COSLA President, Councillor Shona Morrison, has released the following statement:
“COSLA is concerned to see increasing levels of toxic online behaviour and abuse directed towards Scotland’s elected members, particularly in the wake of Councils setting their budgets and council tax levels for the year.
“Councillors across Scotland are dedicated public servants carrying out their democratic duties on behalf of their communities. They deserve to do so free from intimidation, harassment, or personal attack.
“Budget decisions are taken locally, transparently, and with great care by councillors who have their communities’ best interests at heart and who work tirelessly to protect essential local services under financial constraint.
“Public debate and scrutiny are vital components of our democracy but abuse, intimidation, and targeted harassment have no place in that discussion.
“COSLA urges all individuals and organisations to engage respectfully, and to recognise that councillors are making incredibly difficult decisions as they work to safeguard essential local services within a national funding landscape that remains extremely challenging.
“In a world that feels increasingly fractured, building trust in our democracy is rooted in how we treat each other and to that end we welcome robust and open debate and discussion while remaining respectful.”
Edinburgh’s Budget Meeting will take place on Thursday (26 February).
The Scottish Government has launched a new five‑week public awareness campaign encouraging boys and young men to think before sharing or engaging with misogynistic content online.
The campaign highlights the real‑life harm such content causes to women and girls, including those known to them. The campaign was developed with the support of a steering group of VAWG experts and cocreated with young people.
The campaign includes tailored messages for young people across Instagram, Snapchat, Twitch and YouTube, and resources for parents to understand the scale and impact of online misogyny and support conversations at home.
COSLA welcomes this campaign as a concrete expression of our shared commitment with the Scottish Government to challenge the attitudes and systems that enable misogyny and wider gender‑based violence.
The campaign aligns with Equally Safe’s focus on engaging men and boys as allies in preventing violence against women and girls and helping shift harmful online and offline attitudes.
COSLA’s Community Wellbeing Spokesperson, Cllr Maureen Chalmers, welcomed the new national campaign tackling online misogyny, commenting: “Young people deserve to be safe online and offline.
“By amplifying these messages locally Local Government plays a vital role in preventing harm, challenging harmful attitudes and supporting Equally Safe communities.”
All assets, including links to information supporting healthy conversations with young people and links to videos and other supporting materials can be accessed here: Tackling Misogyny Campaign Toolkit
Whilst councils have made significant savings, the cost of delivering services is rising faster than available funding. This risks the financial sustainability of councils over the next three to five years, says public spending watchdog.
Although Scottish Government funding to councils has been increasing, this hasn’t kept pace with rising costs and demand. Councils are overspending on delivering services and borrowing more.
In its latest update on council finances, the Accounts Commission report that councils face a budget gap of nearly £1 billion by 2027.
In 2024/25, councils met 90 per cent of their savings targets. But for the first time in six years, they reported a collective overspend on the costs of delivering services. Debt levels are increasing. Many are relying on reserves.
Whilst councils are increasing the amount of money they raise through fees and charges, income generated isn’t keeping pace with rising costs and inflation.
With Scottish Government funding to deliver capital projects falling, councils are also taking on more debt to deliver local infrastructure projects such as building schools and housing.
Derek Yule, member of the Accounts Commission, said: “Despite increased funding and income, councils are struggling to cope with the financial pressures they face. A growing gap between costs to deliver services and funding available is risking the financial sustainability of councils.
“We’re already seeing the impact on services – the pace of improvement is slowing, some services are being cut or are harder to access and there are growing levels of dissatisfaction from communities. Councils must fundamentally reconfigure how they operate and deliver services.”
Commenting on the report, Cllr Ricky Bell, COSLA Spokesperson for Resources, said: “While we acknowledge increases in uncommitted funding in the local government settlement, today’s report reinforces the message that local government finances are under severe and growing strain.
“Councils have worked hard to manage budgets responsibly, delivering significant savings year on year and meeting the vast majority of savings targets. However, there is a clear limit to what can be achieved without impacting the services communities rely on. Increasing reliance on reserves, borrowing and fees and charges is not a sustainable long-term solution.
“As we look ahead to 2026/27, the budget settlement falls far short of what is needed to sustain essential local services without difficult decisions being made locally.
