The Scottish Government Consolidated Accounts for the year ended 31 March 2025

Performance Report

Introduction

About the Scottish Government

The Scottish Government is the devolved government for Scotland and has a range of responsibilities including: the economy, education, health, justice, social security, rural affairs, housing, environment, equal opportunities, consumer advocacy and advice, transport and taxation.

A number of powers are reserved to the UK Government, including immigration, the constitution, foreign policy and defence.

After a Scottish Parliamentary election, the First Minister is formally nominated by the Scottish Parliament and appointed by His Majesty The King. The First Minister then appoints the Scottish Ministers to make up the Cabinet with the agreement of the Scottish Parliament and the approval of The King.

Performance Overview

The Scottish Government’s Purpose

The Scottish Government’s purpose is to focus on creating a more successful country with opportunities for all of Scotland to flourish through increased wellbeing, and sustainable and inclusive economic growth.

Scottish Cabinet Ministers and their responsibilities

The Cabinet is the main decision-making body of the Scottish Government. It is made up of the First Minister, all Cabinet Secretaries, the Minister for Parliamentary Business and the Permanent Secretary.

The First Minister appoints a Cabinet Secretary for each of the core portfolios described below, as well as additional Ministers to support the work of the Scottish Cabinet, and two Law Officers (Lord Advocate and Solicitor General for Scotland).

John Swinney MSP

First Minister from 7 May 2024

Head of the Scottish Government: responsible for development, implementation and presentation of Government policy, constitutional affairs, and for promoting and representing Scotland at home and overseas.

Humza Yousaf MSP

First Minister until 7 May 2024

The Cabinet Team members serving during 2024-25 were as follow:

Kate Forbes MSP

Deputy First Minister and Cabinet Secretary for Economy and Gaelic (from 8 May 2024)

Shona Robison MSP

Cabinet Secretary for Finance and Local Government (from 8 May 2024, previously Deputy First Minister and Cabinet Secretary for Finance)

Shirley-Anne Somerville MSP

Cabinet Secretary for Social Justice

Neil Gray MSP

Cabinet Secretary for Health and Social Care (from 8 May 2024, previously Cabinet Secretary for NHS Recovery, Health and Social Care)

Mairi Gougeon MSP

Cabinet Secretary for Rural Affairs, Land Reform and Islands

Angus Robertson MSP

Cabinet Secretary for the Constitution, External Affairs and Culture

Jenny Gilruth MSP

Cabinet Secretary for Education and Skills

Màiri McAllan MSP

Cabinet Secretary for Net Zero and Energy (from 8 May 2024, previously Cabinet Secretary for Wellbeing Economy, Net Zero and Energy, and on maternity leave between 27 June 2024 and 10 June 2025)

Angela Constance MSP

Cabinet Secretary for Justice and Home Affairs

Fiona Hyslop MSP

Cabinet Secretary for Transport

Gillian Martin MSP

Acting Cabinet Secretary for Net Zero and Energy (from 1 July 2024 covering maternity leave of Mairi McAllan), previously Minister for Climate Action between 8 May and 30 June and Minister for Energy, Just Transition and Fair Work between 1 April 2024 and 7 May)

The Cabinet was supported in 2024-25 by the following ministerial team:

• George Adam MSP: Minister for Cabinet and Parliamentary Business (until 8 May 2024)
• Graeme Dey MSP: Minister for Higher and Further Education; and Minister for Veterans
• Tom Arthur MSP: Minister for Employment and Investment (Minister for Community Wealth and Public Finance until 8 May 2024)
• Patrick Harvie MSP: Minister for Zero Carbon Buildings, Active Travel and Tenants' Rights (until 25 April 2024)
• Lorna Slater MSP: Minister for Green Skills, Circular Economy and Biodiversity (until 25 April 2024)
• Maree Todd MSP: Minister for Social Care, Mental Wellbeing and Sport
• Jamie Hepburn MSP: Minister for Parliamentary Business (Minister for Independence until 7 May 2024)
• Joe FitzPatrick MSP: Minister for Local Government Empowerment and Planning (until 8 May 2024)
• Jenni Minto MSP: Minister for Public Health and Women’s Health
• Natalie Don-Innes MSP: Minister for Children, Young People and The Promise (Minister for Children, Young People and Keeping the Promise until 8 May 2024)
• Emma Roddick MSP: Minister for Equalities, Migration and Refugees (until 8 May 2024)
• Paul McLennan MSP: Minister for Housing
• Siobhian Brown MSP: Minister for Victims and Community Safety
• Kaukab Stewart MSP: Minister for Equalities (Minister for Culture, Europe and International Development until 8 May 2024)
• Jim Fairlie MSP: Minister for Agriculture and Connectivity
• Richard Lochhead MSP: Minister for Small Business, Innovation, Tourism and Trade
• Christina McKelvie MSP: Minister for Drugs and Alcohol Policy (until her passing on 27 March 2025)
• Ivan McKee MSP: Minister for Public Finance (from 8 May 2024)
• Dr Alisdair Allan MSP: Acting Minister for Climate Action (from 1 July 2024)

Law Officers during 2024-25

• Dorothy Bain KC Lord Advocate
• Ruth Charteris KC Solicitor General

Further information on Cabinet and Ministerial responsibilities is available from the Scottish Parliament and Scottish Government websites, at parliament.scot and gov.scot respectively.

The Civil Service and Government Officials

The First Minister leads the Scottish Government, with the support of the Scottish Cabinet and Ministers. The civil service helps the government of the day to develop and implement its policies as well as deliver public services. Civil servants are accountable to Ministers, who in turn are accountable to Parliament.

The Permanent Secretary leads the civil service in Scotland and supports the government in developing, implementing and communicating its policies, and is the principal policy adviser to the First Minister and Secretary to the Scottish Cabinet. The Permanent Secretary is also the Principal Accountable Officer with responsibility to ensure that the government's money and resources are used effectively and properly.

The government is structured into a number of directorates and their related public bodies. Directorates and agencies are managed by eight Directors General (DGs).

Scottish Government Senior Management Team (Corporate Board)

The Scottish Government Senior Management Team are responsible for ensuring that the Scottish Government is organised and managed in the most effective way to support Ministers in the implementation of their policies. Further information on the management structure of the Scottish Government is available on the Scottish Government website at gov.scot.

Permanent Secretary in post during 2024-25 was:

• John-Paul Marks Permanent Secretary

Directors General in 2024-25 were:

• Lesley Fraser DG Corporate
• Gregor Irwin DG Economy
• Louise Macdonald OBE DG Communities
• Caroline Lamb DG Health & Social Care
• Neil Rennick DG Education and Justice
• Joe Griffin DG Strategy and External Affairs
• Alyson Stafford CBE DG Scottish Exchequer
• Roy Brannen DG Net Zero

Directors in attendance at Corporate Board during 2024-25 were:

• Nicola Richards Director of People
• Jackie McAllister Chief Financial Officer
• Ruaraidh Macniven Solicitor to the Scottish Government
• Andy Bruce Director of Communications and Ministerial Support

Non-executive members of the Corporate Board during 2024-25 were:

• Belinda Oldfield
• Jim Robertson (until 30 June 2024)
• Jayne Scott
• David Martin (until 18 June 2024)
• Manish Joshi (from 1 July 2024)
• Jenny Stewart (from 29 May 2024)

Other Non-Executive Directors who were invited to attend the Corporate Board meetings as standing attendees were:

• Jim Robertson (from 1 July 2024)
• Manish Joshi (between 14 April 2024 and 30 June 2024)
• Jenny Stewart (until 28 May 2024)
• Neil Richardson
• Helen Dean (from 29 July 2024)
• Neil Wooding (until 28 June 2024)
• Fiona Ross (until 31 January 2025)
• Rory Mair (between 15 April 2024 and 3 March 2025)

The Non-Executive Directors provide advice, support and challenge to the Permanent Secretary as Principal Accountable Officer (PAO) and Directors General as Accountable Officers (AO). They do so in a number of ways, including:

• Providing direct support, challenge and guidance to their “paired” Accountable Officer (AO) and senior staff in relation to the delivery of their portfolio-based risk, assurance and internal controls framework;
• Participating in a number of boards including the Corporate Board, one or more of the formal sub-Boards and the Assurance meetings of their paired AOs; and
• As members of the Scottish Government Audit & Assurance Committee (SGAAC) which is chaired by a Non-Executive Director.

Belinda Oldfield, Non-Executive Director, was the Non-Executive Member of the Strategic Design Authority until taking over as interim Lead Non-Executive Director from David Martin on 18 June 2024.

David Martin stepped down as Non-Executive Director on 18 June 2024.

Jim Robertson stepped down as Chair of SGAAC and therefore as a member of the Corporate Board on 30 June 2024. The position was taken over by Jayne Scott on 1 July 2024 who vacated the position of SGAAC Deputy Chair on 30 June 2024.

Manish Joshi, who was appointed as Non-Executive Director on 15 April 2024, became the interim Deputy Chair of SGAAC on 1 July 2024.

Jenny Stewart joined the Strategic Design Authority on 29 May 2024 and therefore became a member of the Corporate Board.

Neil Wooding stepped down as Non-Executive Director on 28 June 2024. Rory Mair, appointed as Non-Executive Director on 15 April 2024, stepped down on 3 March 2025. Fiona Ross stepped down as Non-Executive Director on 31 January 2025.

Helen Dean was appointed Non-Executive Director on 29 July 2024.

Changes to the Corporate Board since 31 March 2025:

JP Marks stepped down as Permanent Secretary on 5 April 2025. The position was taken over by Joe Griffin on 6 April while Shona Riach was appointed as interim DG Strategy and External Affairs on 22 April 2025.

Alyson Stafford CBE completed her last day as DG Scottish Exchequer on 24 September and will formally retire on 12 October 2025. The DG Scottish Exchequer and DG Strategy and External Affairs roles will be merged with Shona Riach taking on the expanded role on an interim basis.

Louise Macdonald OBE completed her last day as DG Communities on 29 August and will formally leave the organisation on 3 October. Sean Neill took over as DG Communities from 1 September on an interim basis until Miriam Craven’s appointment as of 22 September 2025.

After Jayne Scott stepped down as Non-Executive Director on 30 April 2025, Manish Joshi became interim Chair of SGAAC from 1 May 2025 vacating the Deputy Chair of SGAAC position for a short period.

Tom Taylor was appointed as Non-Executive Director and Chair of SGAAC on 1 September 2025 while Manish Joshi resumed his position as Deputy Chair SGAAC.

Mark Adderley was appointed as Non-Executive Director and will take up his role on 13 October 2025.

