Chapter 9 Deputy First Minister, Economy & Gaelic
Portfolio Responsibilities
The Deputy First Minister, Economy and Gaelic (DFMEG) portfolio is responsible for unlocking investment and economic growth across the country. That includes spending on innovation, entrepreneurship, supporting business and industry, employment, regeneration, gigabit broadband delivery and 12 City and Regional Growth Deals. DFMEG enables our Enterprise Agencies, VisitScotland and the Scottish National Investment Bank (SNIB) to deliver projects across Scotland.
The portfolio provides a strategy function, leads cross-government delivery, coordinates relations with both UK and devolved Governments, the delivery of Scottish elections, and funds a number of independent statutory public inquiries. The portfolio also delivers Scotland’s Redress Scheme for survivors of historical abuse in care, supports major events that promote Scotland globally, including the 2027 Tour de France Grand Départ and EURO 2028, and promotes Gaelic and Scots across Scotland.
DFMEG is at the heart of the Scottish Government’s priority to deliver fair, green and inclusive growth. It is uniquely placed to unlock economic potential through our Employability programme, and targeted investment in regeneration, digital infrastructure and enterprise. DFMEG provides a platform to sustain innovation and attract inward investment, supporting our Enterprise Agencies and other partners to deliver high-impact initiatives – such as scaling start-ups and commercialising pioneering research – that raise Scotland’s productivity and competitiveness.
The portfolio will invest £1.4 billion in the prosperity of places, people and businesses right across Scotland. We are continuing to attract inward investment and encourage domestic investment through our Invest Scotland Portal, our £326 million expenditure on Enterprise Agencies and £200 million funding for SNIB. We are supporting start-up and scale-up growth through our Techscaler programme, and a new £2.5 million Young Entrepreneurs Package in 2026-27, working with key stakeholders like King’s Trust, to support the delivery of this new opportunity with recurring future investment.
R100 and Project Gigabit enhance our digital infrastructure and inclusion. Digital programmes such as ScotPayments and ScotAccount also support efficiency and innovation across government.
Regional growth is enabled by the Regeneration and Cities Investment and Strategy budgets, which fund Growth Deals, Investment Zones, and community-led regeneration to reduce inequalities and support fragile areas. The portfolio also supports Growth Accelerators in Edinburgh City Centre, Dundee Waterfront and Stornoway Deep Water, combining public and private investment to transform cities and regions. We are also providing £9 million over the next three years to support communities impacted by the closure of the Fife Ethylene Plant at Mossmorran.
Cultural and linguistic resilience is supported through the Gaelic budget, while the £90 million Employability budget will help up to 7,500 people into work.
Together, these investments align with our 2025 Programme for Government priorities to attract investment, foster innovation, promote Scotland globally, regenerate communities, and deliver fair, inclusive growth that helps to eradicate child poverty.
Deputy First Minister, Economy & Gaelic intended contributions to the National Outcomes
Primary National Outcomes
- Economy
- Fair Work and Business
- Poverty
- Environment
- International
- Communities
Secondary National Outcomes
- Education
- Human Rights
- Health
- Children and Young People
Deputy First Minister, Economy & Gaelic
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.
