Scottish Budget 2026 to 2027

The Scottish Budget sets out the Scottish Government's proposed spending and tax plans for 2026-27, as presented to the Scottish Parliament


Annex A Scottish Government Fiscal Control Framework

(1) Introduction

The Scottish Government is required to set a balanced budget each year. Spending must also remain within the key control totals as set out below:

Table A.01 – Scottish Government Total Funding
Scottish Government Discretionary Fiscal Budget 2024-25 Outturn £m 2025-26 ABR Budget £m 2026-27 Budget £m
Fiscal Resource 46,460 49,082 50,635
Non Domestic Rates 3,068 3,114 3,474
Capital 6,077 7,230 7,324
Financial Transactions 127 192 245
Total Discretionary Fiscal Budget 55,732 59,618 61,677
Discretionary Funding 55,732 59,618 61,677
Latest 2024-25 Underspend (600)
ABR under allocation* (4)
Funding Allocation 55,133 59,614 61,677
Scottish Government Non-discretionary Budget 2024-25 Outturn £m 2025-26 ABR Budget £m 2026-27 Budget £m
Non-Cash Resource Budget 936 808 1,563
UK Funded Annually Managed Expenditure (UKAME) 854 4,069 4,739
Total non Discretionary Budget 1,789 4,877 6,302
Total Scottish Budget 56,922 64,492 67,979

*To be formally applied at Spring Budget Revision

Notes: The prior year comparators throughout this document reflect outturn for 2024-25 and Autumn Budget Revision (ABR) for 2025-26, the latest position approved by Parliament. The funding position shown above is consistent with the disaggregated position shown throughout the document. The Budget position changes throughout the year and any further updates for 2025-26 will be set out as part of the Spring Budget Revision.

Some figures may not sum due to rounding. All Scottish Budget figures are rounded at Level 4. Level 4 tables are published alongside the Scottish Budget document on the Scottish Government website.

This presentation draws a distinction between the discretionary budget, where the Scottish Government may deploy cash funding according to its own priorities within devolved competence, and the non-discretionary budget.

The discretionary Fiscal budget comprises four sub-categories of spending subject to their own control limits. These sub-limits are imposed by HM Treasury as part of UK fiscal rules. These limits apply to:

Fiscal Resource budgets are the largest element of government expenditure and comprise expenditure on the day-to-day costs of delivering public services, used for example to pay public sector staff wages and purchase goods and services. Full analysis of the Fiscal Resource funding envelope is detailed in table A.02 below.

Capital budgets are used mainly to support the delivery of public infrastructure in Scotland. This is split between fiscal capital and a separate control for budgets that can only be used to support loan or equity investment in bodies outside the public sector – labelled as Financial Transactions. It is not possible within HM Treasury fiscal rules to use capital budgets to fund additional day-to-day expenditure; they must be used to support long-term investment. Full analysis of the Capital and Financial Transactions funding envelope is detailed in tables A.03 and A.04 below.

Non-Domestic Rates (NDR) are fully devolved and outside scope of the block grant and Fiscal Framework arrangements controlled by HM Treasury. These are forecast by the Scottish Fiscal Commission (SFC) based on Scottish Government policies and collected by local authorities. The total distributable amount used in Scottish Budgets reflects the forecasts by the SFC taking into account outturn and other adjustments managed through the NDR pool. The arrangements for operation of the Non-Domestic Rates, and the management of the pool in Scotland are available on the Scottish Government website.

To note, NDR is disclosed as AME within the Local Government portfolio allocation.

The non-discretionary budget reflects the items where use of funding is restricted and/or has no impact on cash deployment and has two subcategories.

The non-cash resource limit is largely for depreciation of assets. It is not possible to use the notional non-cash budgets to support any fiscal spending.

