The Home Office’s latest policy overhaul to Indefinite Leave to Remain (ILR), shifting the default settlement timeline from five years to a gruelling ten, is a short-sighted political stunt that threatens to inflict severe, long-term damage on Scotland and the wider UK.
Britain cannot ask overseas workers to build their lives here, pay their taxes and keep essential services running, then treat their hopes of a secure future as a political bargaining chip.
The Home Office’s settlement announcement deserves scrutiny. Its own estimate is that more than 500,000 people will wait longer than five years for indefinite leave to remain. That means years more uncertainty for families who have followed the rules.
There are important protections. Existing settled status will remain untouched, while doctors, nurses, teachers and qualifying care workers retain shorter pathways. These exceptions matter. But they do not answer the wider question: why should a worker’s salary carry such weight in deciding when their family can put down permanent roots?
A care worker’s payslip does not measure the value of helping somebody live with dignity. Nor does a hospitality worker’s wage capture their contribution to keeping a local business open.
The economic warning is clear. Skills for Care reports 96,000 vacancies in adult social care in England in 2025/26. Around 150,000 posts in independent, regulated care services were filled by workers on Health and Care Worker visas in March 2026. These are England’s figures, but the lesson reaches beyond its borders: retention matters as much as recruitment.
Scotland faces distinct demographic challenges, alongside acute sector-wide labour shortages. Our care homes struggle for staffing, our health service is under persistent pressure, and tech and hospitality businesses regularly cite workforce deficits as their primary barrier to expansion. Disincentivising global talent from settling permanently will only worsen these shortages, weaken our public services, and hamper national wealth creation.
For Scotland’s hospitals, care providers, hotels and technology businesses, prolonged uncertainty risks making recruitment and retention harder. Replacing experienced staff costs money, disrupts services and takes time. Training more domestic workers is essential; unsettling existing workers is no substitute.
Of course we must tackle immigration fraud, unlawful employment and exploitative sponsors. Enforcement should target wrongdoing, not make compliant workers, international students and their families feel permanently unwelcome.
Ministers should protect existing settlement expectations, publish a full economic assessment and work with Scotland and employers on practical workforce needs.
Britain’s reputation for fair dealing is an economic asset. Sacrificing it for a tougher headline would leave us poorer in every sense.
We need an immigration strategy rooted in economic reality, compassion, and fairness, one that respects international talent and supports the public services relying on them.
WEDNESDAY’s UK Budget presents an important opportunity to consider how public investment can support a fairer, safer and more inclusive Scotland (writes FOYSOL CHOUDHURY).
While decisions about funding are often discussed in terms of economic growth, public services and household costs, we must also consider how investment can help tackle discrimination, strengthen relationships between communities and protect people from hatred.
As Scotland considers its Budget priorities, I hope the Scottish Government will recognise the importance of investing in equality education, cultural understanding and community safety. Public spending is not just about financial figures; it is also about the opportunities we create for young people and the kind of society we want to build.
As a former Member of the Scottish Parliament (MSP), I spent considerable time working with communities, raising concerns about discrimination and advocating for equality. My parliamentary questions, meetings and engagement with educational institutions and community organisations reflect my longstanding belief that everyone should be able to live, learn and practise their faith without fear of prejudice or intimidation.
I believe the Scottish Government should work closely with third-sector organisations, schools, colleges and universities to ensure that equality education receives appropriate funding and support. Young people should have opportunities to learn about different cultures, religions and traditions, understand one another’s experiences and challenge prejudice wherever they encounter it.
My commitment to this work comes from years of community engagement, including my time as an MSP, my work as Chairman of Edinburgh and Lothians Regional Equality Council (ELREC), and my role as Convenor of the Scottish Parliament’s Cross-Party Group on Challenging Racial and Religious Prejudice.
Drummond Community High School has a particularly important place in my life. I attended the school, and my family has maintained strong links with it over the years. As Chairman of ELREC, I supported initiatives bringing the school and community organisations together, including the Refugees’ Voices event in December 2016.
This initiative helped connect refugees with organisations offering advice and support on education, housing, healthcare and other important issues. I also supported the school’s football team and helped with football coaching. These experiences reinforced my belief that education, sport and community engagement can bring people together and help young people understand the value of diversity.
Beyond my connection to Drummond Community High School, my work has extended across numerous schools, colleges, and educational institutions throughout Scotland. Each plays a vital role in supporting young people at different stages of their development. My engagement with institutions like Edinburgh College, alongside the many schools I have visited, reflects the importance I place on listening directly to students and creating inclusive educational environments where people from all backgrounds can learn, develop, and progress.
Schools and colleges should be places where students feel respected and supported, regardless of their ethnicity, religion or background. I hope the Scottish Government will work with these institutions to ensure they have the resources, training and partnerships needed to promote equality, inclusion and mutual respect.
