Government expenditure & revenue Scotland 2025-26

Key points

All figures are presented on a nominal basis, i.e. not adjusted for the impact of inflation, and relate to the latest financial year 2025-26, compared with 2024-25.

The net fiscal balance reflects the difference between revenue raised in Scotland compared with expenditure on behalf of the people of Scotland.

Scotland’s notional net fiscal balance was -10.9 per cent of GDP compared with -4.2 per cent for the UK. This is an improvement of 0.6 percentage points in Scotland compared with a 1.0 percentage point improvement for the UK.

In cash terms, the net fiscal balance in 2025-26 was -£25.3 billion, improving over the year by £0.6 billion. This improvement in 2025-26 reflects that revenue grew by £6.3 billion (6.9 per cent), while expenditure grew at a slower pace by £5.7 billion (4.8 per cent).

Revenues, from the people and businesses in Scotland, include revenue both from taxes, such as income taxes, social contributions, and indirect taxes, as well as non-tax receipts. They include a geographic share of North Sea revenue.

Revenues raised in Scotland totalled £98.3 billion in 2025-26, an increase of £6.3 billion, 6.9 per cent over the year. Scottish revenues represent 8.0 per cent of all revenue raised in the UK.

Revenue raised from the North-Sea totalled £3.2 billion in 2025-26, 3.2 per cent of all revenue raised in Scotland.

Revenue (when excluding the North Sea) was £95.1. billion, an increase of 7.6 per cent. This represents 7.7 per cent of all UK non-North Sea revenue raised.

Revenue per person in Scotland (£17,718) was similar to the UK average (£17,720) in 2025-26, when North Sea revenue is included.

The largest increases in revenue in Scotland in 2025-26 were national insurance contributions (+£2.4 billion) and income tax receipts (+ £1.5 billion). This follows the decision by the UK Government to increase the rate of employer’s national insurance contributions from April 2025, and the Scottish Government’s decision to freeze the higher, additional, and top rate of Scottish Income Tax. It also reflects the continuing effects of inflation and strong nominal earnings growth.

The largest decrease in revenue was in North Sea taxes (-£0.4 billion), which reflects falling oil and gas prices during the year.

Devolved revenues raised £27.8 billion in 2025-26, an annual increase of £2.1 billion (8.2 per cent). These revenues include Council Tax, Non-Domestic Rates, Land and Building Transaction Tax, Scottish Landfill Tax and Scottish Income Tax

Spending on behalf of the people of Scotland includes day to day and capital spending and spending made by both devolved and reserved governments

This spending was £123.6 billion in 2025-26 an increase of £5.7 billion, (4.8 per cent) over the year.

Spending per person in Scotland in 2025-26 was £22,281 compared to £19,561 per person in the UK meaning that spending per person in Scotland was £2,720 higher than in the UK in 2025-26.

The largest annual increase in total spending was in social protection (+£2.1billion), and health (+£1.5 billion).