“We are especially concerned by the continued underfunding of social care and the Real Living Wage across portfolios.
“The medium-term outlook for local government is deeply concerning, with continued de-prioritisation and the prospect of significant real-terms cuts. If councils are to remain financially sustainable and continue delivering for communities, there must be a more honest conversation about funding, priorities and local flexibility.
“Urgent action is needed to ensure councils have the resources and certainty required to support Scotland’s people and places now and in the future.”
A new national action plan setting out Scotland’s priorities for suicide prevention over the next three years has been backed by an increased budget of at least £3 million in 2026-27.
Creating Hope Together: Suicide Prevention Action Plan 2026–2029 aims to reduce suicide deaths, address the inequalities that can increase risk, and ensure anyone affected by suicide can access timely, compassionate support.
It’s the next phase of Scotland’s ambitious ten-year suicide prevention strategy, jointly led by the Scottish Government and COSLA, and focuses on four priorities:
supporting people at greatest risk of suicide, and creating safer environments
building understanding about suicide and capability to respond across communities
ensuring access to timely and compassionate support
strengthening foundations for effective delivery through improved data, evidence and collaboration
The latest official statistics from National Records of Scotland show the number of probable suicides in 2024 decreased by 11% compared to 2023 – the lowest number since 2017.
Total mental health spending is expected to exceed £1.5 billion in 2026-27.
Minister for Social Care and Mental Wellbeing Tom Arthur said: “Every person lost to suicide is a tragedy with far reaching impacts on families, friends and communities. Suicide prevention is everyone’s business, and I am determined that everyone has timely access to the right mental health support. While the latest official statistics show a decrease in the number of probable suicides, there is no room for complacency.
“The suicide prevention funding has increased to at least £3 million in 2026–27, up from £2.8 million. The increased budget will allow us to focus on tackling the stigma of suicide, encouraging people to seek help, and providing a range of support for people affected by suicide.
“The new plan is focused on prevention, early intervention and reaching those who need support most, including young people and those impacted by social inequalities, stigma and discrimination. I want to thank Suicide Prevention Scotland and the many other local and national partners, especially those with lived experience, who helped shape this Plan.”
Cllr Paul Kelly, COSLA Spokesperson for Health and Social Care, said: ““Suicide Prevention cannot be achieved by working in silos. We need to work across government – local and national – and with our communities to address the complex factors involved in creating conditions that can increase suicide risk, as well as harnessing those that promote better mental wellbeing.
“This new action plan is informed by learning from both national and local delivery and emerging practice. It builds on the ambition and achievements of the previous plan, accelerating progress towards our shared vision: that everyone in Scotland can access the right support at the right time.”
Declan Harrigan – CEO – S.M.I.L.E. Counselling added: ““S.M.I.L.E. Counselling warmly welcomes the Suicide Prevention Action Plan 2026–2029 and is hopeful that its ambitions can be fully realised through strong partnership working across the third sector, statutory services and communities.
“The clear focus on children and young people, early intervention, and addressing inequalities reflects what we know is needed to prevent suicide and save lives.
“We strongly support the plan’s emphasis on community-based approaches and believe that increased training and development at a local level around suicide prevention, intervention and postvention is pivotal. By building confidence, reducing stigma and equipping communities with the right skills and compassion, we can work together to create suicide-safer environments and, wherever possible, prevent deaths by suicide.
“We look forward to continuing to play an active role alongside partners in supporting children, young people and families, and in helping to turn this shared vision into meaningful, life-saving action.”
The plan builds on the learning from delivering the first action plan, drawing on academic research, insights from Suicide Prevention Scotland, local and national delivery partners, and the voices of people with experience of suicide, including children, young people and their families.
The Scottish Budget represents a cut to social care funding in Scotland, a concerning and disappointing reality for the people who access and work in social care.
In both COSLA’s manifesto and pre-budget lobbying, the voice of Scottish local government, made a clear and urgent ask for significant additional investment of £750m to protect and strengthen social care. The Scottish Budget as it currently stands, fails to deliver on this. There is no dedicated, additional funding for social care, and the £160m allocated for paying the Real Living Wage to adult social care workers falls short of the estimated £175m cost of this policy commitment.