During my time as an MSP, I used parliamentary questions to raise concerns about discrimination affecting young people and students. I believe elected representatives have a responsibility to listen to the experiences of those affected by prejudice and bring their concerns directly to government.
On 23 June 2022, I asked the Scottish Government about action to protect Muslim communities from Islamophobic incidents and progress on the Hate Crime Strategic Partnership Group. This reflected my concern that people must be able to practise their religion and participate in society without fear of hostility.
On 17 January 2023, I sponsored a Scottish Parliament event entitled Islamophobia, Education, and the Future, organised by the Community Policy Forum. The event brought together people concerned about the relationship between education, discrimination and the experiences of minority communities.
On 29 November 2023, I lodged written parliamentary question S6W-23363, asking what action the Scottish Government had taken to improve the reporting and recording of Islamophobia in schools, colleges and universities. On 4 December 2023, I lodged a further question, S6W-23522, seeking an update on progress in implementing recommendations from the Scottish Islamophobia inquiry.
On 26 June 2024, I raised concerns about making hate crime reporting more accessible in a parliamentary question. People who experience discrimination or religious hatred must have confidence that they can report incidents and that their concerns will be taken seriously.
I returned to these issues on 28 November 2024, asking about ministerial discussions on tackling Islamophobia and progress on recommendations concerning a definition of Islamophobia and a workplace discrimination toolkit. On 20 December 2024, I lodged further parliamentary questions, S6W-32712 and S6W-32713, seeking updates on implementing recommendations from the Scottish Islamophobia inquiry and its 2023 update.
These questions reflect a simple principle: discrimination must not be ignored. Students deserve to feel safe in their educational environments, and incidents of racism and religious prejudice must be recorded, investigated and addressed appropriately. Educational institutions need clear procedures, effective support for those affected and the resources to turn equality policies into meaningful action.
My concern about the experiences of students was also reflected in my parliamentary work on racist bullying. On 12 June 2025, I asked the Cabinet Secretary for Education and Skills how the Scottish Government was ensuring schools tackled racism and racist bullying. I raised the case of a pupil who had experienced prolonged racist bullying and asked how anti-racism resources were being put into practice. I also asked whether the Cabinet Secretary would meet me and the pupil’s mother to hear directly about the impact of the bullying.
I believe it is essential that young people and their families are listened to when they raise concerns about discrimination. Policies and guidance are important, but their effectiveness must be judged by whether they improve pupils’ everyday experiences. Schools must be equipped to respond to racist bullying, support those affected and take appropriate action when incidents occur.
Teachers and school staff also need suitable training and resources to recognise discrimination and create inclusive learning environments. No child should feel that their ethnicity, religion or cultural background makes them less welcome at school. Every pupil deserves to learn in an environment where they feel safe, respected and able to fulfil their potential.
As Convenor of the Scottish Parliament’s Cross-Party Group on Challenging Racial and Religious Prejudice, I worked to bring together parliamentarians, equality organisations, academics, faith representatives and community groups to discuss discrimination and identify practical ways to improve understanding between communities.
The group provided an important forum for discussing Islamophobia, racism, religious intolerance and the experiences of people affected by prejudice. It also offered opportunities to consider how government, public institutions and community organisations could work together to address these issues. The group’s discussions highlighted concerns about racial and religious hatred, threats against places of worship, online misinformation and the need for stronger cooperation between communities.
These issues cannot be addressed by one organisation or institution acting alone. Parliamentarians, government departments, police, educators, faith leaders and third-sector organisations all have a role to play. As Convenor, I considered it important to ensure that these conversations continued and that the experiences of affected communities informed discussions about policy and practical action. My parliamentary questions on the implementation of recommendations from the Scottish Islamophobia inquiry were part of this wider commitment, driven by the belief that recommendations must lead to tangible improvements in reporting, education, public awareness and the treatment of victims.
I am particularly concerned about the damage that inflammatory political rhetoric and misinformation can cause to community relations. Politicians have a responsibility to recognise that their words can influence public attitudes. Robust debate and disagreement about public policy are essential parts of democracy, but they should never become excuses for stigmatising entire communities or encouraging hostility towards people because of their ethnicity or religion.
When politicians or other influential voices repeatedly spread misleading claims about minority communities, the consequences can extend beyond political debate. Such rhetoric can deepen divisions, reinforce stereotypes and contribute to an environment in which people feel targeted or unwelcome.
Online misinformation can make these problems worse by allowing false claims and hostile messages to spread rapidly. We must challenge inaccurate information, encourage responsible public debate and ensure that people are able to discuss difficult issues without being subjected to racial or religious hostility.
We must challenge Islamophobia, antisemitism, racism and all forms of religious hatred consistently. No community should be singled out for hostility, and nobody should be excused from responsibility for encouraging hatred because of their political position or public profile.
