Tag: public services

Scottish Budget: Delivering for families and public services?

The 2026-27 Budget will support a stronger NHS, with a record £22.5 billion for health and social care, expand cost of living support and invest in Scotland’s infrastructure.

Published alongside the latest multi-year Scottish Spending Review, Infrastructure Strategy and Infrastructure Delivery Pipeline, the draft Budget invests almost £68 billion including direct support for families and household budgets.

The 2026-27 Budget includes: 

  • a cost of living package to: help families with funding to trial a programme of activities in a range of primary schools between 3-6pm; a Summer of Sport – free children’s sporting activities, including lessons on how to swim for every primary school child in the country; and a breakfast club for every primary school by August 2027
  • continued investment in Scotland’s existing cost of living measures, including free prescriptions, free eye examinations, removal of peak rail fares on Scotrail, free tuition fees for young Scots, free school meals for thousands of children, including all pupils in P1 to P5, and free bus travel for under-22s and over-60s
  • funding to increase Scottish Child Payment to £28.20 per week and investment to allow the introduction of a premium payment of £40 per week for eligible children under 12 months from 2027-28, bolstering efforts to drive down child poverty
  • extra funding to keep more children out of poverty from funds initially set aside to mitigate the UK Government’s two-child cap, including £50 million of whole family support and a further £49 million for measures to be announced in the Child Poverty Delivery Plan in March
  • tax choices which increase the Basic and Intermediate rate income tax thresholds to put more money in the pockets of low and middle income earners, maintain current income tax rates and bands, and provide a competitive non-domestic rates relief package worth an estimated £864 million, including measures for pubs, restaurants and retailers
  • a record £22.5 billion for health and social care, including a record £17.6 billion for NHS boards and resources to begin the national rollout of walk-in GP clinics, making it easier to access same-day appointments
  • an almost £15.7 billion record settlement for local government to support the services communities rely on including social care and education
  • significant extra funding for universities and colleges, with colleges seeing a combined increase of £70 million in resource and capital funding, equivalent to a 10% uplift,  targeted support to help retrain workers in the oil and gas sector and ongoing commitment to Scotland’s apprenticeships, which this year will provide more than 31,000 Scots with a pathway to sustainable, well-paid jobs
  • over £5 billion to tackle the climate emergency, reduce carbon emissions and increase resilience as well as backing regenerative and sustainable skills in food and farming
  • £4.3 billion transport funding including investment in railways, the renewal of the ferry fleet, removal of peak season fares for residents of Orkney and Shetland on Northern Isles ferries and nearly £200 million for the dualling of the A9
  • record investment in new affordable homes

Ms Robison said:“This Budget delivers for families across the country, for a stronger NHS, and for a more prosperous future. 

“It will fund landmark policies to continue efforts to eradicate child poverty – investing in a brighter future for Scotland and the children growing up here.

“Almost £68 billion is being invested in 2026-27 and almost £200 billion through the Scottish Spending Review and Infrastructure Investment Pipeline, demonstrating the scale of our ambition for our nation.”

Other measures include:

  • from April 2027, an Air Departure Tax (ADT) will come into force and the framework offered by the new ADT will be used to introduce a private jet supplement
  • the introduction by April 2028 of two new council tax bands for the most expensive properties in Scotland, those worth more than £1 million, on an up-to-date valuation
  • support for high-growth firms to attract private investment and connect entrepreneurs
  • £200 million for the Scottish National Investment Bank – delivering on the commitment to invest £1 billion in the Bank by the end of the parliamentary term
  • record funding for police and fire services and an additional £10 million investment in community justice services
  • a £20 million increase in the culture budget, recognising Scotland is richer because of its world-famous culture and creative sector
  • support for the creation of a diverse and sustainable supply chain for offshore wind, to boost the economy.

Scottish Budget 2026-27

Scottish Spending Review 2026

Infrastructure Strategy

REACTIONS:

Responding to today’s proposed Scottish Budget, Poverty Alliance Policy & Campaigns Manager Ruth Boyle said: “People in Scotland want a just and compassionate society – but too many feel the system is rigged against them.

“There was some good news today – but we can do much more to make sure that every child in Scotland gets the investment they need for a decent life and a better future.

“Ensuring that every child in primary school gets a healthy breakfast is an excellent investment, because no child should go to school hungry.

“Increasing the Scottish Child Payment to £40 for eligible households with a baby under 1 is welcome and will help families at a time when they face increased costs. However, this must be a first step towards boosting that payment to £40 for every eligible child in the country.

“That is the kind of fundamental investment the Government needs to make if they are serious about meeting the 2030 child poverty targets.

“With Scotland not on track to meet those legally binding targets, we need all political parties to set out their plans to invest in country where no child lives in poverty. Our children can’t wait any longer.

“We can make that kind of investment in Scotland – and there is support for it. In among the Budget documents is new polling from YouGov showing that 54% of people in Scotland believe that Government should redistribute income from the better-off to those who are less well off. Just 29% disagree.

“The Scottish Government must raise revenue to invest in our shared national priorities, like tackling child poverty and reducing the cost of living. It’s right that the Government has turned to those with the biggest assets to contribute more with a tax on private jets and increased council tax for the highest value homes. 

“This has to be the start of long-promised, fundamental reform of council tax so that our local councils can provide the services that all of us need, and that are a vital lifeline for so many households in poverty.

“The Poverty Alliance will continue to call for the measures we need to provide a Minimum Income Guarantee that no-one will fall under – including increasing wages, investing in strong public services, and providing a social security system that gives everyone in Scotland a secure foundation to build a better future.

“Today’s budget has some positive steps towards that ambition – but we need to go further and faster if we are to build a Scotland free from poverty.”

Commenting on today’s draft Scottish Budget, Mary Glasgow, Chief Executive of Children First, Scotland’s national children’s charity, said: “It’s hugely positive to see child poverty being made a top priority in today’s budget.

“The significant funding boost to whole family support and extra resources for third sector organisations will provide a lifeline to families who need help most, right across Scotland.

