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UNIONS representing 200,000 local government workers in Scotland yesterday rejected a 2.5 per cent pay deal.

The offer from the Convention of Scottish Local Authorities (Cosla) would have give a rise of 2.5 per cent for each of the next three years.

The three unions – Unison, the GMB and Unite – had tabled a claim for a one-year deal for a rise of a rise of £1,000 or 5 per cent, whichever was greater.

Officials of the unions said they were rejecting the deal and would use a consultation exercise to call on their members working in local government to follow suit.

Dougie Black, of Unison, said: “There is a great deal of anger at the employers’ insistence on a three-year deal and their continuing refusal to agree a clause linked to inflation.

“The offer is already less than inflation. Councillors should be aware that our members are serious about this offer being unacceptable.

The fast-expanding nursing business owned by one of Scotland’s leading female entrepreneurs has slipped into a loss after the NHS cut back on its use of agency nurses.

However, founder Ann Rushforth yesterday said her Dunbartonshire-based ScotNursing business was operating profitably again in its current financial year.

“The size of our nursing market is much smaller than it was a few years ago because the NHS is doing more and more in-house, although I would say that situation has now stabilised,” she said.

“But, at the same time, the domiciliary care side of the business is growing extremely fast, as is our occupational health business. We now provide health MOTs, dare I say it, the way BUPA does for company employees. This is beneficial to companies and the workers.

“The homecare part of business is, I would say, challenging but profitable. It seems to be what people want as an alternative to residential home care, particularly for the elderly and the severely disabled.”