UK Funded AME relates to a small number of programmes that, whilst they fall within the devolved responsibilities of the Scottish Government, continue to be funded annually by the UK Government on the basis of demand (shown here as UK funded Annually Managed Expenditure or UK-funded AME). These budgets are ring-fenced for specific purposes – principally NHS, Teachers, Police and Fire pension payments and Student Loans. HM Treasury fiscal rules prohibit the use of funding provided for these areas to support other expenditure. This is not the case, however, for all demand led programmes notably Social Security expenditure in Scotland, which is managed within the Fiscal Resource Departmental Expenditure Limit (DEL) rather than AME.

The Scottish Government operates within the Fiscal Framework, agreed as part of the further devolution of fiscal powers contained in Scotland Act 2016 and subsequently revised in August 2023.

(2) Fiscal Resource Funding Envelope

A full breakdown of the Fiscal Resource envelope by source of funding is detailed below.

Table A.02 Fiscal Resource Funding
Fiscal Resource Funding 2024-25 Outturn £m 2025-26 ABR Budget £m 2026-27 Budget £m
Core Barnett Settlement 38,912 41,622 43,021
Ringfenced Funding 715
Change in treatment of Police and Fire Pensions (350) (350)
Total UK Settlement (A) 39,627 41,272 42,671
Social Security Block Grant Adjustment (B) 5,182 5,716 6,323
Block Grant Adjustment for Taxes and Non-Tax Income (18,110) (20,386) (21,449)
Scottish Income Tax 18,844 20,477 21,508
Land and Buildings Transaction Tax 901 979 1,049
Scottish Landfill Tax 57 40 27
Aggregates Levy 42
Non-Tax Income 25 25
Net Budget Adjustment for Taxes and Non-Tax Income (C) 1,691 1,135 1,202
Reconciliations (338) 500 354
Resource Borrowing
Resource Borrowing Costs (132) (142) (121)
Capital Borrowing Costs (135) (160) (194)
ScotWind 23 50
Scotland Reserve 264 501 150
Migrant Surcharge 221 210 198
KLTR 5 5
Other 43 4 (4)
Budget Cover Transfers 36 18
Other Income and Funding Adjustments (D) (40) 959 438
Total Scottish Government Fiscal Resource Funding (A+B+C+D) 46,460 49,082 50,635
Non Domestic Rates – Distributable Amount 3,068 3,114 3,474
Total Scottish and Local Government Fiscal Resource Funding 49,528 52,196 54,109
Outturn 48,988
Latest Resource Underspend (541)
2025-26 Funding changes since ABR - - -
Additional Barnett consequentials 45
Social Security BGA change 87
Net Tax position change 15
Movement in Scotland Reserve 10
Change in Migrant Surcharge (13)
Total change in funding for SBR 144
Latest Resource Funding Position 49,528 52,340 54,109

There have been some small movements in the funding position since the Autumn Budget Revision was published, principally as a result of the UK Budget on 26 November. Dispensation of the additional funding available in 2025-26 will be set out at the Spring Budget Revision (SBR) in the usual manner.

Scottish Government budgets are determined through the combination of Block Grant funding from HM Treasury, adjusted to reflect the transfer of social security powers, devolution of taxes and other income devolved to Scotland (through the Scotland Act 2012 and Scotland Act 2016), any planned use of available devolved borrowing powers and Non-Domestic Rates Income.

Specifically:

Total UK Settlement (A) – This contains the core Block Grant settlement as outlined in the UK Autumn Budget.

Changes in the Scottish Government’s block grant continue to be determined via the operation of the Barnett formula. Under the Barnett formula, the Scottish Government’s block grant in any given financial year is equal to the block grant baseline plus a population share of changes in UK Government spending on areas that are devolved to the Scottish Parliament. Detail of how the Barnett formula works is set out in the UK Government’s Statement of Funding Policy.