Freedom of expression and political debate must be protected. At the same time, threats, harassment and incitement to violence must be taken seriously and addressed in accordance with the law.
Education and dialogue are essential, but they must be accompanied by practical measures to protect people. The Scottish Government should work with Police Scotland, local authorities, faith leaders and community organisations to ensure that appropriate security arrangements are available to communities facing credible threats. This includes effective systems for reporting hate incidents, timely investigations, support for victims and appropriate security advice for places of worship and community facilities.
Police officers need the resources and training required to respond effectively to hate crime and protect the public. People must have confidence that when they report threats or incidents of hatred, their concerns will be taken seriously. Online threats and incitement to violence must also be addressed.
The relevant authorities should enforce existing laws effectively, investigate credible threats and work with appropriate partners to tackle harmful online activity, while respecting freedom of expression and civil liberties.
Security measures must be proportionate and evidence-based. Protecting one community must never come at the expense of the rights of another. Security is not simply about preventing an attack; it is also about ensuring that people can attend school, go to work, visit their places of worship and participate in public life without fear.
Third-sector organisations are essential partners in promoting equality and preventing discrimination. They often have direct relationships with communities and understand the barriers people face when experiencing racism, religious prejudice or social exclusion.
These organisations can provide support to individuals, build relationships between communities and help educational institutions develop more inclusive approaches. Their knowledge and experience should be valued when the Scottish Government develops policies and makes decisions about public spending.
As Chairman of ELREC, I recognise the importance of supporting organisations that work directly with people affected by discrimination. Their work can help ensure that individuals understand their rights, receive appropriate support and have opportunities to participate fully in society.
I hope the Scottish Government will establish and maintain meaningful partnerships with equality organisations, schools, colleges and universities. These partnerships should be supported by appropriate funding, long-term planning and clear objectives. Practical initiatives could include training for teachers, culturally inclusive learning resources, opportunities for students to engage with people from different communities and programmes that help young people understand different faiths and traditions. Sustainable funding is essential if organisations are to plan effectively and provide consistent support to communities.
As Scotland considers the implications of yesterday’s UK Budget, I hope ministers will give serious attention to the resources required to promote equality, improve education and protect communities.
The UK Budget affects the funding available to Scotland, but it does not automatically guarantee additional spending on equality education or community security.
The Scottish Government must make its own decisions about devolved spending priorities and ensure that public money is directed towards areas where it can make a meaningful difference.
I believe equality education should be recognised as an important investment in Scotland’s future. Schools, colleges and universities need appropriate support to create inclusive learning environments, while third-sector organisations need the resources to continue their work with communities.
The Scottish Government should consult the organisations and institutions that have direct experience of these issues, listen to students and families affected by discrimination, and assess whether existing policies are delivering meaningful improvements.
Investment should support prevention as well as responses to incidents when they occur. By helping young people understand different cultures and religions, we can challenge prejudice earlier, strengthen relationships and encourage greater respect across communities. At the same time, government must ensure that appropriate security, reporting and support arrangements are available to those who experience threats or hatred.
My experience as an MSP, Chairman of ELREC and Convenor of the Cross-Party Group on Challenging Racial and Religious Prejudice has reinforced my belief that lasting change requires cooperation.
My engagement with schools, colleges, universities, students and community organisations has also demonstrated the importance of listening to people and understanding their experiences. These relationships can help identify challenges, encourage constructive dialogue and develop practical ways to make educational institutions and communities more inclusive.
Students, teachers, families, community organisations, faith leaders and public institutions all have a part to play in building a society where people feel safe and respected. As Scotland considers its Budget priorities, I hope equality education, cultural understanding and community safety will receive the attention they deserve. We must invest not only in what young people learn, but also in how they learn to understand and respect one another.
Equality education, community safety and inclusion are connected responsibilities. By supporting all three, Scotland can build a society in which diversity is valued, discrimination is challenged and everyone has the opportunity to belong and thrive. Everyone deserves to live in a country where they can pursue their education, practise their faith and participate in public life without fear.
That is the Scotland we should continue working towards.
Foysol Choudhury MBE is a former Member of the Scottish Parliament and Chairman of Edinburgh and Lothians Regional Equality Council (ELREC)
This week’s COSLA Explains looks at how the Local Government workforce could be impacted by public service reform proposals and why trade unions, staff, and employers must be meaningfully involved in shaping reform:
As part of the World Press Photo exhibition currently on display here at The Scottish Parliament, we’re excited to be hosting two more free panel events on Monday evening.
“Ukraine, the future” explores security, support for Ukraine, and prospects for lasting peace.
“How images sell the news” will examine what makes a good news image, and who decides this.
Come along and be part of the discussions, with the opportunity to ask the expert panellists your questions.
Scottish Liberal Democrat MSP Sanne Dijkstra-Downie has urged the Scottish Government to rethink its decision to exclude the right to a healthy environment from its future Human Rights Bill.