Table 9.01: Spending Plans (Level 2)
| Level 2 |
2024-25 Outturn £m |
2025-26 ABR Budget £m |
2026-27 Budget £m |
| Digital |
191.0 |
98.2 |
138.4 |
| Employability |
98.6 |
101.7 |
104.6 |
| Enterprise, Trade and Investment |
426.9 |
419.6 |
397.7 |
| European Structural Funds |
(104.1) |
– |
– |
| European Regional Development Fund |
(1.3) |
– |
– |
| Economic and Scientific Advice |
13.8 |
14.7 |
17.4 |
| Organisational Readiness |
40.6 |
40.0 |
40.0 |
| Government Business, Constitutional Relations and Elections* |
8.3 |
7.2 |
50.6 |
| Regeneration |
23.6 |
62.1 |
35.0 |
| Scottish National Investment Bank |
234.0 |
227.4 |
190.4 |
| Cities Investment and Strategy |
156.3 |
223.8 |
224.5 |
| Ferguson Marine |
63.3 |
56.2 |
23.9 |
| Tourism and Major Events |
53.4 |
58.6 |
61.8 |
| Gaelic |
25.7 |
30.8 |
32.4 |
| Redress, Relations and Response |
40.4 |
62.9 |
73.0 |
| Total Deputy First Minister, Economy and Gaelic of which: |
1,270.5 |
1,403.1 |
1,389.7 |
| Total Fiscal Resource |
423.6 |
577.7 |
635.7 |
| of which: Programme Costs |
316.8 |
482.7 |
541.5 |
| of which: Operating Costs |
106.7 |
95.1 |
94.2 |
| Non-cash |
77.0 |
26.1 |
27.4 |
| Capital |
484.1 |
606.8 |
553.9 |
| Financial Transactions (FTs) |
168.5 |
192.4 |
172.7 |
| UK Funded AME |
117.4 |
– |
– |
* Uplift due to 2026 Scottish Parliament Elections
Note: Table 9.01 shows the net budget after allowing for income received. This affects several lines. For example, Regeneration will receive £12 million income in 2026-27, with gross expenditure at £47 million. Likewise, the Scottish National Investment Bank is enabled to re-invest income received, supporting gross expenditure of £200 million in 2026-27.
Presentational Adjustments for Scottish Parliament Approval
| Scottish Enterprise (NDPB Non-cash) |
(13.8) |
(13.5) |
(13.5) |
| Ferguson Marine (NDPB Non-cash) |
(54.4) |
– |
– |
| Highlands and Islands Enterprise (NDPB Non-cash) |
(3.6) |
(3.0) |
(3.0) |
| South of Scotland Enterprise (NDPB Non-cash) |
(0.3) |
(0.7) |
(0.7) |
| Scottish National Investment Bank (NDPB Non-cash) |
(0.4) |
(0.4) |
(0.4) |
| Bòrd na Gàidhlig (NDPB Non-cash) |
– |
– |
– |
| Redress Scotland (NDPB Non-cash) |
– |
– |
– |
| Central Government Grants |
4.5 |
4.7 |
4.6 |
| Tourism (NDPB Non-cash) |
(2.9) |
(3.1) |
(3.1) |
| Total Deputy First Minister, Economy and Gaelic |
1,199.7 |
1,387.2 |
1,373.6 |
| Total Limit on Income (accruing resources) |
400.0 |
- |
- |
Table 9.02: Digital Spending Plans (Level 3)
| Level 3 |
2024-25 Outturn £m |
2025-26 ABR Budget £m |
2026-27 Budget £m |
| Digital Connectivity |
134.6 |
32.7 |
70.5 |
| Digital Economy |
(2.5) |
– |
– |
| Digital Strategy |
58.9 |
65.4 |
67.9 |
| Total Digital of which: |
191.0 |
98.2 |
138.4 |
| Fiscal Resource |
37.9 |
36.8 |
40.6 |
| Non-cash |
– |
4.8 |
5.4 |
| Capital |
155.9 |
56.5 |
92.4 |
| Financial Transactions (FTs) |
(2.8) |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.03: Employability Spending Plans (Level 3)
| Level 3 |
2024-25 Outturn £m |
2025-26 ABR Budget £m |
2026-27 Budget £m |
| Employability |
98.6 |
101.7 |
104.6 |
| Total Employability of which: |
98.6 |
101.7 |
104.6 |
| Fiscal Resource |
98.6 |
101.7 |
104.6 |
| Non-cash |
– |
– |
– |
| Capital |
– |
– |
– |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.04: Enterprise, Trade & Investment Spending Plans (Level 3)
| Level 3 |
2024-25 Outturn £m |
2025-26 ABR Budget £m |
2026-27 Budget £m |
| Enterprise |
1.6 |
14.2 |
11.5 |
| Scottish Enterprise* |
285.9 |
248.9 |
237.1 |
| Highlands and Islands Enterprise* |
76.0 |
79.1 |
56.3 |
| Innovation, Entrepreneurship and International Trade and Investment |
35.4 |
46.5 |
60.7 |
| South of Scotland Enterprise* |
28.0 |
30.8 |
32.2 |
| Total Enterprise, Trade and Investment of which: |
426.9 |
419.6 |
397.7 |
| Fiscal Resource |
224.7 |
241.1 |
248.0 |
| Non-cash |
17.7 |
17.2 |
17.2 |
| Capital |
130.7 |
161.4 |
137.9 |
| Financial Transactions (FTs) |
(4.1) |
– |
(5.3) |
| UK Funded AME |
58.0 |
– |
– |
Note: *Enterprise Agencies receive additional funding at ABR to deliver specific projects and programmes. This means that figures for the ABR 2025-26 Budget and 2026-27 budget are not directly comparable.
