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.
Annex B: Portfolio Efficiency and Reform Plans
Health & Social Care Portfolio Efficiency and Reform Plan
| £ million | 2026-27 | 2027-28 | 2028-29 |
|---|---|---|---|
| Efficiencies and Productivity, of which | 384 | 374 | 303 |
| 3% NHS Board Recurring Savings | 247 | 290 | 220 |
| Other operational efficiency and productivity savings | 137 | 84 | 83 |
Note: All savings figures are recurring, however on an annual basis some of these may be delivered through a mix of recurring and non-recurring measures initially as we reform over the medium term.
The Scottish Government recognises the need for reform and renewal across health and social care to tackle the challenges we face now and in the future.
Through the Health and Social Care Service Renewal Framework (SRF) and the Population Health Framework (PHF), both published on 17 June 2025, we set out a collective long-term vision for transforming health and social care in Scotland. The frameworks provide a high-level blueprint for change, to ensure the sustainability, efficiency, quality, and accessibility of health and social care services in Scotland.
We are taking bold and ambitious action in line with our vision of a Scotland where people live longer, are healthier and lead more fulfilling lives. Delivering the transformation people need depends on improving prevention and on services that are accessible, high quality and person-led.
Efficiencies & Productivity
Efficiency and improvement are key priorities for Health and Social Care (HSC), ensuring resources are used well and best value is delivered across NHS Scotland. The Fiscal Sustainability Delivery Plan sets out measures and actions to deliver efficiencies including deprioritising lower impact spending and better targeting of existing resources. For example, we have established an Investment and Value Board to improve the evidence base for the impact of existing spending and new spending proposals, to drive evidence-based investment/disinvestment decisions.
Through NHS Boards’ use of the ‘15 Box Grid’ which focus on 15 priority areas across workforce, innovation, value-based healthcare and productivity, we have an established programme to deliver financial savings and ensure value for money across NHS Scotland. The programme has seen recurring savings double in NHS Scotland over the past two years from around £145 million in 2022-23 to nearly £300 million in 2024-25, and this work will continue across the three years of the resource spending review. All NHS Boards must deliver at least 3 per cent recurring savings against baseline funding each year to support long-term fiscal sustainability. Future year Boards’ savings plans will continue to develop and will be agreed on an annual basis.
Enabling Boards to plan for wider service redesign and workforce transformation, supported by a collective, system-wide approach to identifying opportunities for bold reform will deliver financial sustainability in the medium to long term.
HSC will contribute to the targeted reduction in public service workforce including consideration of opportunities for the consolidation of functions and closer collaboration across all NHS Boards and Health and Social Care Partnerships as part of the business systems programme. We will change the way we deliver services through clear prioritisation, innovation, reforms of models of care and, where appropriate, sub-national planning. This is both across the system but also in our own Director General area. We will focus our own staffing across policy, clinical advice, performance and delivery and enabling functions. This will streamline our efforts and ensure we are mirroring the change we expect to see in the system.
Realising these ambitions for Health and Social Care will require targeted investment that must be prioritised over the SR period. Initial priorities include:
- Establishing Sub National Planning and Delivery Committees to enable joint planning on key services and optimise delivery through driving productivity and efficiency that enables us to better match capacity to demand. This includes for example, the development of plans that will see orthopaedic waits reduce to the treatment time guarantee of 12 weeks by March 2029, from around 20 weeks at the moment and the implementation of the recommendations in the four-hour Emergency Access Standard will mean people being treated more efficiently and effectively in the most appropriate place.
- Prioritising targeted investment in key digital enablers of reform, with a particular focus on our new app MyCare, Digital Prescribing and integrated record, enabling NHS Boards to drive service change.
- Creating a new national delivery organisation to drive and support innovation and reform to deliver on a Once for Scotland basis across a range of functions.
- Implementing a model for workforce planning and reform to enable sustainability and efficiencies and ensure workforce is deployed where it is needed as we make the major shifts set out in the SRF.
- Supporting investment across the medium term in prevention – aligned with the PHF and essential to address long term demand, with work ongoing to tag current prevention spend. This will provide an initial baseline of information that in the future can support cost avoidance and long term sustainability.
- Increasing capacity in the community through interventions such as Hospital at Home and Frailty will prevent hospital admissions, reduce reliance on surge beds and improve delayed discharge and A&E performance.
- Expanding Primary Care capacity to enable more care to be provided closer to home and within community settings, along with greater preventative care, reducing demand on hospital services over time.
- Re-focusing of investment plans by deprioritising initiatives that do not directly contribute to reform and sustainability.
Renewing Scotland’s essential public services must be rooted in a long-term vision – one that prioritises prevention and early intervention. Both the SRF and PHF place prevention and early intervention at their core. They provide clear direction on how we will plan and deliver services for the whole population over the next decade, while tackling the deep-rooted inequalities that continue to impact health and wellbeing across Scotland. This ambition is key to delivering long term sustainability in health but must be underpinned by long term fiscal sustainability. The actions and savings targets set out above set us on the path to achieving this.
Service Reform
As illustrated in Table B.01, immediate savings are primarily driven by efficiency and productivity measures. Service Reform actions are underway, though the scale and timing of savings are to be determined. These reforms are expected to deliver significant benefits over the medium to long term, beyond 2028-29, and are critical for fiscal sustainability, complementing short-term efficiency efforts.
Finance & Local Government Portfolio Efficiency and Reform Plan
| £ million | 2026-27 | 2027-28 | 2028-29 |
|---|---|---|---|
| Efficiencies and Productivity, of which | 13.5 | 8.5 | 8.2 |
| Programme Efficiencies | 3.0 | 1.5 | 1.5 |
| Operational Efficiencies | 0.2 | 0.2 | – |
| Workforce Savings | 10.3 | 6.8 | 6.5 |
| Service Reform, of which | 0.5 | 1.6 | 2.0 |
| Portfolio Reform Plans | 0.5 | 1.6 | 2.0 |
| Other Efficiencies and Reform | 53.0 | 37.0 | 38.0 |
Note: All savings reported are new recurring ongoing savings.
Efficiencies and Productivity
The portfolio oversees delivery of the PSR strategy, committing to a more efficient, joined-up, and preventative public service system. This contributes to fiscal sustainability by:
- achieving savings through increasing efficiency and reducing spend on corporate functions;
- joining up and streamlining services to ensure people can get the support they need more easily, reducing duplication, barriers, and cost; and
- through prevention, enabling people to live healthier, happier lives and avoid significant spend associated with addressing acute and crisis demand.
The above mutually supports the ambition of ensuring everyone has access to services that are efficient, good quality, and effective.
The portfolio is increasing planning capacity, skills and resilience through low-cost, high-impact interventions to accelerate development, for example:
- The National Planning Hub is speeding up consenting in local authorities, helping to deliver renewable energy infrastructure and unlock stalled housing sites.
- The Future Planners Programme provides time-limited surge capacity across consenting regimes to address the increasing volume and complexity of applications.
The portfolio is committed to delivering high-quality corporate services in a cost-effective manner, aligned with the organisation’s overall financial strategy. To achieve this, we will introduce an additional, challenging efficiency target across all Corporate Directorates. This approach ensures that each Directorate actively identifies opportunities to streamline processes and reduce costs, whilst maintaining service standards.
Public Bodies within the portfolio have also identified operational efficiencies. In 2026-27, the Scottish Fiscal Commission will absorb additional costs relating to the Building Safety Levy and additional asks of the Finance and Public Administration Committee (FPAC).
For 2026-27, Revenue Scotland has also revised proposed staffing requirements for collecting the Scottish Building Safety Levy and the Air Departure Tax programme.
Consumer Scotland will make overall savings of up to £40,000 on accommodation in 2027-28 and is working with other Non Ministerial Offices (NMOs) on the redesign of corporate functions, as well as the exploration of shared resourcing models, intended to drive efficiency and strengthen organisational capability.
We will support Local Government’s leadership and ambition to deliver transformation to ensure sustainability of services delivered at a local level, both within and between councils. Local Government is recognised as an essential partner in the PSR Strategy, and there is a shared commitment through the Verity House Agreement to reform, working together on the basis of mutual trust and respect, and focusing on outcomes.
Local Government continues to deliver reform and efficiencies. In the year to June 2025, the workforce fell by 0.7 per cent, equivalent to around 1,500 FTE.