Minister for Equalities, Simita Kumar, said that the government will “not include a standalone right to a healthy environment in the future Human Rights Bill.”
The right is about making sure people have access to clean air, a safe climate, safe water and adequate sanitation, healthy and sustainably produced food, non-toxic environments in which to live, work, study and play, and healthy biodiversity and ecosystems.
Recognising this right was a key recommendation of the Scottish Government’s National Taskforce for Human Rights Leadership in 2021.
In 2023, the Cabinet Secretary for Social Justice said that legislating for this right was a “necessary and important step for Scotland now to take”.
In their manifesto, Scottish Liberal Democrats committed to recognising everyone’s human right to a healthy environment.
Scottish Liberal Democrat MSP for Edinburgh Northern and party spokesperson for the environment Sanne Dijkstra-Downie said:“I am deeply disappointed to see that the Scottish Government is withholding such a fundamental human right.
“Everybody deserves access to clean air, safe water and sanitation, as well as a stable climate. Without these protections, people are exposed to severe physical illnesses, mental health struggles, and long-term societal damage ranging from toxic chemical and radiation exposure to deepening food insecurity.
“As Scotland faces a surge in energy-intensive infrastructure, including the proposed development of massive data centres and chip-manufacturing plants, it is more vital than ever to establish robust legal frameworks that safeguard our environment and protect future generations.
“Scottish Liberal Democrats remain fully committed to high environmental standards by recognising everyone’s human right to a healthy environment.
“We are determined to work closely with our European neighbours, rather than falling behind international best practice.”
Scottish Liberal Democrat leader and MSP for Edinburgh Northwestern, Alex Cole-Hamilton, has welcomed targeted action by Police in North West Edinburgh this week.
Cole-Hamilton thanked officers who successfully seized three Sur-Ron bikes as part of a ‘day of action’, as well as weapons, two motorcycles and mobile phones.
Police Officers carried out a day of action in the North West of Edinburgh, executing 2 warrants as part of ongoing enquiries into motor vehicle thefts and serious assaults.
During their execution, officers seized:
– 3 Sur-Ron bikes
– 2 Motorcycles
– Weapons
– Mobile Phones
– Various vehicle keys and V5 documentation
Two individuals were traced, arrested and charged in connection with the enquiries.
Further inquiries are ongoing into the items seized.
A third individual was also traced during the enquiries and arrested on his 11 outstanding warrants.
The action comes as a petition lodged to the Scottish Parliament by Liberal Democrat councillor for Almond, Lewis Younie, calling on the Scottish Government to give Police Scotland and local councils additional resources to tackle dangerous, high-powered motorbikes and electric bikes on local footpath networks.
Alex Cole-Hamilton MSP said:“People in Edinburgh are lucky to have an extensive and growing network of cycle paths connecting our communities but navigating them has become intimidating and dangerous due to high-speed, illegally modified e-bikes frequently appearing on our routes.
“We have all seen the dangers these e-bikes cause, including, in some tragic cases, fatalities and serious injuries that impact numerous lives.
“Bikes capable of excessive speeds without pedalling are not permitted on public footpaths under current law, but without adequate resources, enforcement has been an uphill battle.
“To give residents permanent confidence on their local paths, the Scottish Government must back our police forces with dedicated resources to crack down on illegal sellers, intercept dangerous riders, and keep our public spaces safe for everyone.
“I warmly welcome Police Scotland’s targeted action in Edinburgh Northwestern this week and thank local officers for their hard work.”
First Minister welcomes recognition that ‘Westminster is not working for Scotland’ BUT second independence referendum is ‘off the table’
First Minister John Swinney has pledged to work “constructively and collaboratively” with the UK Prime Minister to devolve further powers to Scotland “for the benefit of the people we serve.”
While the UK Government disagrees with the Scottish Government that the best future for Scotland is as an independent European nation, the First Minister said both do agree that Westminster is not working for people in Scotland, and the best decisions are taken by those who live here.
Mr Swinney also welcomed the commitment made by Mr Burnham to respect the constitutional role of the Scottish Parliament.
First Minister John Swinney said: “While the Prime Minister and I disagree on independence, we do agree that Westminster does not work for people in Scotland. And when the people of Scotland take issues into their own hands, the best outcomes will come about.
“To that end, I will work constructively and collaboratively with him to devolve more powers from Westminster to Scotland – as long as those proposals drive economic growth that is felt in higher wages, better jobs, more opportunities for business to start and expand, and support with the cost of living.
“Today’s meeting of the National Economic Council was a welcome start of work to develop the UK Government’s new principle of ‘devolving by default’ and the Prime Minister has been clear that he will not bypass the Scottish Parliament in this endeavour.
“I welcome that commitment, and look forward to our Governments jointly developing a plan to consider further devolution to Scotland that will boost economic growth.”
