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
Foreword by the Cabinet Secretary for Finance and Local Government
This is a Budget with the people of Scotland at its heart. It delivers for families across the country, for a stronger NHS, and for a more prosperous future, with investments totalling almost £68 billion in this year alone.
It provides vital support for families facing cost of living pressures and strengthens the public services we all rely on, ensuring that those services are centred on people’s needs.
It continues to protect this Government’s social contract, securing the best possible deal for those who live in Scotland.
We will continue to offer the most comprehensive Cost of Living support package anywhere in the UK: free prescriptions for all; the abolition of peak rail fares; no tuition fees for Scottish students; free bus travel for over 2.4 million people; an NHS free at the point of use; baby boxes for newborns; and a social security system founded on dignity and respect.
It commits to new measures that will support families across Scotland and advances our efforts to tackle child poverty.
The Scottish Child Payment will rise to £28.20 per week and from 2027-28 we will go even further. We will increase this by more than a third for children under one, providing additional support for thousands of families who need it most.
We are providing new funding to ensure that there is a breakfast club for every single primary and special school by August 2027, and additional funding to extend wrap around activity clubs in the afternoon and early evening. As part of our Summer of Sport offer, we will ensure every child can access free sporting opportunities as part of a £40 million investment in sport and physical activity.
Through our progressive tax policies, well over half of Scottish taxpayers can expect to pay less Income Tax than they would elsewhere in the UK.
We are also delivering the investment needed for high-quality, sustainable public services, including a fair and sustainable pay policy that recognises the contribution of our public sector workforce, including nurses, police officers and teachers, to support them in the face of a cost of living crisis.
Funding for Health and Social Care will increase to a record high of almost £22.5 billion, ensuring our NHS can reduce waiting times, improve GP access, and develop walk-in services.
We are also increasing the Local Government Settlement, honouring our commitments to support pay deals, providing additional funding for the Real Living Wage in commissioned services across social care and childcare, and further support for inter-island connectivity.
A strong and flourishing economy is essential for our society and to underpin sustainable public services. This Budget contains a range of measures to support businesses, entrepreneurs and strengthen supply chains.
It includes funding to support the creation of a diverse and sustainable supply chain for offshore wind and a just transition for our industrial sector, including targeted investment in the Grangemouth Industrial Cluster. We are also providing £3 million of funding, as part of a three year package, to support communities impacted by the closure of the Fife Ethylene Plant at Mossmorran.
We will also strengthen Scotland’s local economies through a package of support for businesses and regional investment. This includes using our Non-Domestic Rates regime to support our retail and hospitality industries and maintaining the Small Business Bonus Scheme.
At the heart of our economic policy is creating high-quality jobs across Scotland. This Budget invests £90 million in employability services and safeguards access to high‑quality childcare for all three and four year olds and eligible two year olds, helping parents to enter, stay in, and progress in work. It also targets skills development, addressing shortages in the offshore renewables sector and helping workers in oil and gas retrain for the jobs of the future.
The Budget ensures that all young Scots have the opportunity to learn and to flourish. It provides an additional £70 million for colleges, alongside extra investment in our universities and a continued commitment to Scotland’s apprenticeships. It will deliver vital support for children with additional support needs and provide local councils with the resources they need to continue narrowing the attainment gap and deliver on our commitments on class contact time.
This Government remains committed to playing our part in global efforts to tackle the growing climate emergency. This Budget invests at least £5 billion to support our efforts to deliver a just transition to net zero and climate resilience. Scotland’s renewable energy sector is at the heart of this transition, and we are allocating £93 million of capital funding to offshore wind and supply chain programmes. The Budget also provides investment for more carbon-free transport, more carbon-free heating for businesses and homes and to restore Scotland’s natural environment.
Delivering these ambitions within tight funding constraints demands reform and innovation. We are driving prioritisation, efficiency and transformation to maximise impact and maintain sustainable public finances, ensuring that every pound delivers improved outcomes for the people of Scotland. Working with public bodies we are reshaping services, reducing duplication and delivering savings while improving outcomes. The Scottish Spending Review sets a clear financial trajectory for public spending, underpinned by £1.5 billion in planned efficiencies and reforms that will protect investment in frontline services.
This is a Budget that delivers opportunity for Scotland by investing in families, public services and the economy while continuing to build a fairer, greener and more prosperous future.