The future fiscal outlook for Local Government will bring challenges that will require it to participate in further efficiencies, and undertake transformation of services, in line with our strategic ambitions. However, Local Government will have the flexibility in how they find the savings that are equivalent to the quantum necessary and fit their local circumstances.
Service Reform
The portfolio delivers an Invest to Save fund, to provide upfront investment to SG portfolios, Public Bodies and Local Government for projects to deliver efficiencies and savings and support public service reform. Funding of £29.9 million will be provided in 2026-27, with savings generated being recycled to support future funding rounds.
In Planning the portfolio is:
- Reforming compulsory purchase, making it simpler, more streamlined and fairer to enable the delivery of development, infrastructure and regeneration projects.
- Streamlining processes and delivering efficiencies in the planning system through measures which remove the requirement to apply for consent such as supporting the roll-out of Masterplan Consent Areas.
Savings generated through the portfolio’s corporate services programme of work will deliver headcount reductions and budget efficiencies for the Scottish Government and the wider public sector:
- Digital Shared Services enable an efficient ‘Once for Scotland’ approach for the delivery of corporate services, delivering new HR, Finance and Purchasing solutions for the Scottish Government and a suite of public sector organisations in Scotland.
- The Scottish Government Intelligent Automation Centre of Excellence (IACoE) enables delivery of more efficient, effective, and sustainable public services. By deploying AI-enabled automation, we are not only unlocking capacity and reducing costs, but also fundamentally improving the experience for both citizens and staff. Delivery extends beyond automating routine processes. The IACoE is addressing complex, cross-cutting operational challenges and enabling more responsive, data-driven services across the Scottish public sector.
- We will expand National Collaborative Procurement to increase cost avoidance and deliver up to £300 million in cashable savings over two years by working with the public sector to boost usage of existing national collaborative agreements and identify opportunities for new ones. In addition, we will collaborate with suppliers to harness new technologies for greater efficiency to deliver the right services and products to meet the evolving needs of the public sector and the people of Scotland.
- The Commercial Value for Money (CVFM) programme provides commercial expertise across in-scope Scottish Government expenditure to secure increased value for money through the delivery of monetary efficiencies and better policy outcomes.
- We will continue to reduce the size, cost and emissions of the public sector estate and deliver over £50 million of benefits from the Single Scottish Estate (SSE) programme by 2028. Co-locating to make more efficient use of estate will give the public access to more services in one place and reduce administrative costs.
There are good examples in Local Government across Local Authorities where service reform is progressing locally, such as: regional collaboration on procurement between Highland, Aberdeenshire and Aberdeen City; regional collaboration on transport and economic growth across all three Ayrshire councils; use of new technology to support social care in Scottish Borders and social work in Edinburgh; and using invest to save funding, both from the Scottish Government and local funds, to prioritise innovation and reform.
Social Justice Portfolio Efficiency and Reform Plan
| £ million | 2026-27 | 2027-28 | 2028-29 |
|---|---|---|---|
| Efficiencies and Productivity, of which | 11.0 | 7.0 | 8.0 |
| Workforce savings | 6.0 | 4.0 | 5.0 |
| Reduction in Benefit Expenditure | 2.0 | 2.0 | 2.0 |
| Digital Improvements | 3.0 | 1.0 | 1.0 |
| Service Reform, of which | – | – | 1.0 |
| Social Security Data Hub with Partner organisation | – | – | 1.0 |
Note: All savings reported are new recurring savings.
The Social Justice portfolio has a credible approach to reform and efficiency activity which will support the eradication of child poverty and improve public services primarily through the experience of Social Security Scotland Clients. Therefore Social Security Scotland is key to the delivery of efficiency and reform within Social Justice, given the value of the Agency’s budget relative to the wider portfolio. Over the period to 2028-29 the portfolio plans the following activity, aligned to the priorities of the Scottish Government and the Fiscal Sustainability Delivery Plan:
Efficiencies and Productivity
Our approach to eradicating child poverty combines immediate and preventative investment. We aim to tackle causes and mitigate impacts. As set out in the Scottish Government Public Service Reform Strategy, successfully delivering our goal of eradicating child poverty will contribute to improved outcomes and prevent unnecessary spend on public services. Specifically for the portfolio, our workforce is comprised of staff within Social Security Scotland, and a lesser number within Director General (DG) Communities in the Core Scottish Government.
The closure of the Social Security programme has led to significant staff reductions within DG Communities, and further reductions through activity to drive efficiency are planned by 2029-30. Overall headcount underpinning Social Security Programme delivery peaked at 1,120 FTE in 2022-23. By 2026-27, a consolidated and streamlined Digital Delivery and Change function established in Social Security Scotland will operate with around 820 FTE – a reduction of 300 roles (27 per cent). Directly employed and contractor staff costs have been reduced year on year since 2022-23. After the programme closes, digital staff costs are expected to be about £70 million in 2026–27, down £31 million from a peak of £101 million in 2022–23
Social Security Scotland, as the major workforce component within the portfolio, plans to further develop processing automation and improvements which will deliver efficiencies. Across the portfolio, we expect workforce efficiencies to deliver a recurring saving of at least £15 million per annum by 2029-30. These reductions will be enabled through natural attrition, including within Social Security Scotland, with our workforce planning matching available resource to priorities. In addition to the workforce reductions, process improvements are expected to deliver non-staff savings of £2 million by 2028-29, and support an improvement in quality of processing, reduction in errors and improvement in the clients experience, which will lead to savings in benefit expenditure of at least £6 million per annum by 2028-29.
Social Security Scotland is reviewing efficiencies in its back-office functions. Driving efficiencies is possible given the closure of the Social Security Programme reduces the need for joint development with the Core Scottish Government. This is expected to deliver recurring savings of £2 million in 2026-27 and a further £1 million in 2027-28.
Service Reform
The portfolio is committed to the Fairer Futures Partnerships which aim to test, spread and scale successful place-based approaches to providing more effective whole family support; over time this approach may lead to efficiencies and ultimately savings in the wider public service system. Our whole family support approach focuses on removing barriers and exploring how to improve the system to enable local partners to have greater flexibility to act to meet the needs of low income families.
In addition to our cross-government activity, we are also taking specific action within the portfolio. The Scottish Government plans to institute a ‘first principles’ review of the Social Security (Scotland) Act 2018 with a view to reducing the cost of administration and improving the client journey across a number of areas for example, the journey for clients moving from Child Disability Payment to Adult Disability Payment, or the need to provide written correspondence at certain stages of benefit administration.
The Scottish Government will also continue to ensure the long-term fiscal sustainability of the social security system. In particular, a review is underway to assess whether the current award review process for the Adult Disability Payment is working as intended and if any changes may be required. This will include analysis of the latest data along with considering current continual improvements already being developed and the impacts these may have over time. Any potential savings from this activity cannot yet be quantified.
Social Security Scotland will strengthen support for vulnerable clients by enhancing existing arrangements for signposting to advice and advocacy services, with a clear focus on maximising household incomes and safeguarding. Over time, this focused approach will evolve into sustainable referral pathways, enabling seamless hand-offs between the Agency and other public and third-sector partners.
In parallel, over five years we will transform public sector data access through the development of a Social Security Data Hub, eliminating costly one-to-one interfaces, improving access and realising efficiencies. Current data sharing with Local Authorities for Free School Meals demonstrates the potential even within the existing set-up. From 2028-29, savings of at least £1 million annually are expected through reduced overpayments and error prevention, alongside wider Scottish Government efficiencies. Strategically, we are contributing to proposed changes to the Digital Economy Act, creating new UK-wide legal gateways for data sharing.
Social Security Scotland is also developing new Payment and Accounting Services. Following completion, the platform will be made available for use across the Scottish public sector, which has the potential to generate substantial savings if public bodies choose to migrate to a single payment platform.
Education & Skills Portfolio Efficiency and Reform Plan
| £ million | 2026-27 | 2027-28 | 2028-29 |
|---|---|---|---|
| Efficiencies and Productivity, of which | 19.7 | 10.6 | 12.8 |
| Workforce Savings | 18.4 | 7.4 | 9.5 |
| Shared Services and Digital Improvements | 1.3 | 3.2 | 3.3 |
Note: All savings reported are new recurring savings.