This is not additional investment – it is underfunding of an existing promise.
The consequences of this budget are real. Without significant new resources, people will continue to face unacceptable delays for social work assessments and care packages. Services already under immense strain will be pushed even closer to breaking point, and councils will be forced into impossible choices.
This will directly impact individuals – those who access care and support and those in hospital waiting for care – at a time when our shared ambition should be to shift the balance of care and improve population health. It is for these reasons that COSLA sees this as very poor settlement for local government which fails to address the dire financial situation.
COSLA Health and Social Care Spokesperson, Cllr Paul Kelly commented: “Social care is fundamental to the wellbeing of our communities.
“The Scottish Budget – which COSLA Leaders agree is very poor – undermines the foundations of a fair and sustainable care system and risks reversing progress toward a model that truly meets people’s needs.
“Quite simply, this Budget is not just disappointing for social care, it is damaging.
“COSLA remains committed to improving the design and delivery of social care and we would welcome the opportunity on offer to take forward focused joint working to support our shared ambition of ensuring those with complex needs are supported in the right setting. But without proper investment, that ambition cannot be realised.”
COSLA has written to Shona Robison MSP, Cabinet Secretary for Finance and Local Government, on behalf of Scottish Local Government after the Scottish Budget which took place on the 13th January 2026.
COSLA Leaders have since met to discuss the 2026/27 Scottish Budget and Local Government Settlement. Our Leaders agreed that this year’s settlement is a very poor settlement for local government which fails to address the dire financial situation of local government.
Further, it was noted that the settlement does not offer the urgent financial support required for social care and social work.
COSLA has set out concerns about the Scottish Government’s Budget settlement for Local Government, warning that while there is a modest increase in uncommitted revenue, the settlement remains insufficient to meet rising demand for essential local services.
Following a meeting of council leaders, it was stressed that the increase of £234 million in uncommitted revenue funding for 2026/27 does not address the scale of pressures facing councils, particularly in social care where demand and complexity continue to rise sharply.
COSLA also highlighted urgent concerns about the continued underfunding of the Real Living Wage policy.
While welcoming the increase in funding for the Affordable Housing Supply Programme, COSLA warned that the capital funding position for local government is becoming increasingly unsustainable, threatening councils’ ability to invest in vital infrastructure and community assets.
Leaders also expressed significant concern about the medium-term outlook set out in the Spending Review, which suggests continued de-prioritisation of local government and further real-terms cuts over the coming years.
Cllr Ricky Bell, COSLA Spokesperson for Resources, said:“While we acknowledge the increase in uncommitted revenue funding for 2026/27, this settlement falls far short of what is needed to sustain essential local services. Councils are facing acute and growing pressures, particularly in social care, and the current level of funding simply does not reflect the scale or complexity of demand.
“We are especially concerned by the continued underfunding of the Real Living Wage across portfolios including social care. COSLA made a clear and urgent ask for significant additional investment of £750m to protect and strengthen social care, which the Budget as announced fails to deliver.
“Further to this, the medium-term outlook paints a worrying picture for local government, with continued de-prioritisation and the prospect of significant real-terms cuts.
“If councils are to continue delivering for communities, we are calling for urgent and meaningful engagement with the Scottish Government to ensure local government is properly funded to continue delivering the essential services communities rely on every day.”
COSLA reiterated its support for the introduction of additional council tax bands as an interim step towards fundamental reform, emphasising that any changes must be taken forward in close cooperation with COSLA and local government.
In addition, it welcomed the Scottish Government’s forthcoming legislation to remove the cap on council tax premiums for second and empty homes, describing it as a positive step in providing councils with greater local flexibility.
The 2026-27 Budget will support a stronger NHS, with a record £22.5 billion for health and social care, expand cost of living support and invest in Scotland’s infrastructure.
Published alongside the latest multi-year Scottish Spending Review, Infrastructure Strategy and Infrastructure Delivery Pipeline, the draft Budget invests almost £68 billion including direct support for families and household budgets.