There has been a £350 million per annum reduction to the resource block grant for 2025-26 following an agreement with HM Treasury to reclassify Police and Fire Pension payments to AME, which brings this in line with UK Consolidated Budgeting Guidance. This change has affected all future financial years. To reflect this, the resource funding has been reduced and the AME funding increased by an equivalent amount across the UK Spending Review period. 2025-26 comparator information still shows the expenditure as being funded from Fiscal Resource, reflecting the position at Autumn Budget Revision – this will be adjusted at Spring Budget Revision.

Ring-fenced funding for 2024-25 relates to the replacement EU funding for Agriculture and Fisheries. From 2025-26 onwards, the UK Government has removed the ring-fence, with funding now part of the core settlement, with changes driven by the Barnett formula.

Social Security Block Grant Adjustment (B) – The block grant is adjusted upwards to reflect the devolution of social security powers and this figure is calculated by HM Treasury with reference to forecasts prepared by the Office for Budget Responsibility.

Net Budget adjustment for Taxes and Non Tax Income (C) – The total funding available to the Scottish Government is also dependent on decisions Scottish Ministers take on tax policy. Variation of Scottish tax policy relative to that of the UK will adjust the level of tax income received by the Scottish Government and the overall level of funding available to support spending plans. For the purpose of this budget, these relativities are drawn between existing UK tax policy and the devolved tax policy proposals advanced by the Scottish Government in this budget.

Other Income and Funding Adjustments (D) – A number of other adjustments are made to Fiscal Resource funding, these are detailed below. These form part of the overall fiscal envelope.

Reconciliations – This comprises positive and negative outturn movements versus previous forecasts on income tax (net of BGAs) along with final outturn reconciliations in respect of Social Security and fully devolved taxes. Block Grant Adjustments (BGAs) and these reconciliations are part of the Fiscal Framework agreement between the Scottish Government and HM Treasury.

Resource Borrowing – The Scottish Government can use resource borrowing to offset any negative reconciliations arising from outturns differing from forecasts, within the overall annual and cumulative Resource Borrowing limits as defined in the Fiscal Framework agreement. The 2026-27 reconciliations currently show a £354 million positive net position and no resource borrowing is currently forecast for use. These assumptions and the overall position are subject to change over the course of the financial year. See table A.08 for full resource borrowing forecasts.

Borrowing Costs – All costs of Capital and Resource Borrowing (including repayments of principal and interest) are deducted directly from Fiscal Resource funding. See table A.07 and A.08 for full borrowing forecasts.

Crown Estate Revenues – Scotwind and INTOG – Crown Estate revenues can be used to support both the resource position and capital projects. The amount of these revenues included in the 2025-26 initial Budget was £364 million (£341 million of Capital and £23 million of Resource), leaving £350 million unallocated. The forecast requirement for Scotwind in 2025-26 has now been reduced to £176 million (£153 million of Capital and £23 million of Resource). Therefore, £538 million is available for deployment. Of this funding, £50 million has been allocated to support the 2026–27 resource position. The majority of the remaining balance—a further £488 million — is planned to be deployed across the rest of the Spending Review period, as set out in table A:10 below. As the funding outlook evolves, it is expected that future utilisation of Crown Estate income for day-to-day spending can be reduced. It should be noted that, as in previous years, Scotwind income can be drawn down to support in-year spend, in the event unavoidable pressures arise which cannot be funded within existing budgets.

Scotland Reserve – The Scotland Reserve allows the Scottish Government limited ability to manage spending across financial years. The Fiscal Framework sets out the limits of the Scotland Reserve, which increase in real terms from 2024-25. For 2025-26 up to £734 million can be deposited in the Reserve, rising to a projected £764 million in 2026‑27. There are no limits on drawdowns. The 2026-27 Budget is set on the basis that £150 million will be carried forward through the Scotland Reserve.

