Local authorities receive ‘real terms increase’ in funding
Councils will share a record funding settlement of more than £15 billion subject to passing of the 2025-26 Budget, provisional allocations show.
The 2025-26 Local Government Settlement includes a £289 million increase in funding to be used by councils to meet local needs and £120.5 million additional funding for pay deals.
The Budget also includes a one-off payment of £40 million to help councils respond to the climate emergency, and additional funding to support free personal care, teacher numbers and island communities.
Finance Secretary Shona Robison said: “Our Budget is laying the foundations for Scotland’s future success, with investment to help improve the public services that people rely on.
“Local authorities provide some of the most important services to our communities – from schools to social care – which is why we’ve increased their funding by more than £1 billion compared with last year’s Budget.
“The settlement is the result of meaningful budget engagement with COSLA and Councils. While council tax decisions are a matter for individual local authorities, with record funding of over £15 billion there is no reason for big increases in Council Tax next year.
“This is a Budget that will deliver increased funding for schools, social care and other vital council services. But this funding will only reach communities if the Budget passes, so I am asking Parliament to unite behind it.”
The 2025-26 Budget will deliver progress for the people of Scotland, with a record increase in frontline NHS spending, and plans to lift 15,000 children out of poverty by mitigating the UK Government’s two-child limit from 2026.
Setting out the Budget to Parliament, Finance Secretary Shona Robison said the government had listened and would now act on the priorities of people, businesses and organisations across the country – delivering progress for Scotland, by Scotland.
The 2025-26 Budget includes:
a record £2 billion increase in frontline NHS spending taking overall health and social care investment to £21 billion to reduce NHS waiting lists, making it easier for people to see their GP, and progress the Belford Hospital, Monklands Hospital and Edinburgh Eye Pavilion projects
funding for universal winter heating payments for older Scots, and investment to allow the mitigation of the two-child cap from 2026
tax choices that freeze income tax rates, increase the Basic and Intermediate rate thresholds to put more money in the pockets of low and middle-income earners, and provide business rates relief for hard-pressed local pubs and restaurants
a record £15 billion for local government to support the services communities rely on and £768 million to provide 8,000 more affordable homes
£4.9 billion of action on the climate and nature crises to lower emissions and energy bills, protect the environment, and create new jobs and opportunities
a real-terms uplift of 3% for spending on education and skills to maintain teacher levels and invest in school infrastructure, as well as new funding to put more breakfast clubs in primary schools
a £34 million uplift for culture in 2025-26
The Finance Secretary said: “I am proud to present a budget that delivers on the priorities of the people of Scotland.
“Parliament can show that we understand the pressures people are facing. We can choose to come together to bring hope to people, to renew our public services, and deliver a wealth of new opportunities in our economy.
“This Budget invests in public services, lifts children out of poverty, acts in the face of the climate emergency, and supports jobs and economic growth.
“It is a budget filled with hope for Scotland’s future and I look forward to working with all parties in Parliament to secure agreement around its provisions.”
£6.9 billion total investment in social security, including the Scottish Child Payment
almost £4.2 billion across the justice system in 2025-26, including £1.62 billion for policing to support capacity and capability, £881.1 million for prisons, including £347 million for the prison estate to deliver HMP Glasgow and HMP Highland, and £159 million for community justice services to support the wider use of community interventions
over £2.6 billion towards public transport to support bus, rail and ferry services and increases the dedicated funding available to the four councils operating their own ferry services to £50.3 million
over £660 million for rural communities to support the crucial contribution of Scotland’s farmers, crofters and the wider rural economy
almost £90 million to protect, maintain and increase our woodlands and peatlands, to restore more than 15,000 hectares of degraded peatland and ensure the creation of more than 11,000 hectares of woodland across Scotland
a £34 million uplift for culture in 2025-26, building on the £15.8 million increase in the last Budget to take the total incremental increase in culture funding to almost £50 million – the halfway point in our commitment to increase funding to culture and the arts by £100 million more annually by 2028-29
£6 million for the National Islands Plan to deliver infrastructure projects designed in partnership with islanders to support successful and resilient island communities
protection for free tuition and a 3.5% increase in total investment in Higher Education, compared to a 3.08% increase in university funding in England
Ben Macpherson MSP has welcomed the Scottish Government’s budget commitment to provide significant additional funding for the Granton Waterfront regeneration project, with a long-term agreement to be formalised in 2025.
Having spoken regularly about Granton in the Scottish Parliament this year, and previously, to promote the area as a strategic development site for Edinburgh and Scotland as a whole, Ben Macpherson MSP is delighted that the Scottish Government has committed financial support to significantly progress the City of Edinburgh Council’s ambitions plans.
The budget statement by Shona Robison MSP included: “I can confirm today that we will be working with Edinburgh City Council to unlock over 800 new, net zero homes at their Granton development site.”
In the Scottish Parliament, during the Budget statement and question session, Ben Macpherson MSP for Edinburgh Northern and Leith said: “As the local constituency MSP, I believe passionately in the significant potential for the development of Granton Waterfront to help tackle Edinburgh’s housing challenges, to transform the northern part of our capital city for the common good, and to deliver economic growth, new opportunities and multiple positive benefits for existing communities and our country more broadly – that’s why I have worked constructively to highlight all of this to Ministers, and am therefore delighted and grateful that the Finance Secretary has committed to working with City of Edinburgh Council to deliver 800 more homes.
“Can the Finance Secretary say more about the Scottish Government’s commitment to the development of Granton Waterfront – as a strategic site – and the positive impact this will deliver for the people of Northern Edinburgh and Scotland as a whole?”
The Cabinet Secretary for Finance, Shona Robison MSP, replied: “Ben Macpherson is absolutely right, the Granton Waterfront development is a big deal for Edinburgh, and we will work with Edinburgh Council over the coming months and hope to announce a deal on the detail early in the 2025-26 financial year to support this multi-year project.
“And I talked in my statement about it unlocking 800 new net-zero homes of mixed types and tenures but also sustainable transport links and placemaking initiatives.
“This can be a gamechanger for Edinburgh and I am very acutely aware of the housing need in Edinburgh, and I think this will go a long way to helping as part of this solution.”
Ben Macpherson MSP for Edinburgh Northern and Leith, added: ““This is a very significant step forward towards tackling Edinburgh’s housing emergency and realising all of North Edinburgh’s remarkable potential.
“I have passionately and consistently supported the regeneration of Granton Waterfront throughout my time as the MSP for Edinburgh Northern and Leith, and have worked to be a constructive link between the Scottish Government and the City of Edinburgh Council in this collective endeavour.
“The vacant and derelict land in Granton has the potential to be transformed into a new residential hub and a destination to visit for locals and tourists alike – just like in Dundee and other waterfront cities across the world. It is fantastic that the Scottish Government has committed to this vision and given pivotal financial backing to make it happen!
“Edinburgh continues to face significant, various housing challenges and building more affordable homes is crucial in helping to tackle this. With Scottish Government support, the development plans for Granton will deliver transformational change to benefit the local area and the wider economy.
“It has been a consistent priority since my election to promote and deliver more affordable housing in Northern Edinburgh – as well as accompanying infrastructure and facilities in the area, like cultural and creative hubs, opportunities for small businesses to thrive, and key services such as schools and health centres – and I look forward to seeing the development of Granton benefit the people of Edinburgh in the years ahead, and the additional investment and opportunities that will be created.”
