Scottish Budget 2026-2027: Finance Secretary's statement - 13 January 2026

Statement by Cabinet Secretary for Finance and Local Government Shona Robison to the Scottish Parliament on 13 January 2026.

"Presiding Officer, 

Today, I present a budget for Scottish families. A budget for a stronger NHS. And a budget for investment in Scotland's infrastructure. 

As a result of the decisions I am announcing today, some of the pressure on families and family budgets will ease. 

There will be more operations and appointments in our health service, and it will be easier to access a GP.  

College funding will grow, giving our young people more opportunities to learn and flourish. 

Life will be a little easier for parents, with more wraparound childcare. 

And more young Scots will be able to find a home that they can love, and can afford, helping them build a more secure future right here in Scotland.   

This is a government that wants what is best for Scotland and that is why we will continue to offer, and continue to expand, the best cost-of-living support package available anywhere in the UK.  

My message to the people of this country is clear – thanks to our cost-of-living commitments, you will be better off in so many ways because you live in Scotland.  

So today, I am proud to present a budget for Scotland: with an investment of almost £68 billion in the wellbeing of our people and in the future prosperity of our nation.  

And to present our multi-year spending plans. With total investment of almost £200  billion, the Scottish Spending Review and Infrastructure Investment Pipeline demonstrate the scale of our ambition for our nation.  

Presiding Officer, I will begin today where I left off in my budget statement last year. 

Just over a year ago, I stood in this Chamber and announced our intention to scrap the cruel two-child cap. It was widely welcomed across Scotland.   

It has taken the UK Government almost a year to catch up but I am pleased that they have done so.  

The Scottish Government will now go further and do more. Instead of mitigating yet another damaging Westminster policy, we can use the £126 million released in this coming year to keep even more Scottish children out of poverty.  

Our aim is to target all of these extra resources in the most effective way, to ensure maximum impact on those families in greatest need by increasing their income and reducing their costs. 

That means, this year, as part of a £50 million whole family support package, specific additional support for colleges as part of ongoing initiatives to raise income through skills and education, so people can find work and better paid work. It means action to remove transport barriers that can make it difficult for some to access work. And additional resources for key third sector partners to target more precisely on those families who are hardest to reach.  

It means a further £49 million this year for measures we will announce in the updated Child Poverty Delivery Plan in March, as we strive to reduce child poverty faster and further. 

In 2026-27, the transformational Scottish Child Payment will increase with inflation, and because of choices made in this budget, from 2027-28 we will go further and boosting the payment for families with a baby under one, to £40 a week. 

Presiding Officer, the first year of a baby's life is one of the most exciting times for any family, but we know this time can bring extra stress and costs too.  

That's why this government is delivering the strongest package of support for families with young children anywhere in the UK - from the baby box, to Best Start payments and, of course, our game changing Scottish Child Payment. 

This support for mums and dads will help them through that critical first year of their child's life. Delivering the best start in life for children, and for families. 

This commitment speaks to who we are as a government, to our values and to our ambition for each and every child in our land. 

And to deliver even more for those with the least, we will ask those with the most, the very wealthiest in our land, to contribute that little bit more. 

That includes the introduction, by April 2028, of two new Council Tax bands for the most expensive properties in Scotland - those worth over £1 million, on an up to date valuation. A measure that will bring greater fairness as well as increased revenues to councils. 

From April 2027 the Air Departure Tax will come into force and we will shortly launch a consultation on a new Highlands and Islands Exemption, continuing to exempt domestic flights. Through this new framework we will introduce a private jet tax.  

I say to those who choose to travel by private jet, in Scotland you will pay, and pay a fair share, for that privilege. And, in doing so, you will be helping us make Scotland the fairer nation we all know it can and should be. 

Presiding Officer, self-government works for Scotland. The choices we are able to take, in this, our national parliament, make a real difference for the people we serve. 

Our choices mean that child poverty in Scotland is at a thirty-year low and has been falling in Scotland while it has risen elsewhere on these isles. Achieved because we can build a social security system that is more compassionate and a tax system that is more progressive. 