Migrant Surcharge – This is income derived from charges on migrants for using NHS Services and is collected by the Home Office and redistributed to devolved governments on a Barnett basis. Despite the Barnett formula applying, this is not a Barnett consequential included within the block grant as it has no relationship to UK departmental spending. Amounts are allocated to Scottish Government’s settlements incrementally. The total for 2026-27 is a forecast of the total annual transfers for the year.

King’s Lord Treasurer Remembrancer (KLTR formerly QLTR) – This is the Crown’s representative in Scotland who deals with ownerless property. In the Scotland Act 1998, the Crown’s property rights in ownerless goods and the revenues raised from them were transferred to Scottish Ministers and the revenues paid into the Scottish Consolidated Fund.

Other/Budget Cover Transfers – 2024-25 figures for other fiscal resource includes £21 million related to a correction to the Block Grant for an error in the Home Office comparability factor applied at the last UK Spending Review, offset by an adjustment to the Block Grant baseline for the devolution of Crown Estates to Scotland (minus £3 million in 2024-25, agreed as part of the Fiscal Framework renegotiation). The balance of funding is across a number of specific allocations including for thank-you payments for hosting Ukrainian refugees, debt advice and Union connectivity. For 2025-26 and beyond the funding relates to Debt Advice offset by the Crown Estate adjustment.

Non Domestic Rates Income – This is determined by policies set by the Scottish Government. In 2026-27, £3,474 million will form part of the settlement to Local Government in Scotland. The detailed polices for 2026-27 are set out in Chapter 2 of this document.

(3) Capital and Financial Transactions Funding Envelope

Table A.03 Capital Funding Envelope
Capital Funding 2024-25 Outturn £m 2025-26 ABR Budget £m 2026-27 Budget £m
Core Barnett Settlement 5,026 6,255 6,712
Ringfenced Funding 670
Borrowing (per Capital Borrowing Policy) 139 472 491
Scotland Reserve 140 31
ScotWind 341
City Deals 76 122 120
Other 26 9
Total Capital Funding 6,077 7,230 7,324
Outturn 6,041
Latest Capital Underspend (35)
2024-25 Funding Changes since ABR - - -
Movement in Scotland Reserve 4
Reduction in Planned Borrowing (42)
Reduction in planned Scotwind deployment (188)
Total change in Funding for the SBR (226)
Latest Capital Funding Position 6,077 7,004 7,324
Table A.04 Financial Transactions Funding Envelope
Financial Transactions Funding (£m) 2024-25 Outturn £m 2025-26 ABR Budget £m 2026-27 Budget £m
Core Barnett Settlement 176 167 245
Scotland Reserve 4 25
Other (53)
Total Financial Transactions Funding at Scottish Budget 127 192 245
Outturn 103
Underspend (24)

Core Barnett Funding – As with Fiscal Resource these amounts are as per the recent UK Autumn Budget Statement.

Ringfenced Funding – This funding relates to the separate and specific agreement to transfer Capital funding to support Network Rail outside the usual Barnett arrangements. From 2025-26 this is now included in the core Barnett settlement.

Capital Borrowing – For Capital expenditure the Scottish Government can borrow up to £450 million annually, and £3 billion cumulatively, in 2023-24 prices. From 2024‑25, these limits increase in line with inflation. This means that for the purposes of the 2026-27 Scottish Budget the limits are calculated as £491 million and £3,275 million respectively.

The Scottish Government published a memorandum alongside the 2025-26 Scottish Budget setting out the policy framework used to assess any capital borrowing decision:

  • Use £300 million of capital borrowing per annum as the default assumption;
  • This will be amended as necessary to meet budget specific or in-year requirements; and
  • Ensure, by way of a fiscal test, that at least £1.5 billion of capital borrowing headroom remains available for the subsequent parliamentary term.

This policy remains in place and is reflected in funding assumptions for the forecast period as presented in Table A.07 below. This capital borrowing policy applies to all Scottish Government decisions on borrowing, irrespective of the source of borrowing.

