Publication - Strategy/plan
Scotland's fiscal outlook: medium-term financial strategy
This is the seventh Medium-Term Financial Strategy published by the Scottish Government. It provides the economic and fiscal context for the Scottish Budget and sets the medium-term strategy for sustainable public finances.
Annex A: Funding Outlook Tables
| Resource Funding | 2025-26 | 2026-27 | 2027-28 |
|---|---|---|---|
| Block Grant | 3,469 | 3,676 | 3,705 |
| Net tax position | (33) | 17 | 101 |
| Of which: | |||
| Non-domestic rates (NDR) distributable amount | (44) | 112 | 152 |
| Social Security Block Grant Adjustments | 290 | 494 | 437 |
| Non-tax income and Block Grant Adjustments | 1 | 1 | 1 |
| Other income/expenses | 1,022 | 259 | (132) |
| Total resource funding (incl. NDR) | 4,706 | 4,560 | 4,264 |
| Capital Funding | 2025-26 | 2026-27 | 2027-28 |
|---|---|---|---|
| Block Grant | 1,556 | 1,916 | 2,243 |
| Ringfenced funding and City Deals | (610) | (612) | (622) |
| Capital borrowing and other funding per policy | 22 | (150) | (150) |
| Total Capital Funding (excl. FTs) | 1,348 | 1,207 | 1,095 |
| Financial Transactions (FTs) | 192 | 245 | 252 |
| Total Capital Funding (incl. FTs) | 1,540 | 1,452 | 1,347 |
| Total funding from all sources | 6,246 | 6,012 | 5,611 |
| Resource Funding | 2025-26 | 2026-27 | 2027-28 | 2028-29 | 2029-30 |
|---|---|---|---|---|---|
| Block Grant | 489 | 189 | (86) | (352) | (685) |
| Net tax position | 28 | (220) | (239) | (166) | (102) |
| Of which: | |||||
| Non-domestic rates (NDR) distributable amount | - | 42 | 11 | (3) | (18) |
| Social Security Block Grant Adjustment | 129 | 173 | (7) | (166) | (290) |
| Non-tax income and Block Grant Adjustments | - | - | - | - | - |
| Other income/expenses | 522 | (171) | (129) | 8 | (23) |
| Total resource funding (incl. NDR) | 1,167 | 14 | 450 | (679) | (1,118) |
| Capital Funding | 2025-26 | 2026-27 | 2027-28 | 2028-29 | 2029-30 |
|---|---|---|---|---|---|
| Block Grant | - | 95 | (200) | (195) | (239) |
| Ringfenced funding and City Deals | - | (2) | (12) | (3) | (20) |
| Capital borrowing and other funding per policy | - | - | - | - | - |
| Scotwind, Scotland Reserve and Other | 40 | - | - | - | - |
| Total Capital Funding (excl. FTs) | 39 | 93 | (213) | (198) | (259) |
| Financial Transactions (FTs) incl. reserve | 25 | 77 | 84 | 143 | 194 |
| Total Capital Funding (incl. FTs) | 64 | 171 | (128) | (55) | (65) |
| Total funding from all sources | 1,231 | 184 | (578) | (7 34) | (1,183) |
| (Figures in £million, current prices) | 2025-26 | 2026-27 | 2027-28 |
|---|---|---|---|
| Income Tax Revenue | 2,669 | 3,310 | 3,493 |
| Income Tax Block Grant* Adjustment | (2,917) | (3,471) | (3,522) |
| Net Income Tax position | (248) | (160) | (28) |
| LBTT Revenue | 237 | 188 | 146 |
| LBTT Block Grant Adjustment | (25) | (50) | (83) |
| Net Land and Buildings Transaction Tax position | 168 | 141 | 63 |
| SLfT Revenue | (20) | 8 | 8 |
| SLfT Block Grant Adjustment | 24 | 32 | 57 |
| Net Scottish Landfill Tax position | (15) | (5) | 61 |
| Total Net Tax Position | (96) | (24) | 96 |
| (Figures in £million, current prices) | 2025-26 | 2026-27 | 2027-28 |
|---|---|---|---|
| Reconciliations | 412 | 186 | (851) |
| Resource borrowing | - | - | 663 |
| Resource borrowing costs | 24 | 53 | 53 |
| Capital borrowing costs | (10) | (25) | (35) |
| Crown Estate Scotland Revenues | 23 | - | - |
| Scotland Reserve | 501 | - | - |
| Migrant Surcharge | 50 | 50 | 50 |
| King’s and Lord Treasurer’s Remembrancer (KLTR) | - | - | - |
| Other* | 22 | (5) | (11) |
| Total other income | 1,022 | 259 | (132) |
*Other category includes items such as Machinery of Government and Budget Transfers and other funding lines.
Contact
Email: Scottish.Budget@gov.scot