Efficiencies & Productivity
Strategic investment in education and support for children and young people is one of the most effective ways to reduce long-term demand on public services. By addressing root causes early, investment can prevent costly interventions in health, social care, and criminal justice, while improving economic productivity and breaking cycles of disadvantage. This approach can deliver significant long term efficiencies across the public sector, whilst strengthening societal resilience.
The public bodies in the Education and Skills portfolio continue to implement efficiency measures designed to secure improved productivity, reduce operating costs, and modernise core functions. These actions collectively support the Public Sector Reform (PSR) Programme and contribute to sustainable public finances.
Several bodies are delivering or projecting significant returns through digital reform and automation. Disclosure Scotland (DS) is close to becoming fully operational on its new digital infrastructure platform, and investment is underway to modernise and bring in-house the systems supporting the National Barring Service. As the new digital projects are completed, DS will be able to reduce contractor spend. In addition, they continue to iterate improvements to online provision of services through their Online Account, through a focused channel shift from paper to digital. This saved £0.4 million in printing and postage in 2024–25, and up to £0.8 million in 2025–26 as well as continued annual savings of around £2.9 million in reduced paper administration costs. In addition, the Scottish Social Services Council (SSSC) has achieved cumulative efficiencies since 2010 through Fitness to Practise streamlining and the move to online hearings, saving over £14 million, while its 2024–25 Future Proofing Programme delivered a workforce reduction of 12.6 FTE, while delivering improved case management processes.
Similarly, the Scottish Children’s Reporter Administration (SCRA) continues to deliver property-related efficiencies through shared services, sub-letting parts of the estate, and divesting surplus assets. Children’s Hearings Scotland (CHS) is generating efficiencies through vacancy management and internalising its learning and development contract.
Several organisations have pursued shared services to maximise value and reduce duplication. SCRA and CHS share Finance, HR and IT services under long-established arrangements, DS is progressing sector-wide back office shared service initiatives, and Education Scotland (ES) is exploring shared corporate functions as part of its transition planning for the new legislative landscape. The Student Awards Agency for Scotland (SAAS) has also begun early work on a shared services pilot with DS. Over time, the model offers potential for rationalising roles and reducing duplication, particularly across corporate services.
Workforce efficiencies remain a core enabler. ES has identified workforce controls and organisational redesign as essential levers for delivering productivity gains, with planned savings increasing annually to 2028–29. The Scottish Qualifications Authority (SQA) has reduced its workforce by 4.5 per cent over the last year to manage costs while preparing for transition to Qualifications Scotland (QS).
Modernisation programmes have enabled other bodies to reduce staffing and estates costs. Skills Development Scotland (SDS) has driven recurring annual efficiencies through its Transform 27 Programme since 2022, including an 18 per cent reduction in headcount, a 50 per cent reduction in estates, and a 35 per cent reduction in corporate services. SDS plans to make savings through further headcount management actions, review of estates requirements and will also look to further reduce corporate costs in line with PSR targets, saving around £0.6 million each year.
Colleges continue to go through significant restructuring exercises. At April 2025, colleges had a 9 per cent workforce reduction, equating to a cumulative reduction in staff of 1,200 since 2014. However, deeper and more fundamental reform to the sector is needed. Colleges Scotland have proposed to work with Government to ensure improvement to the sector’s sustainability, efficiency and future responsiveness. This must deliver a wide-scale and urgent programme of reform.
Service Reform
Public bodies are delivering measurable efficiencies while also undertaking substantive reforms to ensure services remain sustainable, modern and outcome-focused. These activities support a more efficient, resilient and aligned public service landscape.
The Children (Care and Justice) (Scotland) Act 2024 is driving major reform across the children’s hearings system. SCRA is preparing to absorb an additional 1,300 to 2,500 hearings per year for 16- and 17-year-olds that will be brought into the scope of children’s hearings as a direct result of the provisions of the Act, requiring new case management approaches and workforce expansion of around 20 FTE to maintain decision-making quality. CHS is reforming its tribunal model to introduce remunerated Chairs and Specialist Panel Members, representing a fundamental shift in how hearings are conducted and supported. These reforms aim to enhance decision making, strengthen trauma-informed practice, and modernise the tribunal structure. Scotland’s Hearings System and Whole Family Approach to youth justice are an exemplar of preventative approaches – with the number of children referred to Hearings on offence grounds falling from 17,361 in 2005-06 to 2,447 in 2024-25.
DS is implementing the Disclosure (Scotland) Act 2020, which mandates PVG Scheme membership and expands statutory functions. This has required the full redesign of digital systems to improve processing efficiency and strengthen safeguarding outcomes, alongside continuing automation as a core part of service reform.
In April 2025, the SSSC introduced a new 5-year programme of annual registration fee uplifts for their registrants. By the end of Year 5, this will create additional revenue for the SSSC of approximately £2.5 million per year. The SSSC are also working continuously to identify opportunities to streamline existing processes and deliver savings. This can be seen through the delivery of their Futureproofing Programme, accommodation reductions, and the introduction of ‘opt-in hearings’, all of which seek to reduce the burden of rising costs across the organisation.
Major structural reform is underway in the education and skills system. The Education (Scotland) Act 2025 enables the transition from SQA to QS, which will undertake functional reviews, introduce digital efficiencies, and lead the national qualifications reform agenda. ES is progressing organisational redesign and shared services as part of its own transformation and separation from the new independent Inspectorate. The HM Inspectorate will promote improvement across schools, ELC and other education settings.
Parallel reforms are reshaping national skills delivery. The Tertiary Education and Training (Funding and Governance) Bill confers responsibility for national training programmes, apprenticeships and work-based learning on the Scottish Funding Council (SFC). The Bill allows all tertiary education and training provision to be consolidated at the SFC; SDS’s responsibilities for national training programmes and apprenticeships will transfer to the SFC. Meanwhile, SFC is reassessing its capacity and governance to meet expanded responsibilities and support the sustainability of colleges and universities.
The implementation of this Bill will incur costs over the three years 2026-27 to 2028-29 but is forecast to deliver annual recurring savings by 2030-31. The costs primarily arise from staffing a transition team at the SFC, pension shortfall payments from staff moving from SDS to the SFC, IT system costs, and restructuring costs due to diminished need. Later savings derive from reduced headcount and more efficient service delivery.
Finally, SAAS is advancing a major transformation in student finance delivery. Its migration to cloud-based systems and development of a new student platform will create a more coherent, integrated funding service for learners and institutions.
Justice & Home Affairs Portfolio Efficiency and Reform Plan
| £ million | 2026-27 | 2027-28 | 2028-29 |
|---|---|---|---|
| Efficiencies and Productivity, of which | 29.0 | 42.0 | 55.0 |
| Contract savings | 5.0 | 5.0 | 5.0 |
| Digital Improvements | 5.0 | 5.0 | 5.0 |
| Workforce Savings | 19.0 | 32.0 | 45.0 |
| Service Reform, of which | 5.0 | 12.0 | 20.0 |
| Portfolio Reform Plans | 5.0 | 12.0 | 20.0 |
Note: All savings reported are new recurring savings.
The Justice and Home Affairs (JHA) Portfolio has responsibility for keeping communities safe, supporting the administration of justice, and ensuring that Scotland is resilient and prepared to respond to the changing nature of demand within the Justice system, e.g. the growth in sexual offences and domestic abuse prosecutions; and a range of threats, including serious and organised crime and cybercrime. The portfolio ensures the provision of effective public services, including police, fire, prisons, courts, tribunals, the legal aid system, and criminal justice social work services, as well as the contribution of third sector services. This work is underpinned by the principle that everyone should have the right to access justice. If we are to deliver a justice system that provides the best possible return on investment, it is important that we continue to explore every opportunity to offset costs against savings.
Efficiencies & Productivity
- The portfolio funds a range of programmes focused on prevention, which aim to reduce demands on the justice system. For example, the Scottish Violence Reduction Unit takes a public health approach to identify, understand and address the underlying causes of violence, and the Cashback for Communities Programme reinvests criminal assets recovered through the Proceeds of Crime Act (POCA) into projects delivering positive futures for young people, through activities designed to help them turn their lives around.
