Tax and spending plans to be revealed in Scottish Budget

Tax and spending plans to be revealed in Scottish Budget

The Scottish government is preparing to unveil its draft Budget for the fiscal year 2026-27. Finance Secretary Shona Robison is set to outline the government’s spending and taxation plans, addressing funding for key public services such as health, education, transport, welfare, and justice. In anticipation of her address at Holyrood, Robison acknowledged the necessity for “tough” decisions to ensure a balanced budget amid competing priorities.

Robison emphasized that the government has made difficult choices to optimize resource allocation, with a particular focus on bolstering public services, especially the National Health Service (NHS). Addressing economic challenges is also high on the agenda, as is the commitment to reduce living costs and confront the climate crisis. The Scottish National Party (SNP) currently governs without a parliamentary majority, meaning the passage of the Budget depends on either the abstention or support of opposition Members of the Scottish Parliament (MSPs). There is speculation that Scottish Labour may abstain, a stance supported by leader Anas Sarwar’s statement that his MSPs “would not make the Budget fall.” While constructive talks have taken place with various parties, Robison criticized the Conservatives for proposing £1bn in tax cuts without identifying funding sources.

The overall size of the Scottish Budget has recently hovered around £60 billion. For 2026-27, the government will benefit from an additional £750 million due to UK government spending decisions and improved forecasts related to taxes and social security, based on analysis by the Fraser of Allander Institute. However, this institute pointed out a £1 billion shortfall in the capital budget, which finances critical infrastructure projects and services such as road maintenance. The Budget must undergo three parliamentary scrutiny stages before becoming law.

Opposition parties have presented their views and demands ahead of the Budget announcement. Scottish Conservatives have urged reductions in income tax and business rates alongside increased funding for colleges and universities. Tory leader Russell Findlay stressed the urgency of relief for households and businesses burdened by rising costs. Meanwhile, Anas Sarwar of Scottish Labour criticized the Budget as unlikely to bring needed change, calling it “a 19th John Swinney budget,” and pledged that a new Labour government could deliver different outcomes. Sarwar also voiced readiness to consider an emergency budget if elected in May, outlining plans aimed at addressing NHS challenges, youth employment, and justice reforms.

Other parties have put forward distinct priorities as well. The Greens, who supported last year’s Budget after securing concessions, are advocating for new taxes on casinos, bookmakers, and high-value properties. They have also called for ending disparities in childcare entitlements caused by differing local council policies, which can significantly delay access for some families. The Greens additionally seek increased support for workers affected by the closure of the Exxon Mobil plant at Mossmorran. Similarly, the Liberal Democrats have outlined demands including greater funding for colleges, a fairer approach to support for island communities, improved hospital discharge procedures, and enhanced care for individuals with autism and ADHD. Jamie Greene, the party’s finance spokesperson, indicated willingness to negotiate with the SNP if progress is made on these priorities.

Shona Robison’s budget speech is scheduled to begin at 14:20, followed by a one-hour session of questioning from opposition MSPs. The final parliamentary vote on the Budget bill is expected in late February

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