The 2026-27 Budget includes:
a cost of living package to: help families with funding to trial a programme of activities in a range of primary schools between 3-6pm; a Summer of Sport – free children’s sporting activities, including lessons on how to swim for every primary school child in the country; and a breakfast club for every primary school by August 2027
continued investment in Scotland’s existing cost of living measures, including free prescriptions, free eye examinations, removal of peak rail fares on Scotrail, free tuition fees for young Scots, free school meals for thousands of children, including all pupils in P1 to P5, and free bus travel for under-22s and over-60s
funding to increase Scottish Child Payment to £28.20 per week and investment to allow the introduction of a premium payment of £40 per week for eligible children under 12 months from 2027-28, bolstering efforts to drive down child poverty
extra funding to keep more children out of poverty from funds initially set aside to mitigate the UK Government’s two-child cap, including £50 million of whole family support and a further £49 million for measures to be announced in the Child Poverty Delivery Plan in March
tax choices which increase the Basic and Intermediate rate income tax thresholds to put more money in the pockets of low and middle income earners, maintain current income tax rates and bands, and provide a competitive non-domestic rates relief package worth an estimated £864 million, including measures for pubs, restaurants and retailers
a record £22.5 billion for health and social care, including a record £17.6 billion for NHS boards and resources to begin the national rollout of walk-in GP clinics, making it easier to access same-day appointments
an almost £15.7 billion record settlement for local government to support the services communities rely on including social care and education
significant extra funding for universities and colleges, with colleges seeing a combined increase of £70 million in resource and capital funding, equivalent to a 10% uplift, targeted support to help retrain workers in the oil and gas sector and ongoing commitment to Scotland’s apprenticeships, which this year will provide more than 31,000 Scots with a pathway to sustainable, well-paid jobs
over £5 billion to tackle the climate emergency, reduce carbon emissions and increase resilience as well as backing regenerative and sustainable skills in food and farming
£4.3 billion transport funding including investment in railways, the renewal of the ferry fleet, removal of peak season fares for residents of Orkney and Shetland on Northern Isles ferries and nearly £200 million for the dualling of the A9
record investment in new affordable homes
Ms Robison said:“This Budget delivers for families across the country, for a stronger NHS, and for a more prosperous future.
“It will fund landmark policies to continue efforts to eradicate child poverty – investing in a brighter future for Scotland and the children growing up here.
“Almost £68 billion is being invested in 2026-27 and almost £200 billion through the Scottish Spending Review and Infrastructure Investment Pipeline, demonstrating the scale of our ambition for our nation.”
Other measures include:
from April 2027, an Air Departure Tax (ADT) will come into force and the framework offered by the new ADT will be used to introduce a private jet supplement
the introduction by April 2028 of two new council tax bands for the most expensive properties in Scotland, those worth more than £1 million, on an up-to-date valuation
support for high-growth firms to attract private investment and connect entrepreneurs
£200 million for the Scottish National Investment Bank – delivering on the commitment to invest £1 billion in the Bank by the end of the parliamentary term
record funding for police and fire services and an additional £10 million investment in community justice services
a £20 million increase in the culture budget, recognising Scotland is richer because of its world-famous culture and creative sector
support for the creation of a diverse and sustainable supply chain for offshore wind, to boost the economy.
Responding to today’s proposed Scottish Budget, Poverty Alliance Policy & Campaigns Manager Ruth Boyle said: “People in Scotland want a just and compassionate society – but too many feel the system is rigged against them.
“There was some good news today – but we can do much more to make sure that every child in Scotland gets the investment they need for a decent life and a better future.
“Ensuring that every child in primary school gets a healthy breakfast is an excellent investment, because no child should go to school hungry.
“Increasing the Scottish Child Payment to £40 for eligible households with a baby under 1 is welcome and will help families at a time when they face increased costs. However, this must be a first step towards boosting that payment to £40 for every eligible child in the country.
“That is the kind of fundamental investment the Government needs to make if they are serious about meeting the 2030 child poverty targets.
“With Scotland not on track to meet those legally binding targets, we need all political parties to set out their plans to invest in country where no child lives in poverty. Our children can’t wait any longer.
“We can make that kind of investment in Scotland – and there is support for it. In among the Budget documents is new polling from YouGov showing that 54% of people in Scotland believe that Government should redistribute income from the better-off to those who are less well off. Just 29% disagree.