Decisions taken by this parliament, and this government, have played a key role in reducing carbon emissions in Scotland by more than half. 

Public health has been advanced, with Scotland taking the lead on action to reduce the harm from alcohol, and through transformational measures such as HPV vaccination. 

The amount of electricity generated from renewable sources has increased more than fourfold since 2008, a step change that should mean substantially lower energy bills and will mean lower energy bills when Scotland's energy is in Scotland's hands. 

Electrification of key rail routes, improving journeys for tens of thousands of commuters, and Scotrail has, of course, been brought into public ownership. 

We were able to replace the UK's costly PFI with a more cost-effective alternative, which in turn has enabled us to build hundreds of new schools and substantially upgrade hundreds of others. 

And we have abolished Thatcher's right-to-buy, which means after years when the number of socially rented homes were falling, they are once again increasing in Scotland. Indeed, since 2007 we have delivered more than 141,000 affordable homes, of which 101,000 have been for social rent. 

Scotland has been changed for the better by this. But we're determined to go further. That is why this budget is not only focused on securing the gains that have been made, but moves forward to take the best next steps for our nation. 

Because when decisions about Scotland are taken here in Scotland, by a government that puts the people of Scotland first, transformational change can and does happen. This is a budget focused on delivery and on hope, on a stronger NHS and on a brighter future for Scotland and the people who live here. 

Presiding Officer, this is a budget that will direct more public spending to the frontline. 

At its very heart is a commitment to effective and efficient policy delivery through a more modern public sector and smarter use of technology, including digital delivery, making it easier for citizens to access the services they need. 

Our approach to public sector reform will deliver £1.5 billion in efficiencies. Helping us protect frontline services from the worst impacts of a tightening fiscal environment, not least due to constraints the UK Government has put on Scotland's budget - including the near £400 million shortfall in funding as a result of the Chancellor's decision to increase Employer National Insurance contributions. 

Our ambition is clear – a Scotland where public services work seamlessly for people, modern in their design and delivery, accessible where and when they are needed, flexible in how they respond, and consistently focused on the best outcome. In short public services that are centred on the needs of the citizen, not the needs of the system. 

But of course, for this budget to pass, and for the benefits to be felt by families across Scotland, we need support and votes from other parties across this chamber. 

As before, my aim has been to seek common ground. Thanks to constructive pre-budget engagement, key priorities of opposition members have been included alongside the priorities of this government in my budget plans today.   

That includes, among other things, more money to improve neurodevelopmental assessments and care for children and young people, additional investment for Changing Places toilets, resources to support bus franchising, and support for the redevelopment of Edinburgh's King's Theatre. 

From our budget conversations, I have no doubt members across the chamber will also welcome actions in other key areas. That includes our commitment to the communities affected by the closure of Mossmorran, who will receive targeted support of £9 million over the next three years.  

Our commitment to the residents of Shetland and Orkney, who will benefit from lower costs as we scrap peak fares for islanders on the Northern Isles ferries.  

And our commitment to the college sector, which will see a substantial ten percent increase in funding, that is £70 million extra this year. Alongside this, the Scottish Funding Council, supported by the Scottish Futures Trust, will be working with colleges, including Forth Valley and Dundee and Angus, to develop a comprehensive infrastructure investment plan that addresses local priorities.   

Presiding Officer, this is a budget for a stronger health service, a budget which protects and enhances the best cost-of-living support package available anywhere in the UK. It is a budget worthy of support.  

For our NHS, it delivers a record £17.6 billion for frontline services, £2.4 billion to support the vital work of GPs, primary care and community services, and over £2.3 billion of support for social care.  

It means our health service will have the resources it needs to continue reducing waiting times, to continue cutting waiting lists – and I commend our NHS staff for the work they are doing right now to cut the longest waits, something now achieved for six months in a row.  

There will be more operations and appointments, building on the targeted investment in last year's budget which has seen a record number of hip and knee procedures and an increase in both inpatient and outpatient appointments. We know what works and we are investing at record levels so our NHS can do more of it. 

