Vital chemical production at Grangemouth protected as Government provides over £120m support package in £150m joint investment
UK Government provides over £120m support package as part of £150m joint investment with INEOS to protect vital chemical production and 500 jobs at Grangemouth, plus hundreds more in the supply chain.
Unique plant strategically important for UK’s critical national infrastructure, energy, manufacturing, North Sea operations and modern Industrial Strategy.
Deal secures operational commitment from INEOS for the plant and multimillion-pound investment from the company.
Britain’s last ethylene plant at Grangemouth has been saved by the UK Government – securing 500 good jobs and hundreds more across the region in the supply chain.
Thanks to a landmark partnership between the UK Government and INEOS, the future of this vital site is now protected, sending a clear signal: this Government is backing workers and their communities across the whole of the UK.
With over £120 million in UK Government support and major investment from INEOS, the Grangemouth plant will stay open with jobs secured.
This huge win keeps the heart of Scotland’s industry beating strong, supports local families, and keeps critical supply chains running nationwide.
This package will help secure the site’s operations and contribute toward improving energy efficiencies, reducing carbon emissions and increasing productivity, helping to secure the site’s long-term competitiveness and sustainability. INEOS has spent over £100 million over the last year maintaining operations at the site.
The Grangemouth plant is vital for the whole UK economy. It produces ethylene which is essential for medical-grade plastics and use in the chemical supply chain. These plastics are also vital to key industries, including advanced manufacturing, automotive, and aerospace, where they are used in nearly every product.
The decisive action from the UK Government is part of its modern Industrial Strategy, which identifies chemicals as a vital foundational sector that underpins the UK’s high-growth industries like defence and advanced manufacturing by producing the materials they all depend on, while also being essential to many supply chains.
The UK Government is backing the chemicals sector through the Industrial Strategy with targeted support to bring down energy costs, including through the British Industrial Competitiveness Scheme – which will slash costs for businesses in sectors including chemicals by up to 25% – and the British Industrial Supercharger, which will save Britain’s most energy-intensive firms money on their electricity costs.
The plant also links to the Forties Pipeline System, which is key for transporting North Sea oil and gas to onshore facilities. Without government intervention, the plant’s closure would have seriously affected hundreds of onsite workers, impacted thousands of jobs regionally, and devastated supply chains.
Business Secretary Peter Kyle formally announced the support yesterday (17 December) during a visit to the INEOS site in Grangemouth with the Chancellor and Scotland Secretary.
Prime Minister, Keir Starmer, said: “When we said we’d protect jobs and invest in Britain’s future, we meant it – and this is proof.
“Through partnership, determination, and our Modern Industrial Strategy, we’re delivering new opportunities, fresh investment, and security for the next generation of workers in Scotland.
“This is about good jobs, stronger communities, and a modern economy that works for everyone.
“Our commitment is clear: to back British industry, to stand by hardworking families, and to ensure places like Grangemouth can thrive for years to come. Promise made, promise delivered.”
Business Secretary Peter Kyle said: “The UK Government’s decision to step in will protect Grangemouth as a site of strategic national importance and secure 500 vital jobs in the area.
“By partnering with INEOS we are backing the plant and its long-term future, giving certainty to workers and the supply chain going forward.
“This approach is part of our Modern Industrial Strategy through which we are working to reduce the cost of energy for industry and support manufacturing in the UK.”
Chancellor Rachel Reeves said: “We said we would stand squarely behind communities like Grangemouth and we meant it.
“Building on the millions of pounds we’ve already invested in Grangemouth, this vital package protects our national resilience and secures the livelihoods of hundreds of people employed at the site way into the future.”
Scottish Secretary Douglas Alexander said: “The UK Government is investing £120 million today to protect jobs and secure future opportunities at Grangemouth.
“Grangemouth has been at the heart of Scotland’s industrial story for generations, and today we’re ensuring it remains central to our future.
“This is a landmark moment for Grangemouth. This £120 million UK Government investment protects not just the 500 jobs at the plant, but thousands more across Scottish supply chains.”
The Scottish Secretary @D_G_Alexander visited Grangemouth as the UK Government confirmed a £120m investment in @INEOS ethylene operation, safeguarding over 500 jobs and protecting vital national infrastructure. pic.twitter.com/ijgWiryJr2
INEOS CEO Sir Jim Ratcliffe said: “This £150m investment in the future of a major UK industrial site demonstrates INEOS and the UK Government’s commitment to British manufacturing. The support of the UK Government is welcome as we work to deliver competitive and efficient low-carbon manufacturing for the UK, long term.