Table 9.05: European Structural Funds 2014-20 Programmes Spending Plans (Level 3)
| Level 3 |
2024-25 Outturn £m |
2025-26 ABR Budget £m |
2026-27 Budget £m |
| ESF Central Government Spend - EC Income |
(53.2) |
– |
– |
| ESF Grants to Local Authorities - EC Income |
(50.9) |
– |
– |
| Total ESF 2014-20 Programmes of which: |
(104.1) |
– |
– |
| Fiscal Resource |
(104.1) |
– |
– |
| Non-cash |
– |
– |
– |
| Capital |
– |
– |
– |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.06: European Regional Development Funds Spending Plans (Level 3)
| Level 3 |
2024-25 Outturn £m |
2025-26 ABR Budget £m |
2026-27 Budget £m |
| ERDF Central Government Spend - EC Income |
(0.7) |
– |
– |
| ERDF Grants to Local Authorities |
(0.6) |
– |
– |
| Total ERDF 2014-20 Programmes of which: |
(1.3) |
– |
– |
| Fiscal Resource |
(0.6) |
– |
– |
| Non-cash |
– |
– |
– |
| Capital |
(0.7) |
– |
– |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.07: Economic & Scientific Advice Spending Plans (Level 3)
| Level 3 |
2024-25 Outturn £m |
2025-26 ABR Budget £m |
2026-27 Budget £m |
| Economic Strategy |
3.6 |
4.4 |
6.8 |
| Scientific Engagement and Advice |
3.0 |
3.0 |
3.1 |
| Office of the Chief Economic Adviser |
7.2 |
7.3 |
7.5 |
| Total Economic and Scientific Advice of which: |
13.8 |
14.7 |
17.4 |
| Fiscal Resource |
13.8 |
14.7 |
17.4 |
| Non-cash |
– |
– |
– |
| Capital |
– |
– |
– |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.08: Organisational Readiness Spending Plans (Level 3)
| Level 3 |
2024-25 Outturn £m |
2025-26 ABR Budget £m |
2026-27 Budget £m |
| Strategy and Delivery |
5.7 |
8.4 |
8.4 |
| Resilience |
3.5 |
3.9 |
4.0 |
| Office of the Chief Researcher |
0.6 |
1.0 |
1.0 |
| Response and Readiness |
30.8 |
26.7 |
26.6 |
| Total Organisational Readiness of which: |
40.6 |
40.0 |
40.0 |
| Fiscal Resource |
38.2 |
40.0 |
39.2 |
| Non-cash |
0.9 |
– |
0.7 |
| Capital |
1.5 |
– |
– |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.09: Government Business, Constitutional Relations & Elections (Level 3)
| Level 3 |
2024-25 Outturn £m |
2025-26 ABR Budget £m |
2026-27 Budget £m |
| Local Government Elections |
0.3 |
0.8 |
7.3 |
| Boundaries Scotland |
0.0 |
0.4 |
0.4 |
| Scottish Parliament Elections |
– |
0.1 |
37.0 |
| Government Business and Constitutional Relations Policy and Co-ordination |
8.0 |
5.9 |
5.9 |
| Total Government Business, Constitutional Relations and Elections of which: |
8.3 |
7.2 |
50.6 |
| Total Fiscal Resource |
8.3 |
7.2 |
50.6 |
| Non-cash |
– |
– |
– |
| Capital |
– |
– |
– |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.10: Scottish National Investment Bank Spending Plans (Level 3)
| Level 3 |
2024-25 Outturn £m |
2025-26 ABR Budget £m |
2026-27 Budget £m |
| Scottish National Investment Bank |
234.0 |
227.4 |
190.4 |
| Total Scottish National Investment Bank of which: |
234.0 |
227.4 |
190.4 |
| Fiscal Resource |
(18.7) |
– |
– |
| Non-cash |
0.4 |
0.4 |
0.4 |
| Capital |
– |
34.6 |
– |
