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.
2. Tax – Overview of tax revenues, BGA and net Budget position
18. This section provides an overview of revenues and BGAs for Income Tax and the fully devolved taxes – LBTT and SLfT.
19. Table 1 includes outturn data for Scottish Income Tax in 2024-25 and for fully devolved taxes in 2025-26. It also shows forecasts of tax revenue and BGAs for future years. The net position is the difference between revenue and the BGA. A positive net position indicates the amount of additional funding that has been, or is forecast to be, available to the Scottish Budget as a result of devolution, while a negative net position indicates that a BGA deduction is greater than the revenue raised or is forecast to be raised.
Table 1: Latest Data on Tax Revenue and Block Grant Adjustments (£ million)
| † Outturn 2024- 25 | † Outturn 2025- 26 | Forecasts 2026-27 | Forecasts 2027-28 | Forecasts 2028-29 | Forecasts 2028-30 | Forecasts 2030-31 | ||
|---|---|---|---|---|---|---|---|---|
| Income Tax | Revenue | 18,635 | 20,280 | 21,508 | 22,828 | 24,051 | 25,398 | 26,769 |
| BGA | -17,943 | -19,357 | -20,511 | -21,389 | -22,154 | -23,184 | -24,182 | |
| Net position | 692 | 922 | 997 | 1,439 | 1,896 | 2,214 | 2,587 | |
| LBTT | Revenue | 899 | 952 | 1,049 | 1,090 | 1,141 | 1,195 | 1,251 |
| BGA | -625 | -680 | -810 | -903 | -1,000 | -1,080 | -1,149 | |
| Net position | 274 | 272 | 239 | 187 | 142 | 115 | 102 | |
| SLfT | Revenue | 56 | 56 | 27 | 21 | 23 | 24 | 26 |
| BGA | -73 | -94 | -58 | -59 | -70 | -67 | -72 | |
| Net position | -18 | -38 | -31 | -38 | -47 | -43 | -46 | |
| SAT | Revenue | N/A | N/A | 42 | 43 | 45 | 46 | 48 |
| BGA | N/A | N/A | -37 | -39 | -41 | -42 | -43 | |
| Net position | N/A | N/A | 5 | 4 | 4 | 4 | 4 | |
| TOTAL | Revenue | 19,590 | 21,288 | 22,626 | 23,983 | 25,260 | 26,664 | 28,094 |
| BGA | -18,642 | -20,131 | -21,416 | -22,390 | -23,264 | -24,374 | -25,446 | |
| Net position | 948 | 1,157 | 1,210 | 1,593 | 1,995 | 2,289 | 2,647 | |
Note 1: The outturn listed for 2024-25 is final outturn.
Note 2: 2025-26 LBTT and SLfT provisional revenue outturn excludes penalties and accounting adjustments applied by Revenue Scotland
† Indicates outturn; Figures in this and subsequent tables may not sum due to rounding
20. The forecasts for Income Tax revenues and BGAs for 2025-26 and 2026-27 above do not have any immediate impact on the Scottish Budget, as they do not represent outturn data that will be used as the basis for reconciliations. Income Tax outturn data for 2025-26 and 2026-27 will be available in the summer of 2027 and 2028, respectively. The Income Tax forecasts for the years 2025-26 onwards do not yet reflect the latest 2024-25 outturn data and updated forecasts will be produced by the SFC alongside the Scottish Budget 2027-28 and inform budget decisions.
Taxes yet to be introduced
21. Some tax powers devolved in the Scotland Act 2016 are yet to be implemented:
Air Passenger Duty (APD): At the Scottish Budget 2026-27, the Scottish Government announced that Air Departure Tax (ADT) will become operational from 1 April 2027. From that date, the existing UK-wide APD will cease to apply to the carriage of passengers by air from Scottish airports.
Assigned VAT: Scottish and UK Government Ministers discussed VAT Assignment at a meeting of the Joint Exchequer Committee on 17 October 2025. The Scottish Government has noted the comments from the House of Commons Scottish Affairs Committee and the Scottish Parliament Finance and Public Administration Committee on the risks and challenges regarding the Implementation of VAT, and the governments will have further discussions on this matter.
22. Information relating to Air Departure Tax will be included in the 2027 Outturn Report, following its implementation. Next year’s report will also contain in-year reconciliation data for Scottish Aggregates Tax, following its devolution on 01 April 2026.
Contact
Email: rory.mack@gov.scot