“The Scottish Government must raise revenue to invest in our shared national priorities, like tackling child poverty and reducing the cost of living. It’s right that the Government has turned to those with the biggest assets to contribute more with a tax on private jets and increased council tax for the highest value homes.
“This has to be the start of long-promised, fundamental reform of council tax so that our local councils can provide the services that all of us need, and that are a vital lifeline for so many households in poverty.
“The Poverty Alliance will continue to call for the measures we need to provide a Minimum Income Guarantee that no-one will fall under – including increasing wages, investing in strong public services, and providing a social security system that gives everyone in Scotland a secure foundation to build a better future.
“Today’s budget has some positive steps towards that ambition – but we need to go further and faster if we are to build a Scotland free from poverty.”
Commenting on today’s draft Scottish Budget, Mary Glasgow, Chief Executive of Children First, Scotland’s national children’s charity, said: “It’s hugely positive to see child poverty being made a top priority in today’s budget.
“The significant funding boost to whole family support and extra resources for third sector organisations will provide a lifeline to families who need help most, right across Scotland.
“But we can’t afford to slow down. Scotland’s legal target to eradicate child poverty demands bold, accelerated action. Life is tougher than ever for many children and families and at Children First we witness this first-hand every day.
“That’s why we urgently need a National Front Door that offers a simple accessible way for families to get the help they need when they need it.”
Children First’s manifesto for the 2026 Holyrood elections calls on the next Scottish Government to deliver a comprehensive offer of whole family support to tackle child poverty and give every family the emotional, practical and financial support they need.
Trussell’s Cara Hilton said: ‘While we welcome the @scotgov‘s £40 SCP rate for babies under 1, we continue to call for an increase to £40 a week for all.
‘Our @TrussellUK data shows food parcels for families with children aged 12-16 in Scotland rose by 7% over the past 5 years. #ScotBudget‘.
Responding to the Scottish Budget and Scottish Spending Review, Anna Fowlie, Scottish Council for Voluntary Organisations (SCVO) Chief Executive, said: “Too often and for too long, voluntary organisations that provide vital services to people and communities across Scotland are treated as the poor relation to mainstream public services.
“They have had to contend with budget cuts, short-term funding cycles, late payments, incoherent decision-making, poor communication, inadequate grant management, and more.
“Reform of the voluntary sector funding landscape is long overdue. The Scottish Spending Review is welcome, giving the Government the long-term outlook to make progress on its commitment to deliver improvements, including multi-year funding for Scotland’s voluntary organisations.
“Welcome too is the Scottish Government’s commitment to multi-year funding for sections of the voluntary sector—this shows, again, what is possible.
“Today we had hoped for more than a recommitment to the ‘first step’ announced last February—the Scottish Government’s ‘Fairer Funding’ pilot.
“We know the benefits of multi-year funding: better staffing, stability, and future planning for the services people and communities rely on. The Government’s own research confirms this.
“Multi-year funding alone, however, will not provide the sustainable funding environment the voluntary sector so desperately needs, funding that is flexible, sustainable, and accessible.
“We need to see real progress and recognition of SCVO’s Fair Funding asks beyond multi-year funding. Wider reforms are, unfortunately, now unlikely to be seen before the next parliamentary term.
“In the meantime it is essential that in the weeks following the Scottish Budget the Scottish Government support local authorities and voluntary organisations by meeting their commitments to timely notifications and payments.
“We look forward to further engagement on both Fair Funding and charity regulation in the next parliamentary term.”
Shelter Scotland Director, Alison Watson said:“Social housing delivery in Scotland remains too slow, too little and too late for the more than 10,000 children homeless tonight. Today’s budget doesn’t do enough to change these facts.
“Shona Robison’s budget was an opportunity for Ministers to put their money where their mouth is. On the face of it an additional £34 million for social housing, compared to the most recent budget, is a step in the right direction – but it is not enough.
“The extra money will only deliver 36,000 affordable homes by 2030 – more than 26,000 short of where they say they would need to be to deliver their promise of 110,000 affordable homes by 2032.
