New funding agreed for bus fares, drug services and free school meals
Agreements have been reached separately with the Scottish Liberal Democrats and Scottish Green Party to support the SNP’s 2025-26 Budget.
Finance Secretary Shona Robison has announced she will table amendments to the 2025-26 Budget Bill to allocate £16.7 million funding to:
• Bolster drug and alcohol services, including £1 million for specialist support for babies born addicted to drugs
• Begin a £2 bus fare cap pilot in one regional transport area
• Further strengthen support for hospices from £4 million to £5 million
• Increase Nature Restoration by £3 million to its highest ever level
• Invest in targeted support for the College sector and protect Corseford College
• Extend free school meal eligibility in S1-S3 in eight local authority areas for pupils in receipt of Scottish Child Payment
• Offer flexibility for Orkney Island Council in terms of capital and resource funding
Ms Robison said: “We are determined to deliver on the issues that matter most to the people of Scotland – and that is why this Budget invests in public services and in eradicating child poverty, acts in the face of the climate emergency, and supports jobs.
“The First Minister was clear that we would bring forward a budget by Scotland for Scotland, and the negotiations we have taken forward have been in that spirit. These additional initiatives demonstrate the value of a progressive approach and dialogue.
“During every stage of this process the Liberal Democrats and the Greens have engaged in our discussions in a positive and constructive manner.
“Through seeking compromise I believe we are delivering a budget that will strengthen services and support our communities. With the agreements with these two parties now in place this will secure a majority in parliament in support of the Budget Bill.”
The Scottish Greens will support the forthcoming budget, following confirmation that the Scottish Government have agreed to the party’s proposals on record climate funding, the expansion of free school meals and trialling a £2 cap on bus fares.
As a result of proposals tabled by Scottish Green negotiators, the Government’s budget will now be changed to include the roll-out of free school meals to thousands more young people and a year-long regional trial of a £2 cap on bus fares.
Other Green proposals accepted include increasing funding for nature restoration to a record £26m, more free ferry travel for young island residents, free bus travel for asylum seekers and help for first time home buyers by increasing tax on the purchase of second/holiday homes.
Scottish Greens finance spokesperson Ross Greer MSP said: ““The Scottish Greens put climate action, tackling child poverty, cheaper buses and ferries and funding for schools at the heart of our budget negotiations. We have delivered progress on all of these fronts, so our MSPs will be voting for the budget.
“No young person should be sitting in school hungry. As a result of our work, thousands more pupils in S1-S3 will now receive a free school meal. This will build on the success of expanding free school meals in primary schools, a policy delivered by the Scottish Greens a few years ago.
“Our Green MSPs have also secured a year-long regional trial where bus fares will be capped at £2, because we know the cost of public transport needs to come down. This also builds on the success of free bus travel for young people, another Scottish Green policy we made a reality.
“With climate chaos all around us, we have worked to deliver record funding for nature restoration and our environment. These Green projects are creating well-paid jobs in communities across the country, particularly in rural areas.
“From schools to libraries to social care to bin collections, our councils deliver the services we all depend on. We have worked with Scottish Green councillors to ensure that this year’s budget delivers a fair deal for local councils, including an end to the Council tax freeze.
“These changes secured by Scottish Green MSPs will lift more children out of poverty, reduce the cost of public transport, create good quality jobs, tackle the climate crisis and protect local services. That’s in stark contrast to Labour, who agreed to let the SNP’s budget pass without making any attempt to improve it. If you want action to help people and planet, voting Scottish Greens is the best way to deliver it.”
As a result of Scottish Green negotiations, this budget includes:
- Making public transport cheaper: A year long regional trial of capping bus fares at £2 starting 1st January 2026, free bus travel for people seeking asylum and free inter-island ferry travel for young island residents
- Action to tackle child poverty: The expansion of free school meals to thousands of S1-S3 pupils who receive the Scottish Child Payment, starting with eight councils areas in August 2025.
- Record climate action: A record £4.9bn of funding for climate action and nature restoration.
- Progressive taxation to support public services: Increased tax on the purchase of second or holiday homes and moving forward with proposals for a Cruise Ship Levy, the consultation for which will launch in February
- Protecting local services: A real-term funding increase for local councils, and progress on giving councils more direct power through a consultation on devolving Parking Charge Notices (parking fines)
Commenting on the deal, Scottish Lib Dems leader Mr Cole-Hamilton said: “We have today reached an agreement with the Scottish Government. There is a long list of policies and projects that we’ve won for our constituents, and for Scotland as a whole, and so we will be voting for the Budget.
“In a Parliament of minorities Scottish Liberal Democrats will always act responsibly and try to find common ground.
“As a result, Lib Dem priorities will now be backed by hundreds of millions worth of government investment. I am pleased that we have secured money for new drug and neonatal services. As a former youth worker I know how important it is to give children the best start in life and few have it tougher than babies who are born addicted to drugs.
“Alongside the long list of Lib Dem demands baked into the first draft of the budget, we have also secured additional money for new college programmes focused on care and offshore wind, more money for hospices, and backing for the young people attending Corseford College.
“Scottish Labour’s decision to abstain on the Scottish Budget confirmed once and for all that there would be no early election. This was always very unlikely and that’s why all along Scottish Liberal Democrats have sought to shape the budget to unpick some of the damage caused by years of SNP neglect.
“This budget shows that by backing the Liberal Democrats you get a local champion focused on the issues that matter the most.”
The Liberal Democrats said: “Lib Dem priorities will now be backed by hundreds of millions worth of government investment.
“Here is the long list of policies and projects that we’ve won for our constituents, and for Scotland as a whole:
