Scottish Spending Review 2026
The Scottish Spending Review 2026 sets out the Scottish Government's indicative spending plans up to 2028-29 for resource, and up to 2029-30 for capital.
Chapter 10 Deputy First Minister, Economy & Gaelic
The Deputy First Minister, Economy and Gaelic (DFMEG) portfolio drives investment and economic growth across Scotland, supporting innovation, entrepreneurship, employment, regeneration, digital connectivity, and city and regional growth deals. It enables Enterprise Agencies, VisitScotland, and the Scottish National Investment Bank (SNIB) to invest in key growth sectors, generating high value jobs and supporting businesses and community resilience. The portfolio coordinates cross-government delivery, funds local and Scottish Parliament elections, statutory inquiries, major events, the Redress Scheme, and the promotion of Gaelic and Scots.
The Economy portfolio budget supports the priorities in our economic strategy, providing the foundations for attracting investment and supporting innovation. DFMEG plays a key role in driving public sector efficiency and reform through refining the way we deliver services and secure equivalent or better outcomes for lower cost, for example through investment in digital public service delivery.
Our focus is on high-impact interventions creating the conditions for sustainable, inclusive growth across Scotland to ensure that people have the opportunity to thrive in a changing economy, to enable every region to develop and prosper, and to make Scotland one of the best places to invest and do business.
We are building a fair, green, and growing economy by unlocking high-value sectors, leveraging private investment, and embedding regional equity to drive the creation of high-wage and flexible work across the country. This will ensure growth benefits all communities and lifts people out of poverty.
Through our spend of over £4 billion over the spending review period to 2028-29, with a further £600 million allocated in 2029-30 for capital and financial transactions investment, we will continue to capitalise SNIB with a further £800 million and will provide over £480 million of capital funding to our Enterprise Agencies which crowd-in private investment and support Scottish businesses and entrepreneurs. We are investing over £740 million of capital spending in Cities and Region Deals, a further £160 million in Regeneration programmes supporting local communities to prosper, and £380 million in digital, including infrastructure connecting people and businesses across the country and resource supporting efficient and effective public services.
Our £270 million of Employability funding will help over 22,000 people into work, strengthening our workforce and lifting people and families out of poverty. In 2027 Scotland will host the Tour de France Grand Départ and in 2028 we are co-hosting the UEFA European Championships. We will be investing to successfully deliver vibrant and inclusive events that maximise their contribution to Scotland’s economy.
By increasing employment, productivity, and wages, we broaden and deepen the tax base and reduce long-term demand on public services. Economic growth and improved efficiency are key to both raising living standards in Scotland and protecting the public services that we all rely on.
| Level 2 |
2026-27 £m |
2027-28 £m |
2028-29 £m |
2029-30 Capital & FT £m |
|---|---|---|---|---|
| Digital | 133.1 | 130.4 | 115.8 | – |
| Employability | 104.6 | 104.6 | 104.6 | – |
| Enterprise, Trade and Investment | 380.6 | 378.2 | 353.6 | – |
| Economic and Scientific Advice | 17.4 | 17.4 | 17.3 | – |
| Organisational Readiness | 39.2 | 29.2 | 25.0 | – |
| Government Business and Constitutional Relations and Elections* | 50.6 | 11.2 | 7.2 | – |
| Regeneration | 35.0 | 47.0 | 47.0 | – |
| Scottish National Investment Bank | 190.0 | 190.0 | 190.0 | – |
| Cities Investment and Strategy | 224.5 | 233.2 | 162.9 | – |
| Ferguson Marine | 23.9 | 5.9 | 5.9 | – |
| Tourism and Major Events | 58.8 | 75.6 | 110.1 | – |
| Gaelic | 32.4 | 32.8 | 34.8 | – |
| Redress, Relations and Response | 72.3 | 87.4 | 90.0 | – |
| Total DFMEG | 1,362.3 | 1,342.9 | 1,264.2 | – |
| of which | ||||
| Total Fiscal Resource | 635.7 | 601.4 | 612.4 | n/a |
| of which Programme Costs | 541.5 | 508.3 | 521.3 | n/a |
| of which Operating Costs | 94.2 | 93.1 | 91.1 | n/a |
| Capital | 553.9 | 555.4 | 466.9 | 462.6 |
| Financial Transactions (FTs) | 172.7 | 186.1 | 184.9 | 190.6 |
* Uplift due to 2026 Scottish Parliament Elections
Table 10.01 shows the net position after income is received. This affects several lines. For example, Regeneration will receive £12 million income in 2026-27, with gross expenditure at £47 million as in other SR years. Likewise, as Scottish National Investment Bank are enabled to re-invest income received, their gross expenditure will be £200 million each year.