Helen Dean’s appointment as Non-Executive Director ended on 31 August 2025.

Register of Interests

Any member of the Corporate Board who held company directorships and other significant interests during 2024-25 were:

Staff:

• Lesley Fraser: Director General Corporate: ISAs and savings managed by Virgin Money, Yorkshire Bank and Parmenion.
• Alyson Stafford CBE: Director General Scottish Exchequer: Financial investments via Aegon.
• Nicola Richards: Director of People: Share ISA held with IFA and Trustee of Simon Community Scotland.
• Roy Brannen: Director General Net Zero: Fellow of the Institution of Civil Engineers and Institution of Highways & Transportation; Honorary Member of World Road Association; and shares held with ABRDN (Standard Life) and Royal Mail.
• Neil Rennick: Director General Education and Justice: Halifax Stocks and Shares ISA, Trustee and Board Member of Edinburgh World Heritage; and Chair of the Edinburgh World Heritage Projects and Programmes Committee.
• Ruaraidh Macniven, Solicitor to the Scottish Government: Member of the Council of the Law Society of Scotland and Member of the Society of Solicitor Advocates.

Non-Executive Directors:

• Belinda Oldfield: Non-Executive Director and Chair of the Risk Committee of Northern Ireland Water; Member of the Audit & Risk Committee of Strathclyde University; and Member of the University of Strathclyde Court (from September 2023).
• Jim Robertson: Senior Fellow of the International Tax & Investment Center (ITIC); Director of JR Oil & Gas Limited, consultancy company registered in Scotland; Member of the Environmental Tax Sub-Committee, Chair of the Energy Transition workstream and Extractives Tax Sub-Committee in the United Nations; Member of the Governing Council, the Qualifications Board, the Devolved Taxes Committee and the Equality, Diversity & Inclusion Committee of the Institute of Chartered Accountants of Scotland; Chair of the Advanced Diploma in International Taxation Academic Board, Member of the Climate Change Working Group and the Equality, Diversity & Inclusion Committee of the Chartered Institute of Taxation; Chair of the Institute of Chartered Accountants of Scotland and Chartered Institute of Taxation working group on Building a Better Tax System (from July 2023); Partner at the G100 Global Women Leaders; Member of the Policy Dialogue on Natural Resource Based Taxation of the OECD Development Centre; Member of the GlobalScot Network of Scottish Enterprise; and recipient of an interest-free loan from Energy Saving Trust under the Home Energy Scotland scheme for the insulation of residential property.
• Jayne Scott: Partner at Scott Ross Partnership Management Consultants; Chair of the Private Healthcare Information Network; Board member of the Coal Authority; External Audit Committee member of the Information Commissioner’s Office; Chair of the Joint Audit Panel for the Metropolitan Police Service; Board member of Nuclear Restoration Services; and the Mayor’s Office for Policing and Crime.
• David Martin: Self-employed consultant for the Scottish Mentoring & Leadership Programme, the Hunter Foundation, SOLACE in Business - Recruitment and Assessment Services; Executive & Leadership Coaching at Care Inspectorate, and various local authorities; and voluntary work with Dundee City Council and Eden Project International. David Martin’s sister-in-law, Gillian Martin, is the Acting Cabinet Secretary for Net Zero and Energy.
• Manish Joshi: Non-Executive Director of Wheatley Group (Housing Charity); Non-Executive on two subsidiary boards, Wheatley Solutions and Lowther Homes; non-remunerated Directorship of Glasgow Commonwealth Games 2026; and Project Lead for the University of Strathclyde’s Anti-Racist Observatory for Scotland (AROS).
• Jenny Stewart: Chair, Non-Executive Director and Trustee of Dunedin Concert Trusts Ltd.; Non-Executive Member of Court and Trustee of the University of St Andrews; Fellow of Royal Society of Arts and Manufacturing (FRSA); and Member of the Institute for Fiscal Studies.
• Neil Richardson: Chief Executive of Turning Point Scotland; Board member of Coalition of Care Providers Scotland and Richar Property Ltd.
• Fiona Ross: Non-Executive Director of JK Funds Dublin, Evelyn Partners Europe Dublin (formerly Tilley Smith and Williamson), Network Rail, and SphereInvest; Chair of National Paediatric Hospital Development Board, Ireland; Non-Executive Board Member at the Northern Ireland Office; Chair of Córas Iompair Éireann (CIÉ) Dublin (until September 2024); Advisor at Mayor Bristol (until August 2024); Chair of Natural Capital Ireland; and shares and securities.
• Neil Wooding: Civil Service Commissioner.
• Rory Mair: Son, Simon Mair is a Deputy Director in the Scottish Government (DG Strategy and External Affairs, Public Service Reform Directorate).
• Helen Dean: Chair of Standard Life Mastertrust Pension; Chair of Your Island Pensions (Island of Guernsey); and Trustee and Director of Step Change Debt Charity.

Financial Performance: Outturn against Budget

These accounts report actual outturn compared to the budget authorised by the Scottish Parliament. Note 23 sets out the reconciliation and explanation of the budget reflected in the accounts with that shown in the annual budget documents.

Spending plans for financial year 2024-25 were set out in the Scottish Budget published on 19th December 2023. These plans were presented alongside the introduction of the Budget Bill. After consideration by the Scottish Parliament Finance and Public and Administration Committee and other Committees, the Bill received Royal Assent as the Budget (Scotland) Act 2024 on 28th March 2024. Parliamentary approval for the in-year revisions to the plans set out in the Budget (Scotland) Act was granted in the Autumn Budget Revision made on 10th December 2024, and the Spring Budget Revision, made on 27th March 2025.

The budget of £57,326 million reported in these accounts is net of adjustments to reflect those activities not included in the accounting boundary as described below. This is made up of an operating budget of £54,805 million and a capital budget of £2,521 million.

The financial results for the year are reported in the attached accounts, based on the budget at Spring Budget Revision and in compliance with the government financial reporting requirements. They record a Net Resource Outturn of £53,930 million against a budget of £54,805 million, resulting in an underspend of £875 million. The Net Capital Outturn for the year was £2,387 million against a budget of £2,521 million, representing an underspend of £134 million. The total outturn was £56,317 million, resulting in an underspend of £1,009 million which represents 1.8% of the total budget. Explanations are provided for the major variances in each of the Portfolio Outturn Statements, on pages 103 to 115.

An underspend of £557 million was set out as part of the provisional outturn announcement made by the Minister for Public Finance in June 2025, with spend of £52.1 billion against a total fiscal budget of £52.7 billion. The remaining funding of £557 million (which represented just over 1% of the total budget) will be carried forward within the Scotland Reserve if confirmed at Final Outturn, with no loss of spending power. This underspend varies from that set out within the accounts by £452 million as a result of the provisional outturn:

• being scored against the budget incorporating final funding changes post Spring Budget Revision (resulting in a movement of £205 million, which would reduce the Consolidated Accounts variance to £804 million). These are set out in further detail below; and
• ring-fenced, non-cash, and Annually Managed Expenditure budgets that are included in the accounts but not in figures reported at Provisional Outturn. As well as covering all bodies within the Scottish Government budgeting boundary, which is wider than the areas incorporated within the accounts, and being prepared in accordance with HM Treasury Consolidated Budgeting Guidance rather than the Government’s Financial Reporting Manual (FReM). These total changes result in a movement of £247 million, resulting in the Consolidated Accounts underspend of £1,009 million.

The figures reported at the time of the Provisional Outturn were indicative and these will be updated and reported to Parliament in a Final Outturn report. As is always the case, the final outturn position is reported after the annual accounts, allowing for adjustments made through the accounts preparation process. Final outturn will be reported to Parliament once all accounts within the budgetary boundaries are finalised.

The £205 million of funding adjustments that reduced Scottish Government HM Treasury Budget limits following the completion of the Spring Budget Revision (SBR) related to the following significant items:

• £193 million reduction in funding due to the decision to reduce borrowing levels as part of managing the year-end budget monitoring position, with final borrowing decisions always taken in the last month of the financial year;
• £30 million more funding than had been anticipated from devolved tax receipts and other sources, which was offset by £30 million decrease in flexible funding sources; and
• £19 million reduction in assumed IFRS 16 funding, which was offset by £7 million under-allocation of funding at SBR.

The funding adjustments are offset by ring-fenced, non-cash budgets and Annually Managed Expenditure which are not included in the figures reported in the Provisional Outturn.

The Total Outturn underspend of £1,009 million does not represent a loss of spending power to the Scottish Government. Under the current devolution settlement, the Scottish Government must manage spending within fixed limits. It is not allowed to overspend its budget and has limited powers to carry forward funding through the Scotland Reserve. As a consequence, the Scottish Government has consistently adopted a position of controlling public expenditure to ensure we live within the budget limits that apply, whilst remaining able to carry forward any fiscal underspends for use in a future year within the current Scotland Reserve Limits.

How the Scottish Budget is funded

There are a number of sources of funding to support the expenditure that is planned and approved by the Scottish Parliament in the Scottish Budget Act.

The Scottish Consolidated Fund was established by the Scotland Act 1998 and operates in accordance with the Public Finance and Accountability (Scotland) Act 2000. The Scottish Consolidated Fund receives, from the Office of the Secretary of State for Scotland, sums which have been voted by the UK Parliament for the purpose of "grant payable to the Fund". Funding is drawn down by the Scottish Government from the Scottish Consolidated Fund to support the spending plans laid out in the draft budget.

The primary receipts to the Scottish Consolidated Fund are: the Block Grant from HM Treasury; revenue collected by HMRC on behalf of the Scottish Government under the provisions for Scottish Income Tax; Devolved taxes collected by Revenue Scotland which are currently Land and Buildings Transaction Tax (LBTT) and Scottish Landfill Tax (SLfT); and borrowing.

The block grant from the UK Government is allocated to the Secretary of State for Scotland through the approval of the UK Parliament, and forms part of the UK public expenditure control regime. This requires the Scottish Government to plan, monitor and report its spending against the control aggregates set by the UK Parliament and HM Treasury alongside those set by the Scottish Parliament.

The Scotland Act 2016 empowered the Scottish Parliament to set Scottish Income Tax rates and bands. During 2024-25, £20.3 billion in income tax revenues derived from Scottish Income Tax were assigned to the Scottish Administration and paid to the Scottish Consolidated Fund. Identification of Scottish taxpayers and administering the tax are matters for the UK Government and His Majesty’s Revenue and Customs (HMRC).