“UK Government support for INEOS’ investment shows the strategic importance of making things in Britain. It protects 500 high-value jobs, secures supply chains and preserves the industrial capability the nation needs.”
Through the partnership, INEOS and the UK Government have demonstrated their commitment to operating the site and maintaining jobs. The agreement includes safeguards to protect taxpayers’ money, such as strict assurances that the funding can only be used to improve the site, and also gives the UK Government the right to share in future profits.
The chemicals sector across Europe has faced significant challenges in recent years, including high energy costs, with around 40 percent of remaining European ethylene capacity having recently closed or remaining at risk.
The partnership demonstrates the UK Government’s commitment to working with business to support Scotland and Scottish workers, and contributes towards government’s vision for Grangemouth’s long-term future.
This vision includes £200 million of investment from the National Wealth Fund to support new opportunities in Grangemouth, with projects actively being considered and around 140 enquiries already received.
Last week it was announced that around 310 jobs will be supported over the next five years by the Scottish company MiAlgae, that has started construction on its first commercial scale manufacturing facility that will transform whisky waste into fish-free Omega 3 following £3 million in UK and Scottish government backing.
To support workers at the nearby Exxon Mobil Mossmorran plant which is to close in February 2026, the UK and Scottish governments as well as Fife Council will set up a taskforce to ensure those impacted have the best chance of securing well-paid and valuable employment.
The Grangemouth Training Guarantee will also be expanded to those workers who provided shared services to the refinery, providing new opportunity across local communities.
The UK Government is also working to tackle the challenges of high industrial energy prices at source for Scottish and UK businesses through the modern Industrial Strategy, launched in June.
This includes increasing the discount on eligible businesses’ electricity costs from 60 to 90% through the British Industrial Supercharger scheme, and consulting on the new British Industrial Competitiveness Scheme (BICS), which will slash electricity costs by up to 25% for over 7,000 UK businesses.
Robert Begbie, CEO Commercial & Institutional, NatWest commented: “As the UK’s biggest bank for business, accelerating regional growth is a key priority for us at NatWest.
“We know that this vital funding will support Ineos Grangemouth in remaining a critical site for our national resilience and prosperity, whilst helping protect jobs in Scotland and beyond.”
As part of the Promise, the Scottish Government committed to tackling excessive profit in residential care. Under the proposals, certain residential care providers would need to provide financial information about the operation of their services to help the Scottish Government understand the fees charged for placements and the final costs paid by local authorities.
The Committee understood the Government’s motivations for doing this but says the changes are underdeveloped. The Government failed to consult on the issue ahead of the Bill’s introduction and the Bill does not outline how the Government would define an excessive profit.
The Committee also raised its concerns about what impact this could have on a fragile market and whether this could lead to services closing or diversifying. More broadly, many key stakeholders felt they had not been fully engaged in the development of this Bill and told the Committee that the Bill’s provisions were the poorer for this.
The general principles of the Bill have been supported by the Committee, including proposals to extend aftercare and to offer life-long advocacy to care experienced children, young people and adults. However, the Committee is also clear that more information about how these would work practically will be required before the Bill becomes law.
As currently drafted, the Bill does not allow this to happen, as sections 1 and 2, which relate to aftercare, and section 10, which relates to a register for foster carers, amend legislation that pre-dates the Scottish Parliament. The Committee therefore urges the Scottish Government to explore how it might remedy this, as the Bill progresses through Parliament.
The Committee also called for further consideration around proposed changes to the Children’s Hearing System, recommending the Government consider:
retaining three member panels when substantive decisions are being made
clarifying the roles of specialist members at Children’s Hearings, who may have particular expertise in child services or healthcare
revisiting plans for post-referral discussions, to ensure they are more closely aligned with the recommendations of the ‘Hearings for Children’ report.
Douglas Ross MSP, Convener of the Education, Children and Young People Committee, said:“Every Member of the Committee agrees with the Promise made to Scotland’s care experienced children and young people, and as a result we unanimously support the general principles of this Bill.
“However, we are disappointed by the lack of clarity around some of the crucial provisions in this long-awaited Bill and what stakeholders told us about the lack of consultation they experienced ahead of the Bill’s introduction. This includes issues with proposals to tackle excess profits in residential care, which had not been properly consulted on and do not seem to be well thought through.