BUDGET REACTION:
Responding to today’s Budget statement by the Finance Secretary, John Dickie, Director of Child Poverty Action Group (CPAG) in Scotland, said: “The Finance Secretary is absolutely right to mitigate the two-child limit in the absence of abolition at UK level.It’s a pernicious policy that pushes 15,000 children into poverty in Scotland alone.
“Investing in social security for families is key to delivering on the First Minister’s number one priority of eradicating child poverty.
“The devil will be in the detail and families really can’t wait until 2026 to see their incomes boosted, so an above inflation increase to the Scottish child payment is still needed in the meantime.
“But there is no question this is the right focus for prioritising spend. We need the UK government take the same approach to investing in family benefits as a matter of utmost urgency.”
CHILD POVERTY ACTION GROUP
COSLA
Responding to today’s Scottish Government draft budget, Poverty Alliance chief executive Peter Kelly said: “The two-child limit is a huge injustice that has no place in a compassionate society – because every child matters and every child should get support they need.
“We welcome the Scottish Government’s proposals today, and we hope that the UK Government works positively and quickly to get this extra support to households with children. We hope it adds to the pressure to scrap the two-child limit across the UK.
“With record numbers of children in temporary accommodation, additional investment in affordable homes and homelessness prevention is necessary and welcome. But we know that more social homes are needed to tackle the housing emergency in Scotland – meeting that challenge requires further investment.
“Many of our members have called for the Scottish Government to make up the difference for pensioners who have had Winter Fuel Payments taken away from them. They will welcome today’s plans.
“We have worked directly with people who are forced to live on a pittance by the unjust UK asylum system, and we supported their campaigns for free bus travel. It is welcome that the Scottish Government have allocated to funding to that proposal, which will increase their freedom to build a life beyond poverty and take part in society. We hope this is the start of a move to provide bus passes to more people – starting with those eligible for benefits.
“But we can do more. There are around 240,000 children in poverty in Scotland. We need to go further and faster if we are going eradicate child poverty.
“That means more immediate support through the Scottish Child Payment and using our powers over tax and investment to build a stronger society for all of us – especially people in poverty.”
POVERTY ALLIANCE
SAVE THE CHILDREN SCOTLAND
SCVO
SCOTTISH HOSPICES
“Today @scotgov announced £768m to buy or build 8k affordable homes next year. It is a sign it’s taking the housing emergency seriously but it is only a reverse of previous cuts. As a result, it’s a cut in real terms as same money buys less now compared to two years ago.
“Though it is a step forward, 8,000 homes is a drop in the ocean compared to what is needed There are 243,000 people on waiting lists in Scotland. The last decades have seen the decimation of council housing because of a lack of funding, stock transfer and right to buy.
“This government needs to deliver more social housing by allocating greater funding for stock buy back and for social and council house building programmes, to ensure more people have a stable, secure, affordable place to live.”
LIVING RENT
We welcome the budget statement from the Scottish Government signalling the value it places on culture & the arts.
Culture is the beating heart of Scotland & this budget offers us all hope for a more stable, positive future.
EDINBURGH INTERNATIONAL FESTIVAL
Creative Scotland wholeheartedly welcomes the positive news of the substantial uplift for Culture, including Creative Scotland, in the Scottish Government’s draft budget announced today.
In 2025/26, Creative Scotland’s draft Grant-in-Aid budget from the Scottish Government will be £80m, up from £51.4m in the previous year. Included in this is an additional £20m, specifically for use in supporting the Multi-Year Funding programme and an additional £2m to support delivery of Screen Scotland’s strategy.
The Board of Creative Scotland will meet on 16 December to agree the final budget for Multi-Year Funding and a further update will be made following that meeting.
The final outcomes from the programme will be announced by the end of January.
Creative Scotland’s Chair, Robert Wilson, said: “Today’s draft budget announcement by the Scottish Government is enormously welcome. The major boost to Multi-Year Funding and other activities opens up wider opportunities, and we are grateful to the Scottish Government for this significant vote of confidence in Creative Scotland and the creative and culture sector.
“This is especially positive in the light of the long-term financial challenges the sector has been dealing with and will enable people and organisations to once again look forward with more confidence.”
CREATIVE SCOTLAND
Today’s budget released by the Scottish government is a “step in the right direction” but comes too late to ease the winter crisis already hitting some of the country’s A&Es.
This is the response from The Royal College of Emergency Medicine (RCEM) following the budget announcement today – Wednesday 4 December 2024 – by Finance Secretary Shona Robison MSP.
Dr Fiona Hunter, RCEM’s Vice Chair for Scotland said: “We welcome the government’s commitment to addressing many of the systemic issues that have plagued our health care system – its patients and staff – for far too long.
“However, it has not come soon enough to ease pressures faced by A&Es who are working under extreme pressure to care for patients right now.
“We restate our commitment to working with the Scottish government to bring an end to this reality and #ResuscitateEmergencyCare in Scotland, for generations to come.”
The budget statement comes just one day after an Audit Scotland report revealed the number of people remaining in hospital because their discharge has been delayed – often due to a lack of social care capacity – is the highest on record.
ROYAL COLLEGE OF EMERGENCY MEDICINE
In response to today’s Scottish Government Budget,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.”
INDEPENDENT AGE
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.”
LOCAL GOVERNMENT INFORMATION UNIT
Commenting on the Finance Secretary’s Budget statement this afternoon, Director of CAMRA Scotland Stuart McMahon said:“Pub goers and licensees will be raising a glass to the news that the Scottish Government are finally introducing help with the burden of business rates that have contributed to scores of pubs having to close their doors in recent years, and at a higher rate than elsewhere on these islands.
“Pubs are a vital part of our social fabric and it is right that they will now get the same 40% reduction in business rates that pubs in England get. It is also encouraging that pubs on island communities will continue to get a 100% reduction with their business rates.
“In order to make sure our pubs survive and thrive at the heart of our communities ministers must now commit to reforming the entire Business Rates system to make it fairer. The Scottish Government should level the playing field between online and bricks-and-mortar businesses and finally end the shocking overpayment that pubs have to cough up under the current system.”
CAMRA
Mary Glasgow, chief executive at Children First said: “The Cabinet Secretary says this budget will lift children out of poverty but given that Scotland faces a childhood emergency it is difficult to see how.
“The promise of jam tomorrow, in the form of mitigating the UK two-child cap does nothing to alleviate the plight of thousands of children and families across Scotland who are going hungry today.
“We called on the Scottish Government to invest in early help and support for families and to increase the Scottish child payment. It is disappointing that they have chosen to delay investing in children rather than taking immediate action. Children can’t wait.”
New research from Local Government Information Unit (LGIU) Scotland reveals that 70% of all councils believe they will be unable to pass a balanced budget within the next five years without immediate changes.
The second annual State of Local Government Finance in Scotland, found councils are taking every measure available to balance their budgets including raising council tax, reducing expenditure and increasing fees and charges, sharing services and engaging in commercial activity. However, many councils believe this will still not be enough to prevent the risk of an unbalanced budget.
Nearly every respondent said they believe cuts to services will have a negative impact on quality of life in their council, and over 90% that cuts will increase the risks to vulnerable people.
The report found satisfaction with the Scottish Government is alarmingly poor across the sector. Not a single respondent said they were happy with the Scottish Government’s performance on delivering a sustainable funding system or considering local government in wider policy decisions.
Respondents representing 84% of Scottish councils, made up of council leaders, CEOs and CFOs said times are increasingly hard for local authorities, with ongoing pressure from the cost of living crisis and inflation adding new burdens on top of long-term challenges: demographic change, financing of Scottish Government priorities, and pressures with recruitment and retention of staff.
