Fiscal framework outturn report: 2026
The Fiscal Framework Outturn Report 2026 publishes outturn and reconciliation information for Scottish Income Tax, Scottish Landfill Tax, Land and Buildings Transaction Tax and devolved Social Security benefits, as well as updates on borrowing and the Scotland Reserve.
10. Scotland Reserve
82. The Scotland Reserve has applied since 1 April 2017. It replaced the Budget Exchange mechanism and enables the Scottish Government to manage volatility associated with its fiscal powers. The Scotland Reserve was capped in aggregate at £700 million but following the 2023 Fiscal Framework Review, the £700 million cap is indexed to inflation and the drawdown limits were abolished. The uprated cap on the Scotland Reserve was £733.7 million for 2025-26 and £764.1 million for 2026-27. Provided that the overall size of the Scotland Reserve remains at or beneath the relevant cap, there are no annual limits for payments into the Reserve.
83. The opening balance in the Scotland Reserve at the start of 2025-26 was £597.7 million. The provisional closing balance on the Reserve for 2025-26 is £360.6 million, as detailed in Table 19.
| Resource | Capital | Financial Transaction | Total | |
|---|---|---|---|---|
| 2025-26 Opening Balance | 549.8 | 24.1 | 23.8 | 597.7 |
| 2025-26 Drawdowns | -549.7 | -21.9 | -23.6 | -595.2 |
| 2025-26 Additions to reserve | 312.0 | 42.1 | 4.0 | 358.1 |
| 2025-26 Closing Balance (Provisional) | 312.1 | 44.3 | 4.2 | 360.6 |
84. The Scottish Budget: 2026 to 2027 sets out the Scottish Government’s plans for the use of the Scotland Reserve.[14]
Contact
Email: rory.mack@gov.scot