“We are now calling for substantial amendments to be made before the Bill becomes law. This is an opportunity to bring about real and lasting change for the care community and it is vital that the Government gets this right.”
The Bill also puts forward changes to children services planning, which aim to enhance collaborative working and join up planning across adult and children’s services. The Committee found that the rationale for these proposals was unconvincing and called for further explanation so that benefits, and any unintended consequences, of these changes are clearer.
YESTERDAY (Sunday 14th December), Scotland’s capital city hosted the 18th annual Scottish National Chanukah Celebration, organised by Chabad of Edinburgh. St Andrew Square was aglow as hundreds gathered for the joyous celebration, both from the Jewish community and wider Scottish society, but against the backdrop of the devastating antisemitic attack on a similar Chanukah celebration in Sydney, Australia.
Ben Macpherson, MSP for Edinburgh Northern and Leith, and Minister for Higher and Further Education, shared his heartfelt greetings for the holiday and a message of solidarity with Scotland’s Jewish community, before ascending on a cherry picker to light the shamash (lead candle) of Scotland’s Tallest Menorah – an iconic candelabra symbolizing hope and resilience.
Rabbi Pinny Weinman of Chabad of Edinburgh and members of Edinburgh’s Jewish community shared their reflections on the themes of the holiday and their relevance to current events.
Following the lighting ceremony, attendees gathered in a large marquee set up next to the Menorah to enjoy traditional Chanukah delicacies, including latkes and sufganiyot (doughnuts), amidst an atmosphere of holiday cheer and resilience.
Rabbi Pinny Weinman of Chabad of Edinburgh, commented about the event: “Hanukkah is a celebration of light, faith, and perseverance — a time when we remember that even a small flame can dispel great darkness.
“In light of the tragic events in Sydney that have shaken the Jewish community and so many others around the world, this message feels especially powerful. Here in Scotland, the Scottish National Hanukkah Celebration brings together people from all walks of life to stand united, to reject hatred, and to reaffirm our shared values of dignity, compassion, and peace.
“Especially in challenging times, the Menorah’s light reminds us that goodness, kindness, and community spirit will always prevail. We are proud to celebrate this beautiful festival in the heart of Edinburgh, together with the entire community.”
Ben Macpherson, MSP for Edinburgh Northern and Leith, and Minister for Higher and Further Education, said at the event: “We meet in difficult circumstances tonight after the horrific antisemitic attack in Sydney and our thoughts are with all of those affected directly and indirectly; and today, like so many people across our city, our country and the world, our thoughts will be with you, the Jewish community, at this time.
“As the candles of the Menorah are lit here tonight, we will mark the festival of light as an enduring symbol and commitment to hope, to resilience and the faith that Chanukah represents.
“The commitment and contribution of the Jewish community in Scotland lasts for centuries, and I know as a constituency MSP how much you contribute to the life of this city and how much this community has contributed to our story.
“Your government stands with you in celebrating your culture and your religion and particularly in solidarity with you tonight.
“As we prepare to light the Menorah, let us remember what those flames represent – they are more than candles, they are beacons of hope, particularly today and the eight days ahead.
“They remind us that even in the darkest times, light can and will endure. They call us to be courageous, to stand up for what is right and against antisemitism and discrimination, to nurture the bonds that unite us in common humanity.
“On behalf of the Scottish Government and as one of your local MSPs, I wish all of you here and the Jewish community across Scotland a joyful Chanukah. May this festival bring warmth and comfort to your homes and peace to your hearts in these difficult times and light to our shared future together.”
This year’s celebration was made possible thanks to the generous support of key partners, including the Scottish Government, the City of Edinburgh Council, Police Scotland, Essential Edinburgh, and Unique Scotland.
First Minister John Swinney has raised his concerns about reports of intended large-scale cuts by the UK Government to its development assistance budget to Malawi.
In a letter to the Secretary of State for Foreign, Commonwealth and Development Affairs Yvette Cooper, the First Minister referred to his recent visit to Malawi and stressed the urgent need for ongoing aid.
The First Minister said he was deeply disappointed at the UK Government’s decision earlier this year to further cut its overseas aid from 0.5% to 0.3% of Gross National Income, and called for clarity on its intentions for Malawi as part of those aid cuts.