With councils’ confidence in the sustainability of council finances critically low, the sector is in favour of widespread reform, including multi-year financial settlements, ending ring-fencing, and reform of council tax.
Councils are optimistic about the role that local government, sufficiently funded and empowered, could have to advance the prevention agenda, tackle local and national shared priorities, deliver services and empower communities.
The report recommends an agreed national convention between Scottish Government and local government to cover procedures and actions that would then be needed to set a balanced budget; enshrining in legislation the principles of the Verity House Agreement, and committing to an annual review by Scottish Parliament covering the key principles.
Some of the medium to long-term recommendations include reconsidering a whole-system approach to funding wider public finances including a review of council tax, the funding formula and increasing the range of revenue-raising options available for councils.
Jonathan Carr-West, Chief Executive, LGIU Scotland, said: “This year’s results make for grim reading about the state of local government finances in Scotland. The message from our second annual State of Local Government Finance in Scotland builds on last year: we are nearing the point of no return. The report paints a picture of a system under continual and significant strain, with the scale of financial pressures increasing from 2023.
“Local government finances in Scotland are hanging by a thread. However, the thread has not yet broken. Today’s report delivers a stark warning that councils are in a precarious financial position and there is not much time until the sector starts to see potentially catastrophic consequences.
“Change is urgently needed. Councils will soon be unable to balance their budgets, meet their statutory duties, or provide for their communities. We need to change course now before it is too late.
“The challenge now is how do we move from the situation we are in now, to one where councils are able to deliver the transformative impact they are confident that they could deliver.
“Reform is necessary, empowerment will be essential, and trust between Scottish Government and local government – in a critically poor state – must be restored.”
The LGIU asked Scotland’s Council Leaders, Chief Executives and Chief Finance Officers about their experiences trying to run councils in the last financial year, and their views on how councils’ financial sustainability could be assured.
COSLA Resources Spokesperson, Councillor Katie Hagmann, commented:“The publication of today’s report by the LGIU highlights the sheer scale of the financial challenges facing our councils.
“The fact that 70% of councils in Scotland may be unable to balance budgets in the near future should serve as a warning to all. Additionally, it emphasises the need for the Scottish Government to provide Local Government with an increased funding settlement which is both fair and flexible in 2025/26.
“COSLA also welcomes the LGIU’s call for a whole system approach to Local Government finance.
“This echoes our asks in our ‘Invest Locally in Scotland’s Future’ budget lobbying campaign. Without a clear focus on prevention and upstream investment, along with local flexibility, our councils will be unable to tackle higher demand, in key areas such as homelessness prevention and social care.
“COSLA is calling for the Scottish Government to provide at least £14.5bn in revenue funding and £872m in capital funding in the 2025/26 Budget.
Meeting this demand would not make up for the cuts councils have faced and felt by our communities in recent years, however it would be a positive step forward in providing fair and flexible funding to meet the challenges outlined in the LGIU report.”
A report has shown how partnership working between the Scottish Government and councils is helping to deliver on community priorities.
Signed in June 2023, the Verity House Agreement sets out principles for the Scottish Government and the Convention of Scottish Local Authorities (COSLA), the representative body of all 32 councils, working together to empower local communities, tackle poverty, transform the economy and provide high-quality public services.
The Verity House Stocktake report highlights joint work on local government pay, enabling councils to double the full rate of council tax on second homes, delivering a new national allowance for foster and kinship carers, and close engagement around the Circular Economy Bill.
Finance and Local Government Secretary Shona Robison said the stocktake illustrated the value of the Agreement in its first year and how early, open and regular dialogue has helped to navigate challenges.
Ms Robison said: “The Verity House Agreement has built the foundations for us to work alongside local government in a more positive and proactive way, which enables meaningful and effective delivery of our shared priorities for the benefit of our communities.
“A key priority for Scottish Government and COSLA over the coming year will be to identify opportunities to improve our partnership approach, to fully reflect our shared ambitions such as tackling child poverty and improving public services.”
Councillor Shona Morrison, President of COSLA, said: “During the first year of the Verity House Agreement whilst we have seen some significant challenges, there have been positive results in many areas where adherence to the VHA principles have proved their worth.
“It is for this reason that COSLA welcomes publishing this joint review and why we remain firmly committed to those principles. We believe that embedding the principles will not only help us overcome the challenges that remain but will continue to enhance and improve the critical relationship between both spheres of government in Scotland.”
A new report sets out the progress made to improve the educational experiences of children and young people with additional support needs (ASN) in schools across Scotland, with more than 40 actions completed thus far.
Measures adopted since publication of the independent Morgan Review in 2020 include directly involving children, young people and their families in decisions around additional support for learning (ASL), increasing professional learning opportunities for teaching and support staff and setting up parent groups to provide extra support to those who have children with ASN.
.@ScotGov and @COSLA have published a joint progress report and action plan setting out how we are delivering on our pledges to children and young people with additional support needs.
40 actions have been completed since 2020 with work continuing.
The progress report is supported by an updated action plan that includes work now underway such as the development of a National Measurement Framework to capture the range of success and achievements of children and young people with ASN and a refresh of the Code of Practice – the legal guidance used by education authorities and others supporting children’s learning.
The report comes as spending on additional support for learning reached a record high of £926 million in 2022-23 despite on-going difficult financial funding challenges.
Education Secretary Jenny Gilruth said: “We are determined to improve the educational experiences of children and young people with additional support needs and make Scotland the best place in the world to grow up.
“The Morgan Review set out a clear direction to build on progress in this area and we are working closely with COSLA to ensure the remaining actions are completed for children with support needs in schools across Scotland.
“The number of pupils identified with additional support needs has increased markedly since 2010, with year on year increases. This progress report and updated action plan shows what has been accomplished thus far, what further work is on-going, and what plans are in place for the next 18 months.
“While we have made good progress, there is a lot more to do and we will continue working with COSLA, schools, parents and carers to ensure that we are delivering fully on our pledges to children with additional support needs and that they each get the educational experience they deserve.”
COSLA Spokesperson for Children and Young People Tony Buchanan said: ““This is the third Progress Report on the joint Action plan from COSLA and Scottish Government.
“The Report provides an update on activity from November 2022 through to June this year. It highlights a number of actions which have been developed to improve communication between schools and parents and carers, and also highlights resources and training which have been developed to support teachers and support staff in schools.
“Angela Morgan’s 2020 Report called for the profile of additional support for learning to be raised. The publication of the Progress Report is one of the ways we are doing this, and COSLA will share the Report and updated Action Plan with our members and networks to continue to raise awareness of steps being taken to better support schools, families and most importantly children and young people.”
Chancellor ‘takes long-term decisions to restore stability, rebuild Britain and protect working people across Scotland’
No change to working people’s payslips as employee national insurance and VAT stay the same, but businesses and the wealthiest asked to pay their fair share.
Record £47.7 billion for the Scottish Government in 2025/26 includes £3.4 billion through the Barnett formula.
Funding for Green Freeports, City and Growth Deals, GB Energy and hydrogen projects to fire up growth and deliver good jobs across Scotland.
The Chancellor has ‘delivered a Budget to fix the foundations to deliver on the promise of change after a decade and a half of stagnation’. She set out plans to rebuild Britain, while ensuring working people across Scotland don’t face higher taxes in their payslips.