THE UK GOVERNMENT’s ACCOUNT OF THE MEETING:
The Prime Minister met with the First Minister of Scotland in Glasgow following a meeting of the National Economic Council today (Friday 30 October).
The Prime Minister and First Minister agreed the meeting at the NEC had been extremely positive. They said it had been a valuable exercise in starting the process of exploring how each government could contribute to regional empowerment, reindustrialisation and achieving good growth in every postcode.
They agreed that now there would be a policy sprint led by No10 North, involving officials from both governments, to take this agenda forward.
Outside that process, the Prime Minister said the UK Government would review and respond to a range of issues raised by the First Minister.
This would not include a second independence referendum in Scotland, which the Prime Minister has repeatedly made clear, is off the table.
Sanne Dijkstra-Downie, Scottish Liberal Democrat MSP for Edinburgh Northern, has made a statement in response to an article published in the Daily Express, SNP Government fund group which wants police and councils to not cooperate with immigration raids in Scotland which can be found HERE:
Scottish Liberal Democrat MSP Sanne Dijkstra-Downie said:“I am deeply disappointed to see the rhetoric of Reform UK and their attack on Project Esperanza, which does immeasurable work for some of the most vulnerable people in our society.
“Project Esperanza provides support for migrant, refugee, and racially minoritised women, children, and families across Edinburgh and Scotland who are navigating poverty, insecure immigration status, racialised policing, gender-based violence, housing precarity, and barriers to healthcare, employment, and education. Without them, people in my constituency and beyond would lack life-changing support.
“A vital service such as this does not deserve to have its work demonised, nor should charities and community organisations representing the needs of the communities they serve have their legitimacy challenged simply because of the people they support.
“Everyone deserves to feel safe in the place they call home, and organisations like Project Esperanza help make that safety a reality for women, children and families in Edinburgh.
“The Scottish Liberal Democrats firmly stand in solidarity with targeted communities and rejects racism across the city.”
Scottish Government legislation to regulate Short Term Lets in Edinburgh has been branded “not fit for purpose” by Liberal Democrat councillors, and is causing frustration for people across the city.
The SNP-written laws, which were meant to allow parity between planning permission and the licensing system, have a built-in loophole which has allowed some Short Term Let operators to continue operating even after refusal of planning permission from the Council and the Government alike.
Mandatory Condition 13 allows a licence to be in place and an operator to trade, as long as a planning application has been lodged. This means that operators can re-apply for planning permission after refusal, which has clagged up the Council’s system and caused confusion.
Liberal Democrat Councillors believe it would be far more sensible to require planning permission to be in place before a licence is granted.
At Thursday’s City of Edinburgh Council meeting, Lib Dem councillors are explicitly calling for that loophole to be closed and for the Council leader to write directly to the First Minister about the issue, after Scottish Government ministers have dismissed the concerns being raised by Edinburgh residents.
Commenting on the proposal, Regulatory Convenor Councillor Neil Ross said: “The primary purpose of Short Term Let regulation is to enhance safety.
“The system the Scottish Government have put in place has complicated matters and it’s been incredibly frustrating they’ve not listened to either Edinburgh residents or councillors who’ve repeatedly brought this loophole to their attention.”
Development-Management sub-committee convenor Councillor Hal Osler said “Regulation must be applied consistently.The current laws are hampering the Council’s ability to do this and assure residents that enforcement resources are being put in the right place.
“We’ll keep raising this issue until the Scottish Government allow Edinburgh to properly control Short Term Lets.”
Other items on a full Agenda today include the sudden closure of North Edinburgh Childcare (as things stand, NEC is set to close it’s doors for the final time tomorrow) and the impending eviction of arts and culture organisations from St Margaret’s House at Jock’s Lodge.
Energy costs lowered as home heating oil tariffs removed and 0% VAT on household electricity extended.
Growth backed with investments in Glasgow and Edinburgh.
The Scottish Government will have an additional £600 million for public services.
Families and businesses in Scotland will get breathing space from action announced in Budget 2026.
Against a backdrop of global uncertainty, rising energy costs and pressure on household finances, Chancellor John Healey has taken action on the cost of living, fuel prices, and local jobs — alongside more funding for the Scottish Government to provide public services.
In the Budget, John Healey announced:
Support with energy bills: The removal of the 4% tariff on kerosene will support the 142,000 Scottish households that rely on heating oil. The UK government will extend 0% VAT on household electricity bills for three months, to 30 June 2027, while a Debt Relief Scheme will write off crisis-era debt for eligible households.
Fuel: the extension of the 5p cut to fuel duty for a further six months until 30 June 2027. The 3.7p cut to red diesel duty continues, which matters for farmers, rural hauliers and other fuel-heavy users across Scotland. He also announced a permanent increase to the generosity of mileage rates to support those who drive for work.
Food prices: Tariffs axed on over 100 food products, including chocolate and fruit juice. Combined with tariff suspensions earlier this year, this will save households up to £21 annually.
