Scotland’s Budget Bill passed

HOLYROOD has approved the 2026-27 Scottish Budget, including a record £22.5 billion for health and social care and enhanced cost of living support.

The Budget Bill sets out funding of almost £68 billion with investment in Scotland’s infrastructure, direct support for household budgets and extra help for families.  

The spending plans include:

  • continued investment in cost of living measures, including free prescriptions, free eye examinations, removal of peak rail fares on Scotrail – and freezing of remaining Scotrail fares
  • 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
  • an increase in the Scottish Child Payment and, from 2027-28, a premium payment of £40 per week for eligible children under 12 months
  • 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, more than £5 billion to tackle the climate emergency and £4.3 billion transport funding
  • record investment of £926 million for affordable housing supply, record funding for police and fire services and an additional £10 million investment in community justice services

Finance Secretary Shona Robison said: “The Scottish Government’s Budget delivers for the people of Scotland – strengthening our NHS and providing real, practical support with the cost of living.

“It will improve access to healthcare, including funding for a network of 16 walk-in GP clinics open seven days per week, and builds on our game-changing work to eradicate child poverty, with an increase in the Scottish Child Payment.

“This Budget demonstrates our determination to improve lives across Scotland, and our plans mean that 55% of taxpayers can expect to pay less income tax than in the rest of the UK.”

WE CAN THANK THE LIB-DEMS, OF COURSE …

‘The £300m that we have secured in a whole host of areas shows just how serious we are about getting stuff done. With the Scottish Liberal Democrats, you get grown-up, sensible politics.

‘You can get more of that by backing us in May on your second, peach-coloured ballot paper.’

Budget Bill

Scottish Budget

Holyrood Budget agreement secured

New funding for social care, hospices and non-domestic rates relief

The Finance Secretary has welcomed Scottish Liberal Democrats support for the Scottish Government’s 2026-27 Budget.

Investment will be brought forward to update the Budget in a number of areas, including:

  • A further £2.9 million for the hospice sector, to delivery pay parity for staff with the NHS Agenda for Change
  • An additional £20 million to the Local Government Settlement for social care – which can be used towards funding the Real Living wage for adult and childcare sectors
  • Further strengthening the non-domestic rates package for licensed hospitality and music venues, meaning rates relief for eligible premises liable for the basic and intermediate property rates will rise to 40% for the next three years, subject to a £110,000 cap per business

Ms Robison said: “This Budget and our wider spending plans are focused on the priorities of the people of Scotland – ramping up cost of living support, driving further improvements in the NHS and supporting our landmark efforts to eradicate child poverty.  

“We have been clear that we would seek to work constructively to deliver on these priorities and the Liberal Democrats have engaged in our discussions in a positive manner throughout the Budget process.

“There are a range of areas where we share priorities and have acted upon – such as the college sector, hospices, and social care. With that agreement now in place to secure a majority in parliament in support of the Bill, I am confident we will make lives better for people in Scotland.”

COSLA has welcomed the budget announcement by the Scottish Government of an additional £20 million for local government to use for social care, which can be used towards funding matters such as the Real Living Wage for adult and childcare services.

Cllr Paul Kelly, COSLA’s Health and Social Care spokesperson, commented: “”We welcome the Scottish Government’s decision to fully fund the cost of implementing the Real Living Wage across contracted Adults and Children’s Care.

“This decision is an important one that gives our partner providers assurance that direct care workers will receive at least the Real Living Wage in 2026-27.

“While the additional funding is welcome, the budget still falls short of the £750 million in urgent investment the sector truly needs. COSLA will continue to seek further investment in social care in the years to come.”