The UK Government was handed a challenging inheritance; £22 billion of unfunded in-year spending pressures, debt at its highest since the 1960s, an unrealistic forecast for departmental spending, and stagnating living standards.
This Budget takes ‘difficult decisions’ to restore economic and fiscal stability, so that the UK Government can invest in Scotland’s future and lay the foundations for economic growth across the UK as its number one mission.
The Chancellor announced that the Scottish Government will be provided with a £47.7 billion settlement in 2025/26 – the largest in real terms in the history of devolution. This includes a £3.4 billion top-up through the Barnett formula, with £2.8 billion for day-to-day spending and £610 million for capital investment.
Secretary of State for Scotland Ian Murray said: “This is a historic budget for Scotland that chooses investment over decline and delivers on the promise that there would be no return to austerity.
“It is the largest budget settlement for the Scottish Government in the history of devolution, including an additional £1.5 billion this financial year and an additional £3.4 billion next year through the Barnett formula. That money must reach frontline services, to bring down NHS waiting lists and lift attainment in our schools.
“It will also bring a new era of growth for Scotland and the whole UK, confirming nearly £890 million of direct investment into Freeports, Investment Zones, the Argyll and Bute Growth Deal, and other important local projects across Scotland’s communities, as well as £125 million next year for GB Energy and support for green hydrogen projects in Cromarty and Whitelee.
“The increase in the minimum wage will also mean a pay rise for hundreds of thousands of workers in Scotland, with the biggest increase for young workers ever. This is on top of our employment rights bill which will deliver the biggest upgrade in workers’ rights in a generation. The triple lock means an increase in the state pension by £470 next year, on top of £900 this year for a million Scottish pensioners.
“The budget protects working people in Scotland, delivers more money than ever before for Scottish public services and means an end to the era of austerity.”
Protecting working people and living standards
While fixing the inheritance requires tough decisions, the Chancellor has committed to protecting the living standards of working people. The decisions taken by the Chancellor to rebuild public finances enable the UK Government to deliver on its pledge to not increase National Insurance or VAT on working people in Scotland, meaning they will not see higher taxes in their payslip.
The National Living Wage will increase from £11.44 to £12.21 an hour from April 2025. The 6.7% increase – worth £1,400 a year for a full-time worker – is a significant move towards delivering a genuine living wage.
The National Minimum Wage for 18 to 20-year-olds will also see a record rise from £8.60 to £10 an hour.
Working people will benefit from these increases, with there estimated to be over 100,000 minimum wage workers in Scotland in 2023.
The Chancellor has made the decision to protect working people in Scotland from being dragged into higher tax brackets by confirming that the freeze on National Insurance Contributions thresholds will be lifted from 2028-29 onwards, rising in line with inflation so they can keep more of their hard-earned wages.
The Chancellor is also protecting motorists by freezing fuel duty for one year – a tax cut worth £3 billion, with the temporary 5p cut extended to 22 March 2026. This will benefit an estimated 3.2 million people in Scotland, saving the average car driver £59, vans £126 and Heavy Goods Vehicles £1,079 next year.
To support Scottish pubs and smaller brewers in Scotland, the UK Government is cutting duty on qualifying draught products by 1p, which represent approximately 3 in 5 alcoholic drinks sold in pubs. This measure reduces duty bills by over £70 million a year, cutting duty on an average strength pint in a pub by a penny. The relief available to small producers will be updated to help smaller brewers and cidermakers.
Over 1 million Scottish pensioners will benefit from a 4.1% increase to their new or basic State Pension in April 2025. This is an additional £470 a year for those on the new State Pension and an additional £360 a year for those on the basic State Pension.
Households eligible for Pension Credit will get £465 a year more for single pensioners and up to £710 a year more for couples due to a 4.1% increase in the Pension Credit Standard Minimum Guarantee, benefitting 125,000 pensioners in Scotland.
Around 1.7 million families in Scotland will see their working-age benefits uprated in line with inflation – a £150 gain on average in 2025-26.
Reducing the maximum level of debt repayments that can be deducted from a household’s Universal Credit payment each month from 25% to 15% will benefit a Scottish family by over £420 a year on average.
Rebuilding Britain
This UK Government will not make a return to austerity and will instead boost investment to rebuild Britain and lay the foundations for growth in Scotland. This includes £130 million of targeted funding for the Scottish Government, of which £120 million is in capital investment.
The Budget delivers on the first step to establish Great British Energy by providing £125 million next year to set up the institution at its new home in Aberdeen – helping to develop new clean energy projects in Scotland and across the UK.
The UK Government will deliver £122 million for City and Growth Deals, including the continuation of its contribution to the Argyll and Bute Growth Deal which delivers £25 million of investment in the region over 10 years. This Deal will be supported by a rigorous value for money assessment as part of the review of the business cases for projects within it, to ensure best value is being delivered.
The Budget gives certainty to local leaders and investors, confirming funding for the Investment Zones and Freeports programmes across the UK – including Scotland’s Green Freeports.
The Chancellor committed the UK Government to working closely with the Scottish Government on the Industrial Strategy, 10-year infrastructure strategy and the National Wealth Fund – to ensure the benefits of these are felt UK-wide and as part of the relationship reset between governments. These will mobilise billions of pounds of investment in the UK’s world-leading clean energy and growth industries.
To support economic growth and promote Scottish culture, products and services through diplomatic and trade networks, the UK Government is allocating £750,000 for the Scotland Office in 2025/26 to champion Brand Scotland as was committed in the manifesto.
We are supporting Scotland’s world-renowned Scotch Whisky industry by providing up to £5 million for HMRC to reduce the fees charged by the Spirit Drinks Verification Scheme and by ending mandatory duty stamps for spirits on 1 May 2025.
Two electrolytic hydrogen projects in Scotland have been selected for UK Government revenue support through the first Hydrogen Allocation Round: Cromarty Green Hydrogen Project and Whitelee Green Hydrogen. Both projects will bring in significant international investment and create good quality, local jobs.
An extension of the Innovation Accelerators programme will support the high-potential innovation cluster in the Glasgow City Region.
A corporate tax roadmap will provide businesses with the stability and certainty they need to make long-term investment decisions and support our growth mission. It confirms our competitive offer, with the lowest Corporate Tax rate in the G7 and generous support for investment and innovation.
The UK Government will also proceed with implementing the 45%/40% rates of the theatre, orchestra, museum and galleries tax relief from 1 April 2025 to provide certainty to businesses in Scotland’s thriving cultural sector.
Repairing public finances
The Chancellor has made clear that, whilst protecting working people with measures to reduce the cost of living, there would be difficult decisions required. The Budget will ask businesses and the wealthiest to pay their fair share while making taxes fairer. This will go directly towards fixing the foundations of the UK economy.
The rate of Employers’ National Insurance will increase by 1.2 percentage points, to 15%. The Secondary Threshold – the level at which employers start paying national insurance on each employee’s salary – will reduce from £9,100 per year to £5,000 per year.
The smallest businesses will be protected as the Employment Allowance will increase to £10,500 from £5,000, allowing Scottish firms to employ four National Living Wage workers full time without paying employer national insurance on their wages.
Capital Gains Tax will increase from 10% to 18% for those paying the lower rate, and 20% to 24% for those paying the higher rate.
To encourage entrepreneurs to invest in their businesses Business Asset Disposal Relief (BADR) will remain at 10% this year, before rising to 14% on 6 April 2025 and 18% from 6 April 2026-27.
The lifetime limit of BADR will be maintained at £1 million. The lifetime limit of Investors’ Relief will be reduced from £10 million to £1 million.