Under devolved powers from the 2012 Scotland Act, devolved taxes in respect of LBTT and SLfT are collected and managed in Scotland by Revenue Scotland. A total of £957 million has been reported in respect of LBTT (£901 million) and SLfT (£56 million). The Scottish Fiscal Commission is responsible for providing independent forecasts of tax revenue and provided the forecast for the Budget (Scotland) Act 2024. The Budget (Scotland) Act 2024 estimates were included in Scotland’s Economic and Fiscal Forecasts published in December 2024. Scotland’s Economic and Fiscal Forecasts – December 2024 | Scottish Fiscal Commission

Revenue Scotland is responsible for preparing an account of the devolved taxes (The Devolved Taxes Account). The taxes collected by Revenue Scotland are paid to the Scottish Consolidated Fund. The Devolved Taxes Account and the Scottish Consolidated Fund Account are prepared and published separately and can be accessed online at revenue.scot and gov.scot.

From the 2016 Scotland Act, the Scotland Reserve, effective from 1 April 2017, provides the Scottish Government with a limited tool to manage the smoothing of all types of spending and to assist with the management of tax volatility and determine the timing of expenditure.

As further powers have been devolved to Scotland, and the ability to use the existing fiscal levers to influence the funds available has increased, the impact of accurate tax forecasting has become greater. The Scottish Fiscal Commission was established in June 2014 as a non-statutory body to provide independent scrutiny of Scottish Government forecasts of receipts from taxes devolved to Scotland. By March 2016 the Scotland Act 2016 devolving more fiscal powers to Scotland was passed, and the associated Fiscal Framework was agreed between the Scottish Government and UK Government. The Fiscal Framework changed the remit of the Scottish Fiscal Commission as reflected in the Scottish Fiscal Commission Act 2016 which received Royal Assent on 14 April 2016. An update to the Fiscal Framework was agreed between the Scottish and UK Governments in July 2023.

Further information about the Scottish Budget setting and authorisation process can be found within Scottish Budget 2024 to 2025 and in the Government Finance section of the Scottish Government website, which includes the financial reports and accounts.

The total budget approved by the Scottish Parliament includes activities not included in these accounts. Note 23 to these accounts provides a reconciliation to the total budget.

The fiscal activity of the Scottish Government is described in a suite of accounts information: the Scottish Consolidated Fund account, incorporating additional reporting on the use of borrowing powers and the related Devolved Taxes Account report on the funding available to the Scottish Government in the financial year; the Scottish Government Consolidated Accounts, the annual accounts of the other bodies within the Scottish Administration and of the bodies funded directly from the Scottish Budget together report on the use of resources authorised by the Scottish Parliament for the financial year.

Accounting Boundary

These accounts reflect the consolidated assets and liabilities and the results of all entities within the Scottish Government consolidation accounting boundary as required by and defined in the Government Financial Reporting Manual (FReM). This consists of nine internal Portfolios, their Executive Agencies (each linked to a specific portfolio), the Crown Office and Procurator Fiscal Service and the NHS Bodies responsible for the planning, promotion, commissioning and the delivery of healthcare. The portfolio analysis in these accounts reflects the portfolios designated by the First Minister from 8 May 2024.

Deputy First Minister, Economy and Gaelic Portfolio

Finance and Local Government Portfolio

Executive Agencies:

• Scottish Public Pensions Agency (Scottish Public Pensions Agency Website)
• Accountant in Bankruptcy (Accountants in Bankruptcy Website)

Health and Social Care Portfolio

Other Consolidated Bodies:

• The NHS Bodies in Scotland (The NHS Bodies in Scotland Website)
• Mental Welfare Commission (Mental Welfare Commission Website)

Education and Skills Portfolio

Executive Agencies:

• Disclosure Scotland (Disclosure Scotland Website)
• Education Scotland (Education Scotland Website)
• Student Awards Agency Scotland (Student Awards Agency Scotland Website)

Justice and Home Affairs Portfolio

Executive Agency:

• Scottish Prison Service (Scottish Prison Service Website)

Social Justice Portfolio

Executive Agency:

• Social Security Scotland (Social Security Scotland Website)

Rural Affairs, Land Reform and Islands Portfolio

Executive Agency:

• Scottish Forestry (Scottish Forestry Website)

Constitution, External Affairs and Culture Portfolio

Transport Portfolio

Executive Agency:

• Transport Scotland (Transport Scotland Website)

Net Zero and Energy Portfolio

Other Consolidated Bodies:

• The Crown Office and Procurator Fiscal Service (The Crown Office and Procurator Fiscal Service Website)

In addition to inclusion within these consolidated accounts, the executive agencies and other bodies detailed above also publish separate accounts providing greater detail about their income and expenditure and assets and liabilities. The accounts can be accessed at the websites noted above.

The Scottish Government is also the sole shareholder of Caledonian Maritime Assets Ltd, David MacBrayne Ltd, Highland and Islands Airports Limited, Scottish Futures Trust, Prestwick Holdco Limited and Ferguson Marine (Port Glasgow) Ltd, and sponsor of a number of executive, advisory and tribunal Non-Departmental Public Bodies. These bodies are regarded as related parties with which the Scottish Government has had various transactions during the year, but do not fall within the Scottish Government consolidation accounting boundary. Further details of Scottish Public Bodies are available on the Scottish Government website.

The financial statements of NHS Boards include NHS Endowment Funds. These Endowment Funds are Registered Charities with the Office of the Scottish Charity Regulator (OSCR) and they are also required by OSCR to prepare audited financial statements. NHS Endowment Funds are not part of the Scottish Government accounting boundary, and therefore they have not been included in Scottish Government consolidated accounts.

These accounts report actual outturn compared to the budget authorised by the Scottish Parliament. The Scottish Government also routinely reports to Parliament each year on the Final Outturn for the Scottish Administration in an additional statement. This brings together the audited information from the bodies within the Scottish Administration to show this against the Budget limit authorised by the Scottish Parliament.

Statement of Financial Position

The primary purpose of these accounts is to reflect the use of resources. The Financial Performance: Outturn against Budget section (page 10) sets out the financial performance in terms of the outturn compared to budget authorised by the Scottish Parliament. The Statement of Financial Position reflects the assets held and liabilities arising from the spending plans which support policy choices. Assets are held not for their income generation capability or their inherent value but for their service potential or as a direct consequence of particular policies, for example providing healthcare in hospitals and the provision of funding to students in the form of loans. Similarly, liabilities arise as a consequence of the timing of commitments relating to spending and policy choices.

The Consolidated Statement of Financial Position, (page 100) is one of the primary financial statements in the Consolidated Accounts. It summarises what is owned and owed by the Scottish Government. This shows taxpayers' equity – an accounting measurement of the amount invested by taxpayers that has continuing public benefit. It shows how much of this has arisen from the application of revenues (including the Scottish Block Grant) and that which has resulted through changes over time in the value of physical assets.

It is important to note that the consolidated accounts bring together the “balance sheets” of bodies that are significant in their own right. Detailed financial and narrative information on the major items, for example the road network, is available in the accounts and related reports of the relevant body - Transport Scotland; similarly, information about NHS bodies is in the detailed accounts for each body; the Student Awards Agency also provides separate reporting around student loans i.e. the loans are not within SAAS’ accounts but they do provide information about their administration, and the loans themselves are reported within these consolidated accounts.

The Statement of Financial Position includes:

• items which are owned, have already been funded from revenues and will provide continuing economic benefit in future periods. These increase taxpayers' equity;
• items which are owed and expected to require to be funded from future revenues. These decrease taxpayers' equity;
• items owed to the Scottish Government; and
• an analysis between amounts that will release or require funding within a year and those which will be carried into future years.

Assets and liabilities

Physical assets are the highest value group of assets in the Consolidated Accounts with a value of £39,150 million at 31 March 2025 of which £27,185 million (69 per cent) relates specifically to the road network. There were additions of £833 million that resulted from capital investment, offset by disposals and the net effect of depreciation and revaluations.

Most physical assets are valued by professional valuers in line with recognised methodologies. This provides an assessment of the continuing benefit they provide in financial terms. Where these assets have been funded by traditional means through capital then there are no continuing liabilities relating to them (maintenance and repair costs will arise). Those funded through other means (such as Public Finance Initiatives, Non Profit Distributing Projects and Scottish Government borrowed funds) also lead to liabilities representing the amounts that will require to be met from future budgets. Only physical assets that are deemed surplus and 'held for sale' (£6 million) will release resources previously invested for future use.

Financial assets include loans made directly to other organisations and individuals, investment funds used to deliver development programmes and investments in nationalised industries plus fully or part owned companies. These assets are of continuing benefit to the Scottish Government, and have the potential over time to release the resources currently invested for future use – including reinvestment, in accordance with the terms of the loan or other investment made.

Where Scottish Ministers decide to make investments directly through the Scottish Government, Accountable Officers must ensure that appropriate diligence and consideration is carried out before any commitment is made to invest in accordance with the detailed guidance in the Scottish Public Finance Manual, support specific economic objectives and are in line with the outcomes set out in the National Performance Framework.

Such investments are exceptional in nature and investment is in accordance with Scottish Ministers’ purpose of achieving a commercial outcome; this means that the investment should be able to demonstrate a potential return commensurate with the risk associated with the proposal.

For the purposes of assessing the valuation of such investment for accounting purposes, IFRS 9 applies an “expected credit loss model”. This is not a write-off of those investments or a prediction of loss but a measure of the risk in the investment which means that the assessment for accounts purposes has to take a prudent view of whether a positive outcome can yet be substantiated.

Burntisland Fabrications Limited (BiFab)

In the 2018-19 financial year, the Scottish Government converted £37.4 million of loans previously advanced to BiFab on a commercial basis to equity in the company. As a result of the conversion of these loans, the Scottish Government now holds a 32.4% equity stake in BiFab. The equity stake in BiFab was valued at nil in the 2019-20 annual accounts.

The delays to the Neart na Gaolthe turbine jacket generator contract award, the decision to award the Seagreen contract to overseas competitors, compounded by the majority shareholder’s continued lack of financial support for the business weakened Bifab’s cashflow and balance sheet. In light of this, the company was placed into administration on 14 December 2020. The administration period has been extended several times and is currently due to expire on 14 December 2025. A further 12 month extension request is anticipated.

Scottish Ministers remain committed to a sustainable future for the sites at Arnish, Burntisland and Methil. The Scottish Government provided funding to the Administrators of BiFab to allow a sales process to be conducted and support the pursuit of a financial return to Scottish Government, as a high-ranking creditor, through the administration process. This process resulted in a sale of the business to InfraStrata PLC, trading as Harland & Wolff, in February 2021.

The one remaining asset of the BiFab estate is an outstanding debt claim against a BiFab customer for unpaid work. The claim has a potential recovery of up to £18.8 million arising from steel fabrication work carried out by BiFab between 2018 and 2020. As a secured creditor, Scottish Government’s primary interest in BiFab itself is now pursuing a return through the administration process.