Pensions: by the end of this Parliament, 93,000 low-income pensioners in Scotland will pay less tax or none at all on their income, as a result of reducing the disproportionate administrative burden of paying small amounts of tax.
Wages: Increasing the National Living Wage by 3.9% to £13.21 per hour and the National Minimum Wage by 3.9% to £11.27 per hour for 18 to 20-year-olds and by 3.9% to £8.31 per hour for 16 to 17-year-olds and eligible apprentices. An estimated 180,000 workers in Scotland saw a direct pay rise following April 2026’s increase to the National Living Wage and National Minimum Wage.
Backing growth in Scotland
The establishment of a new Energy Wealth Fund to support Scottish clean energy jobs way into the future.
£18 million will fund a UK Advanced Chip Design Academy led by the University of Edinburgh, building on Scotland’s strengths in advanced technology.
£6 million will expand Glasgow’s Scottish Event Campus (SEC), subject to business case, allowing the venue, which hosted COP26 and the Commonwealth Games, to go bigger and better.
£20 million will see the creation of two Defence Technical Excellence Colleges in the East and West of Scotland.
Extending duty suspensions for 350 goods to help businesses in the chemicals, plastics, hydrogen, automotive and food and drinks sectors.
The Budget strengthens Britain’s national security by fully funding the £15 billion Defence Investment Plan, including £4.7 billion that was previously unfunded. Defence spending supports 12,200 industry jobs in Scotland, up 7% from 2025.
Secretary of State for Scotland, Douglas Alexander, said: “This is a budget that puts money back in the pockets of Scottish households, backs businesses, and puts Scotland firmly at the heart of the UK government’s plan for growth and reindustrialisation.
“We’re helping families tackle the cost of living by cutting the standing charges from gas bills, saving households around £45 a year, then looking to remove them altogether. We’re also extending the VAT cut on energy bills, as well as removing the tariff on heating oil.
“But we’re not just easing the pressure today, we’re building Scotland’s future. £18 million for a semiconductor manufacturing research centre at the University of Edinburgh, £6 million to expand the Scottish Event Campus and grow on the legacy of COP26. That’s creating jobs and good growth in every postcode.
“There’s a boost for Scotland’s public services too, with an extra £600 million for the Scottish Government to spend.”
Funding for public services
The Scottish Government’s main source of funding comes through the block grant. This includes money collected from taxpayers across the UK – including from people in Scotland – which is then available for the Scottish Government to spend on devolved services. The Scottish Government also raises its own revenue, through the Scottish Rate of Income Tax, and non-domestic rates on businesses, for example.
Spending Review 2025 provided the Scottish Government with their largest spending review settlements in real terms since devolution in 1998, receiving an average of £50.9 billion per year between 2026-27 and 2028-29.
Changes in the devolution roadmap may have an impact on the funding of the devolved governments. Our approach to fiscal devolution in Scotland, Wales and Northern Ireland is already well established, however, we will engage with devolved governments on any implications for their budgets in the usual way to ensure they continue to be funded to deliver a comparable policy offer.
The Scottish Government has at least 20% more funding per person than equivalent UK Government spending in the rest of the UK. The higher amount reflects that providing services across Scotland genuinely costs more. This means that for each £1 of equivalent UK Government spending in the rest of the UK, the Scottish Government has at least £1.20 to spend per person in Scotland.
The Scottish Government will receive an additional £600 million, on top of an additional £1.7 billion from Budget 2025 and Spring Forecast 2026.
Ian Murray MP – the MP for Edinburgh South – has welcomed cost of living support for families as the Labour Government announced its Budget today.
John Healey’s Budget provides breathing space for families by extending the cut to fuel duty and the removal of VAT from household energy bills.
It also sets out a plan to abolish gas standing charges, which will save the majority of households an average of £45 a year.
The Budget provides an additional £600mn for Scottish public services, meaning that the Scottish Government have received over £18bn in extra resources since Labour came to power in July 2024.
Across Scotland, Labour also announced it was investing in the Edinburgh-Glasgow Central Belt, a key area for world-leading strengths as identified in the UK’s Modern Industrial Strategy, through £6mn of new funding to expand Glasgow’s Scottish Event Campus (subject to business case) and £18mn new funding for a UK Advanced Chip Design Academy led by the University of Edinburgh.
Ian Murray MP said: “These are Labour decisions: backing families and businesses today while building a stronger Britain for tomorrow.
“I know people are struggling with the cost of living. I see it every day in my constituency mailbag.
“That’s why we’re extending the cut to fuel duty and the removal of VAT from energy bills, and working to abolish gas standing charges.
“It’s also why the Chancellor announced a £100 energy support payment to households in Council Tax bands A – D in England.
“That money will be passed onto the Scottish Government via the Barnett Formula. It’s now over to them to ensure the support is passed onto households here in south Edinburgh and across Scotland.”