“But we can’t afford to slow down. Scotland’s legal target to eradicate child poverty demands bold, accelerated action. Life is tougher than ever for many children and families and at Children First we witness this first-hand every day.

 “That’s why we urgently need a National Front Door that offers a simple accessible way for families to get the help they need when they need it.”

Children First’s manifesto for the 2026 Holyrood elections calls on the next Scottish Government to deliver a comprehensive offer of whole family support to tackle child poverty and give every family the emotional, practical and financial support they need.

Read the manifesto here: 2026 Holyrood Election Manifesto | Children First

Trussell’s Cara Hilton said: ‘While we welcome the @scotgov‘s £40 SCP rate for babies under 1, we continue to call for an increase to £40 a week for all.

‘Our @TrussellUK data shows food parcels for families with children aged 12-16 in Scotland rose by 7% over the past 5 years. #ScotBudget‘.

Responding to the Scottish Budget and Scottish Spending Review, Anna Fowlie, Scottish Council for Voluntary Organisations (SCVO) Chief Executive, said:   “Too often and for too long, voluntary organisations that provide vital services to people and communities across Scotland are treated as the poor relation to mainstream public services.

“They have had to contend with budget cuts, short-term funding cycles, late payments, incoherent decision-making, poor communication, inadequate grant management, and more. 

“Reform of the voluntary sector funding landscape is long overdue. The Scottish Spending Review is welcome, giving the Government the long-term outlook to make progress on its commitment to deliver improvements, including multi-year funding for Scotland’s voluntary organisations. 

“Welcome too is the Scottish Government’s commitment to multi-year funding for sections of the voluntary sector—this shows, again, what is possible.  

“Today we had hoped for more than a recommitment to the ‘first step’ announced last February—the Scottish Government’s ‘Fairer Funding’ pilot.

“We know the benefits of multi-year funding: better staffing, stability, and future planning for the services people and communities rely on. The Government’s own research confirms this.  

“Multi-year funding alone, however, will not provide the sustainable funding environment the voluntary sector so desperately needs, funding that is flexible, sustainable, and accessible.  

“We need to see real progress and recognition of SCVO’s Fair Funding asks beyond multi-year funding. Wider reforms are, unfortunately, now unlikely to be seen before  the next parliamentary term.

“In the meantime it is essential that in the weeks following the Scottish Budget the Scottish Government support local authorities and voluntary organisations by meeting their commitments to timely notifications and payments. 

“We look forward to further engagement on both Fair Funding and charity regulation in the next parliamentary term.”  

Shelter Scotland Director, Alison Watson said: “Social housing delivery in Scotland remains too slow, too little and too late for the more than 10,000 children homeless tonight. Today’s budget doesn’t do enough to change these facts.

“Shona Robison’s budget was an opportunity for Ministers to put their money where their mouth is. On the face of it an additional £34 million for social housing, compared to the most recent budget, is a step in the right direction – but it is not enough.

“The extra money will only deliver 36,000 affordable homes by 2030 – more than 26,000 short of where they say they would need to be to deliver their promise of 110,000 affordable homes by 2032.

“The new Parliament will need a new approach and new money to deliver the social homes needed to reduce homelessness. Homes that the government promised, that academics say we need but for which there is still no credible plan to deliver.

“We must be honest about the real costs of failure. Failing to build the social homes we need means rising homelessness, rising child poverty, rising costs for councils, health boards and the taxpayer.”

Responding to the Scottish Government’s Budget, Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “It is disappointing to see nothing new in this Budget to adequately respond to the growing number of older people in poverty. 

“One in six pensioners now live in poverty across Scotland, a total of 160,000 older people, and we must see more action to support them.  

“We want the Scottish Government to set out a clear, targeted strategy to bring down the alarming number of older people in poverty, increase access to the vital Discretionary Housing Payments that can help older renters meet shortfalls in rent, and increase the social security support available to those on a low income in later life. 

“With pensioner poverty at its highest level in nearly 20 years, and likely to continue to rise as our population ages, it’s vital all political parties include measures to bring down the levels of poverty in later life in their manifestos’ ahead of May’s Holyrood elections. In a compassionate and wealthy society, we should all be able to live a financially secure, dignified later life.” 

Responding to the Scottish Government’s Budget statement which slashed the 40% discount on business rates bills for pubs at the same time as a rates revaluation will lead to higher bills from 1 April, Stuart McMahon, Director of pubgoers group CAMRA Scotland said: “Pubgoers and publicans simply won’t stand for a Budget which will force more of our locals to go to the wall by landing them with bills they simply can’t afford. 

“I fear that slashing the 40% discount on business rates bills for pubs to just 15% at the same time as these bills are increasing will be absolutely disastrous. 

“Transitional reliefs may sound good but if this Budget still means higher business rates bills than pubs are paying now then this will be the straw that breaks the camel’s back for many hard-pressed licensees.

“Pubs need permanently lower business rates bills so that they can survive, thrive and play their part as vital community hubs.” 

The Scottish Government’s budget announcement of further funding for the college sector, which includes a combined increase of £70 million in resource and capital funding, received a qualified welcome. Principal of Edinburgh College, Audrey Cumberford said: “While this is a welcome step in the right direction for college funding, there is still more that needs to be done.

“This increase will help to undo some of the damage done by years of real terms cuts, but more is needed if we are to ensure the future sustainability of our sector.

“There is now a clear consensus across the political spectrum for better funding for colleges.

“I would urge parties to continue to work together to make sure we unleash the true potential of our sector so we can continue to drive economic growth and improve the lives of Scots across the country.”

Responding to the Scottish government’s 2026-27 budget, announced today by Finance Secretary Shona Robison, RCEM Vice President for Scotland Dr Fiona Hunter said: “Scottish Emergency Departments are in the midst of a crisis born of political apathy towards tackling the difficult problems of social care capacity, delayed discharges and the overall issue of hospital flow.  