Ferguson Marine (Port Glasgow) Limited

On 2 December 2019, the Scottish Government brought Ferguson Marine shipyard into public ownership. This intervention by the Scottish Government demonstrated Scottish Ministers’ commitment to protecting jobs at the Port Glasgow yard, delivering the two ferries under construction and securing a future for commercial shipbuilding on the Clyde.

Since the business entered public ownership, MV Glen Sannox has now been delivered and entered passenger service in January 2025. The project faced delays related to the impact of the COVID 19 pandemic, shortages of skilled labour, and the complexities of integrating Liquefied Natural Gas (LNG) systems in a dual-fuel passenger vessel, the first time this type has been built in the UK. The total cost of MV Glen Sannox at handover was £151.5 million, with a small amount of remaining post-delivery work being completed under warranty.

Lessons from the design and build of MV Glen Sannox are being applied to MV Glen Rosa, the second dual-fuel vessel, which is now forecast for delivery in Quarter 2 of 2026. The build plan and costs for MV Glen Rosa have been subject to detailed reforecasting and are now estimated at £185 million (including contingency). A new weekly review group chaired by Ferguson Marine and involving technical advisers from Caledonian Maritime Assets Limited (CMAL) has been established to scrutinise delivery plans and enforce schedule and cost discipline.

In early 2025, the Ferguson Marine Board appointed a new permanent Chief Executive Officer, Graeme Thomson, who brings experience from Babcock, BAE Systems, and Seaspan. His appointment follows a period under interim leadership following the departure of the former Chief Executive Officer (CEO) in March 2024.

Ferguson Marine continues to pursue opportunities in the commercial shipbuilding sector and has submitted bids and undertaken pilot projects with external clients including BAE Systems. Ministers have signalled their intention to invest up to £14.2 million in the yard to improve its productivity and competitiveness, subject to due diligence and compliance with subsidy control and procurement rules.

The Scottish Government continues to carry out rigorous due diligence on vessel cost forecasts and investment proposals in line with the Scottish Public Finance Manual (SPFM) and Audit Scotland recommendations. This includes ensuring the current contracts remain the most appropriate route to delivering lifeline ferry services to island communities.

Ferguson Marine is included within the Significant Issues and Written Authority sections of the Governance Statement; for more details, see pages 60 and 63.

Lochaber

In December 2016 the Scottish Government entered into a 25-year financial guarantee relating to the hydro plant and aluminium smelter at Lochaber. This involved guaranteeing the power purchase obligations of the smelter if the business does not fulfil its obligations to pay for contracted power. The guaranteed annual amounts vary between £14 million and £32 million over the life of the contract. The Scottish Government receives an annual fee in return for the guarantee. The carrying value of this financial asset in the accounts is zero.

Glasgow Prestwick Airport

Glasgow Prestwick Airport was purchased by the Scottish Government in 2013 with the stated aim of protecting jobs and safeguarding the asset. The total investment consists of capital spend of £43.4 million and interest of £15.5 million, with no new capital invested since 2019.

Glasgow Prestwick Airport has demonstrated its key strength in offering a diverse range of services to different markets and returned an operating profit of £3.2 million in 2023-24, with results for 2024-25 expected during Autumn 2025. This is the fifth consecutive year in profit and continues the positive trajectory since the pandemic. Despite challenging market conditions, the airport was able to adapt and recruit, with staff working hard to deliver a safe, secure, and efficient service with passenger numbers and the total number of aircraft movements increasing on the previous year.

Pensions

The Scottish Government consolidated accounts include as expenditure the employers’ contributions payable for the financial year. Staff in the Core Scottish Government, Executive Agencies and Crown and Procurator Fiscal Service are members of the Principal Civil Service Pension Scheme (PCSPS). There is no pension liability in respect of the PCSPS within the Scottish Government consolidated accounts because it is a UK scheme administered by the Cabinet Office and it is not possible to identify the “Scottish share” of the underlying assets and liabilities of the scheme. The Cabinet Office produces separate pension scheme accounts covering all members across the UK.

Staff in the NHS consolidated bodies can choose between the PCSPS and the NHS Superannuation Scheme for Scotland, which is an unfunded statutory public service pension scheme with benefits underwritten by the UK Government. The NHS scheme is administered by the Scottish Public Pensions Agency and annual scheme accounts are produced.

The liabilities to be met over time are not met from investments but paid out each year from the funding of the relevant schemes. The NHS scheme is funded within the Scottish Administration in the Scottish Budget; the PCSPS is dealt with through the UK annual process.

Borrowing

Capital Borrowing

Under Section 32 of the Scotland Act 2012, as amended by Scotland Act 2016 Section 20, additional borrowing powers were conferred on Scottish Ministers with effect from 1 April 2015. Any sums borrowed and repaid under these provisions must do so via the Scottish Consolidated Fund and hence be reflected in those accounts.

The 2023 Fiscal Framework Review expanded the borrowing powers available to Scottish Ministers and concluded that these annual and cumulative limits should be indexed every year to inflation.

The first exercise of the Capital borrowing powers took place in 2017-18 where £450 million (the maximum available) has been drawn down to the Scottish Consolidated Fund from the National Loans Fund. This was followed by borrowing of £250 million in 2018-19, £405 million in 2019-20, £200 million in 2020-21, £150 million in 2021-22, £300 million in 2022-23, £300 million in 2023-24 and £139 million in 2024-25.

The repayment of borrowing outstanding as at 31 March 2025 is scheduled as follows:

	Principal (£m)	Interest (£m)	Total (£m)
<1 year	120.3	39.3	159.6
1 – 5 years	520.1	131.3	651.4
>5 years	1,162.1	128.0	1,290.1
Total	1,802.5	298.6	2,101.1

An arrangement was agreed with HM Treasury for notional borrowing in 2015-16 and 2016-17 to meet the budget implications of the classification decision related to the introduction of The European System of National and Regional Accounts (ESA10) which required the capital value of a small number of Non-Profit Distributing projects to be budgeted for in the years of asset construction. This required the notional amounts borrowed to be recorded against the Scottish Government’s borrowing cap in each of these years, however no actual borrowing was undertaken.

Resource Borrowing

The first exercise of the Resource borrowing powers took place in 2020-21 where £207 million has been drawn down to the Scottish Consolidated Fund from the National Loans Fund. This was within the final limit for Resource Borrowing for the financial year 2020-21 of £300 million. £319 million was then drawn down in 2021-22, £47 million in 2022-23, and £104 million in 2023-24 all within the revised annual limit of £600 million.

Further detail on the specific, annual and cumulative limits for Resource borrowing are available in the Fiscal Framework Outturn Report for 2024-25, the Medium Term Financial Strategy, and the Scotland Act Implementation Report.

The repayment of borrowing outstanding as at 31 March 2025 is scheduled as follows:

	Principal (£m)	Interest (£m)	Total (£m)
<1 year	134.5	7.3	141.8
1 – 5 years	218.6	9.3	227.9
>5 years	-	-	-
Total	353.1	16.6	369.7

Payment Policy

The Scottish Government policy requires that all suppliers’ invoices not in dispute are paid within the terms of the relevant contract. The Scottish Government aims to pay 100% of invoices, including disputed invoices once the dispute has been settled, on time in these terms.

The Scottish Government has a 10-day target for paying bills to businesses in Scotland. This aspiration is above and beyond our contractual commitment to pay suppliers within 30 days. Paying supplier bills within ten working days is seen as a key objective, and an important expression of the Scottish Government’s commitment to supporting business.

For financial year 2024-25, the Scottish Government, its Executive Agencies and the Crown Office and Procurator Fiscal Service made 93.9% of all payments within 10 days (2023-24: 97.8%). The specific payment performance of the individual bodies consolidated here will be reported separately within their individual accounts. The core Scottish Government made 94.3% of payments within 10 days (2023-24: 98%). The NHS bodies in Scotland made 79% of all payments within 10 days (2023-24: 81%).

The payment performance of the Scottish Government, its Executive Agencies and the Crown Office and Procurator Fiscal Service for 2024-25 was 98.5% (2023-24: 99.5%) of all transactions settled within the terms of its contractual 30 day payment policy. The specific payment performance of the individual bodies consolidated here will be reported separately within their individual accounts. The core Scottish Government made 98.6% (2023-24: 99.5%) of all payments within the terms of its contractual 30 day payment policy. The NHS bodies in Scotland made 92% (2023-24: 92%) of all payments within the terms of their contractual 30 day payment policy.

Performance Reporting

In 2024-25, performance reporting was aligned with the First Minister’s four priorities:

• Eradicating Child Poverty
• Growing the Economy
• Tackling the Climate Emergency
• Improving Public Services

In order to better articulate how we are delivering our ambitions and what the clear impact on people’s lives is of doing so, we are continuing to enhance our performance and delivery reporting and consolidation of data.

Governance and Delivery

Our corporate governance structures and underpinning processes have been strengthened with a focus on Programme for Government (PfG) delivery, enabling more effective oversight by Ministers and Cabinet. Programme and project management methodologies have been embedded to support a centrally coordinated approach to delivery. Regular reviews by Cabinet and the Executive Team ensure continued alignment with the PfG and wider statutory responsibilities.

National Performance Framework (NPF)

The NPF remains central to Scotland’s wellbeing vision. It brings together the national outcomes and indicators, alignment with the Sustainable Development Goals and guidance on implementation. Work to refresh the NPF is underway. While indicator updates are paused during the refresh process, which limits our ability to report on the indicators in this performance report, the outcomes continue to guide public bodies. A refreshed framework is expected to launch following the 2026 election.

Financial Overview

Total outturn was £56,317 million against a budget of £57,326 million, with a variance of £1,009 million. Detailed financial performance is available in the Portfolio Outturn Statements (pages 89–100) and the Performance Overview (page 10).

Managing Risks

Risk management continues to evolve, with improvements to assurance arrangements ensuring a dynamic response to emerging risks and external challenges (see page 48 of the Governance Statement).

Scottish Government Workforce

The Scottish Government has maintained a proactive approach to workforce management. Since March 2022, overall workforce numbers have reduced by 5%. In 2024-25, this included a net decrease of 215 contingent workers, offsetting a rise of 68 in directly employed staff on a headcount basis. This reflects a strategic focus on reducing contingent labour, consistent with the direction set by the Resource Spending Review (May 2022) to reduce the workforce size.

Cost savings are now being realised, including a £15 million reduction in temporary staffing costs between 2023-24 and 2024-25. While costs for directly employed staff have increased, driven by pay awards and recruitment into higher-skilled, higher-cost roles, we continue to review our workforce plans and align them to Ministerial priorities.

