Record funding for Scottish councils

Local authorities to receive £15.7 billion.

Councils will receive a record allocation of almost £15.7 billion to deliver key public services. 

The 2026-27 Local Government Settlement has been announced as part of the Scottish Budget. 

Following extensive engagement with COSLA and councils throughout the year, the Budget honours the commitments made to support the local government pay deals, provides additional funding for the Real Living Wage in commissioned services across social care and childcare, and makes available further support to promote sustainable inter-island connectivity.

Finance and Local Government Secretary Shona Robison said: 

“Delivering sustainable public services that meet the needs of communities is at the heart of our priorities.

“This record settlement is the result of meaningful budget engagement with COSLA and Councils. We recognise the financial challenges that local authorities face, which is why we have provided a Budget which builds on the Verity House Agreement and Fiscal Framework agreement. 

“We will continue to collaborate with local government to ensure everyone has access to services that are efficient, good quality and effective.”

Background 

Scottish Budget 2026 to 2027 

This publication starts the formal consultation period on the 2025-26 Local Government Settlement. Final allocations will be published following approval by the Scottish Parliament.