“Today’s budget indicates once again that the Scottish government understands what the issues are. £2.3bn extra for social care, an uplift in frontline NHS spending, specific targeted action on delayed discharge and local engagement – these are all measures we warmly welcome from the government.  

“As well as this, our members will be pleased to hear about improvements to training, retention and working conditions. 

“However, we’ve been here before. Time after time the reality in our A&Es has got worse, not better, despite claims from the government that the NHS has been on ‘the path to recovery’ in recent years.  

“We are seeing more and more patients waiting alone on trolleys in hospital corridors for hours on end, getting sicker and being put at risk of harm.  

“This has happened because exit block has not been tackled, despite promises to the contrary from the government. 

“The devil will be in the detail and I will reserve judgement for when myself, and the members I represent, see improvements in our Emergency Departments.   

“We look forward to continued engagement with the government on how it seeks to tackle hospital flow, and await further information on how the Health Secretary will take today’s promises and turn them into action and, ultimately, improvements for our patients.”

Jonathan Carr-West, Chief Executive, LGIU, said: “This Budget offers some short-term stability for councils, but it ducks the bigger questions about how local government is funded. 

There is still no meaningful move towards multi-year settlements, which councils overwhelmingly say they need in order to plan sustainably. Our annual State of Local Government Finance in Scotland research, launched last week, reinforces this.  

Incentivising a council tax freeze risks further undermining local fiscal autonomy, while adult social care remains the single biggest pressure on council finances without clear, dedicated funding. 

Housing investment is welcome, but spreading it across the country without enabling local flexibility limits its capacity to tackle the areas of greatest need. 

Overall, this is a Budget that manages immediate pressures but avoids the structural reform required to put local government finance on a sustainable footing.”

The Existing Homes Alliance (EHA) is a coalition of over 20 housing, environmental, fuel poverty, consumer and industry organisations calling for urgent action to transform Scotland’s existing housing stock.

Lori McElroy, Chair of the Existing Homes Alliance said: “While we welcome the ongoing support to help homeowners, landlords and tenants to make their homes warmer, healthier and more affordable to heat, this remains a drop in the ocean when we have over 800,000 households living in fuel poverty and 44% of Scotland’s homes falling below Energy Performance Certificate band C. 

“Scotland has excellent fuel poverty and energy efficiency programmes such as Warmer Homes Scotland, Area-based Schemes and the Social Housing Net Zero Heat Fund, as well as generous grants through the Home Energy Scotland Grant and Loan Scheme, but the gap between what is needed and what is currently being delivered is wide.

“This Budget, as it stands, is a missed opportunity to significantly scale up these programmes which would reduce fuel poverty, improve public health by tackling damp and mould, and prepare the workforce and supply chains needed to deliver our climate change targets – supporting thousands of jobs and economic opportunities across Scotland.”

Joanne Smith, Policy and Public Affairs Manager for NSPCC Scotland, said: “For children to thrive, it’s vital that they have the best start in life, and so we are heartened by the Scottish Government’s commitment to increase the Child Payment for under ones. But we are disappointed that young families now will not reap those benefits, with it starting in more than a year’s time.

“We also welcome the Scottish Government’s renewed investment in the whole family support fund and its work to continue to deliver the Promise. But it is so important that in this it recognises the fundamental need for support for very young children, just like the Scottish Child Payment does, so that families get the help they need right from the start.”

Scotland’s Chief Constable Jo Farrell has responded to the Scottish Government’s tax and spending plans for 2026 to 2027.

Chief Constable Farrell said: “I recognise a £90m cash-terms uplift to revenue funding and an improved capital allocation for policing against a challenging public finance picture.

“I set out the funding requirements for policing in evidence during the Criminal Justice Committee’s pre-budget scrutiny work.

“Police Scotland will continue to engage with the Scottish Police Authority and the Scottish Government to understand the full implications of the budget and develop our planning for the year ahead.

“My focus continues to be on prioritising our frontline to deliver safer communities, less crime, and supported victims as part of our vision for policing.”

COSLA: Budget Reality

26-01-13 Budget Reality 26-27 FINALDownload

COSLA calls for £16bn budget boost

COSLA is urging the Scottish Government to provide a £16 billion boost in revenue in the Scottish Budget, to secure fair and sustainable funding for Scotland’s councils.

A demand for a £844 million general capital settlement has also been requested, plus a restoration of the Affordable Housing Supply Programme to £955 million, to maintain, repair, expand and secure the future of Council estates.

COSLA has today launched a lobbying campaign urging the Scottish Government to use the upcoming Scottish Budget to provide councils with the fair, sustainable and multi-year funding needed to protect essential local services.

The campaign – ‘Strong Councils, Strong Communities’ – highlights growing pressures facing local government and the very real consequences of continued underfunding for communities across Scotland. The financial pressures in social care and housing are two key areas COSLA are asking the Scottish Government to specifically address in their upcoming budget.

COSLA warns that without urgent action in January’s Budget, councils will be unable to maintain essential services such as social care, education, housing support, roads, and community safety.

COSLA Resources Spokesperson, Councillor Ricky Bell, said: “Scotland’s councils deliver the services that people rely on every single day — from caring for older and vulnerable people to keeping schools open, streets safe and communities thriving. Councils are facing greater demand than ever and are required to do more with significantly less. This is unsustainable.

“The upcoming Scottish Budget is a pivotal moment. The Scottish Government must deliver a settlement that matches the scale of the challenge. Without fair funding, communities will see services reduced and inequalities deepen, and we will struggle to meet national targets in key areas such as child poverty, housing, and net zero”

This year, councils continue to face rising inflation, increasing demand for services, and the continued impact of workforce pressures across social care and education. COSLA’s analysis shows that even maintaining current services requires substantial additional investment. As a fair and sustainable overall financial settlement COSLA’s key asks from the campaign include:

  • An immediate £750m investment in social care.
  • Flexibility for councils to make local decisions that respond to community needs.
  • Recognition of local government as an equal partner in delivering national priorities and tackling inequalities.