“The new Parliament will need a new approach and new money to deliver the social homes needed to reduce homelessness. Homes that the government promised, that academics say we need but for which there is still no credible plan to deliver.
“We must be honest about the real costs of failure. Failing to build the social homes we need means rising homelessness, rising child poverty, rising costs for councils, health boards and the taxpayer.”
Responding to the Scottish Government’s Budget, Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “It is disappointing to see nothing new in this Budget to adequately respond to the growing number of older people in poverty.
“One in six pensioners now live in poverty across Scotland, a total of 160,000 older people, and we must see more action to support them.
“We want the Scottish Government to set out a clear, targeted strategy to bring down the alarming number of older people in poverty, increase access to the vital Discretionary Housing Payments that can help older renters meet shortfalls in rent, and increase the social security support available to those on a low income in later life.
“With pensioner poverty at its highest level in nearly 20 years, and likely to continue to rise as our population ages, it’s vital all political parties include measures to bring down the levels of poverty in later life in their manifestos’ ahead of May’s Holyrood elections. In a compassionate and wealthy society, we should all be able to live a financially secure, dignified later life.”
Responding to the Scottish Government’s Budget statement which slashed the 40% discount on business rates bills for pubs at the same time as a rates revaluation will lead to higher bills from 1 April, Stuart McMahon, Director of pubgoers group CAMRA Scotland said: “Pubgoers and publicans simply won’t stand for a Budget which will force more of our locals to go to the wall by landing them with bills they simply can’t afford.
“I fear that slashing the 40% discount on business rates bills for pubs to just 15% at the same time as these bills are increasing will be absolutely disastrous.
“Transitional reliefs may sound good but if this Budget still means higher business rates bills than pubs are paying now then this will be the straw that breaks the camel’s back for many hard-pressed licensees.
“Pubs need permanently lower business rates bills so that they can survive, thrive and play their part as vital community hubs.”
The Scottish Government’s budget announcement of further funding for the college sector, which includes a combined increase of £70 million in resource and capital funding, received a qualified welcome. Principal of Edinburgh College, Audrey Cumberford said: “While this is a welcome step in the right direction for college funding, there is still more that needs to be done.
“This increase will help to undo some of the damage done by years of real terms cuts, but more is needed if we are to ensure the future sustainability of our sector.
“There is now a clear consensus across the political spectrum for better funding for colleges.
“I would urge parties to continue to work together to make sure we unleash the true potential of our sector so we can continue to drive economic growth and improve the lives of Scots across the country.”
Responding to the Scottish government’s 2026-27 budget, announced today by Finance Secretary Shona Robison, RCEM Vice President for Scotland Dr Fiona Hunter said: “Scottish Emergency Departments are in the midst of a crisis born of political apathy towards tackling the difficult problems of social care capacity, delayed discharges and the overall issue of hospital flow.
“Today’s budget indicates once again that the Scottish government understands what the issues are. £2.3bn extra for social care, an uplift in frontline NHS spending, specific targeted action on delayed discharge and local engagement – these are all measures we warmly welcome from the government.
“As well as this, our members will be pleased to hear about improvements to training, retention and working conditions.
“However, we’ve been here before. Time after time the reality in our A&Es has got worse, not better, despite claims from the government that the NHS has been on ‘the path to recovery’ in recent years.
“We are seeing more and more patients waiting alone on trolleys in hospital corridors for hours on end, getting sicker and being put at risk of harm.
“This has happened because exit block has not been tackled, despite promises to the contrary from the government.
“The devil will be in the detail and I will reserve judgement for when myself, and the members I represent, see improvements in our Emergency Departments.
“We look forward to continued engagement with the government on how it seeks to tackle hospital flow, and await further information on how the Health Secretary will take today’s promises and turn them into action and, ultimately, improvements for our patients.”
Jonathan Carr-West, Chief Executive, LGIU, said: “This Budget offers some short-term stability for councils, but it ducks the bigger questions about how local government is funded.
There is still no meaningful move towards multi-year settlements, which councils overwhelmingly say they need in order to plan sustainably. Our annual State of Local Government Finance in Scotland research, launched last week, reinforces this.