UK Budget delivers ‘real cut’ to Scotland’s funding
JENNY GILRUTH – Action on energy bills ‘falls short of what is needed’.
The UK Budget delivers a real terms cut in Scotland’s budget of around £650 million in 2027-28, the Deputy First Minister has warned.
Scotland’s resource block grant is set to reduce by 1.3% in real terms in 2027-28, equivalent to a reduction of around £550 million. Scotland’s capital budget will see a 1.5% real terms reduction in 2027-28, equivalent to around £100 million.
The Deputy First Minister also confirmed that the Scottish Government will ensure that households in Scotland benefit from the £100 payment for energy bills support.
Jenny Gilruth said that while any measures to bring down the cost of energy bills are welcome, the steps confirmed by the Chancellor today fall far short of what is required and do not meet the promises on which the UK Government came to office.
The Deputy First Minister said: “The Scottish Government’s budget will be cut by around £650 million next year – reducing the money we have to spend on public services and supporting people with the cost of living.
“The Prime Minister has previously claimed that he would respect devolution and the Scottish Government – but his actions do not match his words. Cutting Scotland’s budget shows that, yet again, we are being treated as an afterthought.
“The Scottish Government will ensure that households in Scotland will benefit from the one-off £100 payment for energy bill support, however, it is clear that the measures announced today fall far short of the action which is required. “
“Furthermore, this support does not come close to meeting the promises on which the UK Government came to office, including reducing energy bills by £300 which remain significantly higher than they were in July 2024. The UK Government has failed to meet the moment and has failed to keep its promise.
“It is also unacceptable that there was no announcement about ending wider austerity policies which are pushing families into poverty like the bedroom tax, the benefit cap and “young parent penalty” in Universal Credit which would make a significant difference to tackling poverty.
“The Chancellor had the opportunity to lift thousands more families out of poverty, and he has chosen not to.
“We will now take the time to assess the full implications for Scotland of today’s statement.
“I will be announcing further details as part of the Scottish Budget on 3 December.”
Anti-poverty campaigners say Budget won’t share the wealth
The Poverty Alliance welcomed Budget moves to help people with rocketing energy bills – but warned they won’t go far enough to help people in fuel poverty.
Peter Kelly said: “There are nearly 750,000 households in Scotland who are in fuel poverty. The energy price cap today is £1,723, and in January it’s predicted to rise to nearly £2,000. In that context, a payment of £100 is welcome, but it won’t be enough for people who are already being pushed into debt and arrears.
“As well as looking at standing charges on energy bills, the UK Government must bring in a social tariff – making sure that no-one is hit with bills that they simply can’t afford to pay.”
Scotland’s anti-poverty network expressed disappointment at the lack of any major extra investment in social security.
Peter Kelly said: “We can’t expect people to build a life out of poverty on quicksand. When rates of Universal Credit and other social security payments are too weak to support people, it pushes them closer to destitution and makes it harder to build a better future.
“We hope that the forthcoming reviews into support for disabled people and young people have clear vision for improving financial security and investing in a stronger society for all of us.”
The Poverty Alliance also expressed disappointment over the Chancellor’s failure to tax wealth in the same way that work is taxed.
They had backed calls to equalise the way Government treats wealth and work, by bringing rates of Capital Gains Tax into line with Income Tax.
Tax Justice UK estimates the move could have raised £14 billion for the Treasury, with the Scottish Government getting over a billion pounds a year extra for its budget.
Peter Kelly said: “People are losing faith in politics because they feel that politicians aren’t working to meet their needs. Taxing wealth in the same way as work would bring in extra resources that we could invest in building a better future, and a more just and compassionate society.
“We all rely on social security and local services being there when we need them – and for people who are pushed into poverty, they are an essential lifeline.
“The money raised from fairer taxes on wealth could have been used to take more children out of poverty.”
STUC: Budget provided sticking plasters when Scotland needs radical surgery
Reacting to the UK Government’s Budget, STUC General Secretary Roz Foyer said:“We always knew exorcising the ghost of Thatcher and eradicating 40 years of neo-liberalism was going to be a tall order for the Chancellor and there are some welcome tricks in the Budget, but not enough to scare away fears of rising costs.
“Whilst this Budget offers some helpful sticking plasters on energy costs, cost-of-living support and food prices, it falls short of the radical surgery needed to fix the UK economy and support working-class communities. Perhaps most significantly, the Budget failed to set out the radical rewiring of the state and the end to neo-liberalism that the Prime Minister himself had promised.