COSLA President, Councillor Shona Morrison, added: “Councils work tirelessly to deliver for Scotland’s communities, however, continued pressure on resources makes this increasingly challenging.

“This is about safeguarding what matters most, support for the most vulnerable, opportunities for young people, support for families, and safe, thriving communities. We hope the Budget will reflect the vital role Local Government plays in Scotland’s public services.”

Supporting regional partnerships to drive growth

Empowering regions to make the decisions that are right for them

Regional economic partnerships can further boost local economies and support jobs across Scotland, First Minister John Swinney has said.

In a speech to the Glasgow State of the City Economy Conference, the First Minister outlined proposed legislation – to be introduced in the next Parliament subject to the election outcome – that would help regional partnerships to unlock new powers and deliver on local priorities.

Speaking in Glasgow, the First Minister said: “Glasgow and Scotland are well placed to flourish in the years ahead.

“It is because we are so blessed that I am all the more determined to deliver on my government’s central economic mission: to increase the wealth and wellbeing our citizens by building a more productive, more dynamic, and more regionally balanced economy  driven by innovation, investment, and inclusive growth.

“Therefore capable of achieving the governments aims of eradicating child poverty, enabling our transition to net zero and strengthening our public services, particularly the National Health Service.

“I want our regional partnerships like Glasgow City Region, to have the opportunity to expand their strategic capacities and role, with a package of additional devolved competencies available over time.

“On the table, powers such as skills, economic development and planning.

“That includes empowering Scotland’s regions because working in partnership with national government, it is our regions that are best placed to drive inclusive economic growth in a way that is both local and strategic.”

COSLA Environment and Economy Spokesperson, Cllr Gail Macgregor said: “As we’ve made clear in our Manifesto, councils can make places thrive, investing in public spaces, transport systems and local economies.

“A place-based approach to policymaking is essential. Looking to the future, we are seeking to maximise the benefits that regional economies can realise, and the First Minister’s announcement today is a positive step in that journey.

“I particularly welcome the place-based flexibility and empowerment suggested, and look forward to working with partners to develop these proposals further.”

Leader of Glasgow City Council Susan Aitken said: “Glasgow City Region is already one of the UK’s biggest collaborative success stories – but we need the backing of both our governments to truly empower us to unlock its extraordinary potential.

“I’m delighted that the First Minister has today recognised our region holds the country’s most compelling opportunity for inclusive economic growth, equity, innovation and transformation.

“His commitment puts the devolution of powers and resources to Scotland’s communities firmly on the national agenda – and Glasgow City Region is more than ready to lead the way.”

Reeves Budget ‘tackles cost-of-living and backs Scottish industry’

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.

“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 forgotten and 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. 

Read the manifesto here: 2026 Holyrood Election Manifesto | Children First 

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.”

The End Child Poverty Coalition commented:

Harnessing data and technology to revolutionise public services

First Minister: “Scotland ready for new phase of digital innovation”

Scotland is taking a major step towards becoming a digital-first nation with plans to join public services together through a digital platform, First Minister John Swinney has said.

The Scottish Government is building technical infrastructure to lay the groundwork for innovations to connect people and public services.

This foundation will support the launch of a new app in 2026 to help people access personalised public services more easily. The app will initially provide alerts on weather and travel disruption, followed by digital proof of age, with further functionality expanded over time.

This announcement follows the publication of the updated National Digital Strategy earlier this week, which aims to deliver sustainable public services and create better opportunities for the people of Scotland.

First Minister John Swinney said: “Digital technology is already growing our economy and transforming lives for the better. Scotland is ready to enter a new phase of digital innovation and become a digital-first nation.

“While the corporate world has led the way in making our lives easier through digital technology, my ambition is for digital delivery in the public sector to match the very best of the private sector, in a way that is inclusive for all.

“Innovation will help make public services more efficient, resilient and accessible – while ensuring privacy and security.

“From harnessing data-sharing to help tackle child poverty, to using innovation to support health diagnoses, the potential of technology to improve services and benefit lives stretches across all areas of the public sector. Building this technical foundation will help us develop new ways to grow the economy, end child poverty, improve public services and tackle the climate emergency.”

The Scottish Government is working with tech consultancy Netcompany on this project. Thomas Rysgaard Christiansen, Partner at Netcompany said: “By building the new digital communication infrastructure on our AMI platform, Scotland will benefit from proven technology and domain expertise already applied across Europe.

“Based on re-useable components tailored to local needs, the platform ensures both speed and security in delivery. This approach accelerates Scotland’s digital journey and demonstrates both the scalability and adaptability of our solution to meet varying country-specific needs.

“This is a significant opportunity to help nations digitalise their critical infrastructure and create real value for citizens.” 

Roadmap to Scotland’s digital future – gov.scot

Tax Justice Scotland: A fair wealth tax could raise almost half a billion pounds a year from Scotland’s 10 richest families alone

New report reinforces case for stronger wealth taxes as a key building block of wider package of UK and Scottish fair tax reforms

A new report for Tax Justice Scotland has exposed Scotland’s staggering wealth gap with just five families holding more wealth (£19.3bn) than a quarter of Scotland’s population with the least wealth combined (£18.9bn).

The news comes as campaigners, frontline delivery organisations, academics, trade unions and others gather in Edinburgh for a major tax justice conference to explore the urgent need for a package of fair improvements to the tax systems at Scotland, UK and global levels.

The report, Taxing Wealth for a Fairer and Greener Scotland, produced by the Scottish Trade Union Congress (STUC) on behalf of the campaign, makes clear that fairer taxes on wealth at UK and Scotland levels must be at the heart of this package of reforms to invest in and drive progress towards a fairer, greener and more prosperous future.

Tax Justice Scotland says improved wealth taxation is only one part of a fairer tax system and is today also challenging all political parties in Scotland to outline detailed proposals for using the powers of the Scottish Parliament to improve devolved and local tax systems. 

The STUC analysis highlights the extreme end of wealth inequality after official data showed the wealthiest 2% of Scottish households have more wealth than the poorest 50% combined.