Looking ahead, the Public Sector Reform Strategy and Fiscal Sustainability Plan, both published in June 2025, provided clear operational context for the Scottish Government and the wider public sector in this space.

Forward Look

The report reflects both progress and areas for improvement. In the coming year, focus will remain on delivery, supported by the refreshed NPF and the Public Service Reform Strategy. Strengthening internal prioritisation and resource allocation will be key to achieving positive outcomes.

Performance Analysis

Synopsis

In 2024-25, we have continued to progress activity, in collaboration with partners, in support of the First Minister’s four priorities in the context of global and economic uncertainty.

There has been positive progress in areas including:

• Transport: Over 2.3 million people benefited from free bus travel, including nearly 798,841 children and young people.
• Housing: 7,444 affordable homes delivered, with 80% for social rent, supporting over 2,400 families.
• Education: Free school meals provided to over 273,000 pupils, saving families approximately £450 per child annually.
• Health: CAMHS met the 18-week target in quarter 4 for the first time; NHS Boards exceeded targets with 105,500 additional appointments and procedures.
• Attainment: Literacy and numeracy levels among Primary 1, Primary 4, and Primary 7 pupils reached record highs, with improvements across all deprivation levels.

Progress and performance across key performance indicators are not always linear. Variability over time is to be expected, reflecting the complexity of delivery environments, evolving priorities, external factors and breadth of the Scottish Government Programme. These patterns are a normal part of long-term strategic implementation and should be interpreted within the broader context of sustained progress and adaptive management. Recognising and understanding these challenges is a key part of our continued governance and delivery growth.

Some key learnings in 2024-25 have been in the following areas:

• Delays and overspends affected ferry construction projects (MV Glen Sannox, MV Glen Rosa, MV Isle of Islay);
• Continuing challenges in prison population numbers, which remain above pre-pandemic levels despite early release measures;
• Recognising that the target of cutting emissions by 75% by 2030 was out of reach, in response to which we brought forward a revised Climate Change Bill, now approved by Parliament, based on 5 year carbon budgets to support charting a course to 2045 at a pace and scale which is feasible, fair and just;
• The levels of economic uncertainty and the impact on construction costs and delayed delivery across a number of SG supported capital programmes in health, justice and transport; and
• Mobilising whole system collaboration, across sectors, to deliver meaningful, local Whole Family Support requires an ongoing programme into 2025-26 to realise the ambitions for people set out by Ministers.

Priority 1: Eradicating Child Poverty

Overview of activity

Eradicating child poverty remains the Scottish Government’s foremost priority. Despite fiscal constraints and the ongoing cost of living crisis, we continue to invest in targeted measures to support families and break the cycle of poverty. The annual progress report on child poverty, sets out the wide-ranging measures taken in 2024-25 towards eradicating child poverty, including:

• Scottish Child Payment (SCP) increased to £26.70 per week, supporting over 326,000 children and delivering £455 million in 2024-25, £26 million more than the previous year;
• Employability Support reached 8,532 parents via the No One Left Behind approach (April–March 2025), up by over 400 from the previous reporting year;
• Free Bus Travel extended to 799,000 children and young people, a 9% increase since April 2024;
• Housing Support through Discretionary Housing Payments aided 3,000 households, including nearly 10,000 children affected by the UK benefit cap;
• Affordable Housing delivery included 7,444 homes, 80% for social rent, benefiting an estimated 2,457 families with children;
• Winter Energy Support package of £41 million included increased funding for the Scottish Welfare Fund and Warmer Homes Scotland, helping 1,600 households save £400 annually; and
• Free School Meals provided to over 273,000 pupils, saving families approximately £450 per eligible child annually.

Child poverty statistics

Statistics published in March 2025 show that too many children continue to live in poverty in Scotland with rates above the interim targets on all measures as the annual progress report on child poverty set out. As of 2021-24, 23% of children (approx. 240,000) lived in relative poverty after housing costs. Larger families remain disproportionately affected, with 41% of children in households with three or more children living in poverty, compared to 17% in smaller households.

Despite challenges, progress is evident. Relative and absolute child poverty rates have declined, with the 2023-24 figures marking the lowest levels in recent decades.

Further detail explaining trends in child poverty levels and changes in the drivers of child poverty reduction are set out in Section 2 of the annual progress report on child poverty for 2024-25.

The Promise

Aligned with our child poverty efforts, we continue to invest in Keeping The Promise for care-experienced children, young people, and adults. Our aim is to reduce care system entry by addressing root causes and improving public services.

Key developments include:

• 18.1% reduction in children identified as ‘looked after’ since 2020 (Children’s social work statistics publications on the Scottish Government website).
• 30% increase in Continuing Care uptake in 2024;
• Implementation Plan Update published in September 2024 (Keeping The Promise to our children, young people and families: progress update 2024 report), outlining commitments to meet The Promise by 2030;
• Children (Care, Care Experience and Services Planning) (Scotland) Bill introduced to extend aftercare support, introduce advocacy rights, reform the Children’s Hearings System, enhance financial transparency and not-for-profit principles in care, and establish a National Register for foster carers.

Priority 1: Case Study – School Age Childcare Programme Early Adopter Communities

Inverclyde’s Early Adopter Community project is working to design childcare provision around the real needs of families and communities, particularly for those most likely to be living in poverty. By expanding access to childcare and family support, the project is supporting parents and carers to take up and maintain employment. In Port Glasgow, the project has also been working closely with community members to understand local needs and to co-design solutions to the childcare challenges faced by families in the area.

Parents receiving help included Lisa*, a kinship carer who faced isolation and a lack of support. Through the project, Lisa has been able to access a childcare place, enabling her to attend work. She has also been connected with a Family Wellness Worker who provided regular check-ins and monitored her family’s wellbeing. Through their regular engagement, Lisa described her family’s struggles, including that her child was experiencing behavioural issues while attending childcare. To help resolve this issue, the Family Wellness Worker coordinated a Team Around the Child meeting with key organisations - including the childcare provider – to put appropriate support in place. As a result of cross-organisation working, a new trauma informed approach was implemented by the childcare setting to ensure her child was able to continue attending. Lisa noted the impact of this, saying: “The service has enabled me to go to work full time and knowing my child is in a well looked after environment takes pressure from me”.

Through community engagement work, the Early Adopter Community project identified a lack of childcare options for families in the Port Glasgow Area. Over the past year, partnership working with the Inverclyde Child Poverty Action Group which consists of Inverclyde Council, the Health and Social Care Partnership, third sector organisations, childcare providers, and local families, has worked to identify solutions to the challenges families face in accessing childcare and services locally. This led to an ambitious plan to create a child and family-focused hub in Port Glasgow that will offer childcare alongside family-centred services, learning, recreation, and community connection. With £500,000 capital investment from the Scottish Government, a new dedicated childcare space has been created in Boglestone Community Centre. Local parents who developed a steering group to help co-design the new hub named it The B-Hive, explaining, “Bees work alone as part of a greater good. We all have something to add here”.

*Name changed to protect identity

Priority 2: Growing The Economy

Overview of activity

Economic growth underpins the Scottish Government’s four priorities, creating quality jobs, attracting green investment, tackling poverty, and sustaining public services. Our long-term goal is a wellbeing economy driven by fair, green growth. Nearly 40% of actions in our 10-year economic strategy have been delivered in the first three years. Long-term impact and progress towards outcomes is assessed in our third National Strategy for Economic Transformation report.

Key activity in 2024-25 included:

• Regional Investment: Finalised contributions to Falkirk & Grangemouth (£50 million) and Argyll & Bute (£25 million) growth deals. Supported Glasgow and North East Regional Economic Partnerships in establishing Investment Zones, unlocking up to £160 million each from UK Government;
• Green Freeports: Advanced development of Inverness and Cromarty Firth and Forth Freeports. Early investments include £350 million (Sumitomo), £300 million (Haventus), and £50 million (Forth Ports);
• Enterprise Support: Created/safeguarded ~16,100 jobs and unlocked £1.37 billion in planned capital investment. Scottish National Investment Bank (SNIB) investments supported 3,000+ jobs and £168 million in supply chain spend;
• Inward Investment: Scotland saw a 12.7% rise in Foreign Direct Investments (FDI) projects (135 total), maintaining its position as the UK’s top FDI location outside London;
• We have continued to direct investment to areas such as digital infrastructure, the culture sector and entrepreneurship to support economic growth and benefit communities across Scotland.

Economic Performance

In 2024, Scotland’s annual onshore Gross Domestic Product (GDP) is estimated to have been £209.6 billion in nominal terms. This is an increase in of 1.1 per cent in real terms or 5.1 per cent in nominal terms compared to 2023 (from the GDP Quarterly National Accounts: 2025 Quarter 1 (January to March report). On a quarterly basis, GDP growth has been positive in all periods since the start of 2024, following more unsettled performance in 2023 (from the GDP First Quarterly Estimate 2025 Q2 (April to June) report).

Figure 1. Chart showing quarterly growth rates of between 0.1% and 0.9% in all quarters since the start of 2024 after a fall of 0.3% at the end of 2023.

Percentage change, quarter compared to previous quarter

Our National Strategy for Economic Transformation Annual Report provides a retrospective on the year's delivery, with a detailed overview of our performance against the strategy’s metrics.

Priority 2: Case Study- Govan Partick Bridge, Glasgow City Region Deal

The Scottish Government is committed to investing in the 20-year City and Regional Growth Deal programme, including a £500 million investment towards the Glasgow City Region Deal. This Deal was the first in Scotland and celebrated the 10^th anniversary of the signing during 2024. The Deal continues to provide significant investment across the region, showcased by the opening of the Govan Partick Bridge, which delivers on a commitment to have better connected communities.

The £29.5 million Govan-Partick Bridge is funded through the Deal by both the Scottish and UK Governments who each provided £12.7 million in funding, re-establishing the historic connection between Govan and Partick, with the Bridge crossing between Water Row on the south and Pointhouse Quay beside the Riverside Museum on the north. This project is part of the wider £97 million Clyde Waterfront and West End Innovation Quarter project.

Since it opened on 6 September 2024, the Govan-Partick Bridge has seen impressive use, with over 820,000 pedestrian crossings and 185,000 cyclist crossings. This strong uptake highlights the bridge’s importance as a new link across the River Clyde. The bridge plays a vital role in connecting the communities of Govan and Partick, and several key visitor attractions forming a central part of the active travel route between the University of Glasgow’s Gilmorehill campus and the Queen Elizabeth University Hospital, making it easier and more sustainable for people to move between these major sites.

