "not where we should be" — and warned that ministers will need to revise their approach entirely. The admission comes as Scotland grapples with a looming £5 billion black hole in its public finances, with the Scottish Fiscal Commission confirming the devolved public sector workforce actually grew last year rather than shrinking.

The SNP had pledged a 0.5 per cent annual reduction in public sector headcount, targeting a 2.5 per cent cut by 2029/30 — but the workforce is larger now than when the plan began.

Scottish Labour leader Michael Marra pressed Gilruth directly: "You admit you're off track?" — she replied: "We're not where we should be."

The government has also scrapped a planned financial update this month, with Gilruth defending the move by saying the data available is "out-of-date."