The OBR say changes to CGT raise over £2.5 billion a year and the UK will continue to have the lowest CGT rate of any European G7 country.
Inheritance Tax thresholds will be fixed at their current levels for a further two years until April 2030. More than 90% of estates each year will be outside of its scope. From April 2027 inherited pensions will be subject to Inheritance Tax. This removes a distortion which has led to pensions being used as a tax planning vehicle to transfer wealth rather than their original purpose to fund retirement.
From April 2026, agricultural property relief and business property relief will be reformed. The highest rate of relief will continue at 100% for the first £1 million of combined business and agricultural assets, fully protecting the majority of businesses and farms. It will reduce to 50% after the first £1 million. Reforms will affect the wealthiest 2,000 estates each year. Inheritance Tax reforms in total are predicted by the OBR to raise £2 billion to support stability.
From 2026-27 Air Passenger Duty (APD) for short and long-haul flights will increase by 13% to the nearest pound, a partial adjustment to account for previous high inflation. For economy passengers, this means a maximum £2 extra per short haul flight and tickets for children under the age of 16 remain exempt from APD. APD for larger private jets will be increased by a further 50%. Passengers carried on flights leaving from airports in the Scottish Highlands and Islands region are exempt from APD.
The rate of the Energy Profits Levy will increase to 38% from 1 November 2024 and the levy will now expire one year later than planned, on 31 March 2030. The 29% investment allowance will be removed.
To provide long-term certainty and to support a stable energy transition, the UK Government will make no additional changes to tax relief available within the EPL and a consultation will be published in early 2025 on a successor regime that can respond to price shocks. Money raised from changes to the EPL will support the transition to clean energy, enhance energy security and provide sustainable jobs for the future.
The Budget also announced a package of measures that disincentivise activities that cause ill health, by:
Renewing the tobacco duty escalator which increases all tobacco duty rates by RPI+2% plus an above escalator increase to hand rolling tobacco (totalling RPI+12%).
Introducing a new vaping duty at a flat rate of 22p/ml from October 2026, accompanied by a further one-off increase in tobacco duty to maintain financial incentive to choose vaping over smoking.
To help tackle obesity and other harms caused by high sugar intake, the Soft Drinks Industry Levy will increase to account for inflation since it was last updated in 2018, and the duty will rise in line with inflation every year going forward.
The UK Government will also uprate alcohol duty in line with RPI on 1 February 2025, except for most drinks in pubs.
The UK Government has set out the next steps to deliver its tax manifesto commitments in the July Statement. Having consulted on the final policy details where appropriate, this Budget delivers the UK Government’s manifesto commitments to raise revenue to pay for First Steps, with reforms that are underpinned by fairness, and tackle tax avoidance by:
A new residence-based regime will replace the current non-dom regime from April 2025 and will be designed to attract investment and talent to the UK.
Offshore trusts will no longer be able to be used to shelter assets from Inheritance Tax, and there will be transitional arrangement in place for people who have made plans based on current rules.
The planned 50% reduction for foreign income in the first year of the new regime will be removed.
Reforms to the non-dom regime will raise a total of £12.7 billion according to the OBR.
The tax treatment of carried interest will be reformed by first increasing the Capital Gains Tax rates on carried interest to 32% and then, from April 2026, moving to a revised regime – with bespoke rules to reflect the characteristics of the reward.
The Chancellor also ‘doubled down’ on fiscal responsibility through two new fiscal rules that put the public finances on a sustainable path and prioritise investment to support long-term growth, and new principles of stability. Spending Reviews will be held every two years, setting plans for at least three years to ensure public services are always planned and improve value for money.
One major fiscal event per year will give families and businesses stability and certainty on tax and spending changes, while giving the Scottish Government greater clarity for in its own budget-setting. A Fiscal Lock will also ensure no future government can sideline the OBR again.
Budget marks ‘step in right direction’
Scotland’s Finance Secretary responds to Budget
Finance Secretary Shona Robison has welcomed additional funding in the Autumn Budget, but said the Scottish Government will still face “enormous cost pressures” despite the measures.
The Finance Secretary said: “We called for increased investment in public services, infrastructure and tackling poverty. This budget is a step in the right direction, but still leaves us facing enormous cost pressures going forwards. The additional funding for this financial year has already been factored into our spending plans.
“By changing her fiscal rules and increasing investment in infrastructure, the Chancellor has met a core ask of the Scottish Government. But after 14 years of austerity, it’s going to take more than one year to rebuild and recover – we will need to see continued investment over the coming years to reset and reform public services.
“Indeed, there is a risk that by providing more funding for public services while increasing employer national insurance contributions, the UK Government is giving with one hand while taking away with the other.
“We estimate that the employer national insurance change could add up to £500 million in costs for the public sector unless it is fully reimbursed – and there is a danger that we won’t get that certainty until after the Scottish budget process for 2025/26 has concluded.
“With the lingering effects of the cost of living crisis still hitting family finances, it is disappointing that there was no mention of abolishing the two-child limit, which evidence shows would be one of the most cost-effective ways to reduce child poverty. Neither was there mention of funding for the Winter Fuel Payment.
“As ever, the devil is in the detail, and we will now take the time to assess the full implications of today’s statement. I will be announcing further details as part of the Scottish Budget on 4 December.”
Child Poverty Action Group: Chancellor misses golden chance to scrap two child limit
16 000 more children will now be pulled into poverty by time new UK child poverty taskforce reports in spring
“Good news on universal credit deductions, but no bold action on child poverty”
Barnett consequentials must now be prioritised to fund action on child poverty in Scotland
Responding to the UK Chancellor’s Budget, John Dickie, Director of the Child Poverty Action Group (CPAG) in Scotland, said;“The Chancellor brought good news on universal credit deductions, but this was not a Budget of bold action on child poverty. She missed a golden chance to scrap the two-child limit, a policy that will pull 16,000 extra children into poverty by the time the government’s child poverty taskforce reports in spring.
We welcome the new UK government’s ambition on child poverty but this budget played for time, time that children and families can’t afford. The UK spending review next spring will have to deliver much more to make a significant difference for children in poverty.”
Mr Dickie continued: “Here in Scotland and looking ahead to the Scottish budget it is vital that wider Barnett consequentials are now used to fund the action needed to deliver on the First Minister’s number one priority of ending child poverty.
“That must include funding a real terms increase to the Scottish child payment, expanding childcare provision, delivering on free school meal promises and increasing the supply of affordable family housing.”
POVERTY ALLIANCE:
Responding to today’s UK Budget, Poverty Alliance chief executive Peter Kelly said: “People across the UK believe in a nation based on justice and compassion. Today’s Budget was an opportunity for the Chancellor to turn those values into action, and to rebuild trust in government. Despite some welcome changes, there is still some way to go.
“Boosting the minimum wage is welcome, because for decades workers have been getting less and less from our growing economy. This increase will go some way to making up the gap, particularly for younger workers. But we need to remember that today’s Budget will still leave the legal minimum wages far lower than the real Living Wage rate – the only wage rate that is solely based on the cost of living – of £12.60 per hour, or £13.85 per hour in London.
“We know that too many people on Universal Credit find themselves pushed into destitution when they are chased for debt by public bodies, so it’s good that the maximum amount of benefit that can be taken from them has been reduced. But the Chancellor could have gone further, by strengthening our social security with a boost to Universal Credit that would guarantee that households can afford life’s essentials.
