Government expenditure & revenue Scotland 2025-26

Government Expenditure and Revenue Scotland (GERS) is an Accredited Official Statistics publication. It estimates the revenue raised in Scotland and the cost of public services provided for Scotland.


4. Devolved Revenue and Expenditure

Chart 4.1 Around 28 per cent of revenue raised from the businesses and people in Scotland is currently devolved, with a further 8.7 percent due to be devolved or assigned in future.

Devolved and Reserved Revenue in Scotland, 2025-26

Percentage of revenue raised

Proportion of revenue raised in Scotland in 2025-26 by devolution status. Around 63.0 per cent of revenue is reserved, 21.7 per cent was devolved following the Scotland Act, 6.6 per cent was previously devolved, and 8.7 per cent is due to be devolved or assigned in future.

Note: VAT is planned to be an assigned tax. A proportion of revenue from VAT raised in Scotland will be allocated to the Scottish budget, but the Scottish Government will have no powers over how the tax operates.

Devolved taxes to be implemented include Air passenger Duty and Aggregate Levy

Chart 4.2 Around 60 per cent of spending for Scotland is devolved

Devolved and Reserved Expenditure in Scotland 2025-26

Percentage of spending

Proportion of public expenditure in Scotland in 2025-26 by devolution status. Around 60.8 per cent of spending is devolved and 39.2 per cent is reserved. Of devolved spending, 55.5 per cent was previously devolved and 5.3 per cent was devolved under the Scotland Act 2016.

Introduction

This chapter provides information on the amount of public sector revenue and expenditure currently devolved to Scotland as well as that to be devolved under the Scotland Act 2016.

Devolved Revenue

The table below sets out revenue raised in Scotland from taxes currently devolved to the Scottish Parliament. Total devolved tax revenue in 2025-26 is estimated at £27.8 billion.

Table 4.1: Currently devolved taxes (£ million)

Tax Type

2023-24

2024-25

2025-26

Council tax

2,896

2,950

3,298

Non-domestic rates

3,033

3,146

3,184

Land and buildings transaction tax (devolved from 2015-16)

775

895

983

Scottish landfill tax (devolved from 2015-16)

69

56

56

Non-savings and non-dividend income tax liabilities (devolved from 2016-17)1

17,093

18,635

20,280

Total devolved taxes

23,867

25,683

27,801

Sources: Scotland’s Economic and Fiscal Forecasts – January 2026 | Scottish Fiscal Commission Figure 4.1, SG Council tax, Non-domestic rates, SLFT, LBTT- Revenue Scotland

1 This table shows Scottish Rate of Income Tax liabilities rather than receipts in a given year and do not directly compare with the figures in Chapter 3.

Future devolved revenues

Devolution of taxes is due to continue, with Air Passenger Duty and Aggregates Levy due to be devolved following the Scotland Act 2016, from April 2027 and April 2026 respectively.

As well as tax devolution, the Scotland Act 2016 allows for the first 10p of the standard rate of VAT receipts and the first 2.5p of the reduced rate of VAT receipts in Scotland to be assigned to the Scottish Government, although policy decisions will remain reserved. The transition period for VAT assignment began on 1 April 2019.

As these taxes are not yet devolved there is no outturn data associated with them, and the table below shows the estimated historical revenues from these taxes.

Table 4.2: Revenue to be devolved under Scotland Act 2016 (£ million)

Revenue

2023-24

2024-25

2025-26

Air passenger duty (April 2027)

291

294

294

Aggregates levy (April 2026)

52

51

51

VAT assignment (in transition)

7,523

7,761

8,169

Note: Assigned VAT receipts are 50% of total receipts in all years.

Devolved Spending

The table below shows the expenditure in Scotland from social security benefits devolved to the Scottish Parliament prior to implementation of Scotland Act 2016.

Table 4.3: Social security devolved prior to Scotland Act 2016 (£ million)

Social Security

2023-24

2024-25

2025-26

Council tax reduction

386

390

425

Scottish welfare fund

50

47

52

Discretionary housing payments

81

89

93

Total

517

526

570

Source: Scottish Government

The table below shows the latest available figures for social security spending which is due to be devolved to the Scottish Government under the Scotland Act 2016.

Table 4.4: Devolved social security under Scotland Act 2016 (£ million)

Social Security

2023-24

2024-25

2025-26

Best Start Grant (previously Sure Start Maternity Grant)

21

20

24

Best Start Foods

13

16

13

Funeral Support Payment (previously Funeral Payment)

13

12

12

Scottish Child Payment

429

456

461

Carer's Allowance Supplement

48

54

56

Child Winter Heating Payment

8

10

11

Winter Heating Payment (previously Cold Weather Payments)

25

27

28

Child Disability Payment

425

514

577

Adult Disability Payment

2632

3131

3382

Scottish Adult Disability Living Allowance

445

430

408

Job Start Payment

0

0

0

Young Carer's Grant

1

2

2

Employment Injuries Disablement Benefit

81

82

80

Severe Disablement Allowance

6

5

5

Pension Age Disability Payment (Previously Attendance Allowance)

659

763

857

Carer’s Support Payment (Previously Carers Allowance)

358

391

441

Pension Age Winter Heating Payment (previously Winter Fuel Payment)

184

29

189

Total expenditure on social security to be devolved

5,349

5,942

6,547

Source: OSCAR, Social Security Statistics, Scottish Fiscal Commission

Further information on the planned devolution of taxes and social security to the Scottish Government is available in the fiscal framework agreement between the

Scottish and UK Government. Further information on the funding received by the Scottish Government is set out in the Fiscal Framework Outturn Report

Fiscal framework: agreement between the Scottish and UK Governments - gov.scot

Fiscal framework outturn report: 2025 - gov.scot

Summary of current and proposed devolved powers

The table below shows estimates of devolved receipts and expenditure before and after the implementation of the Scotland Acts 2012 and 2016.

Table 4.5: Fiscal powers before and after Scotland Act 2016, 2025-26 (£ million)

Statistic

Pre Scotland Acts

Post

Scotland Acts

Non Saving Non Dividend Income Tax Liabilities (devolved from 2016-17)

[N/A]

20,280

Council Tax

3,298

3,298

Non Domestic Rates

3,184

3,184

Land and buildings transaction tax

[N/A]

983

Landfill Tax (devolved from 2015-16)

[N/A]

56

Air Passenger Duty (from April 2027)

[N/A]

294

Aggregates Levy (from April 2026 )

[N/A]

51

Total devolved taxes

6,482

28,146

as % of non-North Sea Scottish revenue

7%

30%

as % of revenue incl geographical share of North Sea revenue

7%

29%

Assigned VAT (in transition from 2019-20)

[N/A]

8,169

Total devolved and assigned taxes

6,482

36,315

as % of non-North Sea Scottish revenue

7%

38%

as % of taxes incl geographical share of North Sea revenue

7%

37%

Devolved expenditure including housing benefit1 (HB)

68,560

75,108

Devolved taxes as % of estimated devolved expenditure

9%

37%

Devolved and Assigned taxes as % of estimated devolved expenditure

9%

48%

1 In GERS and the CRA, housing benefit is included in Scottish local government spending, as they make the payments to recipients, although it is set centrally and funded by the Department for Work and Pensions. Depending on definitions adopted, it could either be excluded or included in devolved expenditure. Scotland Acts were 2012 and 2016

Contact

Email: economic.statistics@gov.scot

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