EXTRA money to resolve the bitter teacher pay dispute will come from the Scottish Government and not councils, the First Minister has confirmed.

Nicola Sturgeon told the Scottish Parliament the cost of the improved offer to unions would not come from existing education budgets.

The Educational Institute of Scotland (EIS) has recommended a move to a ballot on strike action in a bid to secure a ten per cent increase.

If it goes ahead it will be the first national strike over pay since the 1980s when Margaret Thatcher was Prime Minister.

Ms Sturgeon told the Scottish Parliament: "Negotiations are on-going and progress is being made. The Scottish Government has made an enhanced proposal to the EIS and has asked the Convention of Scottish Local Authorities to also agree it.

"The proposal would mean that all teachers would receive a minimum nine per cent increase between January 2018 and April 2019, with a further three per cent in April 2020.

"That is a clear indication of our commitment to recruit and retain teachers, and it is the best offer in the public sector anywhere in the United Kingdom. I urge Cosla to adopt the proposal as a formal offer, which is a necessary step to resolving the dispute. If it does so, I urge the teaching unions to consider the offer favourably."

Asked by MSP Clare Adamson where the additional money would come from Ms Sturgeon said: "I can confirm any additional budget allocation to fund a negotiated agreement will be met by the Scottish Government and that it will be in addition to the enhanced local government settlement for the coming year. It will not come from the education budget."

Larry Flanagan, general secretary of the EIS, said: "The offer that the First Minister refers to has not yet been made to teachers by local authority employers.

"Should this offer formally be made by local authorities, via the Scottish Negotiating Committee for Teachers, the EIS will consult its members on that offer.

"In the event that the offer is not made, the EIS will instead proceed with its plans for a statutory strike ballot in pursuit of a fair pay settlement for Scotland’s teaching professionals.”