“She could have made it clear that every child matters, by scrapping the unjust and ineffective two-child limit, and ditching the unfair benefit cap which stops households getting all the support they are entitled to.
“There was a welcome focus on the importance of our public services to our shared prosperity and wellbeing. But the Chancellor could have done more to use our country’s wealth to tackle poverty and invest in a better society. Even with today’s changes, people who earn money from selling shares and business assets will pay Capital Gains Tax at a lower rate than workers pay in Income Tax. That’s just wrong.
“Freezing fuel duty and keeping the previous cuts in place will cost the Exchequer billions of pounds a year. It’s bad value for money, benefits the wealthiest in society most, and does little to make the transition to the green economy. The money would have been better invested in affordable, accessible, and sustainable public transport for all.
“It’s right that big companies pay their fair share towards building a strong society, but the Chancellor must urgently consider how increases to employer National Insurance will hit charities and community groups.
“The support and advice provided by these organisations is vital for people who have been pushed into poverty, but too many are already struggling through a lack of fair funding, and this NI increase could push many over the edge.
“That would be a disaster for our communities, and leave more low-income households facing destitution and despair.”
TUC: Labour’s investment budget has begun process of “repairing and rebuilding Britain”
Union body says budget is a vital first step towards the growth, jobs and living standards working people desperately need
Commenting on Wednesday’s budget statement from the Chancellor Rachel Reeves, TUC General Secretary Paul Nowak said: “The Chancellor was dealt a terrible hand by the last Conservative government – a toxic legacy of economic chaos, falling living standards and broken public services.
“But with today’s budget the Chancellor has acted decisively to deliver an economy that works for working people.
“The government’s investment plans are a vital first step towards repairing and rebuilding Britain – securing the stronger growth, higher wages and decent public services that the country desperately needs.
“Tax rises will ensure much-needed funds for our NHS, schools and the rest of our crumbling public services, with those who have the broadest shoulders paying a fairer share. The Chancellor was right to prioritise hospitals and classrooms over private jets.
“There is still a lot more work to do to clean up 14 years of Tory mess and economic decline. – including better supporting and strengthening our social security system. But this budget sets us on an urgently needed path towards national renewal.”
Shelter Scotland has responded to the UK budget set out this afternoon by Chancellor Rachel Reeves.
The housing and homelessness charity urged the Scottish Government to commit to investing any new capital funding into delivering the social homes needed to end the housing emergency.
However, it also expressed disappointment at the continuation of the two-child limit and ongoing freeze to Local Housing Allowance.
Shelter Scotland Director, Alison Watson, said:“Having declared a housing emergency it’s clear that the Scottish Government must back words with actions.
“It is vital that any capital funding which becomes available as a result of the Chancellor’s investment plans is in turn used by Scottish Ministers to deliver social homes here, but we also need to see growth in the capital budget over a sustained period to support continued investment.
“Delivering more social homes remains the single most effective way to tackle the housing emergency in Scotland, and only the Scottish Government can decide how much of its budget it commits to that endeavour.
“However, we can’t ignore the role that austerity has played in exacerbating Scotland’s housing emergency.
“The freeze on local housing allowance and the two-child limit has forced thousands into poverty; they will continue to do so as it seems the Chancellor has chosen to keep them in place.”
COSLA:
ONE PARENT FAMILIES SCOTLAND:
Scotch Whisky industry says UK government has broken commitment to ‘back Scotch producers to the hilt’
Chancellor increases discrimination of Scotch Whisky and other spirits in on-trade
The Scotch Whisky Association (SWA) says the Chancellor’s decision to further increase duty on Scotch Whisky has broken the Prime Minister’s commitment to ‘back Scotch producers to the hilt.’
In her first Budget, Chancellor Rachel Reeves announced an RPI inflation increase to alcohol duty, but cut duty on draught products in the on-trade by 1.7%. Scotch Whisky and other spirits are excluded from this tax relief.
The SWA had called on the new Chancellor to take the opportunity to reverse the damage done by the 10.1% increase in August 2023. Instead, the damage done to the industry and to government revenue has been compounded by further increasing the tax burden on the sector, which is already the highest in the G7.
Spirits revenue fell by hundreds of millions of pounds as a result of the 10.1% duty increase last year, and the industry has warned that this further tax hike will not deliver the revenue ministers have been promised but will hurt businesses, the hospitality sector and hard-pressed consumers.
Commenting on the Budget, Chief Executive of the SWA Mark Kent said:“This duty increase on Scotch Whisky is a hammer blow, runs counter to the Prime Minister’s commitment to ‘back Scotch producers to the hilt’ and increases the tax discrimination of Scotland’s national drink.
“On the back of the 10.1% duty increase last year, which led to a reduction in revenue for HM Treasury, this tax hike serves no economic purpose. It will damage the Scotch Whisky industry, the Scottish economy, and undermines Labour’s commitment to promote ‘Brand Scotland’.
“She has also increased the tax discrimination of spirits in the Treasury’s warped duty system, and with 70% of UK spirits produced in Scotland, that will do further damage to a key Scottish sector.
“The disastrous 10.1% duty hike last year has now been compounded. This further tax rise means the lessons have not been learned, and the Chancellor has chosen continuity with her predecessor, not change.
“We urge all MPs who support Scotch Whisky to vote against this duty hike and tax discrimination of Scotland’s national drink.”
Rain Newton-Smith, CBI Chief Executive, said:“The Chancellor had difficult choices to make to deliver stability for the economy and public finances. A more balanced approach to our fiscal rules which prioritises capital investment should help to unlock private sector investment in our infrastructure and net zero transition over the long-term.
“This is a tough Budget for business. While the Corporation Tax Roadmap will help create much needed stability, the hike in National Insurance Contributions alongside other increases to the employer cost base will increase the burden on business and hit the ability to invest and ultimately make it more expensive to hire people or give pay rises.
“Only the private sector can provide the scale of investment required to deliver the government’s growth agenda.
“To achieve this shared mission of growing our economy sustainably, it’s vital that the government doubles down on its partnership with business to unlock the investment that is needed to drive opportunity around the UK.”
FSB: Employment allowance rise welcome from Chancellor in tax-raising Budget
The Federation of Small Businesses responds to the Chancellor’s Budget statement
Responding to the Chancellor’s Budget statement, Policy Chair of the Federation of Small Businesses (FSB), Tina McKenzie, said: “Increasing the employment allowance for small businesses by a record amount is a very welcome move and we’re pleased the Chancellor has heard us loud and clear.
“More than doubling it, from £5,000 to £10,500, will shield the smallest employers from the jobs tax, therefore is a pro-jobs prioritisation in a tough Budget.
“The decision to protect small businesses from an inflationary hike in business rates – by freezing the small business multiplier – will help small firms with premises across all sectors. Meanwhile, extending business rates relief, albeit at a lower level, for small firms in retail, hospitality and leisure will mitigate a potential cliff-edge tax hike for those in some of the toughest sectors.
“The true test of today’s Budget will be whether small businesses can grow and end the economic stagnation the UK has been stuck in.
“Larger small, and medium-sized, businesses will struggle with the rises on employer national insurance on top of the large costs from the Government’s employment law plans. We’ve been very clear in our warning of the difficulty SMEs will be confronted with in meeting all of these changes at once – and the potential impact on jobs, wages and prices.
“The Budget documents include plans for a small business strategy command paper, which is a welcome signal that ministers appreciate the central role that small businesses play in driving growth and we look forward to working with the Government closely on that.