And there will be significant new investment in our staff – higher wages, improved training, and action to support staff wellbeing, retention and work-life balance. The NHS is nothing without its staff and I want them to hear loud and clear that they are respected and valued. Thanks to their efforts the NHS is already getting better, and this budget will continue to support them, as they work tirelessly to put patients first.  

And for the social care sector, today's budget will enable further action to reduce delayed discharges as the Health Secretary will set out following engagement with local government and health and social care partners. It also provides the resources needed to ensure that, where we commission services, those working in adult social care receive as a minimum the real living wage. 

Once again, this year, a bigger share of the health budget is going to primary care. That means the number of GPs in Scotland will continue to rise and more GPs will mean easier access.  

And because we are committed to ending the 8am rush, this budget contains £36 million to begin the rollout of new High Street walk-in GP clinics.  With the first coming soon. 

Our ambition is to deliver the best care, at the right time and in the right place – free at the point of need. That includes an ongoing expansion of our ‘hospital at home' programme, so that more people can receive the care they need in the comfort and security of their own home. 

Have no doubt, we have an NHS in Scotland that is on the path to recovery, an NHS that, after Covid, after such a huge shock to the system, is getting better.  

This is a budget that will enable our health services to do more and do it better. I have no doubt our constituents will not look favourably – and that is an understatement - on any party that can't bring themselves to back a budget that offers so much to our NHS.  

Presiding Officer, this is a budget for the wellbeing of our people and for the prosperity of our nation. 

A society where the needs of people and planet are to the fore. 

For the planet, that means we will continue to play our part in global efforts to tackle the growing climate emergency. That includes an ongoing commitment to decarbonise our economy, with investment to support more carbon-free transport, more carbon-free heating for businesses and homes and to continue the expansion of renewable electricity generation around our shores. 

Taken together, we are committing over £5 billion this coming year toward measures that will reduce Scotland's carbon emissions, increase our resilience in the face of climate change, and in many cases, save families hard-earned cash. 

It is investment in our landscape and our natural environment, assets that are priceless in themselves but also of vital importance economically – I think of food and drink and tourism sectors that are flourishing – and vital to our health and our sense of self. To our wellbeing in its fullest sense. 

And it is an investment in those who care for our land, in our rural communities and our farmers, including a new package to nurture and develop regenerative and sustainable skills in food and farming. 

Presiding Officer, our commitment to the planet extends of course to investment beyond our shores. While others are choosing to reduce their commitment to international development, I am proud to confirm that here in Scotland we will increase our international development fund by a quarter to £16 million. Different choices. Different values.  

For our people, this is a Budget that delivers record funding to support Scotland's creative and our culture sector – as promised a £20 million£ increase in the culture budget this year.  

It is through our songs and our stories that we best express ourselves, and best understand ourselves, and our place in the world. In these times of uncertainty, in these times when there are so many pressures on family budgets, we can find some solace, maybe even some much-needed escape, in art, in dance, in laughter, in music, in the shared experience that is a concert or a festival. Scotland is richer because of our world-famous culture, and this government stands full square behind our fantastic creative sector. 

It is a budget that creates new opportunities for Scots to learn and to flourish.  

That includes not only extra funding for our colleges, but also additional funding for our universities, including £20 million for the University of Dundee, and an ongoing commitment to Scotland's high-quality apprenticeships, which this year alone will provide more than 31,000 Scots with a pathway to a sustainable, well-paid job.  

There will be targeted support to ensure critical skills shortages in our offshore renewables sector are met, and to help retrain workers in the oil and gas sector. This is a government that is serious about a just transition and serious about making the most of our renewables opportunity. 

I know also that many young Scots are struggling to get on the housing ladder, struggling to find affordable homes to rent or to buy.  We will deliver record levels of investment to help deliver even more homes – a new generation of affordable, liveable, energy efficient homes.  

Our plans provide vital support for children with additional support needs and give local councils the resources they need to continue narrowing the attainment gap and deliver on our commitments on class contact time. 