The report shows that the fortunes of Scotland’s very wealthiest people are surging far faster than people’s pay packets. Between 2024 and 2025, the combined wealth of Scotland’s ten richest families shot up by almost 8%, outstripping average earnings growth (5.9%).

Incredibly, the five richest families in Scotland are estimated to have more wealth (£19.3bn) than the Scottish Government collected in Income Tax (£19bn) last year. 

For illustrative purposes, the STUC analysis shows that a modest annual wealth tax of just 2% on all those with assets of more than £10 million could raise nearly half a billion pounds (£492 million) from Scotland’s 10 richest families alone, enough to pay for 12,000 new nurses, or 11,000 new teachers, or to double the Scottish Child Payment and lift more than 30,000 children out of poverty.

Given such a wealth tax would apply to all those with assets of more than £10 million in Scotland, it would raise even more.

Roz Foyer, General Secretary of the STUC, said on behalf of Tax Justice Scotland: “This research lays bare the shocking concentration of wealth in Scotland. While families across the country are struggling to pay their bills, a handful of the super-rich are lining their pockets with more and more money.

“It doesn’t have to be this way: fairly taxing this eye-watering wealth could, according to STUC research, mean more 12,000 new nurses in hospitals, 11,000 more teachers in classrooms or to double the Scottish Child Payment and lift more than 30,000 children out of poverty

“Politicians across the UK should be in no doubt that it’s their dithering and delay that is deepening the crisis within our communities and public services. The powers to make a radical change to our tax system are at their disposal. The excuses must end. Scotland can work for everyone, not just the richest few. It’s time that work was started without equivocation.”

Tax Justice Scotland believes a series of tax reforms are needed to deliver the investment Scotland needs, while incentivising positive behaviours, to tackle poverty, strengthen public services, cut emissions and support fair work, while reducing the many forms of inequality that persist, including gender and economic inequality.

The campaign says this package of reform is essential to building a fairer, greener and more prosperous future for everyone in Scotland. While, over time, raising enough revenue is likely to require broad-based tax increases – fairer wealth taxation is vital.

As the Chancellor prepares her autumn Budget, campaigners point to growing momentum behind fairer taxes, with 68% of people in Scotland thinking the very richest should pay more. Over three-quarters (79%) of people in Scotland back a UK-wide wealth tax on the very richest people. 

Previous analysis has shown that the measure, alongside a series of other reforms to improve existing UK-level taxes on wealth, like increasing Capital Gains Tax and applying National Insurance to investment income, could raise up to £60 billion a year across the UK. 

A UK-wide wealth tax, if introduced, could help boost the Scottish Budget. But the STUC’s analysis shows that if the UK Government fails to act, the Scottish Parliament could use its own tax powers, with HMRC support, to introduce a locally-administered wealth tax.

The findings come against a backdrop of growing fiscal pressure: the Scottish Fiscal Commission has warned of a £4.7 billion shortfall in the Scottish Budget by the end of the decade, alongside mounting longer-term challenges. The Commission is urging all parties to work together before and after the Scottish election to address these challenges.

While making the case for improved taxation on all forms of wealth, Tax Justice Scotland says improving tax on property wealth in Scotland is particularly essential. Campaigners say the outdated and unfair Council Tax, still based on property values from 1991, must finally be replaced with a reformed property tax that reflects today’s housing wealth. 

Property wealth has surged by almost £100 billion in just ten years, yet the Council Tax system remains frozen in time, letting those in the most expensive homes pay far less than they should, while many others are left paying over the odds.

Tax Justice Scotland say replacing Council Tax, alongside wider reforms to better tax the wealthiest and to build upon modest but progressive changes to Income Tax in Scotland, would collectively make sure those with the broadest shoulders contribute a fairer share. 

Campaigners emphasise that while tax isn’t a silver bullet, it can play a much bigger role in building the Scotland we want to see.

Jamie Livingstone, Head of Oxfam Scotland, a member of Tax Justice Scotland, said: “Our tax system can do so much more to help build the country the people of Scotland want, but, right now, it’s stacked in favour of the wealthy.

“It’s time to fix the system; and that must include better taxing wealth right across the UK and, in Scotland, finally replacing the outdated Council Tax.

“With the Scottish election fast approaching, all political parties have a clear choice: defend a broken system that protects the richest while short-changing critical priorities or back a fairer one that delivers a fairer, greener and more prosperous country for all of us.”

STUC-Taxing-Wealth-for-a-Fairer-and-Greener-ScotlandDownload

Read the report Taxing Wealth for a Fairer and Greener Scotland here: 

https://bit.ly/TaxingWealth 

SCOTLAND DEMANDS BETTER on TAX:

Scotland-Demands-Better-on-TaxDownload

CHI in Local Government: Improving Outcomes through Partnership

CHI in Local Government Project brings together key partners to deliver better outcomes for citizens

A new project exploring the use of the Community Health Index (CHI) number in Scottish Local Government has been awarded £590,000 funding from the Scottish Government.

The ‘CHI in Local Government’ project, led by COSLA, the Digital Office for Scottish Local Government, and Public Health Scotland, seeks to improve information sharing across health, social work, and social care services.

The Community Health Index (CHI) System, which has underpinned NHS Scotland’s digital infrastructure for over 40 years, provides a unique patient number used across the health service. It supports everything from immunisation and screening programmes to primary and secondary care delivery.

The CHI In Local Government project aims to use the CHI number to improve the quality of the data services hold, allow services across health, social work, and social care to better match data, and ultimately deliver better outcomes for our citizens.

Accessing health, social work, and social care services all too often requires people to repeat their information. Using the CHI number as a common identifier across health, social work, and social care will reduce this duplication and improve integration of services. To deliver the highest standard of care, it is essential that our workforce have access to the right information at the right time.

The aims of the CHI in Local Government project align clearly with the ambitions set out in the joint COSLA and Scottish Government Digital strategy, Care in the Digital Age, and Data strategy, Greater Access, Better Insight, Improved Outcomes.