“Investment in infrastructure is key to future growth, and the Chancellor’s announcement of additional funding for rail projects and fixing potholes is therefore encouraging. Many small firms, meanwhile, will be relieved at the decision not to raise fuel duty. The commitment to prioritise small housebuilders when it comes to housing investment is also welcome.
“Building a business involves a significant element of risk and personal, as well as financial, investment. But for the economy to grow, we need more people to be incentivised to take that leap and, in turn, create jobs, opportunities and prosperity in all communities across the country.
“The right decision has been taken to retain entrepreneurs’ relief (now branded Business Asset Disposal Relief) up to £1million, which is something we have campaigned hard for. Although the level of relief will gradually reduce over time, resulting in more tax being paid in the future on business sales, we’re pleased to see a differential has been kept.
“Against a challenging backdrop, today’s Budget shows a clear direction in business policy now for the whole of this Parliament to target support at small businesses, rather than big corporates – prioritising everyday entrepreneurs working in local communities in all parts of the country.”
UK Budget fails “3 Key Tests for Scotland”, say Alba Party
Scottish Government must now fund universal entitlement to pensioners winter fuel payment
“To gain pass marks the new UK Labour Government had three key tests to meet in Scotland: it had to reverse its plan to cut the universal winter fuel payment; it had to save Grangemouth; and it had to fund a plan to save North Sea Oil and Gas jobs – on all three counts Labour has failed Scotland.”
This was said today by Acting Alba Party leader Kenny MacAskill reacting to Chancellor Rachel Reeves’ budget.
Alba Party say that the UK Government had three key tests to meet to deliver for Scotland. Former First Minister Alex Salmond helped launch a campaign to save the winter fuel payment last month.
Close to one million pensioners in Scotland are set to lose out on between £200-£300 this winter. Acting Alba Party leader Kenny MacAskill has been a leading voice in the campaign to save the Grangemouth Oil Refinery from closure.
Mr MacAskill has today hit out at the UK Government after Labour promised in the General Election to save Scotland’s only refinery that is set for closure next year but has failed to provide funding to save the refinery in today’s budget.
MacAskill has now called on the Scottish Government to use extra Barnett consequential funding to fully mitigate the cut to the winter fuel payment.
Alba Party have also hit out as successive UK Government’s have promised investment in Carbon Capture Technology in the North East of Scotland. Alba say the technology is vital to secure the future of the North Sea Oil and Gas industry and to help Scotland play its part in protecting the environment. Today’s UK Budget confirmed £22billion of investment in carbon capture projects in England – but snubbed the Acorn project on the Buchan coast.
Commenting Acting Alba Party leader Kenny MacAskill said: ““Today’s UK Budget is a continuity budget that proves that regardless of whether we have a UK Tory Government or a UK Labour Government, Scotland will always lose.
“To gain pass marks the new UK Labour Government had three key tests to meet in Scotland: it had to reverse its plan to cut the universal winter fuel payment; it had to save Grangemouth; and it had to fund a plan to save North Sea Oil and Gas jobs – on all three counts Labour has failed Scotland.
“ Close to a million Scottish pensioners are to be kept in the cold this winter, the UK Government has chosen to stand by and allow Scotland’s key industrial asset to close, and Labour have betrayed the North East of Scotland.
“ Nothing for Scotland’s pensioners, nothing for Grangemouth and nothing for Carbon Capture and the North Sea. It is now vital that the Scottish Government steps up to the plate and uses any additional funding consequentials it receives to fully mitigate the cut to the winter fuel payment.”
Budget is a ‘Missed Opportunity’
The budget is a missed opportunity to bring about the transformative change this country needs, said Westminster’s group of independent MPs.
A statement from the Independent Alliance:
LOCAL GOVERNMENT INFORMATION UNIT:
Dr Jonathan Carr-West, Chief Executive, LGIU, said: “The Chancellor billed this as an historically consequential budget of hard choices. That’s certainly true in many areas with £40bn of tax rises announced and significant changes to the government’s debt rules.
“For local government, however, it is a budget of choices deferred. It could have been worse – there’s an additional £1.3bn in funding including money for social care and additional funding for housing and special educational needs: the very areas that are driving many councils to bankruptcy.
“But this extra funding is not even half the gap that councils currently face.
“The longer-tem change that the sector desperately needs is all deferred for now. We are waiting on the Local Government Finance Settlement, on the Devolution White Paper and on a broader redistribution of funding through a multi-year settlement from 2026-27.
“There were some welcome highlights: retaining 100% of right to buy receipts and integrated settlements for Greater Manchester and the West Midlands and possibly for other places in future.
“Is this a start? Yes. Is it enough? Not by a long shot. At least not yet. There’s a positive direction of travel set out, but there’s a long way to go and the pressure on council finances means there’s a real risk that some councils will not be able to hang on long enough to get there.”
Since the launch of Self-Harm Network Scotland’s (SHNS) live chat service on World Mental Health Day 2023 (10th October 2023), the SHNS team has had 1,273 supportive conversations on the webchat, with an average chat lasting around 29 minutes.
The unique live webchat service can be accessed on the SHNS website and is for people aged 12 and over in Scotland in need of support for their self-harm. The service is available between 6pm and 10pm, seven days a week.
People can anonymously chat to one of the SHNS team about their self-harm and get advice and support outside of standard support hours, when those experiencing self-harm may be most in need of someone to speak to.
As well as offering support via the live chat, the SHNS website has free and accessible resources, tools and information for people who self-harm, their loved ones and for professionals who work with people who self-harm.
SHNS’s team of Peer Practitioners can also provide 12 to 15 free one-to-one support sessions for people (aged 12 and over) who self-harm in Scotland, delivered via video, phone calls and text.
The SHNS service is part of charity Penumbra Mental Health, which provides dedicated services for people with mild to enduring mental ill-health.
We work together with the Scottish Government and the Convention of Scottish Local Authorities (COSLA) in delivering their self-harm strategy and action plan, which is believed to be the first of its kind in the world.
SHNS is funded by the Scottish Government, and we also work with partners who share our goal of providing compassionate and freely accessible support services to people who self-harm.
In the past year, 90% of people who gave feedback after using the webchat said they found it helpful (71% ‘Very Helpful’, 19% ‘Somewhat Helpful’). Here is some feedback from people that were supported by the webchat:
“[The chat] was so lovely and very logical and helped me into a safe and calmer location.”
“Very patient and convinced me to try the local self-harm services.”
“No pressure was put on me regarding my coping techniques. Very good listening.”
Darren Boyd, SHNS Network Manager, said:
“Since the inception of Self-Harm Network Scotland, it has been important to us that people with lived experience guide our delivery of support. Feedback from people with lived experience revealed to us a need for accessible, national support for people who self-harm. We also know there is still a lot of stigma around self-harm and this can be a barrier to people accessing support.”
He continued: “The Live Chat is a place anyone can come to and can remain anonymous should they wish. They can get support from our team at times they are feeling distressed and may not have anyone else to reach out to. The first year of running this new element of support has taught us a lot, and we look forward to continuing to work with people with lived experience to grow and continue this service.”
Julia, who works on SHNS’ live chat, said:
“The webchat is great, and the users have told me that they prefer it to calling somewhere. They appreciate the anonymity of the webchat a lot. A lot of young people feel anxiety about making phone calls. It’s also good for me as I find it easier to think about what I want to say while I am typing.”
Julia added: “Having lived experience of self-harm makes it easier for me to relate to the people I am chatting to. When chatting to someone on the webchat, I have shared tips that have helped me on my recovery journey, and I feel that I can easily pick up when someone needs to be heard most of all instead of looking for advice.”