In his letter, he said: “My visit to Malawi allowed me to see first-hand the positive difference and impact that Scottish Government funded initiatives are having on the ground.
“It is very clear, however, and well documented globally, the very real challenges that Malawi continues to face, across its health services, education, infrastructure, and the increasing devastating impact of climate change on communities in Malawi, in particular those living in rural areas.
“The Scottish Government is proud of work to support Malawi. The UK Government too was once rightly proud of its efforts on international aid. Now we are seeing an alarming change in approach – cutting funding for those most in need at a time when that support is more necessary than ever.
“I ask you to reconsider the reported cuts and to take a position that allows our two governments to work in a spirit of collaboration to support the people of Malawi.
“In terms of how those cuts in UK aid are then implemented, we have been waiting for sight of the final allocations provided to each of our partner countries, which I understand are due to be made in the next months. I have been extremely concerned, therefore, to read reports in the media suggesting impending – drastic – cuts to Malawi.
“Regardless of the actions of the UK Government, the Scottish Government will continue to be a good global citizen and will continue to support and advocate for our partner countries like Malawi.”
During First Minister’s Questions this week at the Scottish Parliament, Foysol Choudhury MSP raised concerns about an NHS policy which he warned could be unfairly disadvantaging vulnerable patients.
Mr Choudhury highlighted the case of a constituent currently on an NHS waiting list who recently received a letter from NHS informing that, if they did not confirm within 21 days whether they wanted to remain on the list, they would automatically be taken off.
He stressed that, while the policy reflects current government guidance, its impact is far more troubling. Mr. Choudhury cautioned that vulnerable groups, including older people, and those with additional support needs, may easily miss such a tight deadline, leaving them unknowingly removed from the queue for essential care.
Calling for urgent action, Mr Choudhury asked the First Minister to instruct Ministers and officials to review the policy to ensure that no vulnerable patient is struck off a waiting list unfairly.
Friends at the End (FATE), a charity campaigning for the introduction of assisted dying legislation in Scotland, has hit out at a group of MSPs, including Kate Forbes, Michael Marra and Ed Mountain, on making misleading claims about the impact of proposed legislation on the disabled.
This includes the claim that individuals will be able to access on the grounds of disability alone.
Emma Cooper, Convenor of the Board of Trustees, FATE, said: “After five years of intense scrutiny and careful consideration by the Scottish Parliament’s Health Committee, it is unacceptable to see senior politicians adding to confusion about what Scotland’s Assisted Dying Bill actually says.
“The Deputy First Minister’s recent comments, presented as concerns about safeguards, risk breaching the Scottish Government’s own position of neutrality. They also repeat claims unsupported by the proposed bill or international evidence.
“We must be clear: assisted dying cannot be accessed based on disability alone.
“A specific ‘for the avoidance of doubt’ clause was added at Stage 2 to make this explicit. Yet organisations such as Glasgow Disability Alliance (GDA) continue to promote the opposite, and Kate Forbes is now echoing their narrative. This is misleading the public and influencing Members of the Scottish Parliament (MSPs) with inaccurate assertions.
“Thirty years of international experience show no negative impact on disabled communities, and no jurisdiction has repealed its laws. Academic research, including the work of Professor Ben Colburn of the University of Glasgow, confirms that assisted dying legislation does not create systemic risk for disabled people.
“This debate is too important for false narratives or politically amplified misinformation. Scotland deserves a discussion grounded in facts, not fear.”
Friends at the End (FATE) is a Scottish charity that supports people at the end of life and campaigns for compassionate, safe, and evidence-based assisted dying legislation.
The organisation provides information, advocacy and practical support, and works to ensure that terminally ill, mentally capable adults have the right to make informed choices about their own dying process.
FATE promotes dignity, autonomy and transparency in end-of-life care, drawing on international evidence and lived experience to inform public debate.
Independent councillor for Sighthill/Gorgie Ross McKenzie has joined the Scottish Green Party and has been welcomed as the newest member of the Green Group on Edinburgh council as a Green-aligned independent member.
The announcement means the Green Group now have eleven councillors, the same number as the ruling Labour administration and one more than the Conservative group.
Elected representatives who join the Scottish Greens are required by Party rules to sit as Green-aligned independents until the next election, but may join Green Councillor groups.