Incentivising a council tax freeze risks further undermining local fiscal autonomy, while adult social care remains the single biggest pressure on council finances without clear, dedicated funding.
Housing investment is welcome, but spreading it across the country without enabling local flexibility limits its capacity to tackle the areas of greatest need.
Overall, this is a Budget that manages immediate pressures but avoids the structural reform required to put local government finance on a sustainable footing.”
The Existing Homes Alliance (EHA) is a coalition of over 20 housing, environmental, fuel poverty, consumer and industry organisations calling for urgent action to transform Scotland’s existing housing stock.
Lori McElroy, Chair of the Existing Homes Alliance said:“While we welcome the ongoing support to help homeowners, landlords and tenants to make their homes warmer, healthier and more affordable to heat, this remains a drop in the ocean when we have over 800,000 households living in fuel poverty and 44% of Scotland’s homes falling below Energy Performance Certificate band C.
“Scotland has excellent fuel poverty and energy efficiency programmes such as Warmer Homes Scotland, Area-based Schemes and the Social Housing Net Zero Heat Fund, as well as generous grants through the Home Energy Scotland Grant and Loan Scheme, but the gap between what is needed and what is currently being delivered is wide.
“This Budget, as it stands, is a missed opportunity to significantly scale up these programmes which would reduce fuel poverty, improve public health by tackling damp and mould, and prepare the workforce and supply chains needed to deliver our climate change targets – supporting thousands of jobs and economic opportunities across Scotland.”
Joanne Smith, Policy and Public Affairs Manager for NSPCC Scotland, said: “For children to thrive, it’s vital that they have the best start in life, and so we are heartened by the Scottish Government’s commitment to increase the Child Payment for under ones. But we are disappointed that young families now will not reap those benefits, with it starting in more than a year’s time.
“We also welcome the Scottish Government’s renewed investment in the whole family support fund and its work to continue to deliver the Promise. But it is so important that in this it recognises the fundamental need for support for very young children, just like the Scottish Child Payment does, so that families get the help they need right from the start.”
Scotland’s Chief Constable Jo Farrell has responded to the Scottish Government’s tax and spending plans for 2026 to 2027.
Chief Constable Farrell said: “I recognise a £90m cash-terms uplift to revenue funding and an improved capital allocation for policing against a challenging public finance picture.
“I set out the funding requirements for policing in evidence during the Criminal Justice Committee’s pre-budget scrutiny work.
“Police Scotland will continue to engage with the Scottish Police Authority and the Scottish Government to understand the full implications of the budget and develop our planning for the year ahead.
“My focus continues to be on prioritising our frontline to deliver safer communities, less crime, and supported victims as part of our vision for policing.”
No improvement to the financial sustainability of councils across Scotland with seven in ten saying they will be unable to balance budget within five years
The latest research from the Local Government Information Unit’s (LGIU) third annual State of Local Government Finance in Scotland report reveals that all councils who responded will be increasing council tax and decreasing their spending on services this year.
Yet, despite utilising these and other available measures, the new research found that seven out of ten senior council figures believe they won’t be able to balance their budgets within the next five years, and not one respondent expressed confidence in the sustainability of local government finance.
Chief Executives, Leaders and Directors of Finance representing 81% of Scottish local authorities took part in the research, which paints a picture of a sector pulling out all the stops available to them to respond to rising service needs with ever-diminishing resources. These responses provide an unparalleled look into the view from the inside when it comes to managing local government finances.
Adult social care once again topped the table for both immediate and long-term pressures that council finances face, and the majority of councils want more powers to raise revenue, including the freedom to levy other local taxes. Seventy per cent also supported a local share of national taxes being made available.
Some of the other key recommendations from the report include enshrining in legislation the principles of the Verity House Agreement as well as a full-scale review of local government finance, including sources of funding, the formulae for distribution, and the place of local government in the wider public sector.
A full list of recommendations from the report can be found below.
Jonathan Carr-West, Chief Executive, LGIU,said: “Local government finance in Scotland is still not fit for purpose. Despite recent changes, the underlying problems that threaten councils’ financial sustainability have not been resolved.