- Shifting the Balance, is a priority programme within the Vision for Justice. It is focused on promoting system improvements to reduce reoffending and ‘shift the balance’ between the use of custodial sentences and justice in the community, which apart from being more cost-effective, delivers significant benefits for individuals. While prisons will always be needed for those that pose a serious risk of harm, there is clear evidence that person-centred, community-based interventions are often more effective in reducing reoffending and supporting rehabilitation than short term custodial sentences, and are delivered at lower cost. This can lead to fewer victims and safer communities.
Public Body Efficiencies
Over the past few years the JHA public bodies have continued to deliver significant efficiencies to ensure that they can live within their budget allocations and deliver balanced budgets. These efficiencies are being reinvested in each organisation to maintain and improve frontline service delivery, to ensure they can respond to the increased demands across the justice system.
The portfolio will develop its workforce to be more agile and focused on service delivery to increase productivity. In recent years Police Scotland and the Scottish Fire and Rescue Service (SFRS) have reduced their workforces by around four per cent in response to their budget allocations, and continue to budget and operate with high vacancy factors. In support of the Fiscal Sustainability Delivery Plan (FSDP), justice organisations are working towards an average 0.5 per cent reduction per annum over the five years whilst protecting frontline service delivery.
Service Reform
The JHA portfolio continues its reform journey through the delivery of the Vision for Justice and Programme for Government (PfG) commitments, which contribute to the delivery of the Scottish Government’s four priorities, including high quality and sustainable public services. JHA reform programmes and projects are expected to positively impact on fiscal sustainability, through the delivery of a range of actions to reduce the need for, and pressure on, justice services.
The JHA portfolio has a strong track record of delivering savings and efficiencies through reform – most notably through police and fire reform. This has reduced the annual cost of policing by around £300 million compared with legacy services, with fire reform expected to deliver over £900 million of cumulative savings by 2027–28.
The portfolio has a broad suite of reform projects and programmes that will deliver improvements to service delivery, efficiencies and savings. These include:
- The Summary Case Management pilot which was successfully evaluated, and from January 2025 is being rolled out across all summary casework in Scotland. The evaluation found that the pilot had a positive impact on criminal justice journey times, and helped to reduce the backlog of summary trials in the courts taking part. Despite a higher than expected number of new cases registered with Sheriff courts between 2023 and 2024, the number of scheduled summary trials at the pilot courts reduced by 31 per cent, compared to non-pilot courts which rose by 10 per cent. This work is being delivered collaboratively between Crown Office & Procurator Fiscal Service (COPFS), Scottish Courts and Tribunals Service (SCTS), the Judiciary, defence representatives, and other justice sector partners including Police Scotland. This will deliver cashable and non-cashable savings.
- The Digital Evidence Sharing Capability (DESC) is a collaborative programme between Scottish Government, COPFS, Police Scotland and SCTS, in consultation with the defence community and judiciary to deliver DESC across the criminal justice sector in Scotland. It manages the digital collection and storage of evidence throughout the lifetime of a criminal investigation and prosecution. This will deliver cashable and non-cashable savings through fewer victims and witnesses having to attend court, fewer cases coming to court and concluding quicker, and valuable police time being saved.
Justice Estate
The justice organisations support the Single Scottish Estate Programme, which is taking a more efficient approach to public sector property management to deliver better value for money, through reducing the public sector property footprint while supporting the best delivery of services to the public.
In support of this, Police Scotland has developed an Estates Masterplan which aims to reduce and modernise the police estate over the next ten years. While additional capital investment will be required, Police Scotland aims to reduce its overall estate footprint, thus reducing long term operating costs. Savings will be quantified as business cases for individual projects are developed, Police Scotland estimate that delivery of its Masterplan will release around £50 million to £80 million of capital receipts over the next five to ten years.
Policy Reforms
The Criminal Justice Modernisation and Abusive Domestic Behaviour Reviews (Scotland) Act 2025 will enable justice partners to deliver services through operationally efficient processes, including through DESC and summary case management. For example, it will enable police officers to provide evidence from a Remote Evidence Room, which has already been demonstrated to deliver cashable and non-cashable savings.
Digital Reform
Individual justice bodies have their own digital strategies to deliver improvements and efficiencies, including the use of AI to streamline tasks. For example the SCTS Civil Online system already allows the public and professionals to track and manage their civil cases electronically. The JHA portfolio is at the early stage of initiating a cross justice digital programme for criminal justice services. This digital-first approach could deliver significant improvements for service users and savings (cashable and non-cashable) across the Criminal Justice System, through driving automation.
Significant developments are already underway including Police Scotland’s delivery of Body Worn Video to frontline police officers and staff, and the roll out of DESC. The Digital Front Door programme will deliver a single online gateway for victims and witnesses to access case updates, complete key processes, communicate securely with justice partners, and access generic content about the justice process, all of which is focused on making the system simpler, trauma-informed, and more efficient.
Transport Portfolio Efficiency and Reform Plan
| £ million | 2026-27 | 2027-28 | 2028-29 |
|---|---|---|---|
| Efficiencies and Productivity, of which | 5.2 | 4.0 | 2.0 |
| Digital Improvements | 1.0 | – | 0.3 |
| Shared Services | 1.3 | 2.0 | – |
| Workforce Savings | 2.4 | 0.8 | 1.4 |
| Operations | 0.4 | 1.1 | 0.3 |
| Estates | 0.1 | 0.1 | – |
| Service Reform, of which | – | – | – |
| Portfolio Reform Plans | – | – | – |
Note: All savings reported are new recurring savings.
The Transport portfolio supports Scotland’s economy and communities by enabling the safe, efficient movement of people, goods and services. It supports nearly £10 billion in GVA and 150,000 jobs, representing 6 per cent to 7 per cent of Scotland’s workforce and output. Transport Scotland is responsible for significant assets and transport service provision through public bodies (rail, ferries, canals, airports) and delivery contracts (motorway and trunk road network).
The most significant challenges in delivering efficiencies are the age of our transport infrastructure and fleet and the exposure to the impacts of inflation across the portfolio, which means investment is required at a time when costs are increasing. Our strategic aim to grow passenger numbers across all public transport networks (bus and rail made up 9 per cent of all journeys in 2024) aligns with all the First Minister’s priorities for improving outcomes for the people of Scotland, as well as improving the financial sustainability of public services. The portfolio is also fully aligned with Ministers’ public sector reform ambitions. Investment in transport infrastructure supports the prevention element of public sector reform and the removal of peak fares and concessionary travel lowers the cost of public transport to passengers.
The portfolio will deliver £11 million in efficiency savings by 2028–29 through:
- corporate initiatives including workforce and estate reform, streamlining of processes, greater use of AI and digital tools and increased shared services usage.
- service reform, including changes to Scotland’s railway and ferries system to drive better integration and more efficient services and continuing the process of digital transformation to enhance customer experience and open new revenue opportunities.
Efficiencies & Productivity
The Transport portfolio will achieve its savings targets by prioritising operational efficiencies and productivity improvements across key areas. Actions to achieve this include:
- Digital improvements by streamlining infrastructure will reduce legacy system costs and the expansion of shared service arrangements, such as Oracle, will consolidate multiple administrative functions into one integrated system reducing duplication.
- All public bodies will continue to work within the Public Sector Pay Policy and workforce strategies across the portfolio will help it become more skilled, agile and productive. These will be delivered through changes to spans of control and layers of leadership, vacancy management, pay award efficiencies and review of contractors to control staffing costs without impacting service delivery. Transport Scotland’s ‘Transforming Transport Together’ programme was implemented in December 2025, aligning resources to priorities to more effectively support frontline delivery across the portfolio.
- Operational savings will be driven through contract negotiations, timetable optimisation and integration, and modernisation of retail and customer operations.
- Estates rationalisation, through rent reviews, will further reduce recurring costs. Scottish Rail Holdings, Transport Scotland and Highlands and Islands Airport Limited have already reduced running costs by sharing premises with other public bodies. Use of shared premises will also increase. Scottish Canals will implement its Lock 16 project which will see it open shared premises with Historic Environment Scotland. Other opportunities will be sought, embedding and growing savings and efficiencies into budgets.
Collectively, these initiatives will deliver sustainable financial savings while maintaining service quality and supporting long-term reform objectives.