Scotland Reserve – As detailed above the Scottish Government has ability to carry-forward some funds or net underspends via the Scotland Reserve. No assumption on Capital carry forward has been made for the 2026-27 Budget.

Crown Estate Revenues – As detailed above, £153 million of Scotwind revenues remain within the capital position for 2025-26. Further Capital allocation of Scotwind and INTOG revenues in 2027-28 and beyond are set out in table A:11 below.

City Deals Funding – City deals are jointly funded through agreement with the UK Government. Funding set out represents the latest jointly agreed allocation profile.

(4) Real Terms Analysis

Table A.05 Real Terms change in Barnett Funding
Barnett Funding (2025-26 prices) 2024-25 Outturn £m 2025-26 ABR Budget £m 2026-27 Budget £m
Fiscal Resource Budget 40,793 41,317 41,740
Capital Budget 5,864 6,255 6,566
Financial Transactions Budget 181 167 239
Total 46,838 47,739 48,545
Real-Terms Change against prior year 1.9% 1.7%
Cumulative Real Terms changes since 2024-25 1.9% 3.6%
GDP Deflators for 2025-26 prices 0.971 1.000 1.0223

The latest Barnett Block Grant figures show a net real terms increase across both 2025‑26 and 2026-27 using the latest settlement as at UK Budget on 26 November 2025. Within the total movement, real terms growth in resource Barnett Block Grant from 2025-26 to 2026-27 is £424 million or 1.03%. Capital real terms growth between 2025-26 and 2026-27 is £310 million or 4.96%.

Table A.06 Real Terms change in Total Discretionary Funding
Discretionary Funding (2025-26 prices) 2024-25 Outturn £m 2025-26 ABR Budget £m 2026-27 Budget £m
Fiscal Resource Budget 50,986 52,340 52,928
Capital Budget 6,256 7,004 7,164
Financial Transactions Budget 131 192 239
Total 57,373 59,537 60,331
Real-Terms Change against prior year 3.8% 1.3%
Cumulative Real Terms changes since 2024-25 3.8% 5.2%

The real terms change in total discretionary funding reflects the net impact of tax and borrowing policy decisions, boosting real terms growth in the funding available to support public services.

(5) Borrowing Forecasts

Full Capital and Resource Borrowing Forecasts are set out below. These forecasts assume continued use of the existing National Loans Fund (NLF) structures as the source of borrowing. Published forecasts for Capital Borrowing will continue to assume the NLF as the source of borrowing until an inaugural Scottish Government Bond issuance occurs. Inflationary uplifts are calculated on the basis of UK GDP deflators published by the Office for Budget Responsibility (26 November 2025) and applied to the 2023-24 baseline limits in line with the 2023 Fiscal Framework Agreement. Interest rate assumptions use UK Gilt curves (2 January 2026) adjusted for NLF annuity structures. A further premium is added for prudence to reflect the volatility in both forward rates, and the feasible differential between date of request of funds and date of receipt when interest rates are applied.

Table A.07 Capital Borrowing Projections
£ million 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
Debt Stock at start of Year 2,227 2,245 2,534 2,866 2,982 3,136 3,222
New Borrowing in year (incurred) 139
New Borrowing in year (forecast) 430 491 300 360 300 300
Principal Repayments 100 120 129 132 135 125 115
Interest Repayments 34 39 37 34 31 28 25
Resource Cost of Borrowing Incurred 135 160 166 166 166 153 140
Principal Repayments 10 32 51 68 86
Interest Repayments 18 42 58 75 90
Resource Cost of Forecast Borrowing 28 74 109 144 176
Projected Total Resource Cost 135 160 194 240 275 297 316
Notional Borrowing Repayments 21 21 21 21 21 21 21
Debt Stock at end of Year 2,245 2,534 2,866 2,982 3,136 3,222 3,301
Debt Cap 3,050 3,145 3,275 3,340 3,403 3,466 3,534
Percentage of Debt Cap 74% 81% 88% 89% 92% 93% 93%
Headroom 805 611 409 358 268 244 233
Table A.08 Resource Borrowing Projections
£ million 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
Debt Stock at start of Year 476 353 219 103 360 304 233
New Borrowing in year (incurred)
New Borrowing in year (forecast) 321
Principal Repayments 123 135 116 64 27 11
Interest Repayments 9 7 5 3 1 0
Resource Cost of Borrowing Incurred 132 142 121 67 28 12
Principal Repayments 29 60 63
Interest Repayments 14 13 10
Resource Cost of Forecast Borrowing 42 73 73
Projected Total Resource Cost 132 142 121 67 71 85 73
Debt Stock at end of Year 353 219 103 360 304 233 170
Debt Cap 1,779 1,834 1,910 1,949 1,985 2,022 2,061
Percentage of Debt Cap 20% 12% 5% 18% 15% 11% 8%
Headroom 1,426 1,616 1,807 1,589 1,682 1,789 1,891