| Financial Transactions (FTs) |
175.4 |
192.4 |
190.0 |
| UK Funded AME |
76.9 |
– |
– |
Table 9.11: Regeneration Spending Plans (Level 3)
| Level 3 |
2024-25 Outturn £m |
2025-26 ABR Budget £m |
2026-27 Budget £m |
| Regeneration |
23.6 |
62.1 |
35.0 |
| Total Regeneration of which: |
23.6 |
62.1 |
35.0 |
| Fiscal Resource |
11.8 |
12.1 |
7.0 |
| Non-cash |
– |
– |
– |
| Capital |
11.8 |
50.0 |
40.0 |
| Financial Transactions (FTs) |
– |
– |
(12.0) |
| UK Funded AME |
– |
– |
– |
Table 9.12: Cities Investment & Strategy Spending Plans (Level 3)
| Level 3 |
2024-25 Outturn £m |
2025-26 ABR Budget £m |
2026-27 Budget £m |
| City and Region Investment & Strategy |
147.8 |
214.8 |
215.5 |
| Growth Accelerator |
8.5 |
9.0 |
9.0 |
| Total Cities Investment and Strategy of which: |
156.3 |
223.8 |
224.5 |
| Fiscal Resource |
19.5 |
21.0 |
21.2 |
| Non-cash |
– |
– |
– |
| Capital |
136.8 |
202.8 |
203.3 |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.13: Ferguson Marine Spending Plans (Level 3)
| Level 3 |
2024-25 Outturn £m |
2025-26 ABR Budget £m |
2026-27 Budget £m |
| Ferguson Marine |
63.3 |
56.2 |
23.9 |
| Total Ferguson Marine of which: |
63.3 |
56.2 |
23.9 |
| Fiscal Resource |
6.1 |
10.2 |
7.9 |
| Non-cash |
54.4 |
– |
– |
| Capital |
2.7 |
46.0 |
16.1 |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.14: Tourism & Major Events Spending Plans (Level 3)
| Level 3 |
2024-25 Outturn £m |
2025-26 ABR Budget £m |
2026-27 Budget £m |
| Tourism |
54.5 |
55.8 |
52.2 |
| Major Events |
(1.0) |
2.7 |
9.6 |
| Total Tourism and Major Events of which: |
53.4 |
58.6 |
61.8 |
| Fiscal Resource |
41.0 |
47.2 |
49.5 |
| Non-cash |
2.9 |
3.1 |
3.1 |
| Capital |
5.2 |
8.3 |
9.3 |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
4.4 |
– |
– |
Table 9.15: Gaelic Spending Plans (Level 3)
| Level 3 |
2024-25 Outturn £m |
2025-26 ABR Budget £m |
2026-27 Budget £m |
| Gaelic |
25.7 |
30.8 |
32.4 |
| Total Gaelic of which: |
25.7 |
30.8 |
32.4 |
| Fiscal Resource |
21.9 |
25.8 |
27.4 |
| Non-cash |
– |
– |
– |
| Capital |
3.8 |
5.0 |
5.0 |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.16: Redress, Relations & Response Spending Plans (Level 3)
| Level 3 |
2024-25 Outturn £m |
2025-26 ABR Budget £m |
2026-27 Budget £m |
| Redress, Relations and Response |
40.4 |
62.9 |
73.0 |
| Total Redress, Relations and Response of which: |
40.4 |
62.9 |
73.0 |
| Fiscal Resource |
25.1 |
19.9 |
22.4 |
| Non-cash |
0.7 |
0.7 |
0.7 |
| Capital |
36.5 |
42.3 |
49.9 |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
(21.9) |
– |
– |
Table 9.17: Central Government Grants to Local Authorities Spending Plans (Level 3)
| Level 3 |
2024-25 Outturn £m |
2025-26 ABR Budget £m |
2026-27 Budget £m |
| Gaelic |
4.5 |
4.7 |
4.6 |
| Total Deputy First Minister, Economy and Gaelic Central Government Grants of which: |
4.5 |
4.7 |
4.6 |
| Fiscal Resource |
4.5 |
4.7 |
4.6 |
| Non-cash |
– |
– |
– |
| Capital |
– |
– |
– |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
