Scottish Budget 2026 to 2027

Chapter 8 Transport

Portfolio Responsibilities

The ability to move people, goods and services around Scotland and beyond is fundamental to the First Minister’s priorities. It underpins economic growth, leisure, tourism and national prosperity. The Transport sector supports the people of Scotland to live fulfilling lives through access to education, work and more, and is a key contributor to Scotland’s economy. It supports just over 150,000 jobs and just under £10 billion Gross Value Added.^[4]

The Transport portfolio works with its public bodies and delivery partners to operate and maintain Scotland’s transport network, including rail, bus, trunk roads, ferries, regional aviation and canals, in line with the vision set out in the National Transport Strategy. Our responsibilities extend to major infrastructure projects such as A9 dualling and rail electrification, and investment to support the transition to net zero and improve our health and wellbeing.

In 2026-27, the portfolio will invest nearly £4.3 billion to maintain and enhance Scotland’s transport network. This includes £2.7 billion for public transport services and infrastructure and £1.2 billion for the safe operation and improvement of the strategic trunk road network.

We continue to promote equality by making public transport more affordable and accessible. Over 2.4 million people use their entitlement to free bus travel and we are piloting a £2 bus fare cap in the Highlands and Islands. To help commuters with living costs and encourage more use of sustainable public transport, we have removed peak fares from ScotRail services permanently, making ticketing simpler. In 2026-27, we will extend this offer to islanders using Northern Isles Ferry Services by investing £1.8 million to remove peak fares, with recurring future investment, making travel more affordable.

In the coming year, we will make record investment in public transport to deliver new ferries, upgrade ports and harbours and replace ScotRail’s Intercity fleet, as well as maintaining existing bus, ferry and rail services. We will invest £4 million in 2026-27 to support  Local Transport Authorities to build business cases for local bus improvements through franchising, using powers created in the Transport (Scotland) Act 2019. We will continue to support Regional Transport Partnerships and we are investing in Scottish Canals to ensure they remain a valuable resource for biodiversity, active living and tourism.

Scotland’s geography and population spread mean we rely on our roads to move people and goods. We will invest £1.2 billion to maintain and improve the trunk road network, progress major projects such as A9 dualling and enhance road safety to reduce injuries and fatalities.

Tackling climate change remains central to our work. We will invest £226 million in active travel and bus infrastructure and £85 million in low carbon programmes including expanding public EV charging infrastructure and supporting zero-emission vehicles.

Transport intended contributions to the National Outcomes

Primary National Outcomes

• Environment
• Communities
• Economy
• International

Secondary National Outcomes

• Fair Work and Business
• Human Rights
• Children and Young People
• Poverty

Transport

The prior year 2025-26 Budget Comparator figures are based on the latest in-year budget numbers which were revised at the Autumn Budget Revision. The 2024-25 Scottish Budget comparator figures reflect the outturn numbers for that year.