Both strategies emphasise the importance of robust information governance and seamless data sharing across health and social care.

Councillor Paul Kelly, COSLA Health and Social Care Spokesperson, said: “I am delighted that the CHI in Local Government project has received funding to progress to the Discovery phase.

“By using CHI more widely across our Councils we can improve data matching and, crucially, reduce the amount of times people accessing our services have to repeat their information.

“I look forward to continuing to champion this work as it progresses and ultimately delivers better outcomes for our citizens.”


Tom Arthur, Minister for Social Care and Mental Wellbeing, said: “In line with the priorities recently set out in the Health and Social Care Service Renewal Framework, I am pleased to support this project.

“Using CHI numbers in social care means people will get a better level of service. By allowing information to be shared safely and confidentially between professionals, we can reduce duplication of work, and the time staff have to spend on administrative tasks.

“It will further embed the integration of health and social care and help in preparations for the health and social care online app, launching in Lanarkshire later this year.”

Martyn Wallace, Chief Digital Officer, Digital Office for Scottish Local Government, said: “I am thrilled with this significant investment as we continue to work closely with our public sector partners to enhance our digital services for citizens.

“By utilising the Community Health Index (CHI), we will streamline access to services, reduce the need for individuals to repeat their information, and ensure timely delivery of care.

“This initiative will also promote better integration of health and social care services, support other collaborative digital projects like the new Health & Social Care App, and ultimately improve outcomes for our citizens.”

Scott Heald, Director of Data and Digital Innovation, Public Health Scotland said: “Our vision at Public Health Scotland (PHS) is focused on ensuring communities can flourish across Scotland.

“We bring together data and intelligence to shape decisions affecting health and care. This work to adopt the Community Health Index (CHI) in Scottish Local Government will make a huge contribution towards how we can work with partners to maximise the benefits of digital and data in ways that will empower individuals and communities.

“PHS already collects and analyses data from across the domains of health and social care, much of which Is sourced directly from Local Government systems.

“The opportunity to integrate the CHI into those underlying systems will lead to faster, more efficient, and accurate production of whole-system data on health and social care services and provide insights on outcomes for individuals across Scotland.”

Children in England are living in ‘Dickensian levels’ of poverty without their basic needs being met, Children’s Commissioner warns

  • New report reveals harrowing accounts from children facing unsafe housing, food insecurity and barriers to education – with many normalising deprivation
  • Children express clear understanding of systemic failures, calling for more accessible and compassionate support and services
  • Urgent reforms across housing, transport, education and community safety needed to break the link between a child’s background and future opportunities

Children in England are facing ‘Dickensian levels’ of poverty, going without basic needs like heating, a place to wash, somewhere to eat breakfast, or safe transport to school.

Frank testimonies from school-age children, shared in new research by the Children’s Commissioner, expose a crisis of hardship, shame and systemic failures and illustrate the stark reality of what it means to live on a low income in 2025.

The Children’s Commissioner Dame Rachel de Souza has set out practical recommendations for tackling – and ending – child poverty based on the insights children have shared with her.

These have been shared with the government’s Child Poverty Unit to shape its forthcoming strategy and ensure it reflects the many ways children experience poverty: going hungry, feeling unsafe at home, travelling hours to get an education and being stigmatised for having less that their peers.

‘Every time I got [food packages] the food was always out of date and mouldy…I know I’m poor but I’m not going to eat mouldy food.’ – Boy, 15

‘The system’s so muddled up that they make you feel greedy for even wanting it…. it’s our rights. We didn’t choose to be poor.’ – Boy, 18

‘Some of it [free school meals] looks like food you wouldn’t feed to a dog’. – Boy, 15.

‘Sometimes if I have the money, I catch the bus, but sometimes I have to walk and I just feel very uncomfortable… at nighttime.’ – Girl, 14.

Recommendations include the introduction of a ‘triple-lock’ on all child-related benefits, to help alleviate the severe conditions children and their families are living through, and to deliver greater financial security for hundreds of thousands of children. All four UK Children’s Commissioners – from England, Scotland, Wales and Northern Ireland – have jointly backed this call, alongside a repeated call to end the two-child benefits limit to prevent hundreds of thousands of children being driven into poverty.

Other proposals from Dame Rachel de Souza include free bus travel for all school-age children, priority for housing to be given to children in low-income households, auto-enrolment for free school meals for all eligible children, improved communication and data-sharing between schools, GPs and local authorities.

Children’s Commissioner Dame Rachel de Souza said: ““Since becoming Children’s Commissioner, I have been struck by the change in how children talk about their family lives over that four-year period. Issues that were traditionally seen as ‘adult’ concerns are now keenly felt by children, who see their parents’ worries and the struggles they face: the hours they work, the homes they live in and the ability to put food on the table.

“Children shared harrowing accounts of hardship, with some in almost-Dickensian levels of poverty. They don’t talk about ‘poverty’ as an abstract concept but about not having the things that most people would consider basic: a safe home that isn’t mouldy or full or rats, with a bed big enough to stretch out in, ‘luxury’ food like bacon, a place to do homework, heating, privacy in the bathroom and being able to wash, having their friends over, and not having to travel hours to school.

“Children spoke to me about the sense of shame that comes from knowing you have less – but, as one of the richest societies in the world, it is decision makers who should be ashamed that children are growing up knowing their futures are being determined by their financial circumstances.

“We have seen some positive steps by the government to get more money into families’ pockets – but we need leaders at every level: government, business, transport and every public service to commit to bold, practical measures that break the link between a child’s background and their opportunities.”

In interviews and focus groups with 128 children aged between six and 18, children didn’t talk about ‘poverty’ directly but were acutely aware they were growing up not having enough money to do the same things as their peers and feeling a sense of shame at being seen as ‘lesser’.