During the construction, 143 direct jobs were created, along with apprenticeships and training opportunities. It is also expected that there will be 23% increase in jobs that are accessible within a 20-minute walk of Govan Cross and an 87% increase in the number of jobs within a 10-minute cycle of Govan Cross.

The Govan-Partick Bridge is the first pedestrian/cycle opening swing bridge over the River Clyde and one of the longest in Europe. It has a width of six metres and two spans.

We will continue to show our commitment to the delivery of the Deal’s programme across Scotland in 2025-26. This includes the Glasgow City Region, with Deals in delivery in all areas, as well as delivering on our Programme for Government commitment, following the signing of the Argyll and Bute and Falkirk and Grangemouth Deals during 2024-25.

Priority 3: Tackling The Climate Emergency

Overview of activity

In recognition that existing targets were out of reach, in November 2024, the Scottish Parliament passed the Climate Change (Emissions Reduction Targets) (Scotland) Act 2024, replacing annual and interim emissions targets with five-year carbon budgets. Scotland remains committed to achieving net zero by 2045. The next Climate Change Plan, due by the end of this Parliament, will outline policies to meet carbon budgets through 2040, ensuring a just transition.

Scotland continues to lead in renewable energy, generating over 90% of electricity from zero or low-carbon sources in 2023. Between Quarter 1 2024 and Quarter 1 2025, renewable electricity capacity increased by 13.9%. The third Scottish National Adaptation Plan (SNAP3) sets out actions through 2029 to address climate impacts.

Key activities on renewable energy in 2024-25 include:

• Offshore Wind: Continuing investment of up to £500 million over five years to support the supply chain, with £120 million committed to date, expected to leverage around £620 million in private funding and supporting 3,500 jobs;
• Industry & Hydrogen: £16.9 million for industrial decarbonisation and £8 million for hydrogen sector development;
• Community Energy: Over £5 million through the Community and Renewable Energy Scheme for decarbonising buildings and supporting local energy projects;
• Just Transition Fund: £16 million invested in skills initiatives;
• Heat in Buildings: £245 million in capital and £20 million in revenue funding, supporting over 100,000 households with advice and enabling 30,000 energy efficiency installations; and
• Clean Transport: £4.2 million through the Plugged-in Communities fund, supporting 64 zero-emission vehicles and 250,000 miles of clean travel.

Key activities on the natural environment include:

• Peatlands: 14,860 hectares restored, exceeding targets and marking a 42% increase from 2023-24;
• Forestry: Scotland led UK woodland creation, contributing £1.1 billion to the economy and removing 7.6 metric tonnes of CO₂ annually;
• Flood Resilience: £42 million invested, with schemes completed in Millport Coastal, Stranraer, and Upper Garnock; and
• Fisheries: £22 million annually for enforcement, supporting sustainability and market confidence.

Supporting our farmers and the rural economy

Over £440 million was delivered to 19,600 businesses via schemes including Basic Payment, Greening, Young Farmers, Preparing for Sustainable Farmers, and Forestry Grants. The Agriculture and Rural Communities (Scotland) Act 2024 introduces an adaptive framework for future support and policy development.

Transition to a zero waste and circular economy

The Circular Economy (Scotland) Act 2024 establishes a framework to boost reuse and recycling.

Key activity in 2024-25 includes:

• Appointment of the Extended Producer Responsibility scheme administrator.
• Ban on single-use vapes.
• Progress on single-use cup charges and Deposit Return Scheme (DRS), set for October 2027.

International support

Scotland maintained its commitments to climate justice and development in 2024-25, launching new programmes in Malawi, Rwanda, Zambia, and continuing education support in Pakistan, aligned with the 2024 International Strategy.

Scottish Government Corporate Performance

The Scottish Government reports annually on compliance with its public body statutory climate change duties, published in the Sustainable Scotland Network Reports 2023-24 (the 2024-25 report will be published in 2026). The latest report noted:

• Scope 1 emissions: ↓11%, mainly due to reduced marine fuel use.
• Scope 2 emissions: ↑3%, due to grid electricity factors.
• Scope 3 emissions: ↑86%, driven by increased travel, commuting, and updated homeworking calculations.

Priority 3: Case Study - Adaptation Scotland programme

The Adaptation Scotland programme, funded by the Scottish Government and delivered by Verture, is increasing Scotland’s climate resilience. Over the last year, the programme supported over 1,000 individuals and organisations to take practical climate adaptation action. This includes supporting 110 businesses and business advisors with climate resilience training and engaging three priority industries to promote a just transition. 2024-25 saw the launch of the Climate Ready Tayside regional partnership and co-founding of Climate Ready Infrastructure Scotland, bringing together 23 infrastructure owners and operators who have now formally committed to joint adaptation planning and delivery. Additionally, over 250 climate-vulnerable communities, including 20 island communities, were supported through locally led adaptation actions and resources. In 2024 the redeveloped Adaptation Scot website received over 19,000 visitors in six months. A newly created SME (Small and Medium Sized Enterprise) Climate Resilience Checklist was downloaded over 900 times in its first few months and the programme’s ‘Public Sector Climate Adaptation Network’ grew from 40 to 65 organisations, including 26 local authorities.

Priority 4: Improving Public Services

Fiscal Sustainability

The Scottish Government continues to face significant challenges to its medium-term fiscal position, which is set out in the 2025 Medium-Term Financial Strategy (MTFS). As the MTFS illustrates, on resource, without action, the difference between projected funding and spending is set to grow from a balanced budget in 2025-26, to £2.6 billion in 2029-30. On capital, without further action, capital spending is forecast to exceed our available budget by £1.1 billion in 2026-27, rising to £2.1 billion in 2029-30.

Key actions in 2024-25 included: developing and publishing of Scotland’s Tax Strategy; publishing the results of an in-year savings exercise in September 2024 as part of a fiscal update to Parliament; and work to produce the Fiscal Sustainability Delivery Plan and MTFS for 2025-26. The Scottish Government's focus remains on delivering the financial strategy and actions set out in the delivery plan, with appropriate oversight and governance.

The Scottish Government’s Public Service Reform Strategy will make a major contribution to achieving a more sustainable pathway for public spending. This includes focusing on business improvement and increased productivity through workstreams such as scaling intelligent automation, service redesign, and reviewing the public service delivery landscape.

The UK Government announced in the Autumn Budget 2024 that it would increase the employer rate of National Insurance Contributions (eNICs) from April 2025. In November 2024 Scottish Government published indicative costs for the Scottish public sector of the changes. This was updated in February 2025, when the Finance Secretary announced the Scottish Government’s intention to cover 60% of the estimated eNICs costs for directly employed staff, which passed on in full the indicative UK Government funding. Scottish Government continues to press the UK Government for full funding, including for organisations critical to service delivery in Scotland which fall outside the strict public sector boundary.

Public Service Reform

Public service reform remained a key focus in 2024-25. Through the Whole Family Support Programme, we are working with partners to improve local funding flexibility, simplify reporting, address data-sharing barriers, and promote collaborative leadership. To fully realise the potential benefits of this approach, further work and culture change will be needed, both within Scottish Government and among partners locally. We will focus on this in the coming year.

Work is underway with partners in Argyll and Bute, Orkney, and the Western Isles to support Single Authority Models. We continue to strengthen community planning, working with COSLA (Convention of Scottish Local Authorities) and the Community Planning Improvement Board on shared priorities, and supporting peer learning through the Scottish Community Planning Network.

In September, Democracy Matters findings were published alongside a joint statement with COSLA on the Local Governance Review. A Steering Group is now progressing this work.

Health and Social Care

In June 2024, the Cabinet Secretary for Health and Social Care set out a vision for a healthier, longer-living Scotland. To support this, three core reform products were developed in 2024-25 and published around the turn of the financial year:

• Operational Improvement Plan (March 2025);
• Population Health Framework (June 2025); and
• Health & Social Care Service Renewal Framework (June 2025)

The 2024-25 Scottish Budget allocated over £19.5 billion to the portfolio, safeguarding essential services amid fiscal pressures.

A 25% increase in social care funding was delivered, exceeding £2 billion. This included £230 million for a minimum £12/hour wage for adult social care workers and £8 million for voluntary sector short breaks for carers.

There are persistent challenges in the sector and focus will need continue to maintain positive progress in areas such Child and Adolescent Mental Health Services (CAMHS), and to bring further necessary improvements in NHS waiting times.

Workforce

NHS Scotland staffing has grown by 17.2% over the past decade, and now stands at 161,000 whole time equivalents (WTE). Workforce growth broadly aligns with the 2022 strategy.

The GP whole time equivalent (excluding Specialist Trainees) had been falling in recent years, but increased by 4% in the latest year to 3,591.5 WTE in March 2025. These are similar numbers to those seen a decade ago, reversing previous declines. Over 5,000 WTE staff now work in expanded multidisciplinary teams, including physiotherapy, pharmacy, and phlebotomy. GP numbers remain above 5,000, with 360 added towards the 10-year goal of 800 new GPs by 2027. An additional £13.6 million was invested in 2024-25 to support recruitment and retention in General Practice.

Mental Health

Investment in mental health services is more than double the 2021 figure, enabling broader access to support. Notably, long waits for Child and Adolescent Mental Health Services (CAMHS) were significantly reduced, with the 18-week target met in Quarter 4 2024 for the first time.

Figure 2. Chart shows a trendline for the percentage of patients who started treatment in CAMHS within 18 weeks of referral, by quarter for June 2021 - June 2025 in Scotland. The percentage of children and young people seen for quarter ending June 2021 was 72.5%. Performance increased above 80% quarter ending December 2023 and above 90% quarter ending December 2024. This current quarter ending June 2025 91.8% of children started treatment within 18 weeks. PHS is commissioned to collect information on CAMHS, excluding ND pathway activity. According to CAMHS national service specification, CAMHS may not be appropriate for those with ND conditions but without a co-existing mental health condition and so will be managed via ND pathways and not included in this publication.

Capacity and Waiting Times

Pandemic-related pressures increased waiting times (NHS waiting times - stage of treatment page on Public Health Scotland website (26 August 2025)). In response, £30 million was invested in 2024-25 to deliver 64,000 additional appointments and procedures, exceeded by NHS Boards with 105,500 delivered, including:

• 15,800 outpatient appointments;
• 10,700 elective procedures; and
• 79,000 diagnostics.

The Golden Jubilee Surgical Centre began treating patients in August 2024 and was officially opened in December. Alongside National Treatment Centres (NTCs) in Fife and Highland, plus Golden Jubilee’s Eye Centre, over 20,000 patients were treated in these centres, with projections to exceed 30,000 in 2025-26. Despite progress, challenges persist, prompting a further £109 million investment in 2025-26.