Cllr McKenzie’s application to join the Scottish Greens was unanimously approved by the party’s national council on Saturday 6 December. He has signed a collaboration agreement with the Co-Convenors of the Edinburgh Green Group, which covers how he will work with the Greens. He will represent the Greens on committees, but will not be a spokesperson.
Cllr McKenzie was elected in 2022 as a Labour councillor for Sighthill/Gorgie ward. He left Labour in 2023 after they formed an administration with support from the Tories and Lib Dems. Since then, Ross has sat as an independent, working on an issue-by-issue basis with the Green group of councillors to push for change in the capital.
Cllr Ross McKenzie said: “Since leaving the Labour Party, I have worked closely with my Scottish Green colleagues in Edinburgh to make a fairer, greener city for all.
“In the face of a disastrous Labour administration propped up by the Tories and Lib Dems, we need a strong left-wing alternative in our capital city, putting people and planet before profit.
“I’ve heard time and again from my constituents’ concerns about housing, social care, planning and public spaces, and I’m in no doubt that the most effective way for me to represent those concerns is by working as closely as possible with the Greens.
“Labour have abandoned their core principles of standing up for the working-class across our country, they would rather hold onto power with the backing of Tories than improve our city for people and planet.”
Edinburgh Green group co-convenor Cllr Kayleigh Kinross-O’Neill said: “Green councillors have worked constructively with Ross since he left the Labour party, and have always found him to be highly principled and incredibly hard working.
“We are delighted that his Scottish Greens party membership application has now been approved, which will allow us to deepen our joint working with Ross to the benefit of everyone seeking a fairer, more equal capital city.”
Edinburgh Green Group co-convenor Cllr Chas Booth said: “I’m delighted to welcome Ross as a Green-aligned independent member of the Edinburgh Green Group.
“He is a passionate advocate for his constituents and has a deep sense of justice. More and more people who want to stand up against the far right, rather than pander to them and those who seek a fairer society through redistribution of wealth are finding a home in the Greens.
“As an unapologetically left-wing party, we welcome them and look forward to working with them in the future.”
Edinburgh Green Councillor for Sighthill/Gorgie, Dan Heap said: “Ross has been a dedicated local councillor during his time in Labour and as an independent, and is highly regarded by local people as a fighter for their interests.
“I am delighted to be working alongside him to help make the area we represent greener and fairer.”
The Prime Minister hosts Christmas market-style showcase at Downing Street, celebrating small firms, frontline workers and community champions at the annual lights switch-on
PM hosts Christmas market-style showcase at Downing Street, celebrating small firms, frontline workers and community champions at the annual lights switch-on.
Small businesses are set for a bumper festive season, with spending up 19% on last year – which could provide an extra £5 billion boost.
Budget 2025 delivered key support, including extended Rates Relief, full funding for under-25 apprenticeships, and wider enterprise tax incentives.
Small businesses from across the UK were celebrated at the annual Number 10 Christmas lights switch-on last night, as the PM brought the high street to Downing Street ahead of Small Business Saturday.
Small businesses are the lifeblood of our economy, making up the vast majority of jobs across the country, and serving every community on our high streets, in our markets, as traders and family businesses. Data from Small Business Britain shows they could see a £5 billion boost this Christmas with 19% more spending than last year.
They are being joined by NHS staff, military personnel, firefighters and police to thank them for their service during the busy Christmas period, alongside community champions who represent the very essence of the government’s Pride in Place programme – including 14-year-old litter picker Samuel Salamone, who will switch on the lights.
Prime Minister Keir Starmer said: “Small businesses are the beating heart of our economy and the backbone of our communities.
“This Christmas, we’re not just switching on the lights – we are shining a spotlight on the incredible entrepreneurs, traders and family firms that keep our high streets thriving.
“From extending rates relief to funding apprenticeships, this government is backing small businesses every step of the way, because when they succeed, Britain succeeds.”
The showcases take place ahead of Small Business Saturday, which celebrates the UK’s much-loved 5.6 million small businesses and encourages the nation to show their support by shopping small.
From artisan food producers to creative retailers, among the businesses who took part were:
Wakuda – Co-founded by Albert Larter, this retail and textiles brand champions Black-owned businesses and unique designs.
Candle Wise – Isabella Beeler (Bella) crafts beautiful candles from Kent, perfect for cosy winter nights.
Young Blooms – Grace Farrimond brings floral artistry to life with wreath-making workshops and seasonal arrangements.