Overall, funding for local government will increase by 2 per cent in real terms comparing budget to budget – a settlement that is fair, and which recognises the important role of local government in the delivery of key services.  Decisions on Council Tax rates will, of course, be taken locally. However, this is a reasonable deal and, given the cost-of-living pressures that we all recognise, I urge local authorities to translate this settlement into reasonable decisions on Council Tax.  

Presiding Officer, our ambition is for a society that is strong, and an economy that is flourishing. 

Scotland is a nation of innovators, of wealth creators, and this budget is designed to support those whose efforts are essential if our economy is to grow. 

The most prosperous future for Scotland means being able to use our resources to deliver a clear competitive advantage for Scottish business. That is why this government believe Scotland's energy resources should be in Scotland's hands. There is no good reason why Scottish companies are paying such high energy costs.  

Short of independence, however, there are steps we can and will take to see more direct benefits from our renewables revolution in our economy. 

That includes, in this budget, resources to support the creation of a diverse and sustainable supply-chain for offshore wind here in Scotland. It means money, in this budget, to support a just transition for our industrial sector, including targeted investment in the Grangemouth Industrial Cluster. 

We are working with our partners in Shetland, Orkney and Western Isles councils to agree a new Accelerator Model, a transformative package of funding that we believe can unlock hundreds of millions of pounds of investment in these island communities.  

Alongside this our new National Islands Plan will take forward priority projects including clean energy, fixed links and other key infrastructure projects. 

These investments will form part of a capital investment programme worth £7.6 billion which, given that infrastructure investment is a recognised driver of growth, will deliver significant economic benefits across our economy. 

It includes investment in our railways, with the delivery of new battery-electric trains on the Borders and Fife routes. Ongoing investment in the most extensive renewal of our ferry fleet since devolution. And, this year, it includes also nearly £200 million for the dualling of the A9 – and I say this loud and clear, this government is committed to the completion of the A9 by 2035. 

We will take forward dualling of key sections of the A96 and, working with partners, we will ensure a new station at Winchburgh is delivered. 

Presiding Officer, in 2025, Scotland secured a decade-long stretch as top UK Foreign Direct Investment location outside of London.  

Central to that achievement is the work of our enterprise agencies and the Scottish National Investment Bank. I am pleased to say that this Budget delivers on our commitment to invest £1 billion in the Bank by the end of the parliamentary term, and keeps us on track to invest £2 billion over the first 10 years. 

This Budget will build on that progress, with a package of funding to support disadvantaged and under-represented young entrepreneurs, and support companies to scale-up. 

It also means enhanced support for Visit Scotland, and a commitment to multi-year funding to further support town-centre regeneration. 

The small business bonus scheme, which removes the burden of rates from 100,000 properties – businesses like hairdressers, bakers, cafes that form the life blood of every community – will be continued for the next three years. 

And in response to concerns in the business community about the recent revaluation, we will reduce the Basic, Intermediate and Higher Property Rates, while also providing transitional relief worth £184 million over the next three years. 

We will also provide 15 per cent Non-Domestic Rates relief in 2026-27, and for each of the three years of the revaluation cycle, worth £138 million over three years for retail, hospitality and leisure premises liable for the Basic and Intermediate Property rate, capped at £110,000 per business per year. In our islands and designated remote areas, that relief will be 100 per cent. In total, including the small business bonus, over 96 per cent of retail, hospitality and leisure properties will pay zero or reduced rates. 

Together, Presiding Officer, this provides revaluation and retail, hospitality and leisure support worth £322 million over the next three years.  

We are still awaiting details from the UK Government about possible changes to business rates for pubs in England, following press speculation last week. But I can assure members that, if additional resources become available, we stand ready to use these to provide even further support for the sector in Scotland. 

There will be no changes to Land and Buildings Transaction Tax, and we will continue to match UK rates with the Scottish Landfill Tax.  

Presiding Officer, this is a government that cares about Scotland and all our people. That means we will work harder than anyone else to secure the best possible deal for our nation and its people. 

Above all, that means a commitment to deliver the best cost-of-living support package available anywhere on these isles. 