However, there is clear recognition of the persistent challenges faced on reducing waiting lists, which stood at 559,742 for new outpatients and 158,436 for inpatient/day-case as at 31 March 2025 (NHS waiting times - stage of treatment page on Public Health Scotland website (27 May 2025)).

Digital Transformation

Digital innovation accelerated in 2024-25 with deliverables including:

• Over 1,700 clinics offer video appointments via Near Me;
• vCreate supported 14,500 families, reducing waits by up to 90% and saving £675 per patient;
• 30,000 joined the Connect Me pathway, avoiding 400,000 appointments and projecting £15.5 million in savings over 10 years; and
• Theatre scheduling pilots increased capacity by up to 20% and are being scaled.

Alcohol and Drug Harm Reduction

Efforts to reduce drug and alcohol-related harm continued, with over £156 million invested in 2024-25. Drug deaths in 2024 were 13% lower than in 2021, though challenges remain. Between January and March 2025, 308 suspected drug deaths were reported, 4% lower than the same period in the previous year.

Key milestones included:

• Launch of the Charter of Rights for those affected by substance use (2024); and
• Opening of the UK’s first safer drug consumption facility, The Thistle in Glasgow (January 2025).

Justice

The Vision for Justice (2022) and its accompanying three-year delivery plan (2023) set out the Scottish Government’s transformative agenda for justice through to March 2026. Key progress includes:

• Continued rollout of the Digital Evidence Sharing Capability programme;
• Supporting the ongoing rollout of judicially led of judicially led summary case management across all courts; and
• Supporting the rollout of Body Worn Video technology to police officers.

Crime

Recorded Crime in Scotland decreased marginally (<1%) between 2023-24 and 2024-25, remaining below pre-pandemic levels and 51% lower than its 1991 peak (Recorded Crime in Scotland, 2024-25 - gov.scot).

Figure 3. Recorded Crime in Scotland, 1971-2024/5 - Line graph of recorded crime in Scotland from 1971 to 2024/25, peaking in the mid-1990s at about 614,000 crimes and declining to around 299,000 by 2024/25.

As of 31 March 2025, Police Scotland employed 16,553 FTE officers, a 1.2% increase since 31 March 2024.

Prison Population

The prison population has consistently exceeded 8,000 since March 2024, surpassing pre-pandemic levels: Safer Communities and Justice Statistics Monthly Data Report. This presents significant operational risks. In response, Scottish Ministers introduced the Prisoners (Early Release) (Scotland) Act 2025, reducing the release point for short-term sentences from 50% to 40%. Additionally, community justice funding was increased by £14 million in 2024-25, totalling £148 million.

Progress continues on replacement prisons for HMP Inverness and HMP Barlinnie. Construction contracts were signed for HMP Highland (April 2024) and HMP Glasgow (January 2025). Due to supply chain and labour market challenges, there have been delays in delivery and costs have risen substantially between the initial outline business case and the final business case being agreed:

• HMP Highland: £209.3 million (completion by summer 2026)
• HMP Glasgow: £998 million (completion by end of 2028)

Figure 4. Line graph of Scotland’s prison population from 2019 to 2024, dropping in 2020 then rising toward 2024.

The Children (Care and Justice) (Scotland) Act, implemented in August 2024, ended the imprisonment of under-18s, redirecting them to secure care settings and marking a shift toward trauma-informed, rehabilitative practice.

Figure 5. A line graph of the number of under-18s in custody in Scotland from April 2020 to April 2025, showing a decline over the period from nineteen in April 2020 to zero between April 2024 and April 2025.

Prevention

The Violence Prevention Framework continues to support early intervention and diversionary programmes. In 2024-25, £3.25 million funded initiatives including Fearless Scotland, which reached 2.6 million via social media (↑86%) alongside increased website traffic (by 65%). Alongside this, the number of professionals trained more than doubled (588 vs. 253), expanding frontline impact.

The CashBack for Communities programme, funded through the Proceeds of Crime Act, committed up to £20 million for Phase 6 (2023-2026). In 2024-25, it supported over 14,700 young people, including 7,000 diverted from the justice system.

Education & Skills

In 2024-25, we advanced reforms to place learners at the heart of the system, including a delay to the introduction date for legislation to conclude additional engagement with the teaching profession and others. We continued our £1 billion investment in the Scottish Attainment Challenge (SAC) to close the poverty-related attainment gap, focusing on support for children and young people most in need, tackling the cost of the school day, and youth work. Local authorities set ambitious stretch aims for 2023-24 to 2025-26.

The latest Annual Participation Measure shows the second narrowest poverty-related gap on record, with more young people from deprived areas participating in education, training, or employment than ever before.

We invested £145.5 million to maintain teacher numbers and reached a funding agreement with COSLA to restore 2023 staffing levels by 2025, freeze learning hours, and reduce class contact time.

Attainment and leaver destinations

For Primary 1, Primary 4 and Primary 7 pupils combined, the overall proportion achieving the expected levels in literacy and numeracy in 2023-24 are the highest to date with 74.0% achieving expected levels in literacy and 80.3% in numeracy. There has been an upward trend in attainment for both the least and most deprived pupils in primary schools.

The gap in Primary literacy between school pupils in the most deprived and least deprived areas narrowed to the lowest ever level (20.2 percentage points). The gap in Primary numeracy has varied over the years but is slightly wider in 2023-24 (17.4pp) than in 2022-23 (17.0pp).

For S3 pupils, the proportions achieving third level or better in literacy (88.3%) and numeracy (90.3%) are at their highest ever level and the poverty-related attainment gap is at its narrowest ever level in both literacy (12.7pp) and numeracy (12.0pp).

The attainment gap between leavers from the most deprived and least deprived areas is wider than at any time since 2015-16 at SCQF Levels 4 or better and 5 or better. At level 6 or better, the gap is fractionally narrower than 2015-16, but wider than in any year since 2016-17.

Overall, the percentage of school leavers in a positive initial destination increased between 2015-16 and 2022-23 but decreased very slightly in 2023-24 (to 95.7%). The gap between leavers from the most deprived and least deprived areas in a positive initial destination widened slightly between 2022-23 and 2023-24 (from 3.7pp to 4.3pp). Despite this, this is the second narrowest gap since consistent records began in 2009-10.

To note: COVID-19 led to changes in how National Qualifications were assessed and graded during 2020-23.

Education and Skills Reform

The Education (Scotland) Bill, passed in June 2025, paves the way for Qualifications Scotland and His Majesty’s Inspectorate of Education, bodies designed to enhance transparency, independence, and public trust.

The Centre for Teaching Excellence, hosted by the University of Glasgow, launched in 2025 to support research-led teaching innovation, including in Gaelic Medium Education.

Plans are underway to streamline post-school funding by consolidating:

• Apprenticeship funding within the Scottish Funding Council by March 2027;
• Student support within the Student Awards Agency Scotland by March 2026; and
• A new national and regional skills planning approach will ensure post-school provision aligns with Scotland’s strategic needs.

Higher and Further Education

Recognising the sector’s vital role, we supported:

• Over £1.2 billion in university teaching and research.
• Over £750 million in colleges in 2024-25.

A 2024 consultation informed the Tertiary Education and Training (Funding and Governance) (Scotland) Bill, introduced in February 2025. Ongoing discussions with sector partners aim to ensure long-term sustainability. Additional support was provided to the Scottish Funding Council to address financial pressures, including at the University of Dundee.

We remain committed to widening access:

• HESA (Higher Education Statistics Agency) data (March) shows a 37% increase in full-time first degree entrants from the most deprived areas since 2016.
• In 2023-24, 16.7% of such entrants came from the most deprived areas (up from 16.3% in 2022-23).
• UCAS data suggests this trend may continue in 2024-25.
• Across college and university, 19.2% of Scottish-domiciled undergraduate entrants were from the most deprived areas in 2023-24.

Housing

On 15 May 2024, the Scottish Government declared a National Housing Emergency. In a parliamentary statement on 20 June 2024, the Minister for Housing outlined a strategic, action-based response aligned with the First Minister’s priorities, particularly eradicating child poverty and growing Scotland’s economy.

Key activities include:

• Affordable Housing Delivery: Commitment to 110,000 affordable homes by 2032 remains, despite challenges. In 2024-25, £608 million was invested, delivering 7,444 affordable homes, 80% for social rent;
• Support for Families: An estimated 2,457 households with children accessed affordable housing by March 2025. Lower social rents benefit around 140,000 children in poverty annually;
• Void and Acquisition Funding: £40 million investment brought nearly 1,000 properties into use, reducing reliance on temporary accommodation;
• Homelessness Prevention: An additional £1 million supported the Upstream Homelessness Prevention Fund, aiding tenancy sustainment via social landlords and third sector partners.

Despite these efforts, external pressures, Brexit, COVID-19, inflation, have intensified challenges. Statistics from December 2024 show rising numbers of children and households in temporary accommodation and homelessness.

Cladding Remediation Programme

In 2024-25, the Cladding Remediation Programme was reprofiled to support the passage of the Housing (Cladding Remediation) (Scotland) Act 2024 and the development of statutory standards. Pilot assessments in 2023-24 highlighted the need for a revised Single Building Assessment specification, aligned with PAS 9980.

The Act grants Scottish Ministers new powers to overcome land tenure barriers, enabling intervention in the assessment and remediation of affected buildings.

A revised Plan of Action, launched in March 2025, and updated in August, adopts a Distributed Delivery Model involving local authorities, social landlords, developers, and government support. The updated plan of action commits to resolving all high-rise buildings (+18 metres) by 2029, with pathways for all other relevant buildings also in place by that date.

The proposed Building Safety Levy (Scotland) Bill will ensure developers contribute to remediation costs, protecting homeowners and public finances.

Transport

In 2024-25, nearly £2.5 billion was invested to ensure Scotland’s transport system remains accessible, affordable, and sustainable. Despite the progress outlined below, delays and overspends have affected ferry construction projects, both in Scotland and abroad.