Dame Rachel’s report reveals key themes, including:

  • Everyday impact of poverty: Children spoke about their families going without heating, food, and other essentials, often accepting these hardships as normal. Many experienced poor-quality, overcrowded and unsafe housing, as well as frequent moves while facing long waits from housing providers and prolonged stays in temporary accommodation, leaving children with no stability or space to thrive, which impacted their wellbeing and education;
  • Food insecurity and health inequality: Rising costs mean many families have limited access to nutritious food, relying on food banks, school parcels or poor-quality free school meals, about which children raised concerns around the quality and stigma of receiving. Children also face long waits for healthcare and unequal access to mental health services, with a perception of a two-tier system, where those who can afford private care receiving faster treatment.
  • Barriers to education and opportunity: Children highlighted the cost of uniforms, limited transport meaning long walks or complicated commutes to school, and access to extracurricular activities as major obstacles. Schools play a crucial role in supporting children, but reported support was inconsistent. Limited career guidance and low pay were also cited as restricting the prospects for young people experiencing poverty.
  • Broken system and inaccessible support: Children showed a striking awareness of their family’s access to social security benefits, including the need for benefit rates to be increased. Many spoke of the need to make the system easier to navigate and with better access to services like housing, repairs, GPs, and school-based initiatives.
  • Unsafe and isolated communities: High crime, unsafe streets and unaffordable transport left children feeling vulnerable and cut off. Despite this, strong community bonds offer a sense of belonging and resilience in the face of hardship.

In response to children’s evidence, the Children’s Commissioner highlights the need for changes beyond the social security system to the public services that children rely on. Her recommendations include:

  • Uplifts to all child-related benefits on an annual basis as costs rise, so families can meet their children’s basic needs, and removing the two-child limit;
  • Housing reforms to ensure no child or family is housed in any B&B-type accommodation for more than six weeks. Children in low-income households should be prioritised for affordable housing and no child should ever be placed in temporary accommodation alongside other single adults;
  • Improved access to transport so as many children as possible benefit from free bus travel – as a minimum, all school age children in England should have free bus travel;
  • Improved oversight of Free School Meals, with better assessment and enforcement of school food standards to ensure all children receive nutritious, high-quality meals – and for all eligible children to be auto-enrolled to receive them;
  • Increased safety in communities, with visible reforms for children including prioritising the rollout of PCSOs, increased street lighting and more neighbourhood watch style initiatives in areas with children on low incomes.
  • Long-term vision for youth activities with children from low-income households front and centre of the government’s forthcoming National Youth Strategy, as well as a commitment to funding the Holiday Activities and Food programme beyond April 2026.

Children’s testimonies:

‘I would…change the amount of money people get from Universal Credit…because £920, is that enough for one month?’ Girl, 11.

‘In our area sometimes there’s stuff like robbing and sometimes there’s drunk people and stabbing … It’s not really a nice because sometimes it can be really dangerous… but sometimes it can be a nice merry community.’ Boy, 8.

‘Sometimes when I need to take a bath or have a shower, the water doesn’t really work sometimes… so sometimes when [children] don’t have enough water to take a shower, they always just have to go to school not clean and they didn’t shower.’ Girl, 10.

‘They’d make you walk in the cafeteria with everyone there, so everyone knows you’re poor because you have to wear a lanyard or a band on your wrist…Everyone had regular water bottles, but they had different ones for free school meals that were smaller than everyone else’s.’ Boy,18.

‘Sometimes when we go to my auntie’s house, she gives us food to take because she cooks out of home…that’s the only time I eat normal food and not take out.’ Boy, 13.

‘I remember when my sister was just born…you have to keep the house warm. But you can’t keep the house warm…because there was six of us in the house at the time…you’re trying to feed everyone, keep everyone warm and then pay for every expense around the house, so it’s quite a lot’. – Girl, 16.

‘[My mum’s] always encouraged me to reach out and try and find jobs or…some kind of income because we are quite low on the ground.’ Girl, 16.

‘I grew up in a household where my mum has [severe illness], so I’m a young carer, I have been since I was 8…I still can’t get carers allowance because I’m in full time education but the second I get in, I’m still doing all my jobs, still looking after them. What am I meant to do? Not go to college or uni? You have to give up your whole life just to care for your family, it’s all good but…you need a future.’ – Boy, 18.

‘In my house, the heating doesn’t work. Every time we [put the heating on] it’ll take like £10 a day from our electricity. And sometimes the electricity just turns off.’ Girl, 10.

‘It took [the council] three months to move us out, which was…so much stress …and the mould was making me so ill…We got home and there was a hole in our floor and the mould wasn’t done properly…It feels like you’re fighting a one-way battle because they they’re not actually doing what they can do to support us.’ Girl, 17.

‘There are a bunch of people who walk by going to a club – when they leave, they’re always drunk and chucking glass around.’ Boy, 10.

Growing-up-in-a-low-income-family-childrens-experiencesDownload

Spending Review: £ Billions to back Scottish jobs

UK Government’s Plan for Change delivers record settlement for Scottish Government with an extra £9.1 billion over the SR period to deliver public services

Working people across Scotland will benefit from significant investment in clean energy and innovation, creating thousands of high-skilled jobs and strengthening Scotland’s position as the home of the United Kingdom’s clean energy revolution.  

The UK Government has confirmed £8.3 billion in funding for GB Energy-Nuclear and GB Energy in Aberdeen. This is alongside an increased commitment to the Acorn Carbon Capture, Usage and Storage project, which will receive development funding.

The Spending Review, outlined yesterday, Wednesday 11 June, announces targeted investment in Scotland’s most promising sectors to grow the economy and put more money in working people’s pockets.  It delivers an extra £9.1 billion over Phase 2 of the Spending Review, through the Barnett formula.

The government also confirmed £25 million for the Inverness and Cromarty Firth Freeport.   

These investments are part of a wider package, with funding for hydrogen production projects at Cromarty and Whitelee.

Secretary of State for Scotland, Ian Murray, said:  “Putting more money in the pockets of working Scots by investing in the country’s renewal is at the heart of this Spending Review and our Plan for Change.

“The Chancellor has unleashed a new era of growth for Scotland, confirming billions of pounds of investment in clean energy – including new development funding for Acorn – creating thousands of high-skilled jobs.

