Scottish Budget LIVE: Tax plans, spending and cuts revealed as Shona Robison unveils SNP Government Budget
Finance Secretary Shona Robison has this afternoon set out draft tax and spending plans for next year in her Scottish Budget statement.
The Scottish Government has announced the two-child cap on benefits will be scrapped north of the Border as she pledged record spending for both the NHS and councils in next year’s Budget.
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Hide AdSpending has also been outlined for the commitment to introduce an additional winter fuel payment next year of between £100 and £300 for each Scottish pensioner.
Today, we have learned the Government’s position on council and income tax, as well as its priorities in general as the country heads towards an election in 2026.
Stay tuned right here for every development throughout the afternoon.
Scottish Budget 2025-26 Live
Back to school
More on education, spending on education and skills up 3 per cent over and above inflation, an uplift of £158 million.
It will also see staff in early learning and childcare paid at least the real living wage from April, and support 1140 hours of early learning and childcare for 3 and 4-year-olds, and eligible 2-year-olds.
£29 million goes towards an ASN plan, so that more teachers can become ASN teachers.
Sweet justice
Almost £4.2 billion invested across the justice system in 2025-26. Additional £3 million available to help tackle retail crime, and on prisons, funding for replacements for HMP Inverness and Barlinnie through the £355 million capital budget.
Green fingers
Capital spend will total over £7 billion in this budget. Investment in offshore wind tripled to £150 million next year.
This will include private investment of £1.5 billion in the infrastructure and manufacturing facilities critical to growing the sector.
Rabbit out the hat
Big announcement here, and one that very much puts the cat among the pigeons. The two-child benefit cap is to be effectively abolished, which the SNP say will lift 15,000 children out of poverty in Scotland.
Huge if true.
Other bits and bobs
Here’s a few of the announcements that didn’t quite get their own solo post:
Culture sector will get an increase of £34 million.
Inter-island connectivity gets a boost of dedicated funding available to the four councils operating their own ferry services to £50.3 million. Orkney Islands Council and Shetland Islands Council are to get £20m of funding to sustain and improve inter-island connections.
£1 billion goes towards improving roads.
Lots announced, now to see how the opposition parties feel about. My guess is...angry.
Not the first rodeo
Labour’s shadow finance secretary Michael Marra says the Scottish Government has benefitted from funding from the UK Government, and this was an opportunity to take a new direction. Instead he says, the SNP asked people to "suspend their disbelief", as if this is John Swinney's first Budget, rather than having delivered 11 previous ones.
Says today is the day the excuses no longer land, and there’s no vision and no plan. Suggests party simply putting the money back they took away, and statement is “more of the same”.
The headlines
If you’re just joining us, here’s the main announcements:
Record NHS investment, pledge to reduce waiting lists and make it easier for people to see their GP.
More affordable homes.
Investment in schools, breakfast clubs and nurseries.
Green industrial vision, £4.9 billion on climate action.
Increase in culture spending.
End to the two-child benefit cap...if Westminster goes along with it.
Sinking ship
Conservative MSP Craig Hoy says the Budget was an opportunity for the SNP do "undo some of the damage" from the last 17 years but it was just "more of the same".
He says: "Thanks to the SNP, workers and businesses will pay more tax only for that money to be wasted by SNP ministers who let public services decline.”
Shout out to My Ex
Scottish Greens MSP Ross Greer welcomes the £4.9bn for climate and nature, but warns he will wait for more details before celebrating.
He adds: "I will not dismiss the positive steps taken, but does the Scottish government accept that if they want Green support, significant further changes will be required?"
Baby got back
We are now in the dour backbench section of proceedings, where SNP MSPs ask if the finance secretary agrees that this is a great Budget, Labour should back it, and whether they think the UK Government is rubbish.
It’s all a bit tedious, and adds nothing of value to the debate.
What does it mean?
My fantastic colleague Rachel Amery has written a great piece summarising the key announcements of the day, and what they mean. Get after it below
Not enough
Non-profit the Local Government Information Unit have called the Budget “complacent”.
Jonathan Carr-West, Chief Executive, LGIU Scotland, said: “We know from our annual survey that local government finances in Scotland are hanging by a thread. One in four councils are afraid they won’t be able to pass a balanced budget next year. Three quarters are warning that they may not be able to do so within the next five years. Today’s Budget from the Scottish Government does not engage with the scale of that challenge.
“Local government may welcome commitments to the New Deal with Local Government continuing work on a fiscal framework and plans to deliver new revenue raising powers. However, they will be dismayed to see how much funding continues to be ring fenced.
“There is an increase in core funding in today’s Budget but it doesn’t cover the ever growing costs of core statutory services.