The Halfway at Tal-Y-Coed – A welcoming pub in Wales run by Rhiannon Metters, tackling isolation and loneliness through arts and crafts sessions for the local community.
Grasmere Gingerbread – Joanne and Andrew Hunter will bring their award-winning rum butter and ginger-themed treats from the Lake District.
Rumsey’s Handmade Chocolates – A family-run chocolate business led by Kate Rumsey, offering indulgent festive flavours.
Michelle Ovens CBE, Director, Small Business Saturday UK, said: “The UK’s 5.6 million small businesses are absolutely vital to the UK, powering economic growth, bringing tremendous value, heart and soul to communities and innovation and impact across broader society.
“It is so crucial that the nation shows support for their favourite small firms this Small Business Saturday and beyond. We are so delighted to be at Downing Street ahead of the campaign to celebrate the phenomenal contribution of small businesses.
“A spotlight like this as the festive season kicks off is such a powerful reminder to the nation to take a moment to support their local small businesses this Saturday.”
Albert Larter, Co-founder of Wakuda, said: ““Being a part of the small business festive market at No.10 is a real honour.
“It’s a great way for us to showcase what we are building at Wakuda and the amazing small businesses within our community.
“Small businesses play an important role in driving culture and economic growth and opportunities like this help us keep building, keep growing, and keep empowering the community we serve.”
Rhiannon Metters, publican at The Halfway in Tal-Y-Coed, Wales, said: ““It has been a fantastic experience to attend this Small Business Showcase and highlight the important role that pubs have in bringing people together and creating human connections.
“From a pint by the fire to wreath-making in the marquee, from the village shop to live music and shared skills, everything we do is about bringing people together, tackling loneliness and social isolation, supporting local makers and giving our little corner of Monmouthshire a place to gather, laugh, learn and belong.”
The festive season is a critical time for small businesses. UK households are expected to spend £23 billion across Christmas – a 16% year-on-year rise.
Of this, an estimated £5.3 billion could go to small firms, delivering a much-needed boost of 19% year-on-year growth. Public support remains strong, with 84% of people saying it’s important to support small businesses, and 95% believing they add local value.
This celebration comes as the Government sets out new measures in Budget 2025 to back British business:
A £4.3 billion business rates support package to cap bill increases for sectors hit hardest by revaluations.
Continued Annual Investment Allowance of £1 million and a new 40% First Year Allowance for main rate assets – giving businesses strong incentives to invest.
Targeted reliefs for smaller businesses and high street firms, ensuring the system is fair and competitive.
Extended fuel duty cut to keep van and lorry journeys affordable for businesses.
Doubling eligibility for enterprise tax incentives to help fast-growing firms attract investment and talent.
It also comes after the government launched its flagship Small Business Plan earlier this year, which committed to the biggest reforms to late payments in 25 years to make sure businesses get paid on time.
This included decisive action to boost access to finance for entrepreneurs, address the impact of ‘personal guarantees’ on small business owners, and slash red tape to boost our pubs, bars and arts venues.
As part of the plan, the government also launched Business Growth Service last week which makes it easier for SMEs to get the help they need, saving them time and money to spend growing their business.
Scottish families will benefit from a Budget to cut the cost-of-living, create more high skilled jobs and invest in public services, as the Chancellor reaffirmed her commitment to drive economic growth.
Chancellor announces fair deal for working families with removal of two-child benefit cap, energy bill saving and fuel duty freeze
Scottish industry backed by investments in Grangemouth, Greenock, Leith and Fife
Public services backed with extra £820 million for Scottish Government
Rachel Reeves recognised Scotland’s huge £204 billion annual contribution to the UK economy with investments in Grangemouth, Greenock, Leith and Kirkcaldy, and provided long-term certainty to the oil and gas industry to support North Sea jobs and investment.
Despite wages growing more in the first year of this government than at any point in the 2010s, the Chancellor was clear too many families are still struggling with the cost of living which is why the Budget included a range of measures to cut bills and boost pay packets.
Saying that the fairest way to help people with the cost-of-living was to cut inflation and increase wages, Reeves announced £150 off energy bills, a fuel duty freeze, and national minimum and living wage rises.
The Chancellor announced the removal of the two-child limit. 95,000 children in Scotland will benefit from this change. Funded by tackling welfare fraud and long-overdue reforms to the Motability scheme, it will result in the biggest reduction in child poverty at any Budget this century.