Service reform
Public Bodies such as Caledonian Maritime Assets Limited, Highlands and Islands Airport Limited and Scottish Rail Holdings will continue to develop and deliver operating models designed to ensure available resources are deployed effectively supporting service delivery. In the delivery of ferry services, the award of the CHFS3 contract to CalMac Ferries Limited provides Ministers with greater cost control opportunities.
Network Rail Scotland is regulated by the Office of Rail and Road who set them efficiency targets. Efficiencies over this Spending Review period include improvements to access planning and better integration with the supply chain to drive more efficient design and delivery. Scottish Ministers are committed to public sector control and ownership of Scotland’s railway. The revised Alliance Agreement between the two main parts of Scotland’s public rail sector helps make that a reality by governing how ScotRail and Network Rail Scotland plan and manage complementary tasks, provide value for money and help meet the net cost challenge faced by the industry.
Across the Transport portfolio, all public bodies will seek to increase demand, grow commercial revenue and generate savings.
Deputy First Minister, Economy & Gaelic Portfolio Efficiency and Reform Plan
| £ million | 2026-27 | 2027-28 | 2028-29 |
|---|---|---|---|
| Efficiencies and Productivity, of which | 11.2 | 6.9 | 6.9 |
| Digital Improvements | 1.0 | 0.4 | 0.4 |
| Workforce Savings | 8.0 | 5.0 | 6.0 |
| Estates | 2.2 | 1.5 | 1.5 |
| Service Reform, of which | 1.8 | 0.1 | 0.1 |
| Wider Reform/Shared Services | 1.8 | 0.1 | 0.1 |
Note: All savings reported are new recurring savings.
The DFMEG portfolio is at the heart of the Scottish Government’s priority to grow the economy. A strong, inclusive economy is essential to providing people with well-paid jobs, raising standards of living and generating the tax revenue necessary to fund public services.
The portfolio has for a number of years been driving efficiency and reform through focused interventions, working in collaboration with businesses and other partners on targeted outcomes, and prioritising investment to build on our strengths in sectors like energy, financial services, creative industries and life sciences.
The portfolio includes nine public bodies – Scottish Enterprise, Highlands and Islands Enterprise, South of Scotland Enterprise, the Scottish National Investment Bank, VisitScotland, Bòrd na Gàidhlig, Ferguson Marine (Port Glasgow) Holdings Ltd, Redress Scotland and the Boundary Commission. We work in partnership in alignment of the National Strategy for Economic Transformation and Green Industrial Strategy. Outcomes for targeted investment and action will continue to be measured through a core set of priority metrics, including GDP growth, employment, investment, exports, start-up activity, innovation activity and the gender pay gap.
Efficiencies & Productivity
Efficiencies will be driven through continued reductions in operating costs. Within DG Economy, significant workforce transformation has delivered a 24.8 per cent FTE reduction since 2022-23 (806 to 606 FTE). This has been achieved while broadening the scope of delivery functions. Workforce planning controls will enable further reductions over the coming years, aligned to the Scottish Government Workforce Planning Strategy.
Our public bodies are also supporting reduction in operating costs. VisitScotland commenced a Strategic Change Programme in 2023-24 and has already achieved significant savings across the organisation, delivering a 21 per cent reduction in expenditure on corporate functions in that period. It also expects a FTE reduction of 29 per cent by 2029-30. VisitScotland committed to self-funding the costs associated with strategic change to ensure the long-term viability of the organisation to continue to deliver on its statutory obligations.
Scottish Enterprise achieved a 16 per cent reduction in domestic FTE (182 FTE) between Q2 2019 and Q2 2025. Highlands and Islands Enterprise achieved a 13 per cent reduction in FTE (35 FTE) between Q2 2020 and Q2 2025. Further workforce reform is being developed. This includes work on an integrated package of incentives which links additional efficiency savings to greater financial flexibility.
Our public bodies have also been driving efficiency through their estates strategies. The Scottish National Investment Bank has acquired a sub-lease at Skills Development Scotland’s Glasgow office. VisitScotland has relocated its main office to Waverley Court, sharing premises with the City of Edinburgh Council, and is adopting a similar approach for its regional offices. It has also delivered a programme to close its remaining iCentre network, providing support through alternative platforms.
Service Reform
We continuously refine the way we deliver services to secure the same or better outcomes for lower cost in the longer term. That includes reform across portfolio boundaries and governments, including work on Whole Family Support and ensuring that our employability, skills and career pathways are aligned and effective.
The continued development of Regional Economic Partnerships offers opportunities for future efficiencies at local and regional levels through enhanced partnership working, such as regional intelligence hubs and regional operational delivery. Options for future enhancement of regional models will be linked to consideration of the role of national and regional agencies.
Within DFMEG portfolio, the Bank has been successful in leveraging third party capital into its investments, with over £1.4 billion being crowded in alongside the Bank’s commitments. This helps to make the Bank’s budget go further. The Bank is developing a third-party capital strategy which will allow it to increase the amount of investment crowded in alongside its investments and potentially grow and diversify the investor base in Scotland.
Structural reform within DG Economy, bringing sponsorship of Visit Scotland in line with visitor economy and major events delivery, will allow us to explore areas for service reform over the coming years.
DFMEG portfolio is also driving a series of digital and service reforms designed to deliver better outcomes for businesses while reducing system costs. Through CivTech, we are supporting BobbAI to develop an AI-powered platform that provides real-time, personalised business advice. This work has the potential to transform how advice is delivered by creating a single point of entry for businesses — for example, by reducing reliance on higher-cost, one-to-one advisory interventions for routine enquiries — while improving the quality and speed of support, eliminating duplication, and lowering delivery costs across the system.
Alongside this, we are progressing the Master Customer Record (MCR). The MCR will help target resources where they can have greatest impact and provide a “single source of truth” for monitoring and evaluation — for example, by reducing manual data-matching and reporting effort across agencies. A privately funded beta test involving around 40 users across public bodies will run from October 2025 to April 2026, generating the evidence needed to scale the tool and integrate it into future policymaking and service design. Evidence from the forthcoming MCR beta and continued development of BobbAI will be used to develop indicative savings estimates ahead of any decision to scale these projects.
The Digital Strategy is a key enabler of the overall PSR programme, and the elements funded through the portfolio will deliver broad savings across the wider public sector landscape.
These digital reforms sit alongside the Business Support Partnership (BSP), which brings together more than ten national and local partners to lead a unified programme of public sector reform. This collaboration provides a clear pathway towards a more streamlined, efficient and responsive support ecosystem.
Housing Portfolio Efficiency and Reform Plan
| £ million | 2026-27 | 2027-28 | 2028-29 |
|---|---|---|---|
| Efficiencies and Productivity, of which | 2.0 | 1.0 | 1.0 |
| Workforce savings | 2.0 | 1.0 | 1.0 |
Note: All savings reported are new recurring savings.
Having a safe, warm and affordable place to call home is central to a life of dignity and opportunity. Housing to 2040 remains our overarching strategy that sets out a vision and roadmap to ensuring everyone has a safe, good quality and affordable home by 2040. It is a vision where homes are affordable for everyone, where standards are high across all tenures, where people have easy access to green space and essential services; where homelessness is prevented; and where child poverty and fuel poverty have been eradicated. Realising this vision is essential to delivering on the core objectives of this government: eradicating child poverty, growing the economy, tackling the climate emergency, and ensuring high quality and sustainable public services.
The Housing Emergency Action Plan (HEAP), published in September 2025, sets out a range of actions to drive forward our housing objectives and deliver the First Minister’s priorities, most notably:
- end children living in unsuitable accommodation, as a vital part of eradicating child poverty;
- supporting the housing needs of vulnerable communities; and
- building our Future – maximising investment in Scotland’s housing sector.
Efficiencies & Productivity
The Spending Review sets a multi-year budget to support delivery of 36,000 affordable homes. Our wider all-tenure ambition will also stimulate further developer activity — increasing investor confidence, strengthening project pipelines and improving the efficiency of open-market acquisitions. Building on these foundations, the Housing portfolio plans to introduce a series of improvements and reforms throughout the spending review period to drive further savings and efficiencies, as well as maximise the use of existing housing stock across all tenures.
Workforce
Workforce across the Housing portfolio comprises staff in DG Communities and DG Net Zero within the Core Scottish Government. DG Communities will review structures, grades and spans of control across its directorates to identify efficiencies and strengthen outcome-focused collaborative working. DG Net Zero will undertake the same review within the Heat in Buildings division. These reviews are expected to deliver savings of £2 million in 2026-27, £1 million in 2027-28 and £1 million in 2028-29. Any workforce reductions will be achieved through natural attrition and workforce planning, matching existing resources to strategic priorities.