“The Scottish Government has responded to the concerns of councils and has removed the freeze on council tax rises, but the Cabinet Secretary’s expectation that record funding levels should mean councils do not need to put up council tax is too complacent.
“The truth is that even with the additional funding announced today, local authorities will still need to raise council tax and make cuts to services and will still edge closer to being unable to balance their books.”
Winter is coming
Independent Age welcome help with energy bills, but lament the Scottish Welfare Fund not being increased.
Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “Older people across Scotland will be relieved to see the return of some help with winter energy bills through the Pension Age Winter Heating Payment from next year. For many not currently receiving Pension Credit, or those just above the eligibility, this money is desperately needed. Although not what they were originally due to receive, last week’s decision has been welcomed by older people in financial hardship across Scotland.
“It’s also good news that Scottish Social Security has been uprated with inflation, including entitlements that are important to older people, such as Pension Age Disability Payment and Winter Heating Payment. Many people in later life will be reassured that this has been confirmed.
“We are pleased to see that the Scottish Government is focussed on supporting renters. Over recent years both the number of older people renting privately and the proportion in poverty has risen. The increase in the Discretionary Housing Payment funding pot is an important lifeline to many older private renters, making up rent shortfalls, and the increased investment in social homes building should give tenants of all ages more security.
“However, it is concerning that the Scottish Welfare Fund, which can be a crucial safety net for older people when emergencies occur, such as needing help with food or heating costs, has not been increased.
“Generally, the older people in financial hardship that we speak to will feel heard by the Scottish Government today. However, we remain concerned about older people this winter. Going forward, the Scottish Government must continue to make decisions that improve the lives of older people in poverty.”
Bitter pill
FSB Scotland said the Budget is a “bitter pill to swallow for small retailers”.
FSB Scotland policy chair, Andrew McRae, said: “We welcome the extension of 40% rates relief to the majority of Scottish hospitality venues, who have borne the brunt of the pressures on small businesses in recent years. They continue to be squeezed hard by sharply rising costs and customers cautious about spending amidst ongoing economic challenges.
“We are also pleased the lifeline Small Business Bonus Scheme has been protected and will continue to offer vital support to tens of thousands of small businesses up and down the country. The freezing of the basic property rate, or ‘poundage’, is also welcome.
“However, the refusal to extend the same rates relief to our small retailers and leisure providers is a bitter pill to swallow.
“The pressures they are facing are exactly the same as those in England and Wales, where relief has continued to be available since July 2022 – the last time such relief was offered in Scotland.
“As a result, many retailers will face yet more difficult decisions in the months ahead as they look to protect the future of their businesses and employees.
“The extra investment in tackling retail crime through a new pilot initiative is a positive step. However, given the scale of the issue, and that the hoped-for cushion in the form of rates relief has failed to be extended yet again, it will offer little comfort to small Scottish retailers this December.”
We live in a society
Citizens Advice Scotland praised the Budget, but call for more long-term investment.
Derek Mitchell, CEO of Citizens Advice Scotland, said: “We heard a lot today about financial pressures, difficult decisions. And we understand that.
“Let’s be clear, those facing the harshest financial pressures and the most difficult of decisions every single day are the people like those the Citizens Advice network supports day-in day-out in every corner of Scotland.
“It is people worried about meeting the most basic and essential needs. It’s people who are worried about keeping their home warm or how to feed their kids tonight. And that needs to change.
“In terms of what we heard today, the restoration of the affordable homes budget is hugely welcome, as well as the commitment to ending the two-child limit. As the Cabinet Secretary outlined, this will require close collaboration with the UK Government.
“Alongside the need for stable and secure public services is an equivalent longer-term commitment to the essential work of our sector so we can continue providing life-changing advice across Scotland every day.
“Whether it’s unaffordable bills, the social security safety net or access to essential public services, we now need to see a collected and coordinated effort from both governments, and an absolute laser focus on outcomes that improve people’s lives.”
Rock bottom
Scottish Health Action on Alcohol Problems (SHAAP) expressed disappointment in lack of action on alcohol in Scottish budget.
Dr Alastair MacGilchrist, Chair of SHAAP said: “This budget is a missed opportunity for the Scottish Government to show it is serious about tackling alcohol harm, despite declaring an alcohol public health emergency three years ago.
“Not only is the government planning to make a real terms cut to alcohol and drug harm prevention funding, they have dropped plans to implement a public health levy on retailers to use some of the profits they have made from Minimum Unit Pricing.
“This could have been used to pay for additional alcohol treatment services. All in all this is a very disappointing budget for people who are living with alcohol problems and for the services that are trying to meet a very high level of need.”
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