Key highlights include:

• Progress on the dualling of the A9. Construction began on the Tomatin to Moy section of the A9 in Spring 2025. Contracts were awarded for A9 Tay Crossing to Ballinluig in July 2025 while procurement has commenced on the Pitlochry to Killiecrankie stage;
• The Levenmouth rail line reopened in June 2024 after a £116 million investment, reconnecting communities after 50 years;
• ScotRail Performance and Fare Reform: Following the peak-fares pilot, a 12-month season ticket discount was introduced, and Flexipass terms were revised. Peak fares will be permanently removed from 1 September 2025, representing a recurring investment of up to £40 million annually. ScotRail’s Public Performance Measure reached 89.5%, outperforming most GB operators;
• Over £397 million supported free bus travel for 2.3 million cardholders, including under-22s, eligible disabled people, and over-60s. 192 million free at the point of use journeys were made - a 6% increase - supporting cost-of-living and net zero goals.
• MV Glen Sannox entered service in January 2025; MV Glen Rosa is expected to be delivered in 2026. Four Cemre vessels are nearing completion, with phased delivery from Q3 2025 to 2026. Seven electric vessels were commissioned under the Small Vessel Replacement Programme, with first delivery expected in summer 2027; and
• Scotland met its target of 6,000 public EV charge points in October 2024, two years early. The LEZ Support Fund enabled scrapping of 768 vehicles and retrofitting of 94 taxis.

Working with Local Authorities and the third sector to increase life chances

The Social Isolation and Loneliness Fund (SIAL) continues to support projects aligned with the A Connected Scotland strategy, contributing to recovery from the Covid-19 pandemic and mitigating the impact of the ongoing cost of living crisis. Over the three-year funding period, £3.8 million has supported 53 organisations operating across most of Scotland’s 32 Local Authorities, benefiting 21,137 individuals.

Support for displaced Ukrainians has remained a priority. In collaboration with local authorities and third sector partners, we have facilitated long-term housing solutions, significantly reducing reliance on temporary welcome accommodation, from 1,130 rooms in March 2024 to 140 rooms by April 2025.

Through the Delivering Equally Safe Fund, £19 million has enabled 109 organisations to deliver 120 services focused on supporting survivors and preventing gender-based violence. Between October 2023 and April 2024, 21,065 individuals received frontline support, with over 11,000 accessing services for the first time or re-engaging. Additionally, 13,997 professionals from statutory and third sectors participated in education and awareness initiatives.

Figure 5. Front line support via the Delivering Equally Safe Fund, October 2023-April 2024 The summarised Infographic summarising support provided to 21,065 people through the Delivering Equally Safe Fund from October 2023 to March 2024. This is broken down to show 15,930 were adults and 5,135 were children and young people. There is a further explanation below this that ‘Of these, 8,851 adults and 2,673 children and young people were new to services (or re-engaged after previously ending support) during the six month period. Below this its say ‘This included:’ and then has boxes with small images next to them. These boxes read:

• 1:1 support for 12,103 adults
• 7,561 people supported via helpline calls
• Group work for 2,255 adults
• Counselling for 363 people
• Financial advice for 467 people
• 225 people engaged with CEDAR programme
• 1:1 support for 3,991 children and young people
• Refuge provision for 439 people
• Group work for 1,646 children and young people
• Legal advice for 266 people
• Advocacy for 5,271 people

Mandatory Environmental Reporting

As noted under Priority 3 above, in accordance with the ‘Climate Change (Duties of Public Bodies: Reporting Requirements) (Scotland) Order 2015’ as amended by the Climate Change (Duties of Public Bodies: Reporting Requirements) (Scotland) Amendment Order 2020, the Scottish Government is required to report annually on compliance with climate change duties, published here: Sustainable Scotland Network Reports 2024-25 (the next report is due in spring 2026).

The Climate Change Programme supports delivery of climate change activities across government and provides targeted oversight, support and assurance. The programme consists of 3 pillars of work:

• Climate Change Plan;
• Adaptation Programme; and
• Just Transition Plans.

The Governance structure for the Climate Change Programme is the Global Climate Emergency (GCE) Programme Board, which is chaired by DG Net Zero and membership includes Directors from policy areas with climate change responsibilities across Government that contribute to the Climate Change Programme, as well as a non-executive director. Overarching this is the Cabinet Sub-Committee on the Climate Emergency, which is Chaired by the Cabinet Secretary for Net Zero and Economy.

The GCE Board reviews the Climate Change Programme plan, manages the programme risks and assesses performance against measures on a quarterly basis.

Policy areas are required on a quarterly basis to provide the Programme with a progress update of activities within the climate change programme plan. In addition to this they are also required to provide a RAG status update on progress against outcomes, finance and resource. This is then presented to the GCE Board via a reporting dashboard where they identify and discuss any emerging issues.

The metric used to assess climate related issues are RAG status and progress updates against planned activities. All policy areas are provided with guidance to enable them to consistently assess progress of implementation of the Climate Change Plan , the Scottish National Adaptation Plan 3 and Just Transition plans. They are then also asked to assess of they have adequate people resource and finance to meet their objectives guidance below for reference.

Three boxes, the first Red, the second Amber, the third Green. The Red box is headed '1. Less than 50% chance' and underneath reads Unlikely of extremely unlikely to : -Complete activities on time or meet outcomes -have correct level of finance -have correct level of staff resurce The Amber box is headed '2. Between 50% & 75% chance' and underneath reads More likely than not or fairly likely to be able to: -complete activities on time or meet outcomes -have correct level of finance -have correct level of staff resource The Green box is headed '3. Greater than 75% chance' and underneath reads Almost certainly likely to: -complete activities on time or meet outcomes -have correct level of finance -have correct level of staff resource

In addition to this policy areas are required to tell the programme if activities that were planned to be undertaken during the previous quarter were complete and if they were not they then need to explain the reason for this to the GCE Board. They are then asked to assess whether the activities planned in the next quarter will be completed as planned.

The Climate Change Plan contained within the Climate Change Programme sets an overall target for Scotland to have net zero emissions of all greenhouse gases by no later than 2045. Our path to meeting this target will be set out in 5 year carbon budgets which are currently under development.

The Climate Change Programme only has one target and this is for Scotland to have net zero emissions of all greenhouse gases by no later than 2045. Carbon budgets are 5 year targets that assess our progress towards meeting this target. The carbon budget framework is already used in countries including the UK, Wales, Northern Ireland, France and Japan.

The legislation to allow us to use carbon budgets was laid on the 19 June 2025 and is currently undergoing Parliamentary scrutiny, which is why the budgets are still under development. Scotland is now halfway to net zero and continues to be ahead of the UK as a whole in delivering long term emissions reductions.

A structured and systematic risk management function is in place to ensure we can more easily identify, focus and mitigate against risks to achieving our objectives.

Risks are identified either as a result of discussion at the GCE Board or are escalated from policy areas who have identified an emerging risk. A discussion then takes place to fully identify and assess the risk using the Climate Change Programme risk management guidance that aligns with the Scottish Government risk management process.

A number of the programme risks have also been escalated to other relevant risk registers, for example we have programme risks that features on the DG NZ risk register and the corporate risk register using the established escalation process.

Programme risks are reviewed on a monthly basis by the GCE Board, and this is complemented by a programme of deep dives into each risk on a rotating basis/risk based basis.

Policy areas are then contacted on a monthly basis and asked to confirm that any escalated risks are being managed at a local level and are asked if they need to escalate any further risks.

The Climate Change (Duties of Public Bodies: Reporting Requirements) (Scotland) Amendment Order 2020 sets out that, by November 2022, public bodies will be required to provide in their statutory annual climate change reports:

• where applicable, the body’s target date for achieving zero direct emissions of greenhouse gases, or such other targets that demonstrate how the body is contributing to Scotland achieving its emissions reduction targets;
• where applicable, targets for reducing indirect emissions of greenhouse gases;
• how the body will align its spending plans and use of resources to contribute to reducing emissions and delivering its emissions reduction targets; how the body will publish, or otherwise make available, its progress to achieving its emissions reduction targets; and
• where applicable, what contribution the body has made to helping deliver Scotland’s Climate Change Adaptation Programme.

Under the Public Bodies Climate Change Reporting duties, Scottish Government reports all Scope 1 and 2 emissions, along with waste, water, business travel, commuting and homeworking scope 3 emissions.

Annual GHG reporting up until 2023-24 can be found on the Sustainable Scotland Network website. Collation of emissions data for 2024-25 is currently underway and will be published following the reporting deadline of 30 November 2025.

The Scottish Government assesses climate-related issues using greenhouse gas (GHG) emissions reporting. Emissions are reported in accordance with the Greenhouse Gas Protocol, covering Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased electricity), and selected Scope 3 emissions (other indirect emissions). These are calculated annually and tracked against a baseline year of 2009-10.

Full emissions data is reported annual in accordance with the Climate Change (Duties of Public Bodies Reporting Requirements) (Scotland) Order 2015, as amended by the Climate Change (Duties of Public Bodies: Reporting Requirements) (Scotland) Amendment Order 2020 which took effect for reporting periods commencing on or after 1 April 2021. Reports are published on the Scottish sustainability Network (SSN) website.

For the financial year 2023-24, the reported total emissions were as follows:

• Scope 1: 14,724 tCO₂e
• Scope 2: 3,077 tCO₂e
• Scope 3: 10,147 tCO₂e

At present there are no risks logged which specifically relate to reporting or disclosure of GHG data, however broader risks have been logged in relation to corporate action in line with the three statutory duties for public bodies as outlined within the Climate Change (Scotland) Act 2009. These risks are reviewed by the corporate Estate Change and Delivery Oversight Board and escalated to the Executive Team where deemed necessary.

In terms of targets, a new Carbon Management Plan (CMP) is under development. This plan will define long-term emissions reduction targets and the actions required over the next five years to reduce emissions and adapt the Scottish Government estate. The CMP is being developed collaboratively across departments including Procurement, Property, Workplace, Energy and Climate Change, and Marine Scotland.

Currently, the Scottish Government operates under a high-level Environmental Policy, approved by the Permanent Secretary, which sets out principles for environmental management.

Reporting to DG Corporate, a dedicated Environmental Management and Sustainable Travel Team (EMT) is responsible for climate change mitigation activities across the core estate.

Public sector action will be vital to allowing Scotland to meet the aims of this Plan and achieve net zero. The Scottish Government is determined to play our part: for example, in July 2023, we became the first Government in the UK to be accredited on the first tier of the Carbon Trust ‘Route to Net Zero’ standard. This accreditation, which was re-certified in May 2025, reflects our efforts to reduce energy usage, greenhouse gas emissions, and business travel, as well as other actions to deliver net zero. In addition, we are currently developing a new 5-year Climate Action Plan for our buildings and operations, to ensure they stay on track in supporting net zero and becoming more climate resilient.

The Corporate Environmental Management objectives and corresponding actions contribute towards delivery of our National Performance Framework and compliance with the statutory duties.

The separate accounting entities within the Scottish Government consolidation boundary have Sustainability & Environmental reporting arrangements in place appropriate to their individual circumstances and in compliance with relevant guidance. Sustainability & Environmental reporting for separate accounting entities will be addressed as part of their annual accounts.

Joe Griffin

Principal Accountable Officer

08 October 2025