Maree Todd, Mental Wellbeing Minister, said:
“I am pleased to celebrate the first year of the webchat that we launched together with Penumbra this time last year.
“To have already supported 1,273 people through the webchat is a huge accomplishment and supports our vision for anyone affected by self-harm to receive compassionate, recovery-focused support, without fear of stigma or discrimination, as outlined in our Self-Harm Strategy and Action Plan.
“We greatly value the expertise peer practitioners and trained volunteers are bringing to this service, which is showing positive results in supporting people affected by self-harm right across Scotland. This is why we are continuing to invest £1.5 million to support Self-Harm Network Scotland.”
Paul Kelly, COSLA’s Spokesperson for Health and Social Care, said:
“COSLA welcomes the ongoing development of compassionate support for those experiencing self-harm. Making services such as the webchat available is essential in ensuring those who need it get the right support at the right time. Through the Self Harm Strategy and action plan we continue to work collectively to improve responses and support for self-harm across Scotland.”
Outside of the live chat operating hours, people can self-refer on to the service via the online contact form.
You can access the webchat between 6pm and 10pm over on the SHNS website:
Council Leaders have withdrawn support for the Scottish Government’s revised National Care Service Bill.
The Bill is currently being considered by the Scottish Parliament.
Though continuing to back key areas of reform, including enhanced support for unpaid carers, care home visitation rights and efforts to improve the experience of the social work and social care workforce, Council Leaders have expressed concern that the amended Bill currently does not reflect a model which Local Government can support.
The decision of Local Government Leaders today comes as several organisations have expressed doubt on the legislative approach adopted by Scottish Government, including those working across the care sector. Experts have also questioned the evidence for including, within the National Care Service, services which support children and young people.
Commenting, COSLA’s Health & Social Care Spokesperson, Councillor Paul Kelly said: “Local Government cannot support the amended National Care Service Bill brought forward by Scottish Government.
“Local Government has been committed to working in partnership with the Scottish Government to develop proposals to deliver a National Care Service, but unfortunately the revised legislation does not effectively represent that partnership.
“Local Government is committed to continuing our engagement with key areas of reform which can deliver improved outcomes for people, unpaid carers and our workforce. We cannot, however, offer our support for the legislation brought forward at this stage”
“It is important that the views of people accessing, working in and planning front-line support services are listened to, both with regards to the NCS legislation and also the improvements needed to overcome the sustained financial and workforce pressures being experienced across Scotland.”
The National Care Service Bill was introduced to the Scottish Parliament on June 20th 2022, and allows for the transfer of a range of social care, social work and community health functions from local authorities to a new centralised body under the direction of Scottish Ministers.
On July 12 2023, Local Government and Scottish Government announced a shared accountability partnership for delivering the National Care Service in an alternative way, with enhanced national strategic direction through the creation of a national NCS Board, but with a continued role for local decision-making and Local Government.
Plan to tackle discrimination and social exclusion
Improved access to housing, education and health services and tackling discrimination are at the heart of a new Gypsy/Traveller Action Plan agreed between the Scottish Government and COSLA.
The voices of Gypsy/Travellers have helped shape the Plan, which acknowledges improvements in many of these areas, but recognises further progress needs to be made.
The Scottish Government and COSLA will work with stakeholders to take forward measures in the Plan.
Key actions in the plan include:
Supporting Local Authorities to provide more and better accommodation, by taking steps for funding to be accessed under the Affordable Housing Supply Programme from 2026-27, and ensuring planners understand the needs of Gypsy/Traveller communities
Measures to remove barriers to education and improve educational outcomes for Gypsy/Traveller children and young people
Improving Gypsy/Travellers’ access to and experience of healthcare
Working to remove barriers to accessing benefits and build understanding among employers of the inequalities faced by Gypsy/Travellers, with practical tools to support recruitment and retention.
Challenging prejudice and discrimination and helping communities to influence decision-making
Equalities Minister Kaukab Stewart said: “Improving the lives of Scotland’s Gypsy/Traveller communities is a significant human rights commitment and is crucial in helping us deliver the fairer Scotland we want to see.
“The voices of Gypsy/Travellers across Scotland are at the centre of this second national joint action plan, and it is a testimony to the collaborative work of national and local government, third sector organisations, and most of all, the determination of Gypsy/Travellers to ensure better futures for their communities.
“We know current initiatives are having a positive impact on the lives of Gypsy/Traveller communities across Scotland, like the Gypsy/Traveller Accommodation Fund and the success of the Community Health Worker project in overcoming barriers to accessing health and other statutory services.
“However, there is still work to do. Through the actions in this plan we will build on the successes we have had to date and make further progress in many areas such as accommodation, health, education and combating discrimination.”
Record high NHS 24 workforce to meet increased demand
A record number of NHS 24 call handlers will support the public to access the most appropriate care this winter as services deal with increased demand.
Through the Scottish Government and COSLA’s joint Winter Preparedness Plan, continued investment for NHS 24 will increase service capacity to provide clinical supervision for at least 150,000 additional calls per year and help prevent unnecessary A&E attendances.
Key measures to support services in the face of increased demand, include; improving discharge planning for patients admitted to acute or community hospitals, maintaining established care at home packages and a Government led delayed discharge response team to directly support Boards in need of assistance. Planned care capacity will also be safeguarded with a continued focus on clearing long waits.
The annual winter vaccination programme, which includes respiratory condition RSV for the first time, will support a reduction in severe disease, hospitalisation and mortality – while protecting health and social care service capacity. The joint plan also sets out action to support the mental health and well-being of service staff through increased flexible working options and dedicated mental health resources.
This year’s plan has been published a month ahead of last year, and earlier than ever before, to allow more time for NHS Boards and care providers to prepare for winter surges in demand.
Health Secretary Neil Gray said: “As winter approaches, the NHS will see surges in demand across all health, social care and social work services. Our joint Winter Plan with COSLA is just one part of a wider programme of work to respond to heightened demand.
“A record number of NHS 24 call handlers will be available this winter to direct people to the most appropriate care, helping reduce unnecessary A&E attendances. We will continue our work to reduce delayed discharge in hospitals with an increased focus on effective discharge planning and protecting care at home packages. We will also ensure planned care capacity is protected as much as possible in the face of winter pressure so patients are seen as quickly as possible.
“We are prioritising frontline services with over £14.2 billion investment in our boards this year – an almost 3% real terms uplift – and also investing £2 billion in social care services.
“I thank all health, social care and social work staff for their continued efforts and dedication to deliver high quality care. It is fundamental we safeguard their wellbeing, and improved options on flexible working and continued access to mental health resources will ensure staff are supported over this challenging period.”
COSLA Health and Social Care Spokesperson, Councillor Paul Kelly said: “It is our shared responsibility to ensure that people and communities have timely access to quality care and support when they need it most.
“We know that Local Government and Health and Social Care Partnerships across Scotland are working hard to plan and deliver the essential health and social care services our communities rely on every day.
“The context within which this takes place is increasingly challenging, which is why COSLA have worked jointly with the Scottish Government to produce this plan. Local Government plays a key role in supporting people to experience better wellbeing and better outcomes, so it was only right that this plan reflects the whole system of integrated health and social care, from acute and primary care to social work, our care homes, community settings, and our partners across the sector.
“Winter is often a time of exceptional pressure on our services so I am pleased that this plan, produced with our partners across the sector, reflects the challenges and the opportunities we face.”