“Financial pressures on councils continue to move in only one direction as service demands increase and local leaders have ever-diminishing budgets with which to respond. Local government is in a precarious position. With 70% of respondents indicating that they are close to effective bankruptcy, something has to give very soon.
“Our latest research, released as we approach the 2026 Scottish Parliament election, serves as a stark warning: councils overwhelmingly feel their current funding situation jeopardises their ability to protect vulnerable citizens, increases the risk of insolvency, and diminishes the quality of life in their communities.
“However, this negative trajectory is not inevitable. Councils across Scotland are ready and willing to collaborate with the Scottish Government to implement meaningful and lasting reform. Our research clearly defines the necessary changes and presents the sector’s solutions for achieving them.
“While the complexities of local government finance mean there is no single simple fix, the sector shares near-universal agreement on the problems and offers a wealth of ideas on how they can be solved.”
Summary of key recommendations
1) An agreed national convention between the Scottish Government and local government to outline procedures and actions for councils that are unable to pass a balanced budget.
2) The next Scottish Parliament should agree to implement and enshrine in legislation the principles of the Verity House Agreement, and commit to an annual review by the Scottish Parliament covering the key principles.
3) In this election year, parties should commit to a full-scale review of local government finance, including sources of funding, the formulae for distribution, and the place of local government in the wider public sector.
4) Scottish and local governments should be brought together in a standing commission or representative body, which should be defined in statute with a key role in pre-budget engagement processes, negotiation of the funding settlement, and any and all decisions that have an impact on councils.
The exact responsibilities and membership of this body should be a matter for future discussions, but should at a minimum include ministerial representation, and local elected representatives and senior officers from local government.
Social care pressures are spiralling. Integration Joint Boards have faced £497m pressures in 2025/26. A £750m investment in the Scottish Budget could stabilise the system, says COSLA:
Social care pressures are spiralling.
Integration Joint Boards have faced £497m pressures in 2025/26.
A £750m investment in the Scottish Budget could stabilise the system.
COSLA is urging the Scottish Government to provide a £16 billion boost in revenue in the Scottish Budget, to secure fair and sustainable funding for councils.
A demand for a £844 million general capital settlement has also been requested, plus a restoration of the Affordable Housing Supply Programme to £955 million, to maintain, repair, expand and secure the future of Council estates.
COSLA has launched a lobbying campaign urging the Scottish Government to use the upcoming Scottish Budget to provide councils with the fair, sustainable and multi-year funding needed to protect essential local services.
The campaign – ‘Strong Councils, Strong Communities’ – highlights growing pressures facing local government and the very real consequences of continued underfunding for communities across Scotland. The financial pressures in social care and housing are two key areas COSLA are asking the Scottish Government to specifically address in their upcoming budget.
COSLA warns that without urgent action in January’s Budget, councils will be unable to maintain essential services such as social care, education, housing support, roads, and community safety.
COSLA Resources Spokesperson, Councillor Ricky Bell, said: ““Scotland’s councils deliver the services that people rely on every single day — from caring for older and vulnerable people to keeping schools open, streets safe and communities thriving.
“Councils are facing greater demand than ever and are required to do more with significantly less. This is unsustainable.
“The upcoming Scottish Budget is a pivotal moment. The Scottish Government must deliver a settlement that matches the scale of the challenge. Without fair funding, communities will see services reduced and inequalities deepen, and we will struggle to meet national targets in key areas such as child poverty, housing, and net zero”
This year, councils continue to face rising inflation, increasing demand for services, and the continued impact of workforce pressures across social care and education. COSLA’s analysis shows that even maintaining current services requires substantial additional investment.
As a fair and sustainable overall financial settlement COSLA’s key asks from the campaign include:
An immediate £750m investment in social care.
Flexibility for councils to make local decisions that respond to community needs.
Recognition of local government as an equal partner in delivering national priorities and tackling inequalities.
COSLA President, Councillor Shona Morrison, added:“Councils work tirelessly to deliver for Scotland’s communities, however, continued pressure on resources makes this increasingly challenging.
“This is about safeguarding what matters most, support for the most vulnerable, opportunities for young people, support for families, and safe, thriving communities.
“We hope the Budget will reflect the vital role Local Government plays in Scotland’s public services.”