The Chancellor’s Budget also ensured that Scottish public services are fairly-funded, with an extra £820 million for public services in Scotland through the Barnett Formula, on top of a record settlement in June.
Secretary of State for Scotland, Douglas Alexander MP said: “This is a Budget which delivers for Scotland – raising children out of poverty and helping tackle the cost of living for working families with action on energy bills.
“Scrapping the two-child benefit cap will lift thousands of Scottish children out of poverty. Funded by raising online gambling taxes and tackling welfare fraud, it will result in the biggest reduction in child poverty at any Budget this century.
"This is a budget that we were determined to deliver and to make sure address the priorities and the needs of the people of Scotland."
“The UK Government has backed Scotland’s public services with an extra £820 million — on top of the extra annual £9.1 billion already committed at the Spending Review.
“The £14.5 million announced for Grangemouth is also vital investment in Scotland.”
Ms Reeves also announced reforms to modernise the tax system, asking those with broader shoulders to contribute more through long-overdue fair reforms.
Backing Scottish industry
£14.5 million will back Grangemouth’s transition to a hub for low carbon technologies as the UK Government cements Scotland’s place as the home of the UK’s clean energy revolution.
A further £20 million for Inchgreen near Greenock will upgrade the port’s dry dock, creating up to 1,750 jobs.
Up to £20 million will transform Kirkcaldy town centre and waterfront, including the creation of ‘Adam Smith Growth Works’, boosting local business and tourism.
£25 million will be released following the full sign-off of Forth Green Freeport – spanning Leith, Grangemouth and Fife.
To support oil and gas workers, the UK Government is introducing ‘Transitional Energy Certificates’ to manage existing North Sea fields for the entirety of their lifespan, and a new Jobs Brokerage Service – offering end-to-end career transition support.
Tackling child poverty, the cost-of-living and economic inactivity
95,000 children in Scotland will benefit from the removal of the two-child limit.
Raising the National Living Wage by 4.1% and the National Minimum Wage by 8.5% —building on April 2025 increases to the National Living Wage and National Minimum Wage that already directly benefitted 220,000 workers in Scotland.
Uprating Universal Credit Standard Allowance by 6.1%, the first ever permanent real terms increase.
Increasing the State Pension by 4.8% from April 2026, directly raising incomes for 1.1 million pensioners in Scotland.
Extending the fuel duty freeze and 5p cut, saving the average car driver £49 next year.
Unleashing talent and opportunity with a Youth Guarantee package. This will include ensuring every eligible 18-to-21-year-old who has been on Universal Credit and looking for work for 18 months in Great Britain will get a six-month paid work placement.
Public services investment
The Budget provides an extra £820 million for the Scottish Government to spend on its priorities such as education and tackling NHS waiting times— on top of the extra £9.1 billion already committed during the Spending Review.
The Scottish Government continues to receive over 20% more funding per person than equivalent UK Government spending across the rest of the UK reflecting the real costs of delivering services across Scotland’s diverse geography, from the Highlands to the central belt.
Holyrood: ‘Chaotic’ UK Budget fails to deliver for Scotland
Finance Secretary responds to Chancellor’s statement
The UK Budget “fails to deliver” for Scotland and will not move the dial on the cost of living for squeezed households, according to Holyrood’s Finance Secretary Shona Robison.
Responding to the Chancellor of the Exchequer’s statement, Ms Robison said: “This Budget has been absolute chaos from start to finish. Westminster has been consumed with leaks, briefings and out and out incompetence – with Scotland left as an afterthought and families left to pay the price.
“We needed a step change from the UK Government with investment in public services, support for jobs and industry in Scotland and serious action on energy bills. Instead, we got a chaotic mess and the increase in funding for the Scottish Government will not even cover half the cost of the employer’s national insurance contributions brought in this year.
“With UK energy bills £340 higher than the Prime Minister promised even after today’s announcement, the UK Government are not even trying to deliver on the their promises. It is insulting to see the UK Government stand up and trumpet a proposed reduction that does not even cover the increase since they came to office.
“It does not come close to meeting the Prime Minister’s pledge on energy bills – they have not even attempted to keep their promises.
“The electric vehicle tax is the wrong decision for motorists, the climate and for Scotland given its disproportionate impact on rural drivers.
“And there is no serious support for jobs and industry in Scotland. The Energy Profits Levy is to remain in place – risking thousands of jobs in Scotland and in the North East in particular. Yet again, Scotland is an afterthought.