“Payments to stave off the cold for those in targeted council tax bands are a good first step in lieu of bringing down wholesale energy bills and it is right that the Chancellor has listened to the calls of unions to tax the banks to fund this measure. However, bills are likely to rise far quicker than this payment can offset and we will continue to press the UK Government to go further and faster, given the ‘big four’ banks made £29 billion in the first six months of 2026 alone
“With an expected £600 million allocated to Scotland, Scottish Government ministers cannot credibly sit on their hands and plead poverty. The Scottish Government should urgently review its public sector cuts agenda in light of this Budget.
“Rewiring the state will take longer than just one Budget and changes to procurement rules which strengthen British jobs and domestic supply chains are to be welcomed.
“The commitments made on defence spending require further examination, but unions are clear that funding for defence cannot come from public sector efficiencies. Co-funding for Defence Technical Excellence Colleges (DTECs) in both the east and west of Scotland is welcome and should help provide well-paid, unionised jobs.
“This Budget doesn’t yet offer the concrete reindustrialisation Scotland needs, nor the further devolved powers for our Parliament and local authorities that had been envisioned. The Prime Minister must work at pace to show that his words on ensuring communities are empowered from the bottom-up, rather than the top-down, were not hollow.
“Workers can ill afford any further delay to the hope that was promised to them.”
Responding to Chancellor John Healey’s Autumn Budget, Morgan Vine, Director of Policy and Influencing at Independent Age said:“Today’s Budget made some important commitments that will play a part in easing the financial burden on people of all ages, including those in later life that Independent Age supports.
“We’re pleased to see changes we’ve campaigned for, alongside older people on low incomes, including protecting the poorest pensioners from tax bills as their State Pension increases – a decision that will help current and future pensioners. And some support for energy customers to ease spiralling bills, including providing £100 directly to households in England’s higher council tax bands (A-D) through the Household Energy Payment scheme.
“However, some serious problems remain unaddressed. We believe the UK Government can go further to tackle key areas driving financial hardship across all generations. Every day we hear from older people on low incomes who are cutting back on food, living in cold homes, or skipping showers to keep their bills down. This is no way to live.
“Frozen Local Housing Allowance that keeps private renters of all ages stuck in poverty needs to be uprated to reflect the true cost of renting. We need long-term action to protect the poorest households from the frequent energy price shocks driving up bills with the introduction of a comprehensive and well targeted energy social tariff. And, to lift people out of water poverty, a single social tariff for water is needed across England and Wales to end the postcode lottery of support.
“We will continue to stand alongside older people on low incomes, and work with the UK Government to build on the positive steps taken today.”
Helen Barnard, director of policy and research at Trussell, said: “We are disappointed that the government has not acted today on one of the biggest pressures facing low-income renters.
“We welcome seeing the significant support provided for people’s energy bills, which will make a real difference as the colder months draw in. However, the decision to keep housing support for private renters on low incomes frozen is a misstep that will continue to drive people towards homelessness and to the doors of food banks.
“We know from our research that over half of private renters on low incomes in receipt of Local Housing Allowance to help pay their rent, have run out of food in the last 12 months and haven’t been able to afford more. Nobody should be forced to choose between paying the rent and putting food on the table. But for increasing numbers of UK renters this is already a bleak reality.
“If the Chancellor is serious about tackling the cost of living, the best test will be whether fewer people need to turn to a food bank because they can afford the essentials like rent, energy bills and toiletries.
“The government has already taken bold steps towards this, including by lifting the two-child limit, However, unless we see action to close the gap between support and essentials like rent, the UK government will fail to meet its manifesto promise to end the need for emergency food.”
Amie, 45, who has experience of turning to a food bank, said: “Every week I’m forced to choose between keeping a roof over my head or putting food on the table, even though I work – just like so many people on the lowest incomes. As the cost of rent has skyrocketed, I had hoped the Chancellor would see sense and unfreeze Local Housing Allowance today so it actually meets the costs of renting a home.
“The extra help with energy bills announced today will help but I’m disappointed the government hasn’t chosen to act on the biggest problem my family is facing, which is keeping a roof over our heads.
“I don’t struggle to pay for our housing because I can’t budget, I struggle because the cost of my rent keeps rising far beyond what I can pay and the support just isn’t there. That leaves families like mine constantly having to make impossible decisions.
“Tomorrow I’ll still wake up worrying about the same things I’ve been worrying about for months. How am I going to cover the rent? Will there be enough left for food? Those are the questions families like mine will still be asking.”
Commenting on the UK Government’s Budget announcement, COSLA Resources Spokesperson Councillor Kelly Parry said:“Councils are central to local economies, tackling child poverty, and delivering key community services.
“For this reason, the elements of the UK Budget that signal further devolution of power are encouraging, however single-year budget settlements from UK Government and Scottish Government are still not allowing councils to achieve their full potential.
“As we look ahead to the Scottish Government’s Budget on 3rd December, it is vital that Ministers prioritise local government with a fair, flexible, and sustained funding settlement.
“Removing ring-fencing and single-year budget constraints will empower councils to invest in preventative services and deliver real, long-term change for our communities.”
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