(6) Additional disclosure on comparative information.

The budget document includes the 2024-25 outturn and latest budget position for 2025-26 (which is the position at Autumn Budget Revision as approved by the Scottish Parliament) as the comparator information. There have been significant movements in portfolio budgets within the 2025-26 financial year that reflect transfers of resource funding between portfolios – these transfers can reflect in-year decisions on reprioritisation, and also recurring movement of significant sums between areas where policy responsibility (and initial budget) sit in one portfolio and ultimate delivery takes place in another. This has been most marked in Heath and Local Government where there have been large transfers for policy delivery.

Action has been taken to baseline some of these transfers in 2026-27, most notably £507 million of what was previously Health funding for Social Care, £244 million of Education funding for Teachers pay and £24 million for Homelessness Prevention all now forming part of the Local Government Settlement 2026-27. Nevertheless the Budget for 2026-27 does still contain some significant amounts that will be transferred at subsequent budget revisions, which impacts a direct comparison with the 2025-26 ABR position (where those inter-portfolio transfers have already taken place).

To support a comparison, Table A.07 below shows an adjusted 2025-26 resource position removing the impact at portfolio level of the recurring transfers actioned at ABR, to allow a like-for-like comparison against the 2025-26 initial allocations. The table shows the year-on-year movement at portfolio level in cash and real terms on a comparable basis.

This analysis makes no assumption on the distribution of any additional funding movement since the ABR. This will be presented to Parliament as part of the Spring Budget Revision process in early 2026, in line with normal procedures. The allocation of this additional funding at SBR will impact on the comparison with the position set out in the 2026-27 Budget.

No additional disclosure is provided for Capital and Financial Transactions as the different nature of the programmes supported by this funding mean that the same recurring transfers do not occur.

Table A.09 Portfolio comparison of position without internal transfers
Portfolios 2025-26 2026-27 Budget £m Cash movement Real terms @25-26 prices
2025-26 ABR Budget £m 2025-26 Internal transfers not baselined £m 2025-26 ABR Budget incl. internal transfers not baselined Movement Percentage increase 2025-26 2026-27 Movement Percentage increase
Health & Social Care 20,157 160 20,317 20,919 603 3% 20,317 20,463 146 0.7%
Finance and Local Government 14,635 (481) 14,154 14,506 353 2% 14,154 14,190 36 0.3%
Social Justice 7,331 137 7,468 7,981 513 7% 7,468 7,807 339 4.5%
Justice and Home Affairs 3,627 (352) 3,275 3,418 142 4% 3,275 3,343 68 2.1%
Transport 1,582 1,582 1,684 101 6% 1,582 1,647 65 4.1%
Education and Skills 2,846 164 3,011 3,102 92 3% 3,011 3,035 24 0.8%
Deputy First Minister, Economy & Gaelic 578 9 587 636 49 8% 587 622 35 5.9%
Housing 81 11 91 90 (2) (2%) 91 88 (4) (4.1%)
Rural Affairs, Land Reform and Islands 911 6 917 921 2 0% 917 901 (17) (2.0%)
Climate Action & Energy 93 (2) 91 95 4 4% 91 93 2 2.1%
Constitution, External Affairs and Culture 325 (2) 323 355 32 10% 323 347 24 7.4%
Crown Office & Procurator Fiscal 227 227 238 11 5% 227 232 6 2.4%
Scottish Parliament 135 135 149 14 10% 135 146 10 7.7%
Audit Scotland 14 14 15 2 12% 14 15 1 9.8%
Total 52,542 52,192 54,108 1,916 - 52,192 52,927 735 -