“And while the moves on the two child cap are welcome, they are long overdue and the UK Government has been forced into this position by the Scottish Government and other campaigners. And without a simultaneous change to the benefit cap it falls well short of the bold anti-poverty measures we have been calling for from the UK Government.
“But the complete chaos around this Budget gets to the heart of the fact that we should not be leaving crucial decisions around the economy, public finances and household bills in the hands of a deeply incompetent Westminster UK government. We should take these decisions for ourselves with the fresh start of independence.”
The impact of the increase Employers National Insurance contributions on public services is forecast to cost the Scottish Government at least £2 billion over the next five years.
Responding to the UK Government’s Budget, Poverty Alliance Chief Executive Peter Kelly said: “The Chancellor’s decision to fully scrap the unjust two-child limit is the right thing to do.
“For eight years, this cruel policy has severed the link between what families across the country need and the support they are entitled to, pushing children into poverty and limiting their potential. Our children deserve better.
“Campaigners across Scotland have been unified in their demand to scrap the two-child limit and we are pleased that the UK Government has listened, sending a strong message that every child in this country matters. The end of this policy must be the starting point of reform which ensures that our social security system truly provides security.
“This decision also frees up money earmarked for the mitigation of the policy in the Scottish Budget. Coupled with the additional £820 million allocated to the Scottish Government in this UK Budget, this will allow further investment in the action we know is needed to meet our child poverty targets, including increases to the Scottish Child Payment.”
Commenting on the UK Government’s Budget response, Debbie Horne, Scotland Policy and Public Affairs Manager for Independent Age said: “The Autumn Budget was an opportunity to address pensioner poverty across the UK. However, the UK Government has sadly missed the chance to take action on an issue that now affects almost two million older people across the UK, including 160,000 pensioners in Scotland.
“While we welcome the retention of the Triple Lock, this measure alone does not go far enough for older people on the lowest incomes who are living across Scotland in cold homes and with not enough money to live on.
“We continue to call on the UK Government to increase the Warm Home Discount to ease the burden of escalating bills, to support older private renters by uprating Local Housing Allowance so no one has to make dangerous sacrifices to pay their rent, and to boost income through a comprehensive take-up strategy for entitlements, including Pension Credit.
“The absence of meaningful action to address later-life poverty will leave many older people on a low income in Scotland feeling forgottenand many will be worried about losing more of it in tax, because of the extension of the freeze on personal tax allowances to 2031, a year longer than was expected.
“We estimate that without decisive government intervention almost 190,000 pensioners in Scotland could be in poverty by 2040. Worryingly, nothing in this Budget suggests we are being steered away from this frightening outcome.”
Mary Glasgow, Chief Executive of Children First, Scotland’s national children’s charity said: “We welcome the UK Government’s decision to scrap the two-child limit as outlined in the Office for Budget Responsibility report. This is long overdue and frees up Scottish Government budget for other crucial support for children and families.
“Poverty has a devastating impact on children’s mental and physical health, development, happiness and ability to learn that can last a lifetime.
“Both governments must now work together to build on progress and meet the legal target to reduce child poverty in Scotland. Families need a stronger social security offer, for example, through the Scottish Child Payment and whole family support across Scotland to give every family the financial, practical and emotional help they need to tackle the root causes of poverty.
“Children can’t wait. The Scottish Government must use this opportunity to go further and faster in their stated mission to eradicate child poverty.”
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.
Helen Barnard, director of policy at Trussell, said: “Trussell is delighted to see the Chancellor take this bold step which will protect hundreds of thousands of children from growing up facing hunger and hardship. She has listened to the families and food banks across the UK who have been imploring her to act.
“The cruel two-child limit has driven countless families into hardship, forced to turn to food banks to survive. Today’s announcement of its full and swift removal will help ensure all our children have the best possible start in life, ease pressure on public services, and help to boost our economy.
“This government came to power promising to end the need for emergency food and reduce child poverty. Removing the two-child limit will make a vital and significant contribution towards delivering on those manifesto commitments.
“This move will pull 470,000 children out of severe hunger and hardship by 2027 and ease pressure on food banks throughout the UK.
“The government has built on positive steps in strengthening support for people facing severe hunger and hardship. But this cannot be the end. Food bank need remains well above levels five years ago and many people are still struggling to afford the essentials.
“We need more bold choices to transform lives across our communities.”