The Housing portfolio will continue to focus on stretching public investment as far as possible and unlocking private investment. Where appropriate, we will seek to augment affordable housing supply through private investment and ensure that developers meet the commitments set out in the Scottish Safer Buildings Accord.
The Affordable Housing Supply Programme (AHSP) comprises a range of funding mechanisms to enable affordable housing providers to deliver homes for social rent, mid-market rent, and low cost home ownership in communities across Scotland to support local authorities’ Local Housing Strategies. The programme is designed to drive value for money from projects, through both the appraisal process and the longer-term continuous improvement programme, and the further improvements set out in this plan will drive up efficiency and ensure maximum impact is achieved within budgets available.
In the Housing Emergency Action Plan we confirmed up to £4.9 billion of investment through a mixture of public and private investment over the coming four years. As part of this, £4.1 billion of public investment will be optimised through the programme, driving out best value and efficiency, as well as used to leverage further additional private sector investment to augment capacity and support delivery of 36,000 affordable homes. Over the last parliament, £3.5 billion was invested over five years. This multi-year public investment of £4.1 billion over four years therefore represents a significant uptick in funding, providing the certainty and stability needed for the sector to maintain momentum and build capacity.
The AHSP already attracts private investment – with, on average, Scottish Government investment of 50 per cent matched by 50 per cent in development partner contributions.However, as the Housing Investment Taskforce notes there are opportunities to go further, supporting new entrants to attract new institutional capital – including pension funds – and expanding the overall supply of affordable housing.
We will explore opportunities to scale up our approach to mid-market rent, where we already plan to invest £100 million to leverage £400 million of institutional investment – such as pension funds – and deliver 2,800 mid-market rent homes. Working with partners including Scottish National Investment Bank, we will also explore large-scale strategic opportunities that provide quality new homes and build new communities. This combination of reform and innovation will underpin delivery of the HEAP, supporting delivery of 36,000 affordable homes.
We are also exploring the future delivery of our Heat in Buildings schemes, including potential reform and rationalisation to realise efficiencies and improve impact. This will include the Green Public Sector Estate Decarbonisation Scheme among others. Where appropriate we will set out further detail of this work as it progresses.
These combined activities are expected to generate savings for the Housing portfolio and other parts of the Scottish public sector, which will be directed towards maximising supply and sustaining progress towards the 110,000 affordable homes target, of which at least 70 per cent will be available for social rent and 10 per cent will be in our rural and island communities. We will quantify savings as work progresses. Initial estimates are set out in Table B.08.
Service Reform
The Scottish Budget 2026-27 and Scottish Spending Review will set multi-year allocations for the Affordable Housing Supply Programme to support delivery of 36,000 affordable homes. Our all-tenure approach will also stimulate further developer activity – increasing investor confidence, strengthening project pipelines and improving the efficiency of open-market acquisitions. We will achieve cost savings of up to 8 per cent on suitable projects by aggregating sites to 40 to 50 units (about twice the average AHSP project size). This could allow for greater use of the Scottish Type Approval Scheme for AHSP projects – reducing building warrant processing and driving consistency across Local Authorities.
The Multi-year AHSP budgets provides an opportunity to improve the efficiency of how the process of acquiring homes from the private market is managed, including scope to acquire at scale and realise wider aggregation benefits. We will implement the HEAP to take a more expansive approach to delivery of affordable housing, attracting new entrants who have the potential to deliver effective leverage of public funds by attracting additional private capital through Fund and other partnership structures (e.g. on a ratio of a 1 to 4 capital-grant-to-private-investment in mid-market rent allowing public capital to stretch further).
We will implement the Housing Investment Taskforce action to explore potential for strategic, long-term commitments with major Registered Social Landlord (RSL) providers that can leverage private finance more effectively – this will shift from funding decisions on an individual project basis to funding a pipeline with an expectation of efficiencies that will be delivered.
The AHSP technical review process will establish where additional savings and efficiencies can be made. Through this process we will assess whether the substantial project costs savings delivered through this aspect of the programme’s due diligence can be further enhanced through inclusion of projects which are currently excluded from this assessment requirement.
Reform of delivery
We will scale up our interventionist and place-based delivery model, a central pillar of our housing emergency response, and will drive efficiency savings across delivery partners. This will include utilising digital and AI to maximise efficiencies, working with industry partners to strengthen data analytics and continuing to consider all opportunities for streamlining, simplification and reform.
Rural Affairs, Land Reform & Islands Portfolio Efficiency and Reform Plan
| £ million | 2026-27 | 2027-28 | 2028-29 |
|---|---|---|---|
| Efficiencies and Productivity, of which | 8.2 | 7.2 | 6.0 |
| Workforce Savings | 8.2 | 6.7 | 5.8 |
| Digital Improvements | 0.1 | 0.2 | – |
| Efficiencies | – | 0.2 | 0.2 |
| Estates | – | 0.1 | 0.1 |
| Service Reform, of which | 5.8 | 1.8 | 4.0 |
| Aerial Surveillance (Change of Operating Model) | 1.5 | – | – |
| Research Vessel Programme Alignment | 0.8 | – | – |
| Fit for the Future programme (Forestry and Land Scotland) | 0.1 | 0.2 | 0.3 |
| Long-Term Forest Plans, EIA, and Public Register processes | – | 0.2 | – |
| RBGE Commercial Income | – | 0.5 | 0.3 |
| Other (in development)* | 3.4 | 0.9 | 3.5 |
*Note: this table does not separately enumerate efficiencies that are being developed but not yet agreed, nor savings that are planned for 2029-30 and beyond (see below). Note: All savings reported are new recurring savings. Totals may not sum due to rounding.
The Rural Affairs, Land Reform and Islands (RALRI) portfolio is responsible for Scotland’s agriculture, forestry, fishing, and aquaculture sectors, which are at the heart of many of our rural and island communities and play a vital role in our economy. Addressing, mitigating and adapting to climate change, and protecting and restoring nature are challenges that also create opportunities for Scotland’s rural and blue economies. The portfolio is served by three Scottish Government Directorates, two Agencies and several Non-Departmental Public Bodies.
Over the past two years, the RALRI portfolio has already delivered a significant reduction of almost 10 per cent in core Scottish Government headcount, through careful workforce planning and efficiency measures. These reductions, which will continue to deliver savings in the period of this plan, demonstrate our commitment to reform and fiscal responsibility.
Efficiencies & Productivity
Work to improve efficiency and productivity across the portfolio is led by the Environment and Forestry, Agriculture and Rural Economy, and Marine Directorates:
Environment and Forestry efficiencies:
- Piloting Light Detection and Ranging (LiDAR) and satellite data for peatland management, improving land mapping and reducing the need for on the ground inspections.
Marine efficiencies:
- Marine Directorate’s review of Corporate Services identified new ways of working, improved integration and a rebalancing of grades. This initiative has delivered a 5.8 FTE reduction and annual savings of £0.6 million.
- The introduction of enhanced satellite communications into our fleet of vessels has brought about considerably faster download speeds, improved voice and video communications and opened greater opportunities for increased automation of operations.
- The initial annual saving is £0.2 million per year, but it is envisaged that further savings will be delivered as more digital enhancements are introduced which have only become possible because of this new technology.
Agriculture and Rural Economy efficiencies already achieved to date include:
- Corporate functions (workforce efficiency £1.3 million);
- Streamlined livestock Inspections (efficiency £0.25 million); and
- Policy divisions merger (workforce saving £1.3 million);
Agriculture and Rural Economy efficiencies in development include:
- Satellite Area Monitoring trials (workforce efficiency);
- Revenue enhancement (e.g. Seed Potato service) and efficiencies (Soil Rinser/Seed Potato service improvements) in plant health; and
- Improvements in Digital area e.g. on supply chain, legacy work.
Workforce plans in Scottish Government Directorates are being driven through a co-ordinated, collaborative approach. This will use ongoing recruitment controls and right-sizing delivery based on improved data and metrics, and development of centralisation and standardisation models for core products common to all areas (such as Freedom of Information). Work specific to RALRI which will benefit workforce planning includes: seeking shared services and undertaking joint procurement with partner organisations in the public sector, improving digital infrastructure, and aligning delivery structures to meet the changing operational requirements. We will continue to develop a pipeline of future initiatives to deliver further efficiencies and productivity savings.