(7) Medium Term Funding Outlook

The tables below set out the medium-term funding outlook from 2025-26 to 2030-31 for Resource and Capital. Funding projections are based on the combination of (1) forecasts from the Scottish Fiscal Commission and the Office of Budget Responsibility, and (2) Scottish Government assumptions on growth in the Block Grant, based on information set out by HM Treasury for the UK Spending Review period and OBR projections for the subsequent years.

Table A.10 Medium Term Resource Funding Outlook to 2025-26 to 2030-31
Fiscal Resource Funding (£m) 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
Core Barnett Settlement 41,622 43,021 44,025 44,992 45,907 46,889
Change in treatment of Police and Fire Pensions (350) (350) (350) (350) (350) (350)
Total UK Settlement (A) 41,272 42,671 43,675 44,642 45,557 46,539
Social Security Block Grant Adjustment (B) 5,716 6,323 6,751 7,133 7,558 8,024
Block Grant Adjustment for Taxes and Non-Tax Income (20,386) (21,449) (22,395) (23,237) (24,339) (25,364)
Scottish Income Tax 20,477 21,508 22,828 24,051 25,398 26,769
Land and Buildings Transaction Tax 979 1,049 1,090 1,141 1,195 1,251
Scottish Landfill Tax 40 27 21 23 24 26
Aggregates Levy 42 43 45 46 48
Non-Tax Income 25 25 25 25 25 25
Net Budget Adjustment for Taxes and Non-Tax Income (C) 1,135 1,202 1,612 2,048 2,350 2,754
Reconciliations 500 354 (321) 75
Resource Borrowing 321
Resource Borrowing Costs (142) (121) (67) (71) (85) (73)
Capital Borrowing Costs (160) (194) (240) (275) (297) (316)
ScotWind 23 50 236
Scotland Reserve 501 150
Migrant Surcharge 210 198 192 189 195 195
KLTR 5 5 5 5 5 5
Other 4 (4) (10) (30) (30) (30)
Budget Cover Transfers 18
Resource to Capital Switch (132)
Other Income and Funding Adjustments (D) 959 438 115 (239) (212) (219)
Total Scottish Government Fiscal Resource Funding (A+B+C+D) 49,082 50,635 52,154 53,583 55,253 57,098
Non Domestic Rates – Distributable Amount 3,114 3,474 3,266 3,434 3,867 3,811
Total Scottish and Local Government Fiscal Resource Funding 52,196 54,109 55,420 57,017 59,120 60,909
Table A.11 Medium Term Capital Funding Outlook from 2024-25 to 2029-30
Capital Funding (£m) 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
Core Barnett Settlement 6,255 6,712 6,794 6,643 6,748 6,748
Borrowing (per Capital Borrowing Policy) 472 491 300 360 300 300
Scotland Reserve 31
ScotWind 341 92 99
City Deals 122 120 110 119 102 102
Other 9
Resource to Capital Switch 132
Total Capital Funding 7,230 7,324 7,296 7,255 7,249 7,150

In 2028-29, capital funding has been increased by £132 million through a resource to capital switch, to help mitigate the impact of the lower capital settlement in that year.

Contact

Email: Fiscalprogrammemailbox@gov.scot

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