“Scotland’s leading role at the heart of UK defence policy has been strengthened and there is also significant investment in our trailblazing innovation, research and development sectors.

“And the Scotland Office will work with local partners to ensure hundreds of millions of pounds of new targeted support for Scottish communities and businesses goes to projects that matter to local people. This means that the UK Government is now investing almost £1.7 billion in dozens of important growth schemes across Scotland over 10 years.

“To maximise the benefit of recent trade deals with India, US and the EU we are continuing the Brand Scotland programme to promote inward investment opportunities boosting Scottish exports of our globally celebrated products.

“And we are delivering a record real-terms funding settlement for the Scottish Government with an extra £9.1 billion over the Spending Review period through the Barnett formula. That’s more money than ever before for them to invest in Scottish public services like our NHS, police, housing and schools.

“This is a historic Spending Review for Scotland that chooses investment over decline and delivers on the promise that there would be no return to austerity.”

Investment in Scotland to strengthen UK defence  

Speaking in the House of Commons yesterday, the Chancellor reaffirmed the government’s commitment to increase defence spending to 2.6% of GDP by April 2027, backing our Armed Forces, creating British jobs in British industries, and prioritising the security of Britain when it is most needed.  

The long-term future of the Clyde is secured through an initial £250 million investment over three years which will begin a multi-decade, multi-billion pound redevelopment of HM Naval Base Clyde through the ‘Clyde 2070’ programme.   

Investing in innovation and R&D  

Scotland will also become home to the UK’s largest and most powerful supercomputer, with up to £750 million committed to its development at Edinburgh University. This world-class facility will give scientists across all UK universities access to extraordinary computer power, further strengthening Scotland’s research and innovation capability.   

The UK Government is backing Scottish industry with a share of increased UK-wide R&D spending set to grow from £20.4 billion in 2025-26 to over £22.6 billion per year by 2029-30. Scotland will also benefit from a £410 million UK-wide Local Innovation Partnerships Fund.  

Targeted support for Scottish communities   

The government is also investing £160 million over 10 years for Investment Zones in the North East of Scotland and in Glasgow City Region, and confirming £452 million over four years for City and Growth Deals across Scotland.  

A £100 million joint investment for the Falkirk and Grangemouth Growth deal with the Scottish Government (£50 million from UK Government and £50 million from Scottish Government), demonstrating the UK Government’s continued commitment to the Grangemouth industrial area.  

A new local growth fund, and investments in up to 350 deprived communities across the UK, will maintain the same cash level as in 2025-26 under the Shared Prosperity Fund. The Ministry of Housing, Communities and Local Government and the Scotland Office, will work with local partners and the Scottish Government, to ensure money goes to projects that matter to local people. This investment will help drive growth and improve communities across Scotland.  

Supporting Scottish businesses  

The National Wealth Fund (NWF) is trialling a Strategic Partnership with Glasgow City Region to provide enhanced, hands-on support to help it develop and finance long term investment opportunities. The NWF has already made its first investment in Scotland with £43.5 million in direct equity for a sustainable packaging company, which is to build its first commercial-scale manufacturing facility near Glasgow.  

Through its Nations and Regions Investment programme the British Business Bank is delivering £150 million across Scotland to break down access to finance barriers and drive economic growth.  

The settlement also allocates £0.75 million each year to champion our ‘Brand Scotland’ trade missions to promote Scotland’s goods and services on the world stage and to encourage further growth and investment.

A record settlement for Scottish public services   

The Government has been clear that local decision-making against local priorities is central to delivering growth.   

The Scottish Government will receive the largest real terms settlement since devolution began in 1998, with an average £50.9 billion per year between 2026-27 and 2028-29, enabling the Scottish Government to deliver for working people in Scotland.  This includes £2.9 billion per year on average through the operation of the Barnett formula, with £2.4 billion resource between 2026-27 and 2028-29 and £510 million capital between 2026-27 and 2029-30. 

This investment and record settlement is made possible by the ‘tough but necessary’ decisions taken in the October Budget.

Edinburgh North and Leith Labour MP Tracy Gilbert has welcomed the statement. She said: “The Comprehensive Spending Review is good for Scotland’s economy and public Services.

“After several meetings with the Secretary of States for Science, Innovation and Technology and Scotland I’m so pleased to see the announcement of funding for the new Supercomputer to be based at EdinburghUniversity.

“This major investment in Edinburgh positions us at the forefront of computing, and technological innovation, not just in the UK, but globally.”

Not unsurprisingly, the Holyrood SNP Government has a number of issues with the likely impact of the Spending Review on Scotland. Post to follow …

Edinburgh Partnership launches review of longer-term support for the city’s third sector

The Edinburgh Partnership is conducting a review of how it supports and works with third sector organisations in Edinburgh.

The review into the relationship between the public sector and third sector in Edinburgh seeks to improve funding certainty in future years. This includes how grant funding and commissioning is delivered, how third sector organisations monitor and report on their work, and what in-kind support is provided.

Third sector organisations of all types – voluntary, social enterprises and charities – are being asked to share their views through the City of Edinburgh Council’s Consultation Hub survey or by attending a workshop.

The results will be reported to the Policy and Sustainability Committee in August.

Council Leader and Chair of the Edinburgh Partnership, Jane Meagher, said: “The third sector provides vital support to local communities, with many giving direct support to the most vulnerable in our city. 

“We know that they, like the Council, are under significant financial pressure and that there needs to be longer-term change in how they are supported by us and our partners.

“We want to hear about how we can make it simpler, provide more stability, and work better together to help vulnerable people. You can share your views through the council’s consultation hub webpage, or by attending one of the workshops.”

Workshops run from Monday 19 May until Thursday 5 June. Details are available on the Consultation Hub and booking is required.

As part of the city’s commitment to help the sector, the council has dedicated £3.5m this year to help organisations impacted by unexpected loss of grant funding or reduced commissioning.

Visit the Council’s website for more information about the Third Sector Resilience Fund.