The development and implementation of the UK-EU SPS Agreement will require significant work across parts of the Scottish Government, principally the RALRI Directorates. While additional funding has been provided to the Department for Environment, Food & Rural Affairs (DEFRA) for their work on this (£29 million in 2025-26 alone), that work will be absorbed by the Scottish Government through workforce efficiencies.
Service Reform
Public bodies in the RALRI portfolio are pursuing efficiencies at an organisation level and on a collaborative basis through an environment cluster, developing the Environment Futures programme which will create the enabling conditions for collaboration and improvement to be embedded in our public bodies. Examples of significant service reform across RALRI are noted below.
In Agriculture and Rural Economy Directorate, the Agricultural Reform Programme, informed by Scottish Government PSR Strategy principles, will agree a Future Operating Model by end 2025 – a modern, effective, and efficient model that enables the Vision for Agriculture – and then in spring 2026 a Business Case setting out the investment required to deliver this model.
The change to Marine Directorate’s aerial surveillance operating model will deliver an annual saving of £1.5 million per year. In addition to the financial benefits, this also mitigates the risk of asset failure and safeguards operational effectiveness by being able to access newer aircraft with an increased operational range.
The integration of a statutory based multi-body marine science survey programme into a single programme of research has enabled the removal of one vessel from the public sector research fleet. This will deliver a saving of £0.8 million per year and reduce the crewing requirement by six staff, whilst also strengthening resilience through integrated work patterns.
Marine Directorate is progressing PSR activities aimed at delivering operational efficiencies through the adoption of new technologies such as vessel tracking, Remote Electronic Monitoring (REM), and drones. These initiatives are projected to achieve annual savings of approximately £5 million over the long term (outwith the timescale of the table above). As PSR activities continue to enhance operations, the Directorate is also exploring opportunities to accelerate both FTE and budget savings.
The Environment Futures Programme (EFG) supports collaborative leadership across Environment public bodies and DG Net Zero Directorates, enabling service efficiencies and reform (‘Environment Cluster’, sponsored by the Economy and Environment Leaders’ Group (EELG)). Examples are People Group (enhancing efficiencies through shared corporate services); Place Prototypes Project (aligning public service resources to support climate resilience outcomes in Dee and South Esk catchments).
The Forestry and Land Scotland Fit for the Future Programme is a strategic initiative aimed at enhancing the organisation’s capabilities to be financially sustainable, efficient, resilient, and ready for the future. The programme includes a portfolio of changes that focus on improving how the organisation works, manages resources, and delivers value. The programme’s focus areas include fleet and built asset management, project delivery, and continuous improvement. It aims to ensure long-term financial sustainability while creating value from Scotland’s national forests and land assets.
Work is underway in Scottish Forestry (SF) on processes to increase efficiency and to reduce carbon emissions. Through a CivTech funded project, SF are looking to move to satellite imagery for tree health checks on woodlands and forests, which will offer better imagery than the current helicopter surveys. They are also trialling drone use to allow for quicker and more accurate woodland inspections and utilising the skills and expertise of Scottish Government Procurement team on all regulated spend.
The RALRI portfolio will continue to develop a pipeline of activities that will deliver significant benefits and savings in the future.
Climate Action & Energy Portfolio Efficiency and Reform Plan
| £ million | 2026-27 | 2027-28 | 2028-29 |
| Efficiencies and Productivity, of which | 3.2 | 4.0 | 3.5 |
| Digital | – | 0.1 | 0.1 |
| Efficiencies | 1.1 | 0.4 | 0.4 |
| Estates | 0.1 | 0.4 | – |
| Workforce | 2.0 | 3.1 | 3.0 |
| Service Reform, of which | 0.8 | 0.0 | 0.5 |
| Polluter Pays Principle (increased cost recovery) | 0.8 | – | 0.5 |
Note: All savings reported are new recurring savings.
Climate Action and Energy portfolio is responsible for cross government co-ordination of net zero policy, climate crisis and environmental protection; action to halt biodiversity loss and deliver nature restoration; optimise private sector investment to deliver offshore wind supply chain opportunities and maximise the economic benefits; investment in energy decarbonisation transition; action to prevent waste, improve recycling and reuse, reduce emissions from waste, tackle litter and deliver a more circular economy; and improving Scotland’s flood resilience.
It is supported by seven public bodies and seeks to maximise private investment in climate and biodiversity to increase the impact of public spending.
The Climate Action and Energy portfolio will deliver efficiency savings of £12 million by 2028-29 through:
- corporate initiatives, including workforce and estate reform, streamlined processes, greater use of AI and digital tools, and increased shared services; and
- service reform, including opportunities to increase cost recovery and improve collaboration through a whole-systems approach.
Efficiencies & Productivity
The Climate Action and Energy portfolio will achieve its savings targets through Directorates and Public Bodies by prioritising operational efficiencies and productivity improvements across key areas.
Digital and IT offer a range of opportunities for efficiencies to improve how we capture, store, analyse, and share information. Work is underway to adopt digital technologies including AI, cloud computing strategies, environmental DNA (eDNA) and Light Detection and Ranging (LiDAR), which replace the need for repetitive small scale data collections.
Efficiencies will be generated through actions including the expansion of shared service arrangements, such as Oracle, consolidating multiple administrative functions and reducing duplication.
Opportunities for estates rationalisation including development of hubs for modern collaborative workspaces will generate efficiencies and contribute to reducing carbon emissions across the Scottish Estate.
Review of procurement strategies will seek improvements in contract design, negotiation and management increasing the value for money generated from public funds.
Workforce plans in Scottish Government Directorates are being driven through a co-ordinated collaborative approach in the DG Net Zero family. This will deploy ongoing recruitment controls and right-sizing delivery based on improved data and metrics and development of centralisation and standardisation models for core products common to all areas, such as FOI handling.
Collectively, these initiatives will deliver sustainable financial savings while maintaining service quality and supporting long-term reform objectives.
Service Reform
The portfolio will build upon the strong track record of service redesign such as the introduction of packaging extended producer responsibility (pEPR) in October 2025 shifting packaging waste costs from councils to producers. Funding of more than £100 million a year will go directly from UKG to Local Authorities in Scotland, and the continued application of the ‘polluter pays principle’ which is already deployed effectively by SEPA as the basis for charging schemes for environmental regulation.
The Environment Futures Programme (EFG) supports collaborative leadership across Environment public bodies and DG Net Zero Directorates, enabling service efficiencies and reform facilitated by the ‘Environment Cluster’, sponsored by the Economy and Environment Leaders’ Group (EELG). Examples are People Group (enhancing efficiencies through shared corporate services); Estates Group (rationalisation); Place Prototypes Project (aligning public service resources to support climate resilience outcomes in Dee and South Esk catchments) and Forestry and Land Scotland ‘Fit for the Future’ programme.
Constitution, External Affairs & Culture Portfolio Efficiency and Reform Plan
| £ million | 2026-27 | 2027-28 | 2028-29 |
|---|---|---|---|
| Efficiencies and Productivity, of which | 4.2 | 2.1 | 2.0 |
| CEAC Workforce Savings – SG | 1.4 | 0.3 | 0.3 |
| Public Body Workforce Savings | 2.8 | 1.8 | 1.7 |
| Service Reform (public bodies) | 3.5 | 1.8 | 1.7 |
Note: All savings reported are new recurring savings.
The CEAC portfolio is responsible for promoting effective inter-governmental relations, engaging overseas on areas of Devolved responsibility, and supporting the culture and historic environment sector. This activity is carried out in support of the Scottish Government’s overall priorities including economic growth.
The majority of portfolio expenditure is invested through public bodies: Creative Scotland (CS); Historic Environment Scotland (HES); National Galleries of Scotland (NGS); National Library of Scotland (NLS); National Museums Scotland (NMS); and National Records of Scotland (NRS). The portfolio efficiency and reform plan drives the delivery of increased value from the Scottish Government and these public bodies, and sets the context for public service reform.