The best cost-of-living deal in Britain, is getting better. And it is not only about cost of living but, just as importantly, it is about the quality of life. 

Free prescriptions – a saving of £9.90 per item compared to England – continued. 

Free eye examinations – a saving of £25 compared to England – continued. 

Average Council Tax and water bills, still lower than in England and Wales. 

Peak-rail fares abolished.  

Young Scots protected from a debt-burden approaching £30,000 because tuition fees in Scotland are free.  

The baby box – containing items worth £400 – a gift to every new baby born in our land.  

Free school meals for thousands in our schools, including all pupils from P1 to P5. 

Free bus travel for all young Scots under 22 – and older Scots over the age of 60. 

1140 hours of free, high-quality early learning and childcare, worth around £6,000. Welcomed, I know, by thousands of young parents.  

All policies that help with the cost of living but more than that, all policies focused in different ways on the wellbeing of our citizens at each and every stage of their lives. 

Presiding Officer, the choices made in this budget enable us to go further and do more. 

That includes funding to deliver, by August 2027, a breakfast club for every single Scottish primary and special school.  

What does that mean in practice?    

The morning rush to get everyone organised and out of the house becomes that little bit easier. 

The chance to drop kids off earlier at school, perhaps opens up new shifts at work.  

For some, families saving on the cost of breakfast. 

For others, the kids getting a breakfast they wouldn't otherwise receive – fuelling them to learn. 

Our plans include, also, new funding for wraparound activities in the afternoon and early evening.  

Building on the SFA's excellent Extra Time initiative, the budget will enable us to trial a programme of activities between 3 and 6 pm in a range of primary schools, helping to get kids active and offering parents the peace of mind that their children are being looked after, free of screens. Again, more wraparound support, giving parents greater flexibility and freedom. 

And, as a third element, more help for parents during the summer holidays. To mark Scotland's hosting of the Commonwealth Games, and a welcome return to the men's Football World Cup, investment in a ‘summer of sport'. I know just how costly it can be for parents to keep their kids entertained during the long summer holiday, so this summer, thousands of young Scots will have access to a range of free sport activities, including – and with an eye to future Scottish Commonwealth Games gold medals - a universal learn to swim offer for every single primary school child in our land. 

It is action by a government that understands the pressures many families are facing. Action that will help to reduce costs, deliver more wraparound care and help keep more Scottish kids out of poverty.  

Presiding Officer, self-government works because it enables us to take different decisions based on Scotland's distinct circumstances, on our particular priorities and our values. 

That is why we have chosen to invest in the wellbeing of our society. To provide universal access to services that are about leaving more money in people's pockets, yes, but also about solidarity, about a way of seeing the world that reflects who we are as a nation. An approach which is about making life a little bit easier for all. 

In the recent Westminster budget, the UK Government made choices on tax that, taken together, mean standards of living in the UK will continue to stagnate – or as the First Minister describes it - will remain as flat as a pancake. 

The Chancellor decided to freeze Income Tax thresholds, including for the Basic rate, which means more of people's hard-earned cash gets taxed, or taxed at a higher rate until 2030/31. 

I am making a different choice.  

I can confirm that this year, while the others remain frozen, the thresholds for the Basic and Intermediate rates will increase by 7.4 per cent, that is by well over twice the rate of inflation. That is an increase in these thresholds of almost 11 per cent in two years. 

As a result, even more people in Scotland can expect to pay less tax than if they lived in England, Northern Ireland or Wales. That's over 55 per cent of Scots set to pay less income tax because they live in Scotland.  

Presiding Officer, this is a budget for a stronger NHS. A budget for a more prosperous Scotland. A budget that once again, gives the people of Scotland the best cost-of-living deal anywhere in the UK.  

It is a budget that offers new ways to access a GP, with walk-in GP clinics. 

New help for hard-pressed families, with more wraparound care. 

New hope for young Scots looking for their first home. 

More operations, more appointments in our NHS.  

More people paying less income tax because they live here in Scotland. 

New help and more help.  

It is a budget for families. A budget for Scotland.  

A budget well worth voting for."