Actions will deliver workforce, corporate and wider efficiency and service-reform savings. The CEAC portfolio includes the Scottish Government’s Culture & External Affairs Directorate and the EU Directorate. Workforce efficiency savings are being released through structural integration and downsizing, resulting in lower total operating costs.
Public bodies
The portfolio efficiency and reform plan is designed to enable public bodies in the culture sector to meet cost pressures and improve performance within the context of a flat cash financial allocation. To achieve this efficiency improvements and reforms are being driven by the public bodies both collectively and individually.
Together, the public bodies are collaborating to deliver more efficient capital investment solutions. The Public Service Reform (PSR) Culture Cluster has identified the need for increased storage space for artefacts and documents in their care to ensure statutory compliance. Work has begun to identify and develop a prioritised capital pipeline for shared storage projects over the next ten years, subject to business case approval, maximising co-location and collaboration to ensure value for money and future-proof investment. Art Works is the most advanced and is close to construction. It will meet NGS and NMS needs and establish a National Collections Hub on Scottish Government-owned land in Granton (adjacent to the existing NMS site), delivering significant socio-economic benefits as part of City of Edinburgh Council’s Granton Regeneration. As well as delivering capital investment and operational savings, this approach is designed to: reduce carbon footprint through improved energy efficiency; and to further improve efficiency through shared conservation labs, digitisation suites and public outreach spaces. This collective, sector-wide approach will also underpin a wider approach to public service reform over the spending review period.
Individually, the public bodies are taking further steps to improve efficiency through reform. The Scottish Government has established a new framework agreement with Historic Environment Scotland designed to increase revenue for the organisation to be invested in improving services for the public, while decreasing the level of grant required from the Scottish Government. This is a core element of this portfolio efficiency and reform plan. In its first year of operation the new business model has delivered efficiency savings of £2 million, and the Scottish Government will work with HES to maintain this trajectory and increase the cumulative savings across the Spending Review period.
An independent review of Creative Scotland, commissioned by the Scottish Government, concluded in November 2025. This identified opportunities for the organisation to deliver greater value in the years ahead through its development and advocacy remit for the culture sector. These opportunities will follow actions already underway to save costs through new shared office accommodation, to meet pay pressures from efficiency savings, and by implementing an innovative multi-year funding model to distribute and manage a significantly higher level of resource to other organisations in the sector within the same level of internal organisational resource.
National Museums Scotland, the National Galleries of Scotland and the National Library of Scotland have delivered significant levels of efficiency savings in recent years and continue to do so. This includes funding staff pay pressures from efficiency savings.
The Scottish Government is also funding a new £4 million partnership programme called ‘Museum Futures’, working with the National Lottery Heritage Fund and administered through Museums Galleries Scotland, to pioneer new ways of working across the sector and support the innovation needed to ensure a sustainable future for Scotland’s local heritage collections.
National Records of Scotland has already delivered £4.25 million annual savings through efficiency measures. Following a rigorous review of staffing requirements NRS has reduced overall numbers of staff by 13 per cent and has reduced its estate requirements resulting in £1 million savings a year. NRS will make further efficiency savings totalling over 15 per cent of current costs by the end of the Spending Review period. These savings will be secured through targeted workforce and corporate budget reductions informed by a comprehensive review of statutory functions and services, alongside strategic decisions on service prioritisation and a sharper focus on core delivery and income generation. In delivering a Census for Scotland, NRS will also leverage partnerships with other UK Census offices (ONS and NISRA) to enable joint procurements, improving resilience and efficiency, reducing duplication and ensuring better value for money.
External affairs
Scotland’s international network is a strategic system of government offices, agencies (including Scottish Development International) and networks (including Global Scots) promoting trade, investment, and cultural ties globally, with physical presences in major cities worldwide to support Scottish businesses, attract foreign investment, foster innovation, and enhance Scotland’s global reputation for economy, climate, and culture.
Scotland’s international network comprises: two Scotland House offices, in Brussels and London; seven Scottish Government international innovation and investment hub offices in North America, Europe and Asia; and around thirty SDI offices across the world. Scotland House Brussels and Scotland House London are standalone sites operated by the Scottish Government in conjunction with key partners including SDI in London and from 2026-27 in Brussels. They provide an efficient one-stop platform for businesses and organisations to develop networks, conduct business and stage events to drive their growth.
Scotland House London’s membership model generates £60,000 to £70,000 a year, directly contributing to running costs. This income enables the delivery of key priorities and events without additional burden on public expenditure.
Scotland House Brussels delivers the Scottish Government’s commitments in relation to the EU, including pressing the case for easements to trade in food and drink products, closer cooperation on energy and climate, reducing unnecessary obstacles to trade in goods and services, and increasing mobility for young people, businesses and others. More widely the work of our international network centres on:
- economic growth, trade and investment;
- climate change, biodiversity and renewable energy; and
- reputation, influence and relationships.
Scotland’s International Strategy sets out actions and aims for economy, trade and investment in areas including Export growth, Inward investment, Capital investment, and Tourism. Through working more efficiently our aim is – with no increased funding – to grow Scotland’s exports, increase inward investment to Scotland and secure new capital investment to fund a just transition to net zero. Our international network will do this by building relationships locally which open doors for Scottish businesses, securing inward investment, and promoting Scotland’s strengths in renewable energy, technology, and world-class education. Scotland’s international network and our public sector reform agenda are integrated components of the Scottish Government’s overall strategy to foster a wellbeing economy and enhance Scotland’s global reputation. The international network supports domestic priorities and efforts aiming for more efficient, preventative public services, partly by learning from international best practice.
Crown Office & Procurator Fiscal Services Portfolio Efficiency and Reform Plan
| £ million | 2026-27 | 2027-28 | 2028-29 |
|---|---|---|---|
| Efficiencies and Productivity, of which | 0.4 | 0.4 | – |
| Workforce Savings | 0.4 | 0.4 | – |
| Service Reform, of which | 0.6 | 0.6 | – |
| Workforce savings through Summary Case Management, Electronic Reporting to Council, Digital Evidence Sharing Capability (DESC) | 0.6 | 0.6 | – |
Note: All savings reported are new recurring savings.
The Crown Office and Procurator Fiscal Service (COPFS) is the sole public prosecution authority in Scotland, prosecuting cases independently, fairly, and effectively in the public interest. It is also responsible for investigating sudden, unexplained, and suspicious deaths, as well as allegations of criminal conduct by police officers. This work helps ensure that Scotland remains safe from crime, disorder, and danger.
Over recent years, COPFS has been on a journey of transformation and reform, embracing the Scottish Government’s Vision for Justice and improving public services in Scotland.
Service Reform
COPFS successfully rolled out a new Witness Gateway digital portal to enhance trauma-informed services for victims and witnesses which was completed in June 2025 and continues to develop and enhance trauma informed services for COPFS, victims, witnesses and justice sector users. The Witness Gateway allows witnesses to securely access case information online instead of calling or coming into the office to meet a COPFS official to do this. This is optional for witnesses, who still have the right to attend COPFS offices in person.
COPFS also rolled out and embedded the Electronic Reporting to Crown Counsel application across both High Court and Serious and Organised Crime teams. This digital casework tool streamlines the preparation and reporting of High Court cases by reducing manual and repetitive tasks and enabling secure electronic information sharing, improving overall case preparation efficiency.
COPFS continues to work with justice partners to improve the efficiency of casework, improving journey times for victims. The Summary Case Management pilot was successfully evaluated and, from January 2025 is being rolled out across all summary casework in Scotland. This work is being delivered in close collaboration with the Scottish Courts and Tribunals Service (SCTS), the Judiciary, Defence representatives, and other justice sector partners. This reduces the number of unnecessary hearings by focussing on the early disclosure of evidence, increasing the percentage of cases resolved at an earlier stage and reducing the number of witnesses cited.
The Digital Evidence Sharing Capability is a collaborative programme between Scottish Government, COPFS, Police Scotland and Scottish Courts and Tribunals Service, in consultation with the defence community and judiciary to deliver a Digital Evidence Sharing Capability (DESC) across the criminal justice sector in Scotland. It manages the digital collection and storage of evidence throughout the lifetime of a criminal investigation and prosecution. The solution is used by the workforce across the justice sector and the defence community.
COPFS continues to advance digital casework. As the new digital capacity and new processes embed across the organisations savings will be